Rydex Series 5/2014 485BPOS 8/1/14 Combined Document

485BPOS 1 rsf8114filing.htm GUGGENHEIM INVESTMENT PROSPECTUS DATED AUGUST 1, 2014 Rydex Series 5/2014 485BPOS 8/1/14 Combined Document

As filed with the U.S. Securities and Exchange Commission on July 29, 2014

File Nos. 033-59692 and 811-07584

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM N-1A

REGISTRATION STATEMENT

UNDER



	THE SECURITIES ACT OF 1933	x
	Pre-Effective Amendment No.	o
	Post-Effective Amendment No. 131	x

and/or

REGISTRATION STATEMENT

UNDER



	THE INVESTMENT COMPANY ACT OF 1940	x
	Amendment No. 132	x

_________________

RYDEX SERIES FUNDS

(Exact Name of Registrant as Specified in Charter)

_________________

805 King Farm Boulevard

Suite 600

Rockville, Maryland 20850

(Address of Principal Executive Offices) (Zip Code)

(301) 296-5100

(Registrant’s Telephone Number, including Area Code)

_________________

The Corporation Trust Company

1209 Orange Street

Wilmington, Delaware 19801

County of New Castle

(Name and Address of Agent for Service)

_________________

Copies to:



W. John McGuire Bingham McCutchen LLP 2020 K Street NW Washington, DC 20006 Amy J. Lee Guggenheim Investments One Security Benefit Place Topeka, KS 66636-0001

It is proposed that this filing will become effective (check appropriate box):

o Immediately upon filing pursuant to paragraph (b) of Rule 485

x On August 1, 2014 pursuant to paragraph (b) of Rule 485

o 60 days after filing pursuant to paragraph (a)(1) of Rule 485

o On (date) pursuant to paragraph (a)(1) of Rule 485

o 75 days after filing pursuant to paragraph (a)(2) of Rule 485

o On (date) pursuant to paragraph (a)(2) of Rule 485



Mutual Funds	\|	\|	8.1.2014

Rydex Funds Prospectus
Advisor Class, Investor Class and Class H



Ticker Symbol			Fund Name
Advisor	Investor	Class H
Rydex Domestic Equity - Broad Market Funds
RYNAX	RYNVX		Nova Fund*
		RYSPX	S&P 500^® Fund
RYUAX	RYURX		Inverse S&P 500^® Strategy Fund*
RYAOX	RYOCX		NASDAQ-100^® Fund
RYAAX	RYAIX		Inverse NASDAQ-100^® Strategy Fund*
		RYMDX	Mid-Cap 1.5x Strategy Fund*
		RYMHX	Inverse Mid-Cap Strategy Fund*
		RYMKX	Russell 2000^® 1.5x Strategy Fund*
		RYRHX	Russell 2000^® Fund
		RYSHX	Inverse Russell 2000^® Strategy Fund*
Rydex Domestic Equity - Pure Style Funds
		RYAWX	S&P 500^® Pure Growth Fund
		RYZAX	S&P 500^® Pure Value Fund
		RYBHX	S&P MidCap 400^® Pure Growth Fund
		RYAVX	S&P MidCap 400^® Pure Value Fund
		RYWAX	S&P SmallCap 600^® Pure Growth Fund
		RYAZX	S&P SmallCap 600^® Pure Value Fund
Rydex Sector Funds
RYKAX	RYKIX		Banking Fund
RYBAX	RYBIX		Basic Materials Fund
RYOAX	RYOIX		Biotechnology Fund
RYCAX	RYCIX		Consumer Products Fund
RYSAX	RYSIX		Electronics Fund
RYEAX	RYEIX		Energy Fund
RYVAX	RYVIX		Energy Services Fund
RYFAX	RYFIX		Financial Services Fund
RYHAX	RYHIX		Health Care Fund
RYIAX	RYIIX		Internet Fund
RYLAX	RYLIX		Leisure Fund
RYMPX	RYPMX		Precious Metals Fund



Ticker Symbol			Fund Name
Advisor	Investor	Class H
Rydex Sector Funds (continued)
RYRAX	RYRIX		Retailing Fund
RYTAX	RYTIX		Technology Fund
RYMAX	RYMIX		Telecommunications Fund
RYPAX	RYPIX		Transportation Fund
RYAUX	RYUIX		Utilities Fund
Rydex International Equity Funds
		RYEUX	Europe 1.25x Strategy Fund*
		RYJHX	Japan 2x Strategy Fund*
		RYWVX	Emerging Markets 2x Strategy Fund*
		RYWYX	Inverse Emerging Markets 2x Strategy Fund*
Rydex Specialty Funds
		RYSBX	Strengthening Dollar 2x Strategy Fund*
		RYWBX	Weakening Dollar 2x Strategy Fund*
		RYHRX	Real Estate Fund
Rydex Fixed Income Funds
RYADX	RYGBX		Government Long Bond 1.2x Strategy Fund*
RYJAX	RYJUX		Inverse Government Long Bond Strategy Fund*
		RYHGX	High Yield Strategy Fund
		RYIHX	Inverse High Yield Strategy Fund*
		RYGTX	Emerging Markets Bond Strategy Fund
Guggenheim Alternative Funds
		RYSRX	Guggenheim Long Short Equity Fund (formerly, U.S. Long Short Momentum Fund)
		RYDSX	Guggenheim Event Driven and Distressed Strategies Fund
Rydex Money Market Fund
RYFXX			U.S. Government Money Market Fund


*	For important information regarding the Funds' investment objectives and their use of leverage, please see the following page.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have not approved or disapproved these securities, or passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense.



SERIAH-1-0814x0815	guggenheiminvestments.com

The Funds are very different from most mutual funds in that they seek to provide leveraged, leveraged inverse or inverse investment results. Certain of the Funds seek to provide such investment results on a daily basis. The Leveraged Inverse and Inverse Funds pursue investment goals which are inverse to the performance of their respective benchmark, a result opposite of most other mutual funds. The pursuit of such leveraged and inverse investment goals has the following implications: • The Leveraged and Leveraged Inverse Funds are riskier than alternatives that do not use leverage because the performance of an investment in a Leveraged or Leveraged Inverse Fund is magnified. • The effect of leverage on a Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark over a period of time greater than one day. This means that the return of a Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from the return of the Fund’s benchmark or underlying index for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of a Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the Fund’s benchmark or underlying index. In addition, as a result of compounding, a Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the Fund’s benchmark or underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and fund expenses. • The Funds are not suitable for all investors and are designed to be utilized only by sophisticated 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. Investors who do not understand the Funds or do not intend to actively manage and monitor their investments should not buy shares of the Funds.

Each Leveraged Fund (except for the International Equity Funds) seeks daily exposure to its underlying index equal to or in excess of 120% of its net assets (please see each Leveraged Fund's Summary Section for the specific daily exposure sought, which may be in excess of 120%) while each Leveraged Inverse Fund seeks daily exposure to its underlying index equal to -200% of its net assets. As a consequence, for each Fund the risk of total loss of your investment exists in the event of a movement of the Fund’s underlying index in excess of 50% in a direction adverse to the Fund (meaning a decline in the value of the underlying index of a Leveraged Fund and a gain in the value of the underlying index of a Leveraged Inverse Fund). In short, the risk of total loss of your investment exists.

The Europe 1.25x Strategy Fund and the Japan 2x Strategy Fund (the "International Equity Funds”) do not seek to provide investment results on a daily basis that match the performance of a specific benchmark, but rather seek to provide investment results that correlate to the performance of specific benchmark over time. However, similar to the Leveraged and Leveraged Inverse Funds discussed above, each of the Europe 1.25x Strategy Fund and Japan 2x Strategy Fund seeks exposure to its underlying index equal to 125% and 200% of its nets assets, respectively. As a consequence, for each International Equity Fund the risk of total loss of your investment exists in the event of a movement of the International Equity Fund’s underlying index in excess of 50% in a direction adverse to the International Equity Fund (meaning a decline in the value of the underlying index of an International Leveraged Fund). In short, the risk of total loss of your investment exists.

There is no assurance that any Fund will achieve its objectives and an investment in a Fund could lose money. No single Fund is a complete investment program.

TABLE OF CONTENTS

FUND SUMMARIES

(Includes Important Information About the Fund (if applicable); Investment Objective; Fees and Expenses of the Fund; Principal Investment Strategies; Principal Risks; Performance Information; Management; Purchase and Sale of Fund Shares; Tax Information; and Payments to Broker-Dealers and Other Financial Intermediaries)



Domestic Equity Funds
Nova Fund	1
S&P 500^® Fund	10
Inverse S&P 500^® Strategy Fund	16
NASDAQ-100^® Fund	25
Inverse NASDAQ-100^® Strategy Fund	33
Mid-Cap 1.5x Strategy Fund	42
Inverse Mid-Cap Strategy Fund	51
Russell 2000^® 1.5x Strategy Fund	60
Russell 2000^® Fund	69
Inverse Russell 2000^® Strategy Fund	75
S&P 500^® Pure Growth Fund	84
S&P 500^® Pure Value Fund	90
S&P MidCap 400^® Pure Growth Fund	96
S&P MidCap 400^® Pure Value Fund	102
S&P SmallCap 600^® Pure Growth Fund	108
S&P SmallCap 600^® Pure Value Fund	114

Sector Funds
Banking Fund	120
Basic Materials Fund	126
Biotechnology Fund	132
Consumer Products Fund	138
Electronics Fund	144
Energy Fund	150
Energy Services Fund	156
Financial Services Fund	162
Health Care Fund	168
Internet Fund	174
Leisure Fund	180
Precious Metals Fund	185
Retailing Fund	190
Technology Fund	195
Telecommunications Fund	200
Transportation Fund	205
Utilities Fund	210



International Equity Funds
Europe 1.25x Strategy Fund	215
Japan 2x Strategy Fund	224
Emerging Markets 2x Strategy Fund	233
Inverse Emerging Markets 2x Strategy Fund	241

Specialty Funds
Strengthening Dollar 2x Strategy Fund	249
Weakening Dollar 2x Strategy Fund	258
Real Estate Fund	267

Fixed Income Funds
Government Long Bond 1.2x Strategy Fund	272
Inverse Government Long Bond Strategy Fund	281
High Yield Strategy Fund	290
Inverse High Yield Strategy Fund	297
Emerging Markets Bond Strategy Fund	305

Alternative Funds
Long Short Equity Fund	312
Event Driven and Distressed Strategies Fund	320

Money Market Fund
U.S. Government Money Market Fund	328
MORE INFORMATION ABOUT THE TRUST AND THE FUNDS	332
COMPARABLE INDEX INFORMATION	361
MANAGEMENT OF THE FUNDS	362
SHAREHOLDER INFORMATION	365
BUYING, SELLING AND EXCHANGING FUND SHARES	367
BUYING FUND SHARES	370
SELLING FUND SHARES	373
EXCHANGING FUND SHARES	376
ACCOUNT POLICIES	378
DISTRIBUTION AND SHAREHOLDER SERVICES	380
DIVIDENDS AND DISTRIBUTIONS	381
ADDITIONAL TAX INFORMATION	382
FINANCIAL HIGHLIGHTS	384
INDEX PUBLISHERS INFORMATION	454
ADDITIONAL INFORMATION	458

NOVA FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Nova Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than a single trading day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from 1.5x of the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 1.5x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.78%	0.53%
Total Annual Fund Operating Expenses	1.78%	1.28%

EXAMPLE

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

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$181	$560	$964	$2,095
Investor	$130	$406	$702	$1,545

PROSPECTUS | 1

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 259% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Investments in derivative instruments, such as futures, options and swap agreements, have the economic effect of creating financial leverage in the Fund’s portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments. Financial leverage will magnify, sometimes significantly, the Fund’s exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Fund’s portfolio. The value of the Fund’s portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the Investment Company Act of 1940 or to meet redemption requests.

The S&P 500 ^® Index is a capitalization-weighted index composed of 500 common stocks, which are chosen by the Standard & Poor’s Corporation (“S&P”) on a statistical basis, and which generally represent large-capitalization companies with capitalizations ranging from $3.8 billion to $560.6 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

Under certain circumstances the Fund may invest a substantial portion of its assets in other short-term fixed-income investment companies advised by the Advisor, or an affiliate of the Advisor, for liquidity management purposes, including in order to increase yield on liquid investments used to collateralize derivatives positions. Investments in these investment companies will significantly increase the portfolio’s exposure to certain other asset categories, including: (i) a broad range of high yield, high risk debt securities rated below the top four long-term rating categories by a nationally recognized statistical rating organization or, if unrated, determined by the Advisor, to be of comparable quality (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) collateralized loan obligations (“CLOs”), other asset-backed securities (including mortgage-backed securities) and similarly structured debt investments; and (iv) other short-term fixed income securities. Such investments will expose the Fund to the risks of these asset categories and increases or decreases in the value of these investments may cause the Fund to deviate from its investment objective.

2 | PROSPECTUS

PRINCIPAL RISKS

As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. In addition to this risk, the Fund is subject to a number of additional risks that may affect the value of its shares, including:

ACTIVE TRADING RISK —The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

ASSET-BACKED AND MORTGAGE-BACKED SECURITIES RISK — Through its investments in other investment companies, the Fund may have exposure to asset-backed securities, including mortgage-backed securities and structured finance investments. Investors in these securities generally receive payments that are part interest and part return of principal. These payments may vary based on the rate at which the underlying borrowers pay off their loans. Some asset-backed securities, including mortgage-backed securities, may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices very volatile and they are subject to liquidity risk.

CLO RISK — Through its investments in other investment companies, the Fund may have exposure to CLOs. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CLO securities as a class. The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the CLO in which the Fund invests.

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Compounding affects all investments, but has a more significant impact on a leveraged index fund. In general, particularly during periods of higher index volatility, compounding will cause longer-term results to be more or less than the return of the Fund’s benchmark. This effect becomes more pronounced as volatility increases.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses, including the cost of leverage, were included, the Fund’s performance would be lower than shown.

Areas shaded lighter represent those scenarios where the Fund can be expected to return more than 150% of the performance of the underlying index; conversely, areas shaded darker represent those scenarios where the Fund can be expected to return less than 150% of the performance of the underlying index.

PROSPECTUS | 3



Index Performance		Annualized Volatility
1x	1.5x	10%	25%	50%	75%	100%
-60%	-90%	-75%	-75%	-77%	-79%	-83%
-50%	-75%	-65%	-65%	-68%	-72%	-76%
-40%	-60%	-54%	-55%	-58%	-62%	-68%
-30%	-45%	-42%	-43%	-47%	-52%	-60%
-20%	-30%	-29%	-31%	-34%	-42%	-51%
-10%	-15%	-15%	-17%	-23%	-32%	-41%
0%	0%	0%	-2%	-9%	-19%	-32%
10%	15%	14%	13%	5%	-6%	-21%
20%	30%	31%	29%	19%	9%	-9%
30%	45%	47%	45%	35%	20%	2%
40%	60%	65%	62%	50%	35%	13%
50%	75%	83%	79%	68%	49%	25%
60%	90%	102%	98%	85%	63%	38%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2014 is 3.87%. The underlying index’s highest one-year volatility rate during the five year period is 5.25%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is 18.84%.

Historical underlying index volatility and performance are not indications of what the underlying index volatility and performance will be in the future. The table is intended to underscore that the Fund is designed as a short-term trading vehicle for investors who intend to actively monitor and manage their portfolios.

COUNTERPARTY CREDIT RISK — The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

CREDIT RISK — The Fund could lose money if the issuer or guarantor of a debt instrument in which it invests or a counterparty to a derivatives transaction or other transaction becomes unwilling or unable to make timely principal and/or interest payments, or to otherwise meet its obligations. The issuer of a debt instrument, such as a bond, could also suffer a decrease in quality rating, which may affect the volatility of the price and liquidity of the bond.

DERIVATIVES RISK — The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK — Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation,

4 | PROSPECTUS

liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

FUTURES CONTRACTS RISK — Futures contracts are typically exchange-traded contracts that call for the future delivery of an asset at a certain price and date, or cash settlement of the terms of the contract. Risks of futures contracts may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid market. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Futures markets are highly volatile and the use of futures may increase the volatility of the Fund’s NAV. Futures are also subject to leverage risks and to liquidity risk.

OPTIONS RISK — Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

EARLY CLOSING RISK—The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

EQUITY RISK—The Fund is subject to the risk that the value of the equity securities or equity-based derivatives in the Fund’s portfolio will decline due to volatility in the equity market caused by general market and economic conditions, perceptions regarding particular industries represented in the equity market, or factors relating to specific companies to which the Fund has investment exposure.

HIGH YIELD AND UNRATED SECURITIES RISK — The Fund’s exposure to higher yielding, below investment grade and unrated high risk debt securities (commonly known as “junk bonds”) may present additional risk because these securities may be less liquid and present greater credit risk than investment grade bonds. The price of high yield securities tends to be subject to greater volatility due to issuer-specific operating results and outlook and to real or perceived adverse economic and competitive industry conditions. This exposure may be obtained through investments in other investment companies.

INTEREST RATE RISK — The market value of fixed income investments and related financial instruments will change in response to interest rate changes. During periods of falling interest rates, the values of fixed income securities generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Fixed income securities with longer durations are subject to greater volatility than those with shorter durations. Thus, if interest rates rise sharply, the value of the Fund’s fixed income investments and share price could decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

INVESTMENT IN INVESTMENT VEHICLES RISK — Investing in other investment vehicles, including, exchange-traded funds, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

INVESTMENTS IN LOANS RISK — Investments in loans involve special types of risks, including credit risk, interest rate risk, counterparty risk and prepayment risk. Loans may offer a fixed or floating interest rate. Loans are often generally below investment grade and may be unrated. Loans may be difficult to value and some can be subject to liquidity risk.

PROSPECTUS | 5

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

LEVERAGING RISK—The Fund achieves leveraged exposure to the underlying index through the use of derivative instruments. The more the Fund invests in leveraged instruments, the more this leverage will magnify any losses on those investments. The Fund’s investment in these instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. Since the Fund’s investment strategy involves consistently applied 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. Leverage also will have the effect of magnifying tracking error.

LIQUIDITY RISK—In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MARKET RISK — The market value of the securities and derivatives held by the Fund may fluctuate resulting from factors affecting the individual company or other factors such as changing economic, political or financial market conditions. Moreover, changing economic, political or financial market conditions in one country or geographic region could adversely impact the market value of the securities held by the Fund in a different country or geographic region.

NON-DIVERSIFICATION RISK—The 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 diversified fund.

OTC TRADING RISK—Certain of the derivatives in which the Fund may invest may be traded (and privately negotiated) in the OTC market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated. As a result and similar to other privately negotiated contracts, the Fund is subject to counterparty credit risk with respect to such derivative contracts.

PASSIVE INVESTMENT RISK—The Fund is not actively managed and the Advisor does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that is actively managed.

PORTFOLIO TURNOVER RISK — Daily rebalancing of the Fund's holdings pursuant to its daily investment objective may lead to a greater number of portfolio transactions in the Fund than experienced by other mutual funds. Such frequent and active trading may lead to significantly higher transaction costs because of increased broker commissions associated with such transactions.

PREPAYMENT RISK — The Fund’s investments in or exposure to fixed income investments subjects the Fund to prepayment risk. Securities subject to prepayment risk generally offer less potential for gains when interest rates decline, because issuers of the securities may be able to prepay the principal due on the securities, and may offer a greater potential for income loss when interest rates rise.

REPURCHASE AGREEMENT RISK—The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

TEMPORARY DEFENSIVE INVESTMENT RISK —The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

6 | PROSPECTUS

underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

TRADING HALT RISK—If a trading halt occurs, the Fund may temporarily be unable to purchase or sell securities, options or futures contracts. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective.

PERFORMANCE INFORMATION

The following bar chart shows the performance of the Investor shares of the Fund from year to year. The variability of performance over time provides an indication of the risks of investing in the Fund. The following tables show the performance of the Advisor shares and Investor shares of the Fund as an average over different periods of time in comparison to the performance of a broad-based market index. The figures in the bar chart and tables assume the reinvestment of dividends and capital gains distributions. Of course, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.82% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	23.95%	Q4 2008	-34.77	%

PROSPECTUS | 7

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)

The after-tax returns presented in the table below are calculated using highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax returns will depend on your specific tax situation and may differ from those shown below. After-tax returns are not relevant to investors who hold shares of the Fund through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	48.30%	23.86%	6.70%
Return After Taxes on Distributions	48.30%	23.77%	6.19%
Return After Taxes on Distributions and Sale of Fund Shares	27.34%	19.66%	5.16%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	49.08%	24.50%	7.24%
Return After Taxes on Distributions	49.08%	24.42%	6.76%
Return After Taxes on Distributions and Sale of Fund Shares	27.78%	20.23%	5.63%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Accounts opened through a financial intermediary (non-direct) will be subject to your financial intermediary’s minimum initial investment amount and account balance requirements, which may be different than the amounts above.

Investor Class and Advisor Class accounts held directly at Guggenheim Investments (other than those that are managed by financial professionals) are subject to a minimum initial investment and account balance of $5,000 (including retirement accounts).

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

8 | PROSPECTUS

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”). You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

Fund distributions are generally taxable as ordinary income, qualified dividend income, or capital gains (or a combination), unless your investment is in an IRA or other tax-advantaged retirement account. Funds invested through tax-deferred arrangements may be subject to taxation upon withdrawal.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your sales person to recommend the Fund over another investment. Ask your sales person or visit your financial intermediary’s website for more information.

PROSPECTUS | 9

S&P 500^® FUND

INVESTMENT OBJECTIVE

The S&P 500^® Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.56	%
Total Annual Fund Operating Expenses	1.56	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$159	$493	$850	$1,856

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 157% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its objective without investing directly in the securities included in the underlying index, or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

10 | PROSPECTUS

The S&P 500 ^® Index is a capitalization-weighted index composed of 500 common stocks, which are chosen by the Standard & Poor’s Corporation (“S&P”) on a statistical basis, and which generally represent large-capitalization companies with capitalizations ranging from $3.8 billion to $560.6 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 11

swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

12 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 6.28% .

PROSPECTUS | 13



Highest Quarter Return		Lowest Quarter Return
Q2 2009	15.65%	Q4 2008	-22.66	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	30.22%	16.15%	5.88%
Return After Taxes on Distributions	30.16%	16.08%	5.71%
Return After Taxes on Distributions and Sale of Fund Shares	17.10%	13.04%	4.59%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.35%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

14 | PROSPECTUS

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Class H accounts held directly at Guggenheim Investments (other than those that are managed by financial professionals) are subject to a minimum initial investment and account balance of $5,000 (including retirement accounts).

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 15

INVERSE S&P 500^® STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse S&P 500^® Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide investment results that match the opposite of the performance of a specific benchmark on a daily basis, a result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not rely on the use of derivatives to achieve their investment objectives.

Because the Fund seeks daily inverse investment results, the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -1x) and the cumulative performance of the underlying index.

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the consequences of seeking daily inverse investment results, (b) understand the risk of shorting and (c) intend to actively monitor and manage their investments. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.78%	0.52%
Total Annual Fund Operating Expenses	1.93%	1.42%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$196	$606	$1,042	$2,254
Investor	$145	$449	$776	$1,702

16 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Unlike a traditional index fund, the Fund’s investment objective is to perform exactly opposite the underlying index, and the Fund generally will not own the securities included in the underlying index. Instead, the Fund employs as its investment strategy a program of engaging in short sales of securities included in the underlying index and investing to a significant extent in derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to write swaps. The Fund’s investment in derivatives serves as a substitute for directly selling short each of the securities included in the underlying index and produces inverse exposure to the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index.

The S&P 500 ^® Index is a capitalization-weighted index composed of 500 common stocks, which are chosen by the Standard & Poor’s Corporation (“S&P”) on a statistical basis, and which generally represent large-capitalization companies with capitalizations ranging from $3.8 billion to $560.6 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PROSPECTUS | 17

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and Fund expenses.

Compounding affects all investments, but has a more significant impact on a leveraged fund. In general, particularly during periods of higher index volatility, compounding will cause longer term results to be more or less than the inverse of the return of the underlying index. This effect becomes more pronounced as volatility increases.

Areas shaded lighter represent those scenarios where the Fund can be expected to return more than the inverse performance of the underlying index; conversely, areas shaded darker represent those scenarios where the Fund can be expected to return the same or less than the inverse performance of the underlying index.

18 | PROSPECTUS



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

PROSPECTUS | 19

20 | PROSPECTUS

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

PASSIVE INVESTMENT RISK—The Fund is not actively managed and the Advisor does not attempt to take defensive positions in rising markets. Therefore, the Fund may be subject to greater losses in a rising market than a fund that is actively managed.

SHORT SALES RISK—Short selling a security involves selling a borrowed security with the expectation that the value of the security will decline, so that the security may be purchased at a lower price when returning the borrowed security. The risk for loss on short selling is greater than the original value of the securities sold short because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Government actions also may affect the Fund’s ability to engage in short selling.

PROSPECTUS | 21

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -7.67% .



Highest Quarter Return		Lowest Quarter Return
Q4 2008	16.36%	Q2 2009	-15.51	%

22 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-26.71%	-19.69%	-9.05%
Return After Taxes on Distributions	-26.71%	-19.70%	-9.39%
Return After Taxes on Distributions and Sale of Fund Shares	-15.12%	-13.20%	-6.03%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-26.35%	-19.28%	-8.58%
Return After Taxes on Distributions	-26.35%	-19.29%	-8.91%
Return After Taxes on Distributions and Sale of Fund Shares	-14.91%	-12.97%	-5.77%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

PROSPECTUS | 23

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

Fund distributions are generally taxable as ordinary income or capital gains (or a combination of both), unless your investment is in an IRA or other tax-advantaged retirement account. Funds invested through tax-deferred arrangements may be subject to taxation upon withdrawal.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

24 | PROSPECTUS

NASDAQ-100^® FUND

INVESTMENT OBJECTIVE

The NASDAQ-100 ^® Fund (the “Fund”) seeks to provide investment results that correspond, before fees and expenses, to a benchmark for over-the-coufnter securities on a daily basis. The Fund’s current benchmark is the NASDAQ-100 Index ^® (the “underlying index”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.79%	0.54%
Total Annual Fund Operating Expenses	1.79%	1.29%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$182	$563	$970	$2,105
Investor	$131	$409	$708	$1,556

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 141% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 25

Receipts (“ADRs”) to gain exposure to international companies included in the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

The NASDAQ-100 Index ^® is a modified capitalization-weighted index composed of 100 of the largest non-financial companies listed on The Nasdaq Stock Market with capitalizations ranging from $7.0 billion to $560.6 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. Currently, the NASDAQ-100 Index ^® is concentrated in technology companies. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

26 | PROSPECTUS

DEPOSITARY RECEIPT RISK—The Fund may hold the securities of non-U.S. companies in the form of ADRs. The underlying securities of the ADRs in the Fund’s portfolio are subject to fluctuations in foreign currency exchange rates that may affect the value of the Fund’s portfolio. In addition, the value of the securities underlying the ADRs may change materially when the U.S. markets are not open for trading. Investments in the underlying foreign securities also involve political and economic risks distinct from those associated with investing in the securities of U.S. issuers.

PROSPECTUS | 27

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, such as ADRs. The Fund’s exposure to foreign issuers and investments in foreign securities, if any, are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

INDUSTRY AND TECHNOLOGY SECTOR CONCENTRATION RISK—The risk of concentrating Fund investments in a limited number of issuers conducting business in the same industry or group of industries is that the Fund will be more susceptible to the risks associated with that industry or group of industries than a fund that does not concentrate its investments. To the extent that the Fund’s investments are concentrated in issuers conducting business in the technology sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of technology companies also may fluctuate widely in response to such events.

28 | PROSPECTUS

below investment grade and may be unrated. Loans may be difficult to value and some can be subject to liquidity risk.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

LIQUIDITY RISK —I n certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

TRACKING ERROR RISK—The Advisor may not be able to cause the Fund’s performance to correspond to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, and high portfolio turnover rate all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PROSPECTUS | 29

to use leverage and may prevent the Fund from achieving its investment objective.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 7.21% .



Highest Quarter Return		Lowest Quarter Return
Q1 2012	20.92%	Q4 2008	-24.20	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	34.42%	23.30%	8.43%
Return After Taxes on Distributions	31.33%	22.72%	8.17%
Return After Taxes on Distributions and Sale of Fund Shares	21.90%	19.20%	6.89%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.16%

30 | PROSPECTUS



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	35.06%	23.93%	9.01%
Return After Taxes on Distributions	32.19%	23.40%	8.76%
Return After Taxes on Distributions and Sale of Fund Shares	22.09%	19.76%	7.39%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.16%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

PROSPECTUS | 31

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

32 | PROSPECTUS

INVERSE NASDAQ-100^® STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse NASDAQ-100^® Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide investment results that match the opposite of the performance of a specific benchmark on a daily basis, a result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not rely on the use of derivatives to achieve their investment objectives.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.81%	0.56%
Total Annual Fund Operating Expenses	1.96%	1.46%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$199	$615	$1,057	$2,285
Investor	$149	$462	$797	$1,746

PROSPECTUS | 33

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Unlike a traditional index fund, the Fund’s investment objective is to perform exactly opposite the underlying index, and the Fund generally will not own the securities included in the underlying index. Instead, the Fund employs as its investment strategy a program of engaging in short sales of securities included in the underlying index and investing to a significant extent in derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to write swaps. The Fund’s investment in derivatives serves as a substitute for directly selling short each of the securities included in the underlying index and produces inverse exposure to the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain inverse exposure to international companies included in the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index.

The NASDAQ-100 Index^® is a modified capitalization-weighted index composed of 100 of the largest non-financial companies listed on The Nasdaq Stock Market with capitalizations ranging from $7.0 billion to $560.6 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. Currently, the NASDAQ-100 Index^® is concentrated in technology companies. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

34 | PROSPECTUS

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and Fund expenses.

PROSPECTUS | 35



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

The underlying index’s annualized historical volatility rate for the five year period ended June 30,2 014 is 4.49%. The underlying index’s highest one-year volatility rate during the five year period is 5.76%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is 22.32%.

36 | PROSPECTUS

PROSPECTUS | 37

that economic sector. The prices of the securities of technology companies also may fluctuate widely in response to such events.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

38 | PROSPECTUS

greater potential for income loss when interest rates rise.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -8.55% .

PROSPECTUS | 39



Highest Quarter Return		Lowest Quarter Return
Q4 2008	18.70%	Q1 2012	-18.06	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-29.24%	-24.65%	-12.11%
Return After Taxes on Distributions	-29.24%	-24.65%	-12.39%
Return After Taxes on Distributions and Sale of Fund Shares	-16.55%	-15.81%	-7.61%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.16%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-28.53%	-24.27%	-11.67%
Return After Taxes on Distributions	-28.53%	-24.27%	-11.95%
Return After Taxes on Distributions and Sale of Fund Shares	-16.15%	-15.62%	-7.40%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.16%

40 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 41

MID-CAP 1.5X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Mid-Cap 1.5x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than a single trading day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from 1.5x of the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 1.5x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

The Fund seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for mid-cap 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.53	%
Total Annual Fund Operating Expenses	1.68	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$171	$530	$913	$1,987

42 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 563% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Advisor will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of the underlying index. As a result, the Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies included in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

The S&P MidCap 400 ^® Index is a modified capitalization-weighted index composed of 400 mid cap stocks chosen by S&P for market size, liquidity, and industry group representation. The S&P MidCap 400 ^® Index covers approximately 7% of the U.S. equities market and generally represents mid-capitalization companies with capitalizations ranging from $1.3 billion to $10.9 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PROSPECTUS | 43

PRINCIPAL RISKS

44 | PROSPECTUS



Index Performance		Annualized Volatility
1x	1.5x	10%	25%	50%	75%	100%
-60%	-90%	-75%	-75%	-77%	-79%	-83%
-50%	-75%	-65%	-65%	-68%	-72%	-76%
-40%	-60%	-54%	-55%	-58%	-62%	-68%
-30%	-45%	-42%	-43%	-47%	-52%	-60%
-20%	-30%	-29%	-31%	-34%	-42%	-51%
-10%	-15%	-15%	-17%	-23%	-32%	-41%
0%	0%	0%	-2%	-9%	-19%	-32%
10%	15%	14%	13%	5%	-6%	-21%
20%	30%	31%	29%	19%	9%	-9%
30%	45%	47%	45%	35%	20%	2%
40%	60%	65%	62%	50%	35%	13%
50%	75%	83%	79%	68%	49%	25%
60%	90%	102%	98%	85%	63%	38%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2014 is 4.65%. The underlying index’s highest one-year volatility rate during the five year period is 6.59%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is 21.67%.

PROSPECTUS | 45

46 | PROSPECTUS

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PROSPECTUS | 47

the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 10.04% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	30.17%	Q4 2008	-39.07	%

48 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	50.13%	29.21%	9.91%
Return After Taxes on Distributions	50.13%	29.21%	9.58%
Return After Taxes on Distributions and Sale of Fund Shares	28.38%	24.42%	8.10%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	33.50%	21.89%	10.36%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party (e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

PROSPECTUS | 49

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

50 | PROSPECTUS

INVERSE MID-CAP STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse Mid-Cap Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide investment results that match the opposite of the performance of a specific benchmark on a daily basis, a result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not rely on the use of derivatives to achieve their investment objectives.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Total Annual Fund Operating Expenses	1.67	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$170	$526	$907	$1,976

PROSPECTUS | 51

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The S&P MidCap 400 ^® Index is a modified capitalization-weighted index composed of 400 mid-cap stocks chosen by Standard & Poor's Corporation ("S&P") for market size, liquidity, and industry group representation. The S&P MidCap 400 ^® Index covers approximately 7% of the U.S. equities market and generally represents mid-capitalization companies with capitalizations ranging from $1.3 billion to $10.9 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

52 | PROSPECTUS

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and Fund expenses.

PROSPECTUS | 53



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

54 | PROSPECTUS

PROSPECTUS | 55

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

56 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -8.43% .



Highest Quarter Return		Lowest Quarter Return
Q3 2011	19.20%	Q2 2009	-18.52	%

PROSPECTUS | 57

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	-27.69%	-23.39%	-12.24%
Return After Taxes on Distributions	-27.69%	-23.39%	-12.59%
Return After Taxes on Distributions and Sale of Fund Shares	-15.67%	-15.18%	-7.71%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	33.50%	21.89%	10.10%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

58 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 59

RUSSELL 2000^® 1.5X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Russell 2000^® 1.5x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

INVESTMENT OBJECTIVE

The Fund 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 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.57	%
Acquired Fund Fees and Expenses	0.06	%
Total Annual Fund Operating Expenses*	1.78	%

The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Fund’s financial highlights and financial statements because the financial highlights and financial statements reflect only the operating expenses of the Fund and do not include Acquired Fund Fees and Expenses, which are fees and expenses incurred indirectly by the Fund through its investments in certain underlying investment companies.

60 | PROSPECTUS

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$181	$560	$964	$2,095

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 472% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Advisor will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of the underlying index. As a result, the Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform similarly to the securities of companies included in the underlying index.

The Russell 2000 ^® Index is composed of the 2,000 smallest companies in the Russell 3000 ^® Index, representing approximately 10% of the Russell 3000 ^® total market capitalization and consisting of capitalizations ranging from $49.3 million to $4.5 billion as of June 30, 2014. The Russell 3000 ^® Index is composed of the 3,000 largest U.S. companies ranked by total market capitalization, representing approximately 98% of the U.S. investable equity market. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S.

PROSPECTUS | 61

financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

62 | PROSPECTUS



Index Performance		Annualized Volatility
1x	1.5x	10%	25%	50%	75%	100%
-60%	-90%	-75%	-75%	-77%	-79%	-83%
-50%	-75%	-65%	-65%	-68%	-72%	-76%
-40%	-60%	-54%	-55%	-58%	-62%	-68%
-30%	-45%	-42%	-43%	-47%	-52%	-60%
-20%	-30%	-29%	-31%	-34%	-42%	-51%
-10%	-15%	-15%	-17%	-23%	-32%	-41%
0%	0%	0%	-2%	-9%	-19%	-32%
10%	15%	14%	13%	5%	-6%	-21%
20%	30%	31%	29%	19%	9%	-9%
30%	45%	47%	45%	35%	20%	2%
40%	60%	65%	62%	50%	35%	13%
50%	75%	83%	79%	68%	49%	25%
60%	90%	102%	98%	85%	63%	38%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2014 is 5.26%. The underlying index’s highest one-year volatility rate during the five year period is 7.24%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is 20.21%.

PROSPECTUS | 63

availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

64 | PROSPECTUS

of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

PROSPECTUS | 65

also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TRACKING ERROR RISK—The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 3.23% .

66 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	31.68%	Q4 2008	-40.39	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	58.97%	26.49%	8.63%
Return After Taxes on Distributions	58.97%	26.49%	8.55%
Return After Taxes on Distributions and Sale of Fund Shares	33.38%	22.02%	7.09%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	9.07%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

PROSPECTUS | 67

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

68 | PROSPECTUS

RUSSELL 2000^® FUND

INVESTMENT OBJECTIVE

The Russell 2000^® Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.59	%
Acquired Fund Fees and Expenses	0.05	%
Total Annual Fund Operating Expenses*	1.64	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$167	$517	$892	$1,944

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 267% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 69

the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

The Russell 2000 ^® Index is composed of the 2,000 smallest companies in the Russell 3000 ^® Index, representing approximately 10% of the Russell 3000 ^® total market capitalization and consisting of capitalizations ranging from $49.3 million to $4.5 billion as of June 30, 2014. The Russell 3000 ^® Index is composed of the 3,000 largest U.S. companies ranked by total market capitalization, representing approximately 98% of the U.S. investable equity market. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

70 | PROSPECTUS

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

PROSPECTUS | 71

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 2.35% .

72 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	20.55%	Q4 2008	-26.89	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	36.33%	18.31%	6.31%
Return After Taxes on Distributions	33.58%	17.83%	5.96%
Return After Taxes on Distributions and Sale of Fund Shares	20.48%	14.66%	4.84%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	7.99%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PROSPECTUS | 73

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

74 | PROSPECTUS

INVERSE RUSSELL 2000^® STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse Russell 2000^® Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide investment results that match the opposite of the performance of a specific benchmark on a daily basis, a result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not rely on the use of derivatives to achieve their investment objectives.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.57	%
Total Annual Fund Operating Expenses	1.72	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$175	$542	$933	$2,030

PROSPECTUS | 75

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Russell 2000 ^® Index is composed of the 2,000 smallest companies in the Russell 3000 ^® Index, representing approximately 10% of the Russell 3000 ^® total market capitalization and consisting of capitalizations ranging from $49.3 million to $4.5 billion as of June 30, 2014. The Russell 3000 ^® Index is composed of the 3,000 largest U.S. companies ranked by total market capitalization, representing approximately 98% of the U.S. investable equity market. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

76 | PROSPECTUS

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and Fund expenses.

PROSPECTUS | 77



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

78 | PROSPECTUS

PROSPECTUS | 79

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

80 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -5.28% .



Highest Quarter Return		Lowest Quarter Return
Q3 2011	21.19%	Q2 2009	-20.40	%

PROSPECTUS | 81

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	-30.91%	-23.80%	-13.02%
Return After Taxes on Distributions	-30.91%	-23.80%	-13.36%
Return After Taxes on Distributions and Sale of Fund Shares	-17.49%	-15.39%	-8.06%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	8.75%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

82 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 83

S&P 500^® PURE GROWTH FUND

INVESTMENT OBJECTIVE

The S&P 500^® Pure Growth Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Total Annual Fund Operating Expenses	1.52	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$155	$480	$829	$1,813

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 594% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

84 | PROSPECTUS

The S&P 500 Pure Growth Index is narrow in focus, containing only those S&P 500 ^® companies with strong growth characteristics. As of June 30, 2014, the S&P 500 Pure Growth Index included companies with capitalizations ranging from $5.3 billion to $394.3 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 85

GROWTH STOCKS RISK—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.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

86 | PROSPECTUS

associated with such transactions.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.70% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	21.70%	Q4 2008	-24.37	%

PROSPECTUS | 87

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	41.31%	24.05%	7.28%
Return After Taxes on Distributions	41.31%	24.00%	7.21%
Return After Taxes on Distributions and Sale of Fund Shares	23.38%	19.87%	5.87%
S&P 500 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	43.88%	26.36%	10.49%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

88 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 89

S&P 500^® PURE VALUE FUND

INVESTMENT OBJECTIVE

The S&P 500^® Pure Value Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Total Annual Fund Operating Expenses	1.52	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$155	$480	$829	$1,813

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 410% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

90 | PROSPECTUS

The S&P 500 Pure Value Index is narrow in focus, containing only those S&P 500 ^® companies with strong value characteristics. As of June 30, 2014, the S&P 500 Pure Value Index included companies with capitalizations ranging from $4.0 billion to $432.3 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 91

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

92 | PROSPECTUS

VALUE STOCKS RISK—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.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.37% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	44.18%	Q4 2008	-31.40	%

PROSPECTUS | 93

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	45.34%	25.06%	6.99%
Return After Taxes on Distributions	42.68%	24.35%	4.94%
Return After Taxes on Distributions and Sale of Fund Shares	25.63%	20.38%	4.51%
S&P 500 Pure Value Index (reflects no deduction for fees, expenses or taxes)	48.07%	28.65%	11.51%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

94 | PROSPECTUS

transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 95

S&P MIDCAP 400^® PURE GROWTH FUND

INVESTMENT OBJECTIVE

The S&P MidCap 400^® Pure Growth Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Total Annual Fund Operating Expenses	1.52	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$155	$480	$829	$1,813

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 131% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

96 | PROSPECTUS

The S&P MidCap 400 Pure Growth Index is narrow in focus, containing only those S&P MidCap 400 ^® companies with strong growth characteristics. As of June 30, 2014, the S&P MidCap 400 Pure Growth Index included companies with capitalizations ranging from $1.6 billion to $10.9 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 97

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

98 | PROSPECTUS

associated with such transactions.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.64% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	26.30%	Q4 2008	-25.40	%

PROSPECTUS | 99

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	34.36%	26.27%	10.89%
Return After Taxes on Distributions	32.94%	26.00%	10.30%
Return After Taxes on Distributions and Sale of Fund Shares	19.90%	21.74%	8.73%
S&P MidCap 400 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	36.14%	28.34%	13.02%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

100 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 101

S&P MIDCAP 400^® PURE VALUE FUND

INVESTMENT OBJECTIVE

The S&P MidCap 400^® Pure Value Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Acquired Fund Fees and Expenses	0.04	%
Total Annual Fund Operating Expenses*	1.56	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$159	$493	$850	$1,856

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 506% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

102 | PROSPECTUS

index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

The S&P MidCap 400 Pure Value Index is narrow in focus, containing only those S&P MidCap 400 ^® companies with strong value characteristics. As of June 30, 2014, the S&P MidCap 400 Pure Value Index included companies with capitalizations ranging from $1.3 billion to $9.1 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 103

central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

104 | PROSPECTUS

frequent and active trading may lead to significantly higher transaction costs because of increased broker commissions associated with such transactions.

VALUE STOCKS RISK—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.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 5.77% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	37.89%	Q4 2008	-34.65	%

PROSPECTUS | 105

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	35.26%	21.07%	7.03%
Return After Taxes on Distributions	35.00%	20.26%	6.51%
Return After Taxes on Distributions and Sale of Fund Shares	19.95%	16.87%	5.44%
S&P MidCap 400 Pure Value Index (reflects no deduction for fees, expenses or taxes)	38.83%	25.32%	10.22%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

106 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 107

S&P SMALLCAP 600^® PURE GROWTH FUND

INVESTMENT OBJECTIVE

The S&P SmallCap 600^® Pure Growth Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Total Annual Fund Operating Expenses	1.52	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$155	$480	$829	$1,813

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 677% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

108 | PROSPECTUS

The S&P SmallCap 600 Pure Growth Index is narrow in focus, containing only those S&P SmallCap 600 ^® companies with strong growth characteristics. As of June 30, 2014, the S&P SmallCap 600 Pure Growth Index included companies with capitalizations ranging from $251.2 million to $5.6 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 109

110 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.69% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	28.45%	Q4 2008	-26.31	%

PROSPECTUS | 111

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	40.88%	21.79%	8.92%
Return After Taxes on Distributions	40.88%	21.79%	8.66%
Return After Taxes on Distributions and Sale of Fund Shares	23.14%	17.92%	7.18%
S&P SmallCap 600 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	43.75%	24.83%	11.82%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

112 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 113

S&P SMALLCAP 600^® PURE VALUE FUND

INVESTMENT OBJECTIVE

The S&P SmallCap 600^® Pure Value Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.53	%
Total Annual Fund Operating Expenses	1.53	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$156	$483	$834	$1,824

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 658% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

114 | PROSPECTUS

The S&P SmallCap 600 Pure Value Index is narrow in focus, containing only those S&P SmallCap 600 ^® companies with strong value characteristics. As of June 30, 2014, the S&P SmallCap 600 Pure Value Index included companies with capitalizations ranging from $156.6 million to $4.4 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 115

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

116 | PROSPECTUS

VALUE STOCKS RISK—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.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 2.06% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	69.02%	Q4 2008	-37.55	%

PROSPECTUS | 117

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	42.13%	23.45%	6.29%
Return After Taxes on Distributions	42.13%	19.34%	4.27%
Return After Taxes on Distributions and Sale of Fund Shares	23.85%	17.02%	3.97%
S&P SmallCap 600 Pure Value Index (reflects no deduction for fees, expenses or taxes)	45.49%	28.17%	10.46%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

118 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 119

BANKING FUND

INVESTMENT OBJECTIVE

The Banking Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 481% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Banking Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Banking Companies that have small to mid-sized capitalizations. Banking Companies are engaged in accepting deposits and making commercial and consumer loans and include state chartered banks, savings and loan institutions, and banks that are members of the Federal Reserve System. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Banking Companies and U.S. government securities. Under U.S. Securities and Exchange Commission regulations, the Fund may not invest more than 5% of its total assets in

120 | PROSPECTUS

the equity securities of any company that derives more than 15% of its revenues from brokerage or investment management activities.

Investments in derivative instruments, such as futures and options, have the economic effect of creating financial leverage in the Fund’s portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments. Financial leverage will magnify, sometimes significantly, the Fund’s exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Fund’s portfolio. The value of the Fund’s portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the Investment Company Act of 1940 or to meet redemption requests.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the banking sector and, therefore, may be concentrated in an industry or group of industries within the banking sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

BANKING SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the banking sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Banking Companies also may fluctuate widely in response to such events.

PROSPECTUS | 121

subject to leverage risks and to liquidity risk.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PORTFOLIO TURNOVER RISK — The Fund’s strategy may frequently involve buying and selling portfolio securities, which may lead to increased costs to the Fund. Portfolio turnover risk may cause the Fund’s performance to be less than you expect.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

122 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 2.46% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	20.06%	Q1 2009	-31.94	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	28.84%	6.28%	-3.62%
Return After Taxes on Distributions	28.23%	5.72%	-4.17%
Return After Taxes on Distributions and Sale of Fund Shares	16.32%	4.65%	-2.80%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 123



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	29.45%	6.81%	-3.12%
Return After Taxes on Distributions	28.90%	6.29%	-3.64%
Return After Taxes on Distributions and Sale of Fund Shares	16.66%	5.09%	-2.45%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

124 | PROSPECTUS

tax-deferred arrangements may be subject to taxation upon withdrawal.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 125

BASIC MATERIALS FUND

INVESTMENT OBJECTIVE

The Basic Materials Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.78%	0.53%
Total Annual Fund Operating Expenses	1.88%	1.38%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$191	$591	1,016	$2,201
Investor	$140	$437	$755	$1,657

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 349% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Basic Materials Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Basic Materials Companies that have small to mid-sized capitalizations. Basic Materials Companies are engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector, and may be involved in the production and transportation of metals, textiles, and wood products. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Basic Materials Companies and U.S. government securities.

126 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the basic materials sector and, therefore, may be concentrated in an industry or group of industries within the basic materials sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

BASIC MATERIALS SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the basic materials sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Basic Materials Companies also may fluctuate widely in response to such events.

PROSPECTUS | 127

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

128 | PROSPECTUS

does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 8.12% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	20.31%	Q3 2008	-29.91	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.91%	13.03%	7.24%
Return After Taxes on Distributions	0.62%	12.90%	7.04%
Return After Taxes on Distributions and Sale of Fund Shares	0.51%	10.39%	5.78%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 129



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	1.42%	13.59%	7.78%
Return After Taxes on Distributions	1.15%	13.47%	7.59%
Return After Taxes on Distributions and Sale of Fund Shares	0.80%	10.87%	6.24%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

130 | PROSPECTUS

PROSPECTUS | 131

BIOTECHNOLOGY FUND

INVESTMENT OBJECTIVE

The Biotechnology Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.76%	0.51%
Total Annual Fund Operating Expenses	1.86%	1.36%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$189	$585	1,006	$2,180
Investor	$138	$431	$745	$1,635

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 119% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Biotechnology Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Biotechnology Companies that have small to mid-sized capitalizations. Biotechnology Companies are engaged in the research, development, and manufacture of various biotechnological products, services, and processes; manufacture and/or distribute biotechnological and biomedical products, including devices and instruments; provide or benefit significantly from scientific and technological advances in biotechnology; or provide processes or services instead of, or in addition to, products. The Fund also may purchase American Depositary Receipts

132 | PROSPECTUS

(“ADRs”) to gain exposure to foreign Biotechnology Companies and U.S. government securities.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the biotechnology sector and, therefore, may be concentrated in an industry or group of industries within the biotechnology sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

BIOTECHNOLOGY SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the biotechnology sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Biotechnology Companies also may fluctuate widely in response to such events.

PROSPECTUS | 133

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

134 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 13.45% .



Highest Quarter Return		Lowest Quarter Return
Q1 2012	21.70%	Q2 2010	-16.79	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	53.93%	24.82%	11.93%
Return After Taxes on Distributions	53.93%	24.82%	11.93%
Return After Taxes on Distributions and Sale of Fund Shares	30.52%	20.56%	9.98%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 135



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	54.66%	25.45%	12.48%
Return After Taxes on Distributions	54.66%	25.45%	12.48%
Return After Taxes on Distributions and Sale of Fund Shares	30.94%	21.11%	10.48%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

136 | PROSPECTUS

PROSPECTUS | 137

CONSUMER PRODUCTS FUND

INVESTMENT OBJECTIVE

The Consumer Products Fund (the “Fund”) seeks to provide capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally (“Consumer Products Companies”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 112% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Consumer Products Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Consumer Products Companies that have small to mid-sized capitalizations. Consumer Products Companies include companies that manufacture wholesale or retail food, staple retail products and non-durable goods such as beverages, tobacco, household and personal care products. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Consumer Products Companies and U.S. government securities.

138 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the consumer products sector and, therefore, may be concentrated in an industry or group of industries within the consumer products sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

CONSUMER PRODUCTS SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the consumer products sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Consumer Products Companies also may fluctuate widely in response to such events.

PROSPECTUS | 139

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

140 | PROSPECTUS

does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 6.69% .



Highest Quarter Return		Lowest Quarter Return
Q1 2013	15.38%	Q4 2008	-14.32	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	28.30%	17.18%	9.31%
Return After Taxes on Distributions	26.21%	14.96%	8.14%
Return After Taxes on Distributions and Sale of Fund Shares	16.20%	12.80%	7.04%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 141



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	28.95%	17.76%	9.86%
Return After Taxes on Distributions	27.03%	15.67%	8.75%
Return After Taxes on Distributions and Sale of Fund Shares	16.55%	13.35%	7.55%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

142 | PROSPECTUS

PROSPECTUS | 143

ELECTRONICS FUND

INVESTMENT OBJECTIVE

The Electronics Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,436% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Electronics Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Electronics Companies that have small to mid-sized capitalizations. Electronics Companies include companies involved in the manufacture and development of semiconductors, connectors, printed circuit boards and other components; equipment vendors to electronic component manufacturers; electronic component distributors; electronic instruments and electronic systems vendors; and also include companies involved in all aspects of the electronics business and in new technologies or specialty areas. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Electronics Companies and U.S. government securities.

144 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the electronics sector and, therefore, may be concentrated in an industry or group of industries within the electronics sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

ACTIVE TRADING RISK—The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

PROSPECTUS | 145

to leverage risk and can be subject to liquidity risk.

ELECTRONICS SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the electronics sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Electronics Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

146 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 18.09% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	23.18%	Q4 2008	-28.74	%

PROSPECTUS | 147

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	33.59%	15.25%	-1.54%
Return After Taxes on Distributions	33.55%	15.24%	-1.54%
Return After Taxes on Distributions and Sale of Fund Shares	19.01%	12.31%	-1.15%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	34.36%	15.80%	-1.06%
Return After Taxes on Distributions	34.32%	15.79%	-1.06%
Return After Taxes on Distributions and Sale of Fund Shares	19.45%	12.77%	-0.80%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

148 | PROSPECTUS

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 149

ENERGY FUND

INVESTMENT OBJECTIVE

The Energy Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 231% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Energy Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Energy Companies that have small to mid-sized capitalizations. Energy Companies are involved in all aspects of the energy industry, including the conventional areas of oil, gas, electricity, and coal, and alternative sources of energy such as nuclear, geothermal, oil shale, and solar power, and include companies that produce, transmit, market, distribute or measure energy; companies involved in providing products and services to companies in the energy field; and companies involved in the exploration of new sources of energy, conservation, and energy-related pollution control. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to

150 | PROSPECTUS

foreign Energy Companies and U.S. government securities.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the energy sector and, therefore, may be concentrated in an industry or group of industries within the energy sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 151

and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

ENERGY SECTOR RISK—To the extent that the Fund’s investments are exposed to the energy sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Energy Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

152 | PROSPECTUS

does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 15.10% .



Highest Quarter Return		Lowest Quarter Return
Q2 2008	27.59%	Q3 2008	-33.92	%

PROSPECTUS | 153

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	23.21%	14.23%	10.99%
Return After Taxes on Distributions	23.21%	14.04%	10.67%
Return After Taxes on Distributions and Sale of Fund Shares	13.14%	11.37%	9.11%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	23.85%	14.81%	11.55%
Return After Taxes on Distributions	23.85%	14.63%	11.25%
Return After Taxes on Distributions and Sale of Fund Shares	13.50%	11.86%	9.61%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

154 | PROSPECTUS

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 155

ENERGY SERVICES FUND

INVESTMENT OBJECTIVE

The Energy Services Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 350% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Energy Services Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Energy Services Companies that have small to mid-sized capitalizations. Energy Services Companies are engaged in one or more businesses in the energy services field, including those that provide services and equipment to companies engaged in the production, refinement or distribution of oil, gas, electricity, and coal; companies involved with the production and development of newer sources of energy such as nuclear, geothermal, oil shale, and solar power; companies involved with onshore or offshore drilling; companies involved in production and well maintenance; companies involved in exploration engineering, data and technology; companies involved in energy transport; and

156 | PROSPECTUS

companies involved in equipment and plant design or construction. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Energy Services Companies and U.S. government securities.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the energy services sector and, therefore, may be concentrated in an industry or group of industries within the energy services sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 157

Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

ENERGY SERVICES SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the energy services sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Energy Services Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

158 | PROSPECTUS

comparison to the performance of a broad-based market index. The figures in the bar chart and tables assume the reinvestment of dividends and capital gains distributions. Of course, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 15.66% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	31.75%	Q4 2008	-47.14	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	23.64%	18.05%	11.22%
Return After Taxes on Distributions	23.64%	18.05%	11.22%
Return After Taxes on Distributions and Sale of Fund Shares	13.38%	14.70%	9.35%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 159



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	24.29%	18.64%	11.78%
Return After Taxes on Distributions	24.29%	18.64%	11.78%
Return After Taxes on Distributions and Sale of Fund Shares	13.75%	15.20%	9.85%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

160 | PROSPECTUS

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 161

FINANCIAL SERVICES FUND

INVESTMENT OBJECTIVE

The Financial Services Fund (the “Fund”) seeks to provide capital appreciation by investing in companies that are involved in the financial services sector (“Financial Services Companies”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Acquired Fund Fees and Expenses	0.03%	0.03%
Total Annual Fund Operating Expenses*	1.90%	1.40%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$193	$597	$1,026	$2,222
Investor	$143	$443	$766	$1,680

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 414% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

162 | PROSPECTUS

in the securities of Financial Services Companies that have small to mid-sized capitalizations. Financial Service Companies include commercial banks, savings and loan associations, insurance companies, brokerage companies and real-estate investment trusts. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Financial Services Companies and U.S. government securities. Under U.S. Securities and Exchange Commission regulations, the Fund may not invest more than 5% of its total assets in the equity securities of any company that derives more than 15% of its revenues from brokerage or investment management activities.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the financial services sector and, therefore, may be concentrated in an industry or group of industries within the financial services sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

DERIVATIVES RISK —The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

PROSPECTUS | 163

FINANCIAL SERVICES SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the financial services sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Financial Services Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

164 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 5.95% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	26.00%	Q4 2008	-31.71	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	26.85%	12.40%	0.39%
Return After Taxes on Distributions	26.52%	12.09%	-0.01%
Return After Taxes on Distributions and Sale of Fund Shares	15.19%	9.77%	0.13%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 165



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	27.47%	12.95%	0.92%
Return After Taxes on Distributions	27.16%	12.66%	0.53%
Return After Taxes on Distributions and Sale of Fund Shares	15.54%	10.24%	0.54%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

166 | PROSPECTUS

tax-deferred arrangements may be subject to taxation upon withdrawal.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 167

HEALTH CARE FUND

INVESTMENT OBJECTIVE

The Health Care Fund (the “Fund”) seeks to provide capital appreciation by investing in companies that are involved in the health care industry (“Health Care Companies”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 277% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Health Care Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Health Care Companies that have small to mid-sized capitalizations. Health Care Companies include pharmaceutical companies, companies involved in the research and development of pharmaceutical products and services, companies involved in the operation of health care facilities, and other companies involved in the design, manufacture, or sale of health care related products or services. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Health Care Companies and U.S. government securities.

168 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the health care sector and, therefore, may be concentrated in an industry or group of industries within the health care sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 169

to leverage risk and can be subject to liquidity risk.

HEALTH CARE SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the health care sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Health Care Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

170 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.82% .



Highest Quarter Return		Lowest Quarter Return
Q1 2013	14.15%	Q4 2008	-15.61	%

PROSPECTUS | 171

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	41.53%	17.98%	8.17%
Return After Taxes on Distributions	39.42%	17.60%	7.99%
Return After Taxes on Distributions and Sale of Fund Shares	25.14%	14.61%	6.66%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	42.31%	18.52%	8.70%
Return After Taxes on Distributions	40.35%	18.17%	8.53%
Return After Taxes on Distributions and Sale of Fund Shares	25.46%	15.07%	7.12%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

172 | PROSPECTUS

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 173

INTERNET FUND

INVESTMENT OBJECTIVE

The Internet Fund (the “Fund”) seeks to provide capital appreciation by investing in companies that provide products or services designed for or related to the Internet (“Internet Companies”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 472% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Internet Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Internet Companies that have small to mid-sized capitalizations. Internet Companies are involved in all aspects of research, design development, manufacturing or distribution of products or services for use with the Internet or Internet related businesses. Such companies may provide information or entertainment services over the Internet; sell or distribute goods and services over the Internet; provide infrastructure systems or otherwise provide hardware, software or support that impacts Internet commerce; or provide Internet access to consumers and businesses. Internet companies also may include companies that provide Intranet and Extranet services. The Fund will maintain broad representation of the various industries in the Internet sector. The Fund also may purchase

174 | PROSPECTUS

American Depositary Receipts (“ADRs”) to gain exposure to foreign Internet Companies and U.S. government securities.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the Internet sector and, therefore, may be concentrated in an industry or group of industries within the Internet sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 175

INTERNET SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the Internet sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Internet Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

176 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.65% .



Highest Quarter Return		Lowest Quarter Return
Q3 2010	23.35%	Q4 2008	-23.21	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	50.88%	25.62%	8.45%
Return After Taxes on Distributions	50.71%	25.49%	8.30%
Return After Taxes on Distributions and Sale of Fund Shares	28.92%	21.27%	6.86%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 177



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	51.64%	26.25%	8.99%
Return After Taxes on Distributions	51.48%	26.13%	8.85%
Return After Taxes on Distributions and Sale of Fund Shares	29.35%	21.82%	7.33%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

178 | PROSPECTUS

PROSPECTUS | 179

LEISURE FUND

INVESTMENT OBJECTIVE

The Leisure Fund (the “Fund”) seeks to provide capital appreciation by investing in companies engaged in leisure and entertainment businesses (“Leisure Companies”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 265% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Leisure Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Leisure Companies that have small to mid-sized capitalizations. Leisure Companies are engaged in the design, production, or distribution of goods or services in the leisure industries. Leisure Companies include hotels and resorts, restaurants, casinos, radio and television broadcasting and advertising companies, motion picture production companies, entertainment software companies, toys and sporting goods manufacturers, musical recording companies, alcohol and tobacco companies, and publishing companies. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Leisure Companies and U.S. government securities.

180 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the leisure sector and, therefore, may be concentrated in an industry or group of industries within the leisure sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 181

to leverage risk and can be subject to liquidity risk.

LEISURE SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the leisure sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Leisure Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

182 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 3.57% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	24.48%	Q4 2008	-29.80	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	42.13%	25.11%	7.85%
Return After Taxes on Distributions	41.80%	25.04%	7.83%
Return After Taxes on Distributions and Sale of Fund Shares	23.84%	20.78%	6.39%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	42.83%	25.74%	8.39%
Return After Taxes on Distributions	45.52%	25.68%	8.36%
Return After Taxes on Distributions and Sale of Fund Shares	24.23%	21.34%	6.85%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 183

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party (e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

184 | PROSPECTUS

PRECIOUS METALS FUND

INVESTMENT OBJECTIVE

The Precious Metals Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.77%	1.27%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$180	$557	$959	$2,084
Investor	$129	$403	$697	$1,534

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 348% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Precious Metals Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Precious Metals Companies that have small to mid-sized capitalizations. Precious metals include gold, silver, platinum and other precious metals. Precious Metals Companies include precious metal manufacturers; distributors of precious metal products, such as jewelry, metal foil or bullion; mining and geological exploration companies; and companies that provide services to Precious Metals Companies. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Precious Metals Companies and U.S. government securities.

PROSPECTUS | 185

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the precious metals sector and, therefore, may be concentrated in an industry or group of industries within the precious metals sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

186 | PROSPECTUS

to leverage risk and can be subject to liquidity risk.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PRECIOUS METALS SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the precious metals sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Precious Metals Companies also may fluctuate widely in response to such events.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

PROSPECTUS | 187

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 20.77% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	23.01%	Q3 2008	-33.84	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-46.70%	-4.41%	-2.97%
Return After Taxes on Distributions	-46.82%	-4.61%	-3.08%
Return After Taxes on Distributions and Sale of Fund Shares	-26.43%	-3.12%	-2.11%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-46.44%	-3.94%	-2.51%
Return After Taxes on Distributions	-46.56%	-4.14%	-2.60%
Return After Taxes on Distributions and Sale of Fund Shares	-26.28%	-2.79%	-1.78%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

188 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 189

RETAILING FUND

INVESTMENT OBJECTIVE

The Retailing Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 671% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Retailing Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Retailing Companies that have small to mid-sized capitalizations. Retailing Companies include drug and department stores; suppliers of goods and services for homes, home improvements and yards; clothing, jewelry, electronics and computer retailers; warehouse membership clubs; mail order operations; and companies involved in alternative selling methods. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Retailing Companies and U.S. government securities.

190 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the retailing sector and, therefore, may be concentrated in an industry or group of industries within the retailing sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 191

to leverage risk and can be subject to liquidity risk.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

RETAILING SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the retailing sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of the Retailing Companies also may fluctuate widely in response to such events.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

192 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -1.20% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	16.77%	Q4 2008	-24.20	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	36.28%	24.07%	7.63%
Return After Taxes on Distributions	36.28%	24.05%	7.62%
Return After Taxes on Distributions and Sale of Fund Shares	20.53%	19.89%	6.21%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	37.03%	24.64%	8.11%
Return After Taxes on Distributions	37.03%	24.62%	8.09%
Return After Taxes on Distributions and Sale of Fund Shares	20.96%	20.39%	6.62%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 193

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

194 | PROSPECTUS

TECHNOLOGY FUND

INVESTMENT OBJECTIVE

The Technology Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 321% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Technology Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Technology Companies that have small to mid-sized capitalizations. Technology Companies are companies that the Advisor believes have, or will develop, products, processes, or services that will provide technological advances and improvements. These companies may include, for example, companies that develop, produce or distribute products or services in the computer, semiconductor, electronics and communications sectors. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Technology Companies

PROSPECTUS | 195

and U.S. government securities.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the technology sector and, therefore, may be concentrated in an industry or group of industries within the technology sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

196 | PROSPECTUS

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TECHNOLOGY SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the technology sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Technology Companies also may fluctuate widely in response to such events.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

PROSPECTUS | 197

reinvestment of dividends and capital gains distributions. Of course, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 5.33% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	19.09%	Q4 2008	-26.87	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	34.95%	18.71%	4.40%
Return After Taxes on Distributions	34.95%	18.71%	4.39%
Return After Taxes on Distributions and Sale of Fund Shares	19.78%	15.26%	3.49%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	35.69%	19.34%	4.94%
Return After Taxes on Distributions	35.69%	19.34%	4.93%
Return After Taxes on Distributions and Sale of Fund Shares	20.20%	15.80%	3.94%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

198 | PROSPECTUS

PROSPECTUS | 199

TELECOMMUNICATIONS FUND

INVESTMENT OBJECTIVE

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

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.78%	0.53%
Total Annual Fund Operating Expenses	1.88%	1.38%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$191	$591	1,016	$2,201
Investor	$140	$437	$755	$1,657

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,271% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Telecommunications Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Telecommunications Companies that have small to mid-sized capitalizations. Telecommunications Companies include traditional and wireless telephone services or equipment providers, Internet equipment and service providers, and fiber-optics. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Telecommunications Companies and U.S. government securities.

200 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the telecommunications sector and, therefore, may be concentrated in an industry or group of industries within the telecommunications sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 201

to leverage risk and can be subject to liquidity risk.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TELECOMMUNICATIONS SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the telecommunications sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of the Telecommunications Companies also may fluctuate widely in response to such events.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

202 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 3.84% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	18.85%	Q4 2008	-20.98	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	16.51%	8.90%	1.88%
Return After Taxes on Distributions	15.78%	8.05%	1.24%
Return After Taxes on Distributions and Sale of Fund Shares	9.32%	6.67%	1.19%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	17.05%	9.40%	2.35%
Return After Taxes on Distributions	16.38%	8.60%	1.75%
Return After Taxes on Distributions and Sale of Fund Shares	9.63%	7.09%	1.57%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 203

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

204 | PROSPECTUS

TRANSPORTATION FUND

INVESTMENT OBJECTIVE

The Transportation Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.77%	0.52%
Total Annual Fund Operating Expenses	1.87%	1.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$190	$588	$1,011	$2,190
Investor	$139	$434	$750	$1,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 593% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Transportation Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Transportation Companies that have small to mid-sized capitalizations. Transportation Companies may include, for example, companies involved in the movement of freight or people, such as airline, railroad, ship, truck and bus companies; equipment manufacturers; parts suppliers; and companies involved in leasing, maintenance, and transportation-related services. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Transportation Companies and U.S. government securities.

PROSPECTUS | 205

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the transportation sector and, therefore, may be concentrated in an industry or group of industries within the transportation sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

206 | PROSPECTUS

to leverage risk and can be subject to liquidity risk.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

TRANSPORTATION SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the transportation sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Transportation Companies also may fluctuate widely in response to such events.

PERFORMANCE INFORMATION

PROSPECTUS | 207

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 12.75% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	18.91%	Q3 2011	-24.42	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	50.15%	17.13%	7.57%
Return After Taxes on Distributions	50.15%	17.08%	7.54%
Return After Taxes on Distributions and Sale of Fund Shares	28.39%	13.88%	6.15%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	50.87%	17.67%	8.06%
Return After Taxes on Distributions	50.87%	17.62%	8.04%
Return After Taxes on Distributions and Sale of Fund Shares	28.79%	14.34%	6.57%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

208 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 209

UTILITIES FUND

INVESTMENT OBJECTIVE

The Utilities Fund (the “Fund”) seeks to provide capital appreciation by investing in companies that operate public utilities (“Utilities Companies”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.78%	0.55%
Total Annual Fund Operating Expenses	1.88%	1.40%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Advisor	$191	$591	$1,016	$2,201
Investor	$143	$443	$766	$1,680

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 508% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Utilities Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Utilities Companies that have small to mid-sized capitalizations. Utilities Companies may include companies involved in the manufacturing, production, generation, transmission, distribution or sales of gas or electric energy; water supply, waste and sewage disposal; and companies that receive a majority of their revenues from their public utility operations. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Utilities Companies and U.S. government securities.

210 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the utilities sector and, therefore, may be concentrated in an industry or group of industries within the utilities sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 211

to leverage risk and can be subject to liquidity risk.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

UTILITIES SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business in the utilities sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Utilities Companies also may fluctuate widely in response to such events.

PERFORMANCE INFORMATION

212 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 17.23% .



Highest Quarter Return		Lowest Quarter Return
Q1 2013	13.38%	Q3 2008	-17.45	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	13.40%	10.16%	7.14%
Return After Taxes on Distributions	10.98%	8.37%	5.99%
Return After Taxes on Distributions and Sale of Fund Shares	7.57%	7.24%	5.25%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	13.97%	10.69%	7.66%
Return After Taxes on Distributions	11.75%	9.02%	6.57%
Return After Taxes on Distributions and Sale of Fund Shares	7.89%	7.72%	5.71%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 213

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

214 | PROSPECTUS

EUROPE 1.25X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Europe 1.25x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than a single trading day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from 1.25x of the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 1.25x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking leveraged investment results, and (c) intend to actively monitor and manage their investments. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.56	%
Total Annual Fund Operating Expenses	1.71	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$174	$539	$928	$2,019

PROSPECTUS | 215

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 654% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts (including currency futures), and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Advisor will attempt to consistently apply leverage to increase the Fund’s exposure to 125% of the underlying index. As a result, the Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

The STOXX Europe 50 ^® Index is a capitalization-weighted index composed of 50 European blue chip stocks consisting of capitalizations ranging from $18.8 billion to $184.5 billion as of June 30, 2014. Index members are chosen by Stoxx Ltd. from 16 countries under criteria designed to identify highly liquid companies that are leaders in their sectors. The Fund's investment in instruments denominated in foreign currencies exposes the Fund to the risk of fluctuations in the value of such currency in comparison to the U.S. dollar. The Fund generally does not intend to hedge such foreign currency exposure. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

216 | PROSPECTUS

(iii) collateralized loan obligations (“CLOs”), other asset-backed securities (including mortgage-backed securities) and similarly structured debt investments; and (iv) other short-term fixed income securities. Such investments will expose the Fund to the risks of these asset categories and increases or decreases in the value of these investments may cause the Fund to deviate from its investment objective.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding and the times at which the Fund and the underlying index calculate their respective NAVs, the Fund’s performance is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Areas shaded lighter represent those scenarios where the Fund can be expected to return more than 125% of the performance of the underlying index; conversely, areas shaded darker represent those scenarios where the Fund can be expected to return less than 125% of the performance of the underlying index.

PROSPECTUS | 217



Index Performance		Annualized Volatility
1x	1.25x	10%	25%	50%	75%	100%
-60%	-75%	-68%	-68%	-69%	-71%	-73%
-50%	-63%	-58%	-58%	-60%	-62%	-64%
-40%	-50%	-47%	-48%	-49%	-52%	-54%
-30%	-38%	-36%	-37%	-39%	-41%	-45%
-20%	-25%	-25%	-26%	-27%	-31%	-36%
-10%	-13%	-12%	-13%	-16%	-20%	-25%
0%	0%	0%	-1%	-4%	-8%	-15%
10%	13%	12%	12%	9%	4%	-4%
20%	25%	25%	25%	20%	17%	8%
30%	38%	38%	38%	33%	27%	18%
40%	50%	52%	51%	46%	40%	29%
50%	63%	65%	64%	60%	53%	41%
60%	75%	80%	78%	73%	65%	54%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2014 is 6.99%. The underlying index’s highest one-year volatility rate during the five year period is 9.18%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is 9.05%.

CURRENCY RISK — 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. 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 particular, the Fund may have indirect and direct exposure to the euro. The price of the euro has fluctuated widely over the past several years, and volatility has increased in recent months, due, in part, to concern over the sovereign debt levels of certain European Union (EU) members and the potential effect of this debt on the EU members’ participation in the European Monetary Union and the value of the euro. These and other factors may adversely affect the long-term value of the euro in terms of purchasing power in the future. A decline in the price of the euro may adversely affect the Fund’s performance.

218 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

GEOGRAPHIC CONCENTRATION IN EUROPE RISK—Because a significant portion of the Fund’s investments are concentrated in issuers located in Europe, the Fund is susceptible to loss due to adverse market, political, regulatory, and geographic events affecting the various countries and regions in Europe. The European economy is diverse and includes both large, competitive economies and small, struggling economies. The European economy is vulnerable

PROSPECTUS | 219

to decreasing imports or exports, changes in governmental regulations on trade, changes in the exchange rate of the euro and recessions in EU economies.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

220 | PROSPECTUS

unregulated. As a result and similar to other privately negotiated contracts, the Fund is subject to counterparty credit risk with respect to such derivative contracts.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

STATUS AS A REGULATED INVESTMENT COMPANY RISK — The Fund may realize gains from the sale or other disposition of foreign currencies and other income (including gains from options, futures or forward contracts) derived from investing in stock, securities, or foreign currencies. The Secretary of the Treasury is authorized to issue regulations that might cause the Fund, as a result of its realization of such foreign currency gains, to fail to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended. As of the date of this Prospectus, no regulations have been issued pursuant to this authorization, but such regulations may be issued in the future.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 4.58% .

PROSPECTUS | 221



Highest Quarter Return		Lowest Quarter Return
Q2 2009	34.73%	Q4 2008	-33.31	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	22.86%	8.94%	2.03%
Return After Taxes on Distributions	22.86%	8.92%	1.73%
Return After Taxes on Distributions and Sale of Fund Shares	12.94%	7.06%	1.51%
STOXX Europe 50^® Index (reflects no deduction for fees, expenses or taxes)	22.36%	10.57%	5.20%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

222 | PROSPECTUS

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 223

JAPAN 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Japan 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking leveraged investment results, and (c) intend to actively monitor and manage their investments. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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 (the “underlying index”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Total Annual Fund Operating Expenses	1.52	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$155	$480	$829	$1,813

224 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts (including currency futures), and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

The Nikkei 225 Stock Average is a price-weighted average of 225 top-rated Japanese companies listed on the First Section of the Tokyo Stock Exchange that are selected to be both highly liquid and representative of Japan’s industrial structure. As of June 30, 2014, the Nikkei 225 Stock Average included companies with small, medium and large capitalizations ranging from $273.3 million to $190.3 billion. The Fund's investment in instruments denominated in foreign currencies exposes the Fund to the risk of fluctuations in the value of such currency in comparison to the U.S. dollar. The Fund generally does not intend to hedge such foreign currency exposure. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

PROSPECTUS | 225

and similarly structured debt investments; and (iv) other short-term fixed income securities. Such investments will expose the Fund to the risks of these asset categories and increases or decreases in the value of these investments may cause the Fund to deviate from its investment objective.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding and the times at which the Fund and the underlying index calculate their respective NAVs, the Fund’s performance is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Areas shaded lighter represent those scenarios where the Fund can be expected to return more than twice the performance of the underlying index; conversely, areas shaded darker represent those scenarios where the Fund can be expected to return less than twice the performance of the underlying index.

226 | PROSPECTUS



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2014 is 5.62%. The underlying index’s highest one-year volatility rate during the five year period is 6.80%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is 10.81%.

PROSPECTUS | 227

transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

GEOGRAPHIC CONCENTRATION IN JAPAN RISK—Targeting Japan could hurt the Fund’s performance if Japan’s economy performs poorly as a result of political and economic conditions that affect the Japanese market. Japanese stocks tend to be more volatile than their U.S. counterparts, for reasons ranging from political and economic uncertainties, to a higher risk that essential information may be incomplete or erroneous. The Fund may be more volatile than a geographically diversified equity fund.

228 | PROSPECTUS

securities tends to be subject to greater volatility due to issuer-specific operating results and outlook and to real or perceived adverse economic and competitive industry conditions. This exposure may be obtained through investments in other investment companies.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 229

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

The following bar chart shows the performance of the Class H shares of the Fund from year to year. The variability of performance over time provides an indication of the risks of investing in the Fund. The following table shows the performance of the Class H shares of the Fund as an average over different periods of time in comparison to the performance of a broad-based market index. Effective May 1, 2009, the Fund changed comparative benchmarks from the Topix 100 Index to the Nikkei 225 Stock Average. This change occurred as a result of the Fund’s change in name and investment strategy. Prior to May 1, 2009, the Fund’s investment strategy sought to provide 125% exposure to the Topix 100 Index; therefore, the performance and average annual total returns shown below for periods prior to May 1, 2009 may have differed had the Fund’s current investment strategy, which seeks to provide 200% exposure to the Nikkei 225 Stock Average, been in effect during those periods. The Nikkei 225 Stock Average more appropriately reflects the Fund’s investment universe. The figures in the bar chart and table assume the reinvestment of dividends and capital gains distributions. Of course, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

230 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -9.00% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	44.17%	Q1 2009	-33.01	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/22/2008)
Return Before Taxes	54.80%	11.21%	-1.49%
Return After Taxes on Distributions	54.80%	11.21%	-1.49%
Return After Taxes on Distributions and Sale of Fund Shares	31.02%	8.94%	-1.13%
Nikkei 225 Stock Average (reflects no deduction for fees, expenses or taxes)	28.39%	9.59%	3.56%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser

PROSPECTUS | 231

of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

232 | PROSPECTUS

EMERGING MARKETS 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Emerging Markets 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.65	%
Total Annual Fund Operating Expenses	1.80	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$183	$566	$975	$2,116

PROSPECTUS | 233

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,412% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The BNY Mellon Emerging Markets 50 ADR Index is a capitalization weighted index comprised of the 50 largest emerging market based ADRs having a free-float market capitalization ranging from approximately $6.7 billion to $195.4 billion as of June 30, 2014. The Fund's investments may expose the Fund to the risk of fluctuations in the value of foreign currencies in comparison to the U.S. dollar. The Fund generally does not intend to hedge such foreign currency exposure. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

PRINCIPAL RISKS

234 | PROSPECTUS

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2014 is 5.82%. The underlying index’s highest one-year volatility rate during the five year period is 8.25%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is 5.19%.

PROSPECTUS | 235

236 | PROSPECTUS

to leverage risk and can be subject to liquidity risk .

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

EMERGING MARKETS RISK—The Fund’s investments may have exposure to emerging markets. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile because they are 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 the Advisor.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 237

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 10.98% .

238 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2012	19.06%	Q3 2011	-43.50	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Since Inception (10/29/2010)
Return Before Taxes	-14.84%	-15.01%
Return After Taxes on Distributions	-14.84%	-15.70%
Return After Taxes on Distributions and Sale of Fund Shares	-8.40%	-11.11%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-4.76%	-3.67%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PROSPECTUS | 239

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

240 | PROSPECTUS

INVERSE EMERGING MARKETS 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse Emerging Markets 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide daily leveraged investment results that correlate to the opposite of the performance of a specific benchmark on a daily basis, a result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.63	%
Total Annual Fund Operating Expenses	1.78	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$181	$560	$964	$2,095

PROSPECTUS | 241

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The BNY Mellon Emerging Markets 50 ADR Index is a capitalization weighted index comprised of the 50 largest emerging market based ADRs having a free-float market capitalization ranging from approximately $6.7 billion to $195.4 billion as of June 30, 2014. The Fund's investments may expose the Fund to the risk of fluctuations in the value of foreign currencies in comparison to the U.S. dollar. The Fund generally does not intend to hedge such foreign currency exposure. To the extent the underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

242 | PROSPECTUS

Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Areas shaded lighter represent those scenarios where the Fund can be expected to return more than twice the inverse performance of the underlying index; conversely, areas shaded darker represent those scenarios where the Fund can be expected to return the same or less than twice the inverse performance of the underlying index.



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

PROSPECTUS | 243

244 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 245

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -12.67% .

246 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2011	44.83%	Q1 2012	-22.22	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Since Inception (10/29/2010)
Return Before Taxes	-0.17%	-9.84%
Return After Taxes on Distributions	-0.17%	-9.84%
Return After Taxes on Distributions and Sale of Fund Shares	-0.09%	-7.29%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-4.76%	-3.67%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PROSPECTUS | 247

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

248 | PROSPECTUS

STRENGTHENING DOLLAR 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Strengthening Dollar 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

The Fund seeks to provide investment results that match the performance of a specific benchmark, before fees and expenses, 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.59	%
Total Annual Fund Operating Expenses	1.74	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$177	$548	$944	$2,052

PROSPECTUS | 249

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in derivative instruments, which primarily consist of index swaps, futures contracts, and options on securities, securities indices, and futures contracts. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Investing in derivative instruments enables the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. The Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

The U.S. Dollar Index^® measures the performance of the U.S. dollar against a basket of foreign currencies that include the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

250 | PROSPECTUS

Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

PROSPECTUS | 251



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2014 is 2.38%. The underlying index’s highest one-year volatility rate during the five year period is 3.11%. The underlying index’s annualized performance for the five year period ended June 30, 2014 is -0.08%.

252 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

PROSPECTUS | 253

risk.

LEVERAGING RISK — The Fund achieves leveraged exposure to the underlying index through the use of derivative instruments. The more the Fund invests in leveraged instruments, the more this leverage will magnify any losses on those investments. The Fund’s investment in these instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. Since the Fund’s investment strategy involves consistently applied 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. Leverage also will have the effect of magnifying tracking error.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

254 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -2.65% .



Highest Quarter Return		Lowest Quarter Return
Q3 2008	17.18%	Q3 2010	-17.58	%

PROSPECTUS | 255

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (5/25/2005)
Return Before Taxes	-2.95%	-6.87%	-4.35%
Return After Taxes on Distributions	-2.95%	-6.87%	-5.10%
Return After Taxes on Distributions and Sale of Fund Shares	-1.67%	-5.05%	-2.97%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	0.34%	-0.31%	-0.88%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

256 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 257

WEAKENING DOLLAR 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Weakening Dollar 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide leveraged investment results that match the opposite of the performance of a specific benchmark on a daily basis, a result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.61	%
Total Annual Fund Operating Expenses	1.76	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$179	$554	$954	$2,073

258 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of engaging in short sales of securities generally included in the underlying index and investing in derivative instruments, which primarily consist of index swaps, futures contracts, and options on securities, securities indices, and futures contracts. While the Fund may write (sell) and purchase swaps, it expects primarily to write swaps. The Fund’s investment in derivatives serves as a substitute for directly selling short each of the securities included in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

PRINCIPAL RISKS

PROSPECTUS | 259

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

260 | PROSPECTUS



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

PROSPECTUS | 261

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

262 | PROSPECTUS

risk.

LEVERAGING RISK — The Fund achieves leveraged exposure to the underlying index through the use of derivative instruments. The more the Fund invests in leveraged instruments, the more this leverage will magnify any losses on those investments. The Fund’s investment in these instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. Since the Fund’s investment strategy involves consistently applied 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. Leverage also will have the effect of magnifying tracking error.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

PROSPECTUS | 263

investing in stock, securities, or foreign currencies. The Secretary of the Treasury is authorized to issue regulations that might cause the Fund, as a result of its realization of such foreign currency gains, to fail to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended. As of the date of this Prospectus, no regulations have been issued pursuant to this authorization, but such regulations may be issued in the future.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 0.67% .



Highest Quarter Return		Lowest Quarter Return
Q3 2010	19.18%	Q3 2008	-15.93	%

264 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (5/25/2005)
Return Before Taxes	-2.99%	-0.19%	0.76%
Return After Taxes on Distributions	-2.99%	-0.19%	-0.67%
Return After Taxes on Distributions and Sale of Fund Shares	-1.69%	-0.14%	0.20%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	0.34%	-0.31%	-0.88%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

PROSPECTUS | 265

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

266 | PROSPECTUS

REAL ESTATE FUND

INVESTMENT OBJECTIVE

The Real Estate Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.54	%
Total Annual Fund Operating Expenses	1.64	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$167	$517	$892	$1,944

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 788% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Real Estate Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Real Estate Companies that have small to mid-sized capitalizations. Real Estate Companies, which also include master limited partnerships, are primarily engaged in the ownership, construction, management, financing or sale of residential, commercial or industrial real estate. Real Estate Companies also may include companies whose products and services are related to the real estate industry, such as building supply manufacturers, mortgage lenders, or mortgage servicing companies. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Real Estate Companies and U.S. government securities.

PROSPECTUS | 267

any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Fund’s portfolio. The value of the Fund’s portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the Investment Company Act of 1940 or to meet redemption requests.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the real estate sector and, therefore, may be concentrated in an industry or group of industries within the real estate sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

268 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

INDUSTRY AND REAL ESTATE SECTOR RISK—The risk of concentrating Fund investments in a limited number of issuers conducting business in the same industry or group of industries is that the Fund will be more susceptible to the risks associated with that industry or group of industries than a fund that does not concentrate its investments. To the extent that the Fund’s investments are exposed to issuers conducting business in the real estate sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Real Estate Companies also may fluctuate widely in response to such events.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

PROSPECTUS | 269

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 13.79% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	29.51%	Q4 2008	-38.29	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	3.49%	13.63%	4.24%
Return After Taxes on Distributions	1.44%	12.68%	3.51%
Return After Taxes on Distributions and Sale of Fund Shares	1.96%	10.51%	3.02%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.18%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

270 | PROSPECTUS

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 271

GOVERNMENT LONG BOND 1.2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Government Long Bond 1.2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correspond to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will likely differ from the return of the Fund’s benchmark for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 1.2x) and the cumulative performance of the benchmark (as defined below).

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.50%	0.50%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	0.71%	0.47%
Total Annual Fund Operating Expenses	1.46%	0.97%

EXAMPLE

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

272 | PROSPECTUS



	1 Year	3 Years	5 Years	10 Years
Advisor	$149	$462	$797	$1,746
Investor	$99	$309	$536	$1,190

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 2,661% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in U.S. government securities and derivative instruments, which primarily consist of futures contracts, interest rate swaps, and options on securities and futures contracts. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Futures and options contracts, and interest rate swaps, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in its benchmark or to securities whose performance is highly correlated to its benchmark. The Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities issued by the U.S. government (and derivatives thereof).

Some of the Fund’s U.S. government securities, or cash equivalents, will be used to collateralize its derivatives positions. The Fund also may invest in zero coupon U.S. Treasury bonds and enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PROSPECTUS | 273

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the Long Treasury Bond has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the Long Treasury Bond times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Compounding affects all investments, but has a more significant impact on a leveraged benchmark fund. In general, particularly during periods of higher benchmark volatility, compounding will cause longer-term results to be more or less than the return of the Fund’s benchmark. This effect becomes more pronounced as volatility increases.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) the performance of the Long Treasury Bond; (b) volatility of the Long Treasury Bond; (c) financing rates associated with leverage; (d) other Fund expenses; and (e) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no Fund expenses; and (b) a cost of leverage of zero percent. If Fund expenses, including the cost of leverage, were included, the Fund’s performance would be lower than shown.

Areas shaded lighter represent those scenarios where the Fund can be expected to return more than 120% of the performance of the Long Treasury Bond; conversely, areas shaded darker represent those scenarios where the Fund can be expected to return less than 120% of the performance of the Long Treasury Bond.

274 | PROSPECTUS



Index Performance		Annualized Volatility
1x	1.2x	10%	25%	50%	75%	100%
-60%	-72%	-67%	-67%	-68%	-69%	-71%
-50%	-60%	-57%	-57%	-58%	-60%	-62%
-40%	-48%	-46%	-46%	-48%	-49%	-51%
-30%	-36%	-35%	-35%	-37%	-39%	-42%
-20%	-24%	-24%	-25%	-25%	-28%	-32%
-10%	-12%	-12%	-13%	-15%	-18%	-22%
0%	0%	0%	0%	-3%	-6%	-12%
10%	12%	12%	11%	9%	5%	-1%
20%	24%	24%	24%	20%	18%	11%
30%	36%	37%	36%	32%	28%	21%
40%	48%	49%	48%	45%	40%	32%
50%	60%	62%	61%	58%	53%	43%
60%	72%	76%	75%	71%	65%	56%

The Long Treasury Bond’s annualized historical volatility rate for the five year period ended June 30,2 014 is 3.34%. The Long Treasury Bond’s highest one-year volatility rate during the five year period is 4.73%. The Long Treasury Bond’s annualized performance for the five year period ended June 30, 2014 is 7.36%.

The historical volatility and performance of the Long Treasury Bond are not indications of what the Long Treasury Bond volatility and performance will be in the future. The table is intended to underscore that the Fund is designed as a short-term trading vehicle for investors who intend to actively monitor and manage their portfolios.

PROSPECTUS | 275

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

276 | PROSPECTUS

amount invested in those instruments. Since the Fund’s investment strategy involves consistently applied 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 Long Treasury Bond. Leverage also will have the effect of magnifying tracking error.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correspond to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and the Long Treasury Bond, rounding of share prices, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PROSPECTUS | 277

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 16.55% .



Highest Quarter Return		Lowest Quarter Return
Q4 2008	41.48%	Q1 2009	-16.06	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-16.56%	-1.53%	5.51%
Return After Taxes on Distributions	-16.81%	-2.18%	4.57%
Return After Taxes on Distributions and Sale of Fund Shares	-9.36%	-1.39%	3.98%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.94%

278 | PROSPECTUS



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-16.04%	-0.96%	6.13%
Return After Taxes on Distributions	-16.49%	-1.80%	5.00%
Return After Taxes on Distributions and Sale of Fund Shares	-9.06%	-1.03%	4.40%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.94%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PROSPECTUS | 279

arrangements may be subject to taxation upon withdrawal.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

280 | PROSPECTUS

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse Government Long Bond Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide investment results that correlate to the opposite of the performance of a specific benchmark on a daily basis, a result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not rely on the use of derivatives to achieve their investment objectives.

Because the Fund seeks daily inverse investment results, the return of the Fund for a period longer than a full trading day will be the result of each day’s compounded returns over the period, which will likely differ from the inverse return of the daily price movement of the benchmark for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -1x) and the cumulative performance of the benchmark.

INVESTMENT OBJECTIVE

The Fund 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 contracts on a specified debt instrument on a daily basis. The Fund’s current benchmark is 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.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Advisor shares or Investor shares of the Fund.



	Advisor	Investor
SHAREHOLDER FEES (fees paid directly from your investment)	N/A	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and Shareholder Service (12b-1) Fees	0.25%	None
Other Expenses	2.57%	2.60%
Short Sales Dividend and Interest Expense	1.81%	2.09%
Remaining Other Expenses	0.76%	0.51%
Total Annual Fund Operating Expenses	3.72%	3.50%

EXAMPLE

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

PROSPECTUS | 281



	1 Year	3 Years	5 Years	10 Years
Advisor	$374	$1,138	$1,920	$3,967
Investor	$353	$1,074	$1,817	$3,774

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,097% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Unlike a traditional index fund, the Fund’s investment objective is to perform, on a daily basis, exactly opposite the daily price movement of the Long Treasury Bond. The Fund employs as its investment strategy a program of engaging in short sales and investing to a significant extent in derivative instruments, which primarily consist of futures contracts, interest rate swaps, and options on securities and futures contracts. While the Fund may write (sell) and purchase swaps, it expects primarily to write swaps. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to fixed income securities issued by the U.S. government.

282 | PROSPECTUS

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the Long Treasury Bond has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the Long Treasury Bond times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Compounding affects all investments, but has a more significant impact on a leveraged fund. In general, particularly during periods of higher index volatility, compounding will cause longer term results to be more or less than the inverse of the return of the benchmark. This effect becomes more pronounced as volatility increases.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) performance of the Long Treasury Bond; (b) volatility of the Long Treasury Bond; (c) financing rates associated with leverage; (d) other Fund expenses; and (e) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no Fund expenses; and (b) a cost of leverage of zero percent. If Fund expenses, including the cost of leverage, were included, the Fund’s performance would be lower than shown.

Areas shaded lighter represent those scenarios where the Fund can be expected to return more than the inverse performance of the Long Treasury Bond; conversely, areas shaded darker represent those scenarios where the Fund can be expected to return the same or less than the inverse performance of the Long Treasury Bond.

PROSPECTUS | 283



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

The Long Treasury Bond’s annualized historical volatility rate for the five year period ended June 30, 2014 is 3.34%. The Long Treasury Bond’s highest one-year volatility rate during the five year period is 4.73%. The Long Treasury Bond’s annualized performance for the five year period ended June 30, 2014 is 7.36%.

284 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

PROSPECTUS | 285

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and the Long Treasury Bond, rounding of share prices, regulatory policies, and high portfolio turnover rate all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

286 | PROSPECTUS

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Investor shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -12.84% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	12.99%	Q4 2008	-26.00	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Advisor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	17.45%	-4.76%	-6.96%
Return After Taxes on Distributions	17.45%	-4.76%	-7.19%
Return After Taxes on Distributions and Sale of Fund Shares	9.88%	-3.54%	-4.84%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.94%

PROSPECTUS | 287



Investor	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	17.51%	-4.27%	-6.51%
Return After Taxes on Distributions	17.51%	-4.27%	-6.73%
Return After Taxes on Distributions and Sale of Fund Shares	9.91%	-3.19%	-4.56%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.94%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Investor Class and Advisor Class accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

288 | PROSPECTUS

arrangements may be subject to taxation upon withdrawal.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 289

HIGH YIELD STRATEGY FUND

INVESTMENT OBJECTIVE

The High Yield Strategy Fund (the “Fund”) seeks to provide investment results that correlate, before fees and expenses, to the performance of the high yield bond market.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.53	%
Acquired Fund Fees and Expenses	0.03	%
Total Annual Fund Operating Expenses*	1.56	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$159	$493	$850	$1,856

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 205% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund seeks to gain exposure similar to the total return of the high yield bond market, as represented by U.S. and Canadian high yield bonds, by investing in the universe of fixed rate, non-investment grade debt through the use of credit default swaps, high yield securities, futures and other financial instruments with economic characteristics comparable to that of the high yield bond market. Generally, high yield bonds, which are also commonly referred to as “junk bonds,” are those bonds rated BB+ and lower by Standard & Poor’s Rating Service or Ba1 and lower by Moody’s Investor Services, Inc., but may include unrated bonds that the Advisor determines are of similar quality. The Advisor will consider the liquidity, transaction costs and relative value of available investments in seeking to meet the Fund’s

290 | PROSPECTUS

investment objective.

The Fund will primarily invest 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. A buyer of credit default swaps is buying credit protection or mitigating credit risk. A seller of credit default swaps is selling credit protection or 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 Fund also may invest in other financial instruments including corporate notes, convertible debt securities, preferred securities and derivatives thereof, as well as other investment companies, including exchange-traded funds (“ETFs”), unit investment trusts, and closed-end funds, that invest primarily in high yield debt instruments. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

Investments in derivative instruments, such as futures and swap agreements, have the economic effect of creating financial leverage in the Fund’s portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments. Financial leverage will magnify, sometimes significantly, the Fund’s exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Fund’s portfolio. The value of the Fund’s portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the Investment Company Act of 1940 or to meet redemption requests. The Fund’s use of derivatives and the leveraged investment exposure created by the use of derivatives are expected to be significant.

The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments that in combination have economic characteristics similar to the U.S. and Canadian high yield bond markets and/or in high yield debt securities.

PRINCIPAL RISKS

PROSPECTUS | 291

costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

292 | PROSPECTUS

CREDIT DEFAULT SWAP RISK—The Fund’s investments in credit default swaps may subject the Fund to greater risks than if the Fund were to invest directly in high yield bonds. When investing in credit default swaps, the Fund is exposed to the credit risk of both the counterparty to the credit default swap and the issuer of the underlying reference obligation. The Fund could realize a loss on its investment if it does not correctly evaluate the creditworthiness of the issuer of the bond or other reference obligation on which the credit default swap is based, as well as the continued creditworthiness of the counterparty. Investments in credit default swaps also are subject to liquidity risk.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

PROSPECTUS | 293

the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

ISSUER SPECIFIC RISK —The value of a security may increase or decrease for a number of reasons which directly relate to the issuer. For example, with respect to the Fund, perceived poor management performance, financial leverage or reduced demand of the issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities of an issuer or guarantor of a debt instrument may cause the value of your investment in the Fund to decrease.

LEVERAGING RISK—The Fund’s investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. The cost of investing in such instruments generally increases as interest rates increase, which will lower the Fund’s return.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

294 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 2.86% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	9.54%	Q1 2009	-13.04	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	11.64%	11.15%	7.18%
Return After Taxes on Distributions	4.22%	8.27%	4.06%
Return After Taxes on Distributions and Sale of Fund Shares	6.57%	7.56%	4.20%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	7.44%	18.93%	8.56%

PROSPECTUS | 295

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

296 | PROSPECTUS

INVERSE HIGH YIELD STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse High Yield Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide investment results that correlate to the opposite of the performance of the high yield bond market, a result opposite of most mutual funds. The Fund may be riskier than alternatives that do not rely on the use of derivatives to achieve their investment objectives.

Because the Fund seeks daily inverse investment results, the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from the inverse of the return of the high yield bond market for that period. As a consequence, especially in periods of market volatility, the path or trend of the high yield bond market during the longer period may be at least as important to the Fund’s return for the longer period as the cumulative return of the high yield bond market for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -1x) and the cumulative performance of the high yield bond market.

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the risk of shorting and (b) intend to actively monitor and manage their investments. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund seeks to provide investment results that inversely correlate, before fees and expenses, to the performance of the high yield bond market.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.52	%
Total Annual Fund Operating Expenses	1.52	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$155	$480	$829	$1,813

PORTFOLIO TURNOVER

PROSPECTUS | 297

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund seeks to gain inverse exposure to the performance of the high yield bond market by investing in credit default swaps, futures and other financial instruments with economic characteristics opposite to that of the high yield bond market as represented by U.S. and Canadian high yield bonds. Generally, high yield bonds, which are also commonly referred to as “junk bonds,” are those bonds rated BB+ and lower by Standard & Poor’s Rating Service or Ba1 and lower by Moody’s Investor Services, Inc., but may include unrated bonds that the Advisor determines are of similar quality. The Advisor will consider the liquidity, transaction costs and relative value of available investments in seeking to meet the Fund’s objective.

The Fund will primarily invest in credit default swaps to gain inverse exposure 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. A buyer of credit default swaps is buying credit protection or mitigating credit risk. A seller of credit default swaps is selling credit protection or assuming credit risk. The Fund will normally be a buyer of credit protection as it seeks to gain inverse 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 Fund also may invest in other financial instruments including corporate notes, convertible debt securities, preferred securities and derivatives thereof, as well as other investment companies, including exchange-traded funds ("ETFs"), unit investment trusts, and closed-end funds, that provide inverse exposure to the high yield debt market. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments that in combination should provide inverse exposure to the U.S. and Canadian high yield bond markets.

298 | PROSPECTUS

quality (also known as “junk bonds”); (ii) securities issued by the U.S. government or its agencies and instrumentalities; (iii) collateralized loan obligations (“CLOs”), other asset-backed securities (including mortgage-backed securities) and similarly structured debt investments; and (iv) other short-term fixed income securities. Such investments will expose the Fund to the risks of these asset categories and increases or decreases in the value of these investments may cause the Fund to deviate from its investment objective.

PRINCIPAL RISKS

PROSPECTUS | 299

will decline in value relative to the currency being hedged. The Fund also may incur transaction costs in connection with conversions between various currencies. The Fund may attempt to, but is not obligated to, hedge its currency exposure. However, currency hedging strategies may not effectively eliminate all currency risk.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including

300 | PROSPECTUS

currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

INVESTMENT IN INVESTMENT VEHICLES RISK — Investing in other investment vehicles, including,ETFs, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

ISSUER SPECIFIC RISK — The value of a security may increase or decrease for a number of reasons which directly relate to the issuer. For example, with respect to the Fund, perceived poor management performance, financial leverage or reduced demand of the issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities of an issuer or guarantor of a debt instrument may cause the value of your investment in the Fund to decrease.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

PROSPECTUS | 301

unregulated. As a result and similar to other privately negotiated contracts, the Fund is subject to counterparty credit risk with respect to such derivative contracts.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

TRADING HALT RISK — If a trading halt occurs, the Fund may temporarily be unable to purchase or sell securities, options or futures contracts. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -4.91% .

302 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2009	10.37%	Q3 2009	-10.88	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-13.90%	-15.15%	-11.19%
Return After Taxes on Distributions	-13.90%	-15.21%	-11.34%
Return After Taxes on Distributions and Sale of Fund Shares	-7.87%	-10.53%	-7.72%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	7.44%	18.93%	8.56%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

PROSPECTUS | 303

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

304 | PROSPECTUS

EMERGING MARKETS BOND STRATEGY FUND

INVESTMENT OBJECTIVE

The Emerging Markets Bond Strategy Fund (the “Fund”) seeks to provide investment results that correl at e, before fees and expenses, to the performance of the emerging markets bond market as defined by the Advisor.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.64	%
Short Sales Dividend and Interest Expense	0.07	%
Remaining Other Expenses	0.57	%
Total Annual Fund Operating Expenses	1.64	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$167	$517	$892	$1,944

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund seeks to gain exposure similar to the performance of the emerging markets bond market by investing under normal circumstances at least 80% of its net assets, plus any borrowings for investment purposes, in bonds and financial instruments that in combination have economic characteristics similar to emerging markets bonds. For purposes of the Fund, the emerging markets bond market consists of countries included in the Standard & Poor’s Emerging BMI, as well as countries that are not high-income OECD (Organization for Economic Co-operation and Development) members as defined by the World Bank, and other emerging markets countries as determined by the Advisor.

PROSPECTUS | 305

will have the characteristics of emerging markets bonds without having to invest directly in emerging markets bonds. 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. The Fund will normally be a seller of credit protection as it seeks to gain exposure to the emerging markets bond market. U.S. Treasury futures are derivatives that track the prices of specific U.S. Treasury securities. The emerging markets bond market tends to consist of bonds that are rated below investment grade (below BBB-/Baa3) by nationally recognized statistical rating organizations.

As part of its primary strategy, the Fund also expects to invest in other investment companies, consisting of exchange-traded funds (“ETFs”), mutual funds, unit investment trusts, and closed-end investment companies, as well as swap agreements, derivatives, and other financial instruments with economic characteristics comparable to that of the emerging markets bond market as represented by emerging market bonds. Certain of the investment companies in which the Fund may invest may be advised by the Advisor or otherwise affiliated with the Fund.

The Fund derives its exposure to the emerging markets bond market from its investment in credit default swaps and futures, which provide leveraged exposure. Investments in these derivative instruments have the economic effect of creating financial leverage in the Fund’s portfolio because such investments may give rise to losses that exceed the amount the Fund has invested in those instruments. Financial leverage will magnify, sometimes significantly, the Fund’s exposure to any increase or decrease in prices associated with a particular reference asset resulting in increased volatility in the value of the Fund’s portfolio. The value of the Fund’s portfolio is likely to experience greater volatility over short-term periods. While such financial leverage has the potential to produce greater gains, it also may result in greater losses, which in some cases may cause the Fund to liquidate other portfolio investments at a loss to comply with limits on leverage and asset segregation requirements imposed by the Investment Company Act of 1940 or to meet redemption requests.

In addition to its primary strategy, the Fund may, under normal circumstances, buy debt securities to collateralize its derivative investments, for liquidity purposes, or to enhance yield. The Fund may hold a portfolio of fixed income instruments of varying maturities, but that have an average duration of less than one year. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates and is not simply a measure of time. The longer a security’s duration, the more sensitive it will be to changes in interest rates. In particular, the Fund may hold government money market instruments, such as U.S. Treasury securities and U.S. government agency discount notes and bonds with maturities of two years or less. In addition, the Fund may invest in bank obligations, which may include certificates of deposit, commercial paper, asset-backed commercial paper, unsecured bank promissory notes, bank loans, bankers’ acceptances, and time deposits, as well as other short-term instruments, such as loan participations and repurchase agreements. Bank obligations may be issued or backed by U.S. banks or be U.S. dollar-denominated obligations issued or guaranteed by foreign banks. The Fund will enter into repurchase agreements only with counterparties that are deemed to present acceptable credit risks. The Fund also may invest in high yield securities, known as junk bonds, which are debt securities rated below investment grade (below BBB-/Baa3) by nationally recognized statistical rating organizations, or unrated securities that the Advisor believes are of comparable quality.

The Fund may invest in sovereign debt securities denominated in foreign currencies or the U.S. dollar. The Advisor may attempt, but is not obligated, to reduce foreign currency exchange rate risk by entering into contracts with banks, brokers or dealers to purchase or sell securities or foreign currencies at a future date (“forward contracts”). The Fund also may invest in privately placed securities that have not been registered for sale under the Securities Act of 1933 pursuant to Rule 144A (“Rule 144A Securities”) which are determined by the Advisor to be liquid.

The Fund’s strategy may frequently involve buying and selling portfolio securities to rebalance the Fund’s exposure to various market sectors.

The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

306 | PROSPECTUS

BANK OLBIGATIONS RISK — The Fund’s investments in bank obligations may expose it to adverse developments in or related to the banking industry. The activities of U.S. and most foreign banks are subject to comprehensive regulations, which, in the case of U.S. regulations, have undergone substantial changes in the past decade. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the manner of operations and profitability of domestic and foreign banks. Banks may be particularly susceptible to certain economic factors, such as interest rate changes and adverse developments in the real estate markets. Fiscal and monetary policy and general economic cycles can affect the availability and cost of funds, loan demand and asset quality and thereby impact the earnings and financial conditions of banks. Obligations of foreign banks, including Yankee obligations, are subject to the same risks that pertain to domestic issuers, notably credit risk and market risk, but are also subject to certain additional risks such as adverse foreign political and economic developments, the extent and quality of foreign government regulation of the financial markets and institutions, foreign withholding taxes and other sovereign action such as nationalization or expropriation.

PROSPECTUS | 307

CREDIT DEFAULT SWAP RISK — The Fund’s investments in credit default swaps may subject the Fund to greater risks than if the Fund were to invest directly in high yield bonds. When investing in credit default swaps, the Fund is exposed to the credit risk of both the counterparty to the credit default swap and the issuer of the underlying reference obligation. The Fund could realize a loss on its investment if it does not correctly evaluate the creditworthiness of the issuer of the bond or other reference obligation on which the credit default swap is based, as well as the continued creditworthiness of the counterparty. Investments in credit default swaps also are subject to liquidity risk.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

EMERGING MARKETS RISK — The Fund’s investments may have exposure to emerging markets. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile because they are 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 the Advisor.

EXTENSION RISK —An issuer may exercise its right to pay principal on an obligation later than expected. This may happen when there is a rise in interest rates. Under these circumstances, the value of the obligation will decrease and the Fund's performance may suffer from its inability to invest in higher yielding securities.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

308 | PROSPECTUS

INVESTMENT IN INVESTMENT VEHICLES RISK — Investing in other investment vehicles, including, ETFs, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

INVESTMENT TECHNIQUE RISK — Some investment techniques of the Fund, such as its use of derivatives and other commodity-linked financial instruments to seek to achieve its investment objective, may be considered aggressive. These instruments may increase the volatility of the Fund and may involve a small investment of cash relative to the magnitude of the risk assumed. Such investment techniques may not consistently produce desired results and may be limited by legislative, regulatory, or tax developments.

ISSUER SPECIFIC RISK — The value of a security may increase or decrease for a number of reasons which directly relate to the issuer. For example, with respect to the Fund, perceived poor management performance, financial leverage or reduced demand of the issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities of an issuer or guarantor of a debt instrument may cause the value of your investment in the Fund to decrease.

LEVERAGING RISK — The Fund’s investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. The cost of investing in such instruments generally increases as interest rates increase, which will lower the Fund’s return.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

PROSPECTUS | 309

SOVEREIGN DEBT RISK —Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt.

TRADING HALT RISK — If a trading halt occurs, the Fund may temporarily be unable to purchase or sell securities, options or futures contracts. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective.

PERFORMANCE INFORMATION

A comparison of the Fund’s performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund is new and, therefore, does not have a performance history for a full calendar year. Of course, once the Fund has performance, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund's website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

310 | PROSPECTUS

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 311

LONG SHORT EQUITY FUND (FORMERLY, U.S. LONG SHORT MOMENTUM FUND)

INVESTMENT OBJECTIVE

The Long Short Equity Fund (the “Fund”) seeks long-term capital appreciation.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	1.21	%
Short Sales Dividend and Interest Expense	0.53	%
Remaining Other Expenses	0.68	%
Acquired Fund Fees and Expenses	0.05	%
Total Annual Fund Operating Expenses*	2.41	%

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$244	$751	$1,285	$2,746

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 256% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

312 | PROSPECTUS

allocates investments to industries and styles according to several measures of momentum. Companies associated with industries and/or styles demonstrating positive momentum are favored while those experiencing negative momentum are disfavored. The Fund may hold both long and short positions. Equity positions are determined based on their associated industry and style momentum, risk characteristics, and liquidity. The Fund invests in equity securities, including small-, mid-, and large-capitalization securities, such as U.S. traded common stocks and American Depositary Receipts (“ADRs”), but also may invest in derivative instruments which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities of companies included in the different sectors or industries to which the Fund is seeking exposure. The Fund may invest in derivatives to hedge or gain leveraged exposure to a particular sector, industry or company depending on market conditions.

Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may enter into short sales of broad-based stock indices for hedging purposes in an effort to reduce portfolio risk or volatility. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. On a day-to-day basis, the Fund may hold U.S. government securities, short-term, high quality (rated AA or higher) fixed income securities, money market instruments, overnight and fixed-term repurchase agreements, cash and other cash equivalents with maturities of one year or less to collateralize its derivatives positions or for defensive purposes to seek to avoid losses during adverse market conditions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct significant trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 313

loans. Some asset-backed securities, including mortgage-backed securities, may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices very volatile and they are subject to liquidity risk.

314 | PROSPECTUS

a closing transaction because of an illiquid market. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Futures markets are highly volatile and the use of futures may increase the volatility of the Fund’s NAV. Futures are also subject to leverage risks and to liquidity risk.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 315

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PORTFOLIO TURNOVER RISK—The Fund’s strategy may frequently involve buying and selling portfolio securities, which may lead to increased costs to the Fund. Portfolio turnover risk may cause the Fund’s performance to be less than you expect.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SECTOR RISK—Because the Fund seeks to gain exposure to different industries and sectors in the economy, from time to time, it may invest a significant percentage of the Fund’s assets in issuers in a single industry or sector of the economy. To the extent the Fund has significant investment exposure to an industry or sector, such exposure may present more risks than if the Fund’s investments were more broadly diversified. While the Fund’s sector and industry exposure is expected to vary over time, the Fund anticipates that it may be subject to some or all of the risks described below. The list below is not a comprehensive list of the sectors and industries the Fund may have exposure to over time and should not be relied on as such.

BASIC MATERIALS SECTOR RISK—To the extent that the Fund’s investments are focused in issuers conducting business in the basic materials sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the basic materials sector. The prices of the securities of basic materials companies also may fluctuate widely due to the level and volatility of commodity prices, the exchange value of the U.S. dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

316 | PROSPECTUS

in value and dividend yield, which depend largely on the price and supply of energy fuels, international political events relating to oil producing countries, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies.

FINANCIAL SERVICES SECTOR RISK — To the extent that the Fund’s investments are exposed to in issuers conducting business in the financial services sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. Such issuers include counterparties with which the Fund may enter into swap agreements or other contractual instruments. Financial services companies are subject to extensive governmental regulation which may limit both the amounts and types of financial commitments they can make, and the interest rates and fees they can charge. Profitability is largely dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change or due to increased competition. In addition, the recent deterioration of the credit markets generally has caused an adverse impact on a wide range of financial institutions and markets. Recent events in the financial sector have resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign, and caused certain financial services companies to incur large losses.

REAL ESTATE SECTOR RISK—To the extent that the Fund’s investments are focused in issuers conducting business in the real estate sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The general performance of the real estate industry has historically been cyclical and particularly sensitive to economic downturns. Changes in prevailing real estate values and rental income, interest rates and changing demographics may affect the value of securities of issuers in the real estate industry. Investments in real estate companies and REITs also may subject the Fund to the risks associated with the direct ownership of real estate. In addition to these risks, REITs are dependent on specialized management skills. These factors may increase the volatility of the Fund’s investments in REITs.

TECHNOLOGY SECTOR RISK—To the extent that the Fund’s investments are concentrated in issuers conducting business in the technology sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of technology companies also may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, problems relating to bringing their products to market, very high price/earnings ratios, and high personnel turnover due to severe labor shortages for skilled technology professionals.

SHORT SALES RISK—Short selling a security involves selling a borrowed security with the expectation that the value of the security will decline, so that the security may be purchased at a lower price when returning the borrowed security. The risk for loss on short selling is greater than the original value of the security sold short because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Government actions also may affect the Fund’s ability to engage in short selling.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TRADING HALT RISK— If a trading halt occurs, the Fund may temporarily be unable to purchase or sell certain securities, options or futures contracts. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective.

PERFORMANCE INFORMATION

PROSPECTUS | 317

effect during those periods.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -0.46% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	15.91%	Q4 2008	-21.78	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	18.22%	10.06%	5.12%
Return After Taxes on Distributions	18.22%	10.03%	4.90%
Return After Taxes on Distributions and Sale of Fund Shares	10.31%	7.97%	4.10%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	11.14%	3.04%	0.39%
Russell 3000^® Index(reflects no deduction for fees, expenses or taxes)	33.55%	18.71%	7.88%

318 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 319

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

INVESTMENT OBJECTIVE

The Event Driven and Distressed Strategies Fund (the “Fund”) seeks to achieve capital growth.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%
Distribution (12b-1) Fees	0.25	%
Other Expenses	0.87	%
Acquired Fund Fees and Expenses	0.01	%
Total Annual Fund Operating Expenses*	2.03	%
Fee Waiver and/or Expense Reimbursement**	0.12	%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement*	1.91	%

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

The Advisor has contractually agreed to reduce fees and/or reimburse expenses to the extent necessary to keep net operating expenses for Class H shares (including Rule 12b-1 fees (if any), but exclusive of brokerage costs, dividends on securities sold short, expenses of other investment companies in which the Fund invests, interest, taxes, litigation, indemnification, and extraordinary expenses (as determined under generally accepted accounting principles) (“Excluded Expenses”)) from exceeding 1.90% of the Fund’s Class H shares average daily net assets. 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 1.90%. This Agreement may be terminated only with the approval of the Fund’s Board of Trustees. In any event, this undertaking will continue for at least twelve months from the date of this Prospectus.

EXAMPLE

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

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



1 Year	3 Years	5 Years	10 Years
$194	$625	$1,082	$2,349

PORTFOLIO TURNOVER

320 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 161% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund’s investment methodology is based on a systematic algorithm developed through extensive quantitative research that is designed to select and weight a basket of six liquid, investable factors: small cap and distressed equities, high yield (or “junk”) bonds and credit, merger arbitrage and an illiquidity premium. In combination, these six factors seek to target return characteristics similar to those of the universe of event driven hedge funds. Event driven hedge funds seek to profit from potential mispricings of the securities and the pricing spreads created by the risks related to a specific corporate transaction or market event. Such events can include: mergers, bankruptcies, financial or operational stress, restructurings, asset sales, recapitalizations, spin-offs, litigation, regulatory and legislative changes as well as other types of corporate events. Small cap equities, high yield bonds, and the equities of distressed companies combined with credit derivatives are a proxy for the primary instruments and exposures traded by distressed and opportunistic credit funds. A merger arbitrage index offers exposure to a liquid, diversified and broadly representative set of arbitrage positions on announced American and Western European merger and acquisition deals. The illiquidity factor seeks to represent the risk premium that may be achieved by holding illiquid securities. The factors and weights of those factors identified by the algorithm may change over time and may be long or short at any given time.

The Fund primarily seeks to obtain these exposures through swap agreements, but it also may invest in a combination of: domestic and foreign common stock; American Depositary Receipts (“ADRs”); credit or equity-linked instruments, primarily consisting of exchange-traded notes (“ETNs”); exchange-traded funds (“ETFs”); other pooled investment vehicles; and other derivatives, primarily consisting of futures and options on securities, futures and securities indices. Swaps and futures and options contracts enable the Fund to purse its investment objective without investing directly in the securities underlying such contracts. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions.

From time to time, the Fund also may enter into short sales and invest in short positions of certain of its portfolio investments. The Fund may invest in derivatives to hedge or gain leveraged exposure to the components of a particular investable factor. On a day-to-day basis, the Fund may hold U.S. government securities, short-term, high quality (rated AA or higher) fixed income securities, money market instruments, overnight and fixed-term repurchase agreements, cash, and other cash equivalents with maturities of one year or less to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund also may engage in frequent and active trading or portfolio investments to achieve its investment objective. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PROSPECTUS | 321

of broad-based stock indices for hedging purposes in an effort to reduce portfolio risk or volatility. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. On a day-to-day basis, the Fund may hold U.S. g overnment securities, short-term, high quality (rated AA or higher) fixed income securities, money market instruments, overnight and fixed-term repurchase agreements, cash and other cash equivalents with maturities of one year or less to collateralize its derivatives positions or for defensive purposes to seek to avoid losses during adverse market conditions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct significant trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

322 | PROSPECTUS

also suffer a decrease in quality rating, which may affect the volatility of the price and liquidity of the bond.

DISTRESSED SECURITIES RISK — The Fund may purchase or seek exposure to distressed securities of business enterprises involved in workouts, liquidations, reorganizations, bankruptcies and similar situations. Because there is typically substantial uncertainty concerning the outcome of transactions involving business enterprises in these situations, there is a high degree of risk of loss, including loss of the entire investment. In addition, distressed securities may be subject to periods of abrupt and erratic market movements and above-average price volatility. The market for distressed securities tends to be illiquid and as a result, distressed securities can be difficult to value.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

PROSPECTUS | 323

EXCHANGE-TRADED NOTES (ETNs) RISK—The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or securities markets, changes in the applicable interest rates, changes in the issuer's credit rating and economic, legal, political or geographic events that affect the referenced commodity or security. The Fund’s decision to sell its ETN holdings also may be limited by the availability of a secondary market. If the Fund must sell some or all of its ETN holdings and the secondary market is weak, it may have to sell such holdings at a discount. ETNs also are subject to counterparty credit risk and fixed income risk.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

INVESTMENT TECHNIQUE RISK —Some investment techniques of the Fund, such as its use of derivatives and other financial instruments to seek to achieve its investment objective, may be considered aggressive. These instruments may increase the volatility of the Fund and may involve a small investment of cash relative to the magnitude of the risk assumed. Such investment techniques may not consistently produce desired results and may be limited by legislative, regulatory, or tax developments.

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LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PORTFOLIO TURNOVER RISK—The Fund’s strategy may frequently involve buying and selling portfolio securities, which may lead to increased costs to the Fund. Portfolio turnover risk may cause the Fund’s performance to be less than you expect.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SHORT SALES RISK—Short selling a security involves selling a borrowed security with the expectation that the value of the security will decline, so that the security may be purchased at a lower price when returning the borrowed security. The risk for loss on short selling is greater than the original value of the security sold short because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Government actions also may affect the Fund’s ability to engage in short selling.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 325

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 0.53% .



Highest Quarter Return		Lowest Quarter Return
Q4 2011	7.95%	Q3 2011	-10.94	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class H	Past 1 Year	Since Inception (6/30/2010)
Return Before Taxes	11.48%	8.62%
Return After Taxes on Distributions	9.18%	6.83%
Return After Taxes on Distributions and Sale of Fund Shares	7.03%	6.03%
S&P 500^® Index(reflects no deduction for fees, expenses or taxes)	32.39%	20.69%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	10.88%	9.74%

326 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 327

U.S. GOVERNMENT MONEY MARKET FUND

INVESTMENT OBJECTIVE

The U.S. Government Money Market Fund (the “Fund”) seeks to provide security of principal, high current income, and liquidity.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.



SHAREHOLDER FEES* (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.50	%
Distribution and Shareholder Service (12b-1) Fees	0.00	%
Other Expenses	0.43	%
Total Annual Fund Operating Expenses	0.93	%


*	If you exchange your Class A shares or Class C shares of another Guggenheim Investments fund for shares of the Fund, and your Class A shares or Class C shares are subject to a deferred sales charge at the time of the exchange, no deferred sales charge will be incurred on the exchange itself. However, any such deferred sales charge will be assessed at the time you redeem your shares of the Fund.

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$95	$296	$515	$1,143

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund invests primarily 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 collateralized fully by U.S. government securities. The Fund also may invest in other securities that are determined to be “Eligible Securities” as defined in Rule 2a-7 of the Investment Company Act of 1940 (the “1940 Act”), including, but not limited to Eurodollar Time Deposits, securities issued by the International Bank for Reconstruction and Development (also known as The World Bank), and high-quality commercial paper certificates of deposit, and short-term corporate bonds. The Fund operates in compliance with U.S. Securities and Exchange Commission rules, including Rule 2a-7, which impose certain liquidity, maturity and diversification requirements on all registered money market funds. All securities purchased by

328 | PROSPECTUS

the Fund must have remaining maturities of 397 days or less, and must be found by the Advisor to represent minimal credit risk and be of eligible quality.

Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in government securities as defined by Section 2(a)(16) of the 1940 Act (and derivatives thereof). Section 2(a)(16) of the 1940 Act defines “government security” to mean any security issued or guaranteed as to principal or interest by the United States, or by a person controlled or supervised by and acting as an instrumentality of the government of the United States pursuant to authority granted by the Congress of the United States; or any certificate of deposit for any of the foregoing.

PRINCIPAL RISKS

INCOME RISK — Income Risk involves the potential for decline in the Fund’s yield (the rate of dividends the Fund pays) in the event of declining interest rates.

REPURCHASE AGREEMENT RISK—The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the repurchase agreement counterparty and underlying collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

STABLE PRICE PER SHARE RISK—The Fund’s assets are valued using the amortized cost method, which enables the Fund to maintain a stable price of $1.00 per share. Although the Fund is managed to maintain a stable price per share of $1.00, there is no guarantee that the price will be constantly maintained, and it is possible to lose money.

PERFORMANCE INFORMATION

Effective upon the close of business on June 15, 2012, the Fund converted its existing Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class Shares and Investor2 Class Shares with a single share class. Therefore, the returns shown in the bar chart below for periods prior to June 15, 2012 are the returns of the Fund’s former Investor Class Shares, which were subject to the same fees and expenses as the shares offered in this Prospectus. The Fund’s shares would have annual returns substantially similar to those of the former Investor shares because they are invested in the same portfolio of securities. The variability of performance over time provides an indication of the risks of investing the Fund. Of course, this past performance (before taxes) does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 0.00%.

PROSPECTUS | 329



Highest Quarter Return		Lowest Quarter Return
Q4 2006	1.10%	Q3 2013	0.00	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.00%	0.01%	1.27%

YIELD

Call 800.820.0888 for the U.S. Government Money Market Fund’s current yield.

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

Shares of the Money Market Fund held either directly with Guggenheim Investments or through a third party (e.g., a brokerage account) are not subject to a minimum initial investment amount or a minimum account balance. However, if you exchange shares of the Fund for shares of another fund in the Guggenheim Investments family of funds you will be subject to the purchaser eligibility requirements of the applicable share class of that fund, which may include initial investment amount and account balance requirements. Any such requirements will be disclosed in each fund’s prospectus. In addition, accounts opened through a financial intermediary (non-direct) may be subject to that financial intermediary’s minimum initial investment amount and account balance requirements.

330 | PROSPECTUS

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”). You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments if you opened your account directly with the Fund. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

The Fund reserves the right to accept orders to purchase or redeem shares on any day that is not a Business Day and the Federal Reserve Bank of New York or National Securities Clearing Corporation remains open. In addition, the Fund may designate special hours of operation on any such day. In the event that the Fund invokes the right to accept orders to purchase or redeem shares on any day that is not a Business Day and/or adopt special hours of operation, the Fund will post advance notice of these events at www.guggenheiminvestments.com.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 331

MORE INFORMATION ABOUT THE TRUST AND THE FUNDS

Rydex Series Funds (the “Trust”) is a Delaware statutory trust offering a number of professionally managed investment portfolios, or funds, that are grouped into several categories according to each fund’s investment strategy. This Prospectus describes the Advisor shares, Investor shares and Class H shares of the Funds listed below, as well as shares of the U.S. Government Money Market Fund (each, a “Fund” and collectively, the “Funds”).

The acquisition of shares of the Trust’s funds by other registered investment companies is subject to the restrictions of Section 12(d)(1) of the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust, however, has been granted an exemptive order by the U.S. Securities and Exchange Commission (the "SEC") that permits registered investment companies to invest in the Trust’s funds beyond those limitations subject to conditions set forth in the exemptive order. The Nova Fund, Inverse S&P 500 ^® Strategy Fund, NASDAQ-100 ^® Fund, Inverse NASDAQ-100 ^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000 ^® 1.5x Strategy Fund, Inverse Russell 2000 ^® Strategy Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Long Short Equity Fund, Event Driven and Distressed Strategies Fund and Emerging Markets Bond Strategy Fund (collectively, the "Ineligible Funds"), however, are not currently eligible for investment in excess of the Section 12(d)(1) limitations in reliance on the Trust's exemptive order. Accordingly, registered investment companies that would like to invest in those Funds must adhere to the limits set forth in Section 12(d)(1) of the 1940 Act when investing in the Funds.

DOMESTIC EQUITY FUNDS

Nova Fund, S&P 500 Fund, Inverse S&P 500 Strategy Fund, NASDAQ-100^® 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, 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, and S&P SmallCap 600^® Pure Value Fund

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, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund, and Utilities Fund

INTERNATIONAL EQUITY FUNDS

Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Emerging Markets 2x Strategy Fund, and Inverse Emerging Markets 2x Strategy Fund

SPECIALTY FUNDS

Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Real Estate 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 and Emerging Markets Bond Strategy Fund

ALTERNATIVE FUNDS

Long Short Equity Fund and Event Driven and Distressed Strategies Fund

INVESTMENT OBJECTIVES

The investment objective of each Fund is non-fundamental and may be changed without shareholder approval.

The following sections provide additional information regarding certain of the Funds’ investment objectives.

332 | PROSPECTUS

Each Domestic Equity Fund, International Equity Fund, Specialty Fund (except the Real Estate Fund), and Fixed Income Fund (except the High Yield Strategy Fund and Inverse High Yield Strategy Fund) may change its underlying index or benchmark without shareholder approval. The Advisor, however, will attempt to provide shareholders with 30 days’ prior notice of any such change.

Emerging Markets 2x Strategy Fund and Strengthening Dollar 2x Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase on a daily basis by 200% of any increase in the value of the Fund’s underlying index (e.g., if the value of the underlying index goes up by 5%, the value of the Fund’s shares should go up by 10% on that day). When the value of the Fund’s underlying index declines, the value of the Fund’s shares should also decrease on a daily basis by 200% of any decrease in the value of the underlying index (e.g., if the value of the underlying index goes down by 5%, the value of the Fund’s shares should go down by 10% on that day).

Inverse Emerging Markets 2x Strategy Fund and Weakening Dollar 2x Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase on a daily basis by 200% of any decrease in the value of the Fund’s underlying index (e.g., if the value of the Fund’s underlying index goes down by 5%, the value of the Fund’s shares should go up by 10% on that day).When the value of the Fund’s underlying index increases, the value of the Fund’s shares should decrease on a daily basis by 200% of any increase in the value of the underlying index (e.g., if the value of the Fund’s underlying index goes up by 5%, the value of the Fund’s shares should go down by 10% on that day).

Inverse Mid-Cap Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Inverse Russell 2000^® Strategy Fund and Inverse S&P 500 Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase during times when the value of the Fund’s underlying index is decreasing. When the value of the Fund’s underlying index is increasing, however, the value of the Fund’s shares should decrease on a daily basis by an inversely proportionate amount (e.g., if the index goes up by 5%, the value of the Fund’s shares should go down by 5% on that day).

Mid-Cap 1.5x Strategy Fund, Russell 2000^® 1.5x Strategy Fund and Europe 1.25x Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase during times when the performance of the Fund’s underlying index is increasing. When the value of the Fund’s underlying index is decreasing, the value of the Fund’s shares will tend to decrease.

Nova Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase on a daily basis by 150% of any increase in the value of the underlying index. When the value of the underlying index declines, the value of the Fund’s shares should also decrease on a daily basis by 150% of any decrease in the value of the underlying index (e.g., if the value of the underlying index goes down by 5%, the value of the Fund’s shares should go down by 7.5% on that day).

NASDAQ-100^® Fund, Russell 2000^® Fund, S&P 500^® Fund, 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, and S&P SmallCap 600^® Pure Value Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase on a daily basis by the percentage of any increase in the value of the Fund’s underlying index. When the value of the Fund’s underlying index declines, the value of the Fund’s shares should also decrease on a daily basis by the percentage of the decrease in value of the underlying index.

Japan 2x Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase by 200% of the fair value of the underlying index during times when the performance of the underlying index is increasing. When the fair value of the Fund’s underlying index decreases, the value of the Fund’s shares should also decrease by 200% of the fair value of the decrease in the underlying index (e.g., if the fair value of the underlying index goes down by 5%, the value of the Fund’s shares should go down by 10%). Due to the use of fair valuation, which is explained in more detail under “Calculating Net Asset Value,” the value of the Fund’s shares may increase by more or less than 200% of the reported value of the underlying index on any given day.

PROSPECTUS | 333

price decline of the Long Treasury Bond (e.g., if the Long Treasury Bond goes down by 5%, the value of the Fund’s shares should go down by 6% on that day).

Inverse Government Long Bond Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase on a daily basis when the price of the Long Treasury Bond decreases. When the price of the Long Treasury Bond increases, however, the value of the Fund’s shares should decrease on a daily basis by an inversely proportionate amount (e.g., if the price of the Long Treasury Bond increases by 2%, the value of the Fund’s shares should go down by 2% on that day).

Inverse High Yield Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase during times when the value of the high yield bond market, as a whole, is decreasing. When the value of the high yield bond market is increasing, however, the value of the Fund’s shares should decrease on a daily basis by an inversely proportionate amount (e.g., if the value of the high yield bond market increases by 5%, the value of the Fund’s shares should decrease by 5% on that day).

PRINCIPAL INVESTMENT STRATEGIES

The Advisor develops and implements structured investment strategies designed to achieve each Fund’s investment objective. The Advisor places particular emphasis on controlling risk relative to each Fund’s benchmark or market sector in order to maintain consistency and predictability.

With the exception of the Alternative Funds, High Yield Strategy Fund, Inverse High Yield Strategy Fund, and Emerging Markets Bond Strategy Fund, the Advisor does not engage in temporary defensive investing, keeping each Fund fully invested in all market environments. Each of the Alternative Funds, High Yield Strategy Fund, and Inverse High Yield Strategy Fund may, but will not necessarily, invest up to 100% of its assets in high-quality other market instruments in order to protect the value of the Fund in response to adverse market, economic, political or market conditions. The Emerging Markets Bond Strategy Fund also may invest 100% of its total assets, without limitation, either directly or indirectly through ETFs, in high-quality debt securities and money market instruments in order to protect the value of the Fund in response to adverse market, economic, political or other conditions. Thus, when pursuing a temporary defensive strategy, the Alternative Funds, High Yield Strategy Fund, Inverse High Yield Strategy Fund and Emerging Markets Bond Strategy Fund may not achieve their respective investment objectives.

The Funds may be invested in this manner for extended periods, depending on the Advisor's assessment of market conditions, which could result in lower returns and loss of market opportunity. Debt securities and money market instruments include shares of other mutual funds, commercial paper, certificates of deposit, bankers' acceptances, U.S. government securities, repurchase agreements and bonds that are rated BBB or higher. While a Fund is in a defensive position, the opportunity to achieve its investment objective will be limited. This strategy, if employed, could also result in lower returns and loss of market opportunity. Furthermore, to the extent that a Fund invests in money market mutual funds the Fund would bear its pro rata portion of each such money market fund's advisory fees and operational expenses.

Each Domestic Equity Fund’s, Sector Fund’s, International Equity Fund’s, Fixed Income Fund’s, and the Real Estate Fund’s and U.S. Government Money Market Fund’s investment policy to invest at least 80% of its net assets in a particular type of investment or security is a non-fundamental policy that can be changed by the Fund upon 60 days’ prior notice to shareholders.

Domestic Equity Funds, International Equity Funds, Specialty Funds (except for the Real Estate Fund), and Fixed Income Funds (except for the High Yield Strategy Fund and Inverse High Yield Strategy Fund). In managing the Funds, the Advisor uses a “passive” investment strategy to manage each Fund’s portfolio, meaning that the Advisor does not attempt to select securities based on their individual potential to perform better than the market. The Advisor’s primary objective for the Funds is to match or correlate as closely as possible with the performance of each Fund’s underlying index or other benchmark. The Advisor uses quantitative analysis techniques to structure each Fund to obtain the highest correlation to its particular benchmark. The Advisor monitors each Fund on an ongoing basis, and makes adjustments to its portfolio, as necessary, to minimize tracking error and to maximize liquidity.

334 | PROSPECTUS

exceed the returns of the indices underlying their benchmarks. These leveraged returns are achieved not by borrowing, but by the use of futures contracts and options on securities, futures contracts, and stock indices, and other instruments that simulate leveraged returns without requiring a commitment of cash in excess of the Fund’s assets. For the Inverse Mid-Cap Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Inverse Russell 2000^® Strategy Fund, Inverse S&P 500 Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Inverse Government Long Bond Strategy Fund, the Advisor uses short selling techniques to produce returns that move inversely to the performance of their respective underlying indices.

Sector and Real Estate Funds. In managing the Sector Funds and the Real Estate Fund, the Advisor’s objective is to develop a liquid portfolio of stocks that effectively represents a particular economic segment of the market. Because appropriate published indices are not available for many of the Sector Funds and the Real Estate Fund, the Advisor has developed its own methodology to construct objective performance benchmarks. The Advisor first identifies the investment universe for each sector using Global Industry Classification Standard (GICS) codes. The Advisor then employs a quantitative screen to ensure minimum capitalization and liquidity standards. The resulting portfolio is weighted to meet diversification standards and to generate returns respective of that sector. The Advisor monitors the efficacy of this methodology, and makes periodic changes in the composition of the Sector and Real Estate Funds to ensure that each Fund remains a valid representation of its sector.

Alternative Funds. While the Alternative Funds seek to target return characteristics similar to those achieved by certain hedge fund strategies, the Alternative Funds are registered investment companies and, thus, are subject to the comprehensive regulatory scheme of the 1940 Act and other federal securities laws. As a result, the Alternative Funds are not permitted to engage in certain investment activities to the same extent as hedge funds, such as borrowing and leverage. Therefore, the Alternative Funds may seek to achieve their investment objectives through the use of investment techniques that differ from those employed by hedge funds.

Long Short Equity Fund. Each month, the Advisor allocates investments to industries and styles according to several measures of momentum. The top-ranked industries are selected for the Advisor’s buy list. In order to ensure liquidity in the underlying securities for purchase, approximately 2,000 securities are eligible for purchase from the industry buy lists. The Advisor uses this methodology to rotate the Fund’s investments among a variety of styles, industries or sectors in order to take advantage of volatility in the top performing sectors. The Fund may, at times, also short-sell securities in styles, industries or sectors that exhibit particularly low momentum measurement scores. The Advisor may invest in cash or cash-type securities (high-quality, short-term debt securities issued by corporations, financial institutions, the U.S. government or foreign governments) as a temporary defensive position to avoid losses during adverse market conditions. Taking a temporary defensive position could reduce the benefit to the Fund if the market goes up. In this case, the Fund may not achieve its investment goal.

Event Driven and Distressed Strategies Fund. The Fund seeks to provide investment results that generally correspond to the performance of the event driven hedge fund universe. Event driven hedge funds invest in various asset classes, including physical commodities and real estate, and seek to profit from potential mispricings of securities related to a specific corporate or market event. Such events can include: mergers, bankruptcies, financial or operational stress, restructurings, asset sales, recapitalizations, spin-offs, litigation, regulatory and legislative changes as well as other types of corporate events. Event driven hedge funds can invest in equities, fixed income instruments (investment grade, high yield, bank, convertible and distressed debt), options and various other derivatives. Event driven hedge funds may specialize in distressed debt, distressed equities, Regulation D transactions, capital structure arbitrage, merger arbitrage or other special situations. Many managers use a combination of strategies that typically involve buying long or selling short certain securities in the capital structures of various corporations representing a broad range of both debt and equity securities and adjust exposures based on the opportunity sets in each sub-sector.

High Yield Strategy and Inverse High Yield Strategy Funds. The Advisor’s primary objective for the High Yield Strategy Fund and Inverse High Yield Strategy Fund is to correlate with the performance of the high yield bond market. The Advisor seeks to create portfolios that will correlate highly with the performance of the high yield bond market by investing in credit default swaps, bond futures and other financial instruments that have risk and return characteristics similar to a portfolio of high yield securities. A high yield bond is a bond that is rated below investment grade. Generally, high yield bonds are those bonds rated BB+ and lower by Standard & Poor’s Rating Service or Ba1 and lower by Moody’s Investor Services, Inc. Investors are subject to credit risk when investing in high yield bonds as issuers of the debt may be unable to make their interest and principal payments. High yield bonds typically pay higher yields because they tend to have a higher risk of defaulting than investment grade bonds. Investors are also subject to

PROSPECTUS | 335

interest rate risk when investing in high yield bonds as fixed income securities will generally decrease when interest rates rise. However, the prices of high yield bonds may not necessarily move inversely with changes in interest rates due to changes in credit risk and/or other risks. The Funds will primarily invest in credit default swaps to gain exposure similar to the high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk. A buyer of credit default swaps is buying credit protection or mitigating credit risk. The High Yield Strategy Fund will generally be a seller of credit protection and the Inverse High Yield Strategy Fund will generally be a buyer of credit protection. To manage interest rate risk, the Funds invest in bond futures. The High Yield Strategy Fund will typically buy bond futures, whereas the Inverse High Yield Strategy Fund will typically sell bond futures short. Additionally, the Advisor evaluates the relative liquidity of underlying securities to determine the optimal mix of assets for each Fund.

Emerging Markets Bond Strategy Fund. The Advisor’s primary objective for the Fund is to correlate, before fees and expenses, with the performance of the emerging markets bond market as defined by the Advisor. The emerging markets bond market consists of countries included in the Standard & Poor’s (S&P) Emerging Broad Market Index (BMI), as well as countries that are not high-income OECD (Organization for Economic Co-operation and Development) members as defined by the World Bank, and other emerging markets countries as determined by the Advisor. The S&P Emerging BMI captures all companies domiciled in the emerging markets within the S&P Global BMI with a float-adjusted market capitalization of at least $100 million and a minimum annual trading liquidity of $50 million. Those countries currently are Czech Republic, Hungary, Poland, Russia, Turkey, China, India, Indonesia, Malaysia, Philippines, Taiwan, Thailand, Brazil, Chile, Colombia, Mexico, Peru, Egypt, Morocco, and South Africa. High-income OECD members currently are Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Israel, Japan, Korea Republic, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, United Kingdom, and United States.

The Advisor seeks to create a portfolio that will correlate highly with the performance of the emerging markets bond market by investing in emerging markets credit default swaps, U.S. Treasury futures, and bonds that in combination have risk and return characteristics similar to a portfolio of emerging markets bonds. The Fund will primarily invest in credit default swaps to gain credit exposure similar to the emerging markets bond market. To manage interest rate risk, the Fund invests in U.S. Treasury futures. The bonds in which the Fund invests generally will have an average duration of 4-10 years.

To manage the Fund’s cash holdings, the Fund may invest in a variety of fixed income instruments. The Advisor evaluates the relative liquidity of underlying securities to determine the optimal mix of assets for the Fund.

IMPORTANT INFORMATION REGARDING FUNDS THAT SEEK LEVERAGED AND INVERSE INVESTMENT RESULTS

The Mid-Cap 1.5x Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Nova Fund, Emerging Markets 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Government Long Bond 1.2x Strategy Fund (the “Daily Leveraged Funds”) seek daily leveraged investment results. The Europe 1.25x Strategy Fund and Japan 2x Strategy Fund also seek leveraged investment results (the “Leveraged Funds”). The Inverse Emerging Markets 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (the “Leveraged Inverse Funds”) seek to provide leveraged investment results that match or correlate to the opposite of the performance of a specific benchmark on a daily basis. The Inverse NASDAQ-100^® Strategy Fund, Inverse S&P 500^® Strategy Fund, Inverse Mid-Cap Strategy Fund, Inverse Russell 2000^® Strategy Fund, and Inverse Government Long Bond Strategy Fund (the “Daily Inverse Funds”) seek to provide investment results that match or correlate to the opposite of the performance of a specific benchmark on a daily basis. The Inverse High Yield Strategy Fund seeks to provide investment results that inversely correlate to the performance of the high yield bond market (the “Inverse Fund”). The Daily Leveraged Funds, Leveraged Funds, Leveraged Inverse Funds, Daily Inverse Funds and the Inverse Fund may be referred to collectively as the “Funds.”

As discussed in each Fund’s Summary section, the Funds’ performance is subject to the effects of compounding and leverage, which are discussed in more detail below.

336 | PROSPECTUS

UNDERSTANDING COMPOUNDING & THE EFFECT OF LEVERAGE

It is important to understand the effects of compounding when investing in any mutual fund, especially funds that use leverage as part of their investment strategy. The effect of leverage on a fund will generally cause the fund’s performance to not match or correlate to the performance of the fund’s benchmark over a period of time greater than one day. As a result, the use of leverage could cause the performance of a fund to be less than or greater than the performance of the index underlying the fund’s benchmark multiplied by the amount of leverage employed, before accounting for fees and expenses. The following simple examples provide an illustration:

Example A: Assume you invest $100 in Fund A, a typical index fund that seeks to match the performance of its underlying index. If the index increases 10% on day one, the value of your shares in Fund A would be expected to increase $10 (10% of $100) to $110. The next day, if the index decreases 10%, the value of your shares in Fund A would be expected to decrease $11 (10% of $110) to $99.

Example B: Assume you invested $100 in Fund B, a fund that seeks to return 200% of the performance of its underlying index. If the index increases 10% on day one, the value of your shares in Fund B would be expected to increase $20 (20% of $100) to $120. The next day, if the index decreases 10%, the value of your shares in Fund B would be expected to decrease $24 (20% of $120) to $96.

Because of the effect of compounding, in each case the value of your investment declined even though the index went up 10% on day one and down 10% on day two. However, the effect of compounding was more pronounced when combined with leverage (Example B).

The examples demonstrate that over time, the cumulative percentage increase or decrease in the NAV of a fund may diverge significantly from the cumulative percentage increase or decrease in the multiple of the return of the index underlying a fund’s benchmark due to the compounding effect of losses and gains on the returns of the fund. It also is expected that a fund’s use of consistently applied leverage will cause the fund to underperform the compounded return of twice its benchmark in a trendless or flat market.

The following graphs further illustrate the effect of leverage on fund performance in comparison to the performance of the fund’s underlying index in three different markets. Each of the three graphs shows a simulated hypothetical of the one-year performance of an index compared with the performance of a fund that perfectly achieves its investment objective of exactly twice (200%) the daily index returns.

In order to isolate the effect of leverage, the hypothetical graphs assume: (i) no tracking error (see “Tracking Error Risk” under “Descriptions of Principal Risks”); (ii) no dividends paid by the companies included in the underlying index; (iii) no expenses; and (iv) borrowing and/or lending rates (required to obtain leverage) of zero percent. If tracking error, fund expenses, and borrowing and lending rates of greater than zero percent were included in the graphs, the fund’s performance would be lower than that shown below. Each of the graphs also assumes an index volatility of 20%. An index’s volatility is a statistical measure of the magnitude of the fluctuations in the returns of an index. For example, the average of the most recent five-year historical volatility for the period ending June 30, 2014 of the S&P 500 ^® Index is 3.87%. The S&P 500 ^® Index’s volatility may be more or less significant at any given time. The indices underlying the Funds’ benchmarks have different historical volatilities, which may be more or less significant than the index volatilities assumed in the graphs below. The average historical volatility for the five-year period ended June 30, 2014 of the other indices underlying the Funds’ benchmarks is as follows: STOXX Europe 50 ^® Index 6.99%; NASDAQ-100 Index ^® 4.49%; Nikkei 225 Stock Average 5.62%; BNY Mellon Emerging Markets 50 ADR Index 5.82%; Russell 2000 ^® Index 5.26%; S&P MidCap 400 ^® Index 4.65%; and U.S. Dollar Index ^® 2.38%. The hypothetical graphs are meant to demonstrate the effects of leverage only and are in no way indicative of the actual performance of any of the Funds.

PROSPECTUS | 337

338 | PROSPECTUS

MARKET VOLATILITY.

Each Daily Leveraged Fund and Leveraged Inverse Fund seeks to provide a return that is a multiple of the daily performance of its underlying index. No Daily Leveraged Fund or Leveraged Inverse Fund attempts to, and no Daily Leveraged Fund or Leveraged Inverse Fund should be expected to, provide returns that are a multiple of the return of the underlying index for periods other than a single day. Each Daily Leveraged Fund and Leveraged Inverse Fund rebalances its portfolio 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 Daily Leveraged Fund’s or Leveraged Inverse Fund’s performance if the benchmark experiences volatility. For instance, a hypothetical 2x daily leveraged fund would be expected to lose -3.9% (as shown in Table 1 below) if its benchmark provided no return over a one year period during which its benchmark experienced annualized volatility of 20%. If the benchmark’s annualized volatility were to rise to 40%, the hypothetical loss for a one year period for a 2x daily leveraged fund widens to approximately -14.8% while the loss for a 2x inverse fund rises to -38.0%. At higher ranges of volatility, there is a chance of a near complete loss of fund value even if the benchmark is flat. For instance, if annualized volatility of the benchmark is 90%, a 2x leveraged inverse fund targeted to the same benchmark would be expected to lose more than 90% of its value even if the cumulative benchmark return for the year was 0%. An index’s volatility rate is a statistical measure of the magnitude of fluctuations in the returns of an index.

Table 1



Benchmark Annualized Volatility Range	Hypothetical 2x Leveraged Fund Loss	Hypothetical 2x Inverse Fund Loss
10%	-1.0%	-2.9%
20%	-3.9%	-11.3%
30%	-8.6%	-23.6%
40%	-14.8%	-38.0%
50%	-22.2%	-52.7%
60%	-30.4%	-66.0%
70%	-39.1%	-77.1%
80%	-47.5%	-85.3%
90%	-56.2%	-91.3%
100%	-64.0%	-95.1%

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Table 1 shows the hypothetical loss for a one-year period, assuming the above annualized volatility range for a hypothetical benchmark that provided no return over the one-year period. The hypothetical loss was determined based upon 100,000 simulations performed with randomly generated daily returns normally distributed around 0%. The return values shown represent the mean leveraged final return for all samples with an unleveraged final return between -1% and +1%.

Table 2 shows the range of volatility for the indices to which the Daily Leveraged Funds and Leveraged Inverse Funds are benchmarked for the five year period ended June 30, 2014. In historical terms, volatility ranges during this period were extremely high. The indices to which the Funds are benchmarked have historical volatility rates over that period ranging from 2.38% to 6.99%. Since market volatility, like that experienced by the markets recently, has negative implications for funds that rebalance daily, investors should be sure to monitor and manage their investments in the Daily Leveraged Funds and Leveraged Inverse Funds in volatile markets. The negative implications of volatility in Table 1 can be combined with the recent volatility ranges of various indices in Table 2 to give investors some sense of the risks of holding the Daily Leveraged Funds and Leveraged Inverse Funds for long periods. These tables are intended to simply underscore the fact that the Daily Leveraged Funds and Leveraged Inverse Funds are designed for 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. They are not intended to be used by, and are not appropriate for, investors who do not intend to actively monitor and manage their portfolios.

Table 2



Index	Volatility Average for the Five Year Period Ended June 30, 2014
S&P 500^® Index	3.87%
S&P MidCap 400^® Index	4.65%
Russell 2000^® Index	5.26%
NASDAQ-100 Index^®	4.49%
Nikkei 225 Stock Average	5.62%
BNY Mellon Emerging Markets 50 ADR Index	5.82%
STOXX Europe 50^® Index	6.99%
U.S. Dollar Index^®	2.38%

A PRECAUTIONARY NOTE TO INVESTORS REGARDING DRAMATIC INDEX MOVEMENT. Each Daily Leveraged Fund seeks daily exposure to its underlying index equal to or in excess of 120% of its net assets while each Leveraged Inverse Fund seeks daily exposure to its underlying index equal to -200% of its net assets. As a consequence, for each Daily Leveraged Fund the risk of total loss of your investment exists in the event of a movement of the Daily Leveraged Fund’s underlying index in excess of 50% in a direction adverse to the Daily Leveraged Fund (meaning a decline in the value of the underlying index of a Daily Leveraged Fund) and for each Leveraged Inverse Fund the risk of total loss exists in the event of a movement of the Leveraged Inverse Fund’s underlying index in excess of 50% in a direction adverse to the Leveraged Inverse Fund (meaning a gain in the value of the underlying index of a Leveraged Inverse Fund). In short, the risk of total loss of your investment exists.

THE PROJECTED RETURNS OF LEVERAGED FUNDS FOR SHARES HELD LONGER THAN A FULL TRADING DAY. The Daily Leveraged Funds and Leveraged Inverse Funds seek daily leveraged investment results, which should not be equated with seeking a leveraged goal for longer than a day. For instance, if a Daily Leveraged Fund’s underlying index gains 10% for a week, the Daily Leveraged Fund’s shares should not be expected to provide a return of 20% for the week even if it meets its daily target throughout the week. This is true because of the fund expenses set forth in the prospectus, but also because the pursuit of daily goals may result in daily leveraged compounding, which means that the return of an index over a period of time greater than one day multiplied by a Daily Leveraged Fund’s or Leveraged Inverse Fund’s daily target or inverse daily target (e.g., 200% or -200%) will not generally equal a Daily Leveraged Fund’s or Leveraged Inverse Fund’s performance over that same period.

340 | PROSPECTUS

for a trading day and cumulatively up to, and including, the entire 10 trading day period. The charts are based on a hypothetical $100 investment in a Daily Leveraged Fund and Leveraged Inverse Fund over a 10 trading day period and do not reflect expenses of any kind.

TABLE 1: NO CLEAR TREND IN THE MARKET



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	105	5.00%	5.00%	$110.00	10.00%	10.00%	$90.00	-10.00%	-10.00%
Day 2	110	4.76%	10.00%	$120.48	9.52%	20.48%	$81.43	-9.52%	-18.57%
Day 3	100	-9.09%	0.00%	$98.57	-18.18%	-1.43%	$96.23	18.18%	-3.77%
Day 4	90	-10.00%	-10.00%	$78.86	-20.00%	-21.14%	$115.48	20.00%	15.48%
Day 5	85	-5.56%	-15.00%	$70.10	-11.11%	-29.90%	$128.31	11.11%	28.31%
Day 6	100	17.65%	0.00%	$94.83	35.29%	-5.17%	$83.03	-35.29%	-16.97%
Day 7	95	-5.00%	-5.00%	$85.35	-10.00%	-14.65%	$91.33	10.00%	-8.67%
Day 8	100	5.26%	0.00%	$94.34	10.53%	-5.66%	$81.71	-10.53%	-18.29%
Day 9	105	5.00%	5.00%	$103.77	10.00%	3.77%	$73.54	-10.00%	-26.46%
Day 10	100	-4.76%	0.00%	$93.89	-9.52%	-6.11%	$80.55	9.52%	-19.45%

The cumulative performance of the index in Table 1 is 0% for 10 trading days. The hypothetical return of the Daily Leveraged Fund for the 10 trading day period is -6.11%, while the hypothetical return of the Leveraged Inverse Fund is -19.45%. The volatility of the benchmark performance and lack of clear trend results in performance for each Daily Leveraged Fund and Leveraged Inverse Fund for the period which bears little relationship to the performance of the Funds’ underlying index for the 10 trading day period.

TABLE 2: CLEAR TREND THAT MARKET RISES



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	102	2.00%	2.00%	$104.00	4.00%	4.00%	$96.00	-4.00%	-4.00%
Day 2	104	1.96%	4.00%	$108.08	3.92%	8.08%	$92.24	-3.92%	-7.76%
Day 3	106	1.92%	6.00%	$112.24	3.85%	12.24%	$88.69	-3.85%	-11.31%
Day 4	108	1.89%	8.00%	$116.47	3.77%	16.47%	$85.34	-3.77%	-14.66%
Day 5	110	1.85%	10.00%	$120.78	3.70%	20.78%	$82.18	-3.70%	-17.82%
Day 6	112	1.82%	12.00%	$125.18	3.64%	25.18%	$79.19	-3.64%	-20.81%
Day 7	114	1.79%	14.00%	$129.65	3.57%	29.65%	$76.36	-3.57%	-23.64%
Day 8	116	1.75%	16.00%	$134.20	3.51%	34.20%	$73.68	-3.51%	-26.32%
Day 9	118	1.72%	18.00%	$138.82	3.45%	38.82%	$71.14	-3.45%	-28.86%
Day 10	120	1.69%	20.00%	$143.53	3.39%	43.53%	$68.73	-3.39%	-31.27%

The cumulative performance of the index in Table 2 is 20% for 10 trading days. The hypothetical return of the Daily Leveraged Fund for the 10 trading day period is 43.53%, while the hypothetical return of the Leveraged Inverse Fund is -31.27%. The hypothetical return of the Daily Leveraged Fund is 218% of the index return for the 10 trading day period while the hypothetical return of the Leveraged Inverse Fund is -156% of the index return for the period. In this case, because of the positive index trend, the Daily Leveraged Fund gain is greater than 200% of the index gain and the Leveraged Inverse Fund decline is less than -200% of the index gain for the 10 trading day period.

PROSPECTUS | 341

TABLE 3: CLEAR TREND THAT MARKET DECLINES



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	98	-2.00%	-2.00%	$96.00	-4.00%	-4.00%	$104.00	4.00%	4.00%
Day 2	96	-2.04%	-4.00%	$92.08	-4.08%	-7.92%	$108.24	4.08%	8.24%
Day 3	94	-2.08%	-6.00%	$88.24	-4.17%	-11.76%	$112.76	4.17%	12.76%
Day 4	92	-2.13%	-8.00%	$84.49	-4.26%	-15.51%	$117.55	4.26%	17.55%
Day 5	90	-2.17%	-10.00%	$80.82	-4.35%	-19.18%	$122.66	4.35%	22.66%
Day 6	88	-2.22%	-12.00%	$77.22	-4.44%	-22.78%	$128.12	4.44%	28.12%
Day 7	86	-2.27%	-14.00%	$73.71	-4.55%	-26.29%	$133.94	4.55%	33.94%
Day 8	84	-2.33%	-16.00%	$70.29	-4.65%	-29.71%	$140.17	4.65%	40.17%
Day 9	82	-2.38%	-18.00%	$66.94	-4.76%	-33.06%	$146.84	4.76%	46.84%
Day 10	80	-2.44%	-20.00%	$63.67	-4.88%	-36.33%	$154.01	4.88%	54.01%

The cumulative performance of the index in Table 3 is -20% for 10 trading days. The hypothetical return of the Daily Leveraged Fund for the 10 trading day period is -36.33%, while the hypothetical return of the Leveraged Inverse Fund is 54.01%. The hypothetical return of the Daily Leveraged Fund is 182% of the index return for the 10 trading day period, while the hypothetical return of the Leveraged Inverse Fund is -270% of the index return for the period. In this case, because of the negative index trend, the Daily Leveraged Fund decline is less than 200% of the index decline and the Leveraged Inverse Fund gain is greater than 200% of the index decline for the 10 trading day period.

PRINCIPAL INVESTMENT RISKS

The following section provides additional information regarding the principal risks summarized under “Principal Risks” in the Fund Summaries. The risks below may not be applicable to each Fund. Please consult the Fund Summary sections to determine which risks are applicable to a particular Fund.

ACTIVE TRADING RISK — The Advisor expects a significant portion of the Fund’s assets to come from investors who take part in certain strategic and tactical asset allocation programs that involve frequent trading to take advantage of anticipated changes in market conditions. Frequent trading could increase the rate of the Fund’s portfolio turnover, which correspondingly may increase the transaction expenses borne by the Fund, including brokerage commissions or dealer mark-ups/markdowns and other transaction costs on the sale of securities and reinvestments in other securities. The trading costs associated with portfolio turnover may adversely affect the Fund’s performance. In addition, large movements of assets into and out of the Fund may have a negative impact on its ability to achieve its investment objective or its desired level of operating expenses. The risks associated with frequent trading activity and high portfolio turnover will have a negative impact on longer-term investments.

ASSET-BACKED AND MORTGAGE-BACKED SECURITIES RISK — The Fund may invest in asset-backed securities, including mortgage-backed securities and structured investment vehicles (“SIVs”), which are legal entities that are sponsored by banks, broker-dealers or other financial firms specifically created for the purpose of issuing particular securities or instruments. As an investor, the Fund will receive payments that are part interest and part return of principal. These payments may vary based on the rate at which borrowers pay off their loans. When a borrower, such as a homeowner with respect to mortgage-backed securities, makes a prepayment, the Fund receives a larger portion of its principal investment back, which means that there will be a decrease in monthly interest payments. An underlying pool of assets, principally automobile and credit card receivables, boat loans, computer leases, airplane leases, mobile home loans, recreational vehicle loans and hospital account receivables may back asset-backed securities in which the Fund may invest. The Fund may invest in or have exposure to these and other types of asset-backed securities that may be developed in the future. The pool provides the interest and principal payments to investors. Asset-backed securities may provide the Fund with a less effective security interest in the related collateral than do mortgage-related securities, and thus it is possible that recovery on repossessed collateral might be unavailable or inadequate to support payments on these securities. Some mortgage-backed securities and SIVs may be leveraged or have structures that make their reaction to interest rates and other factors difficult to predict, making their prices very volatile.

342 | PROSPECTUS

Home mortgage loans are typically grouped together into “pools” by banks and other lending institutions, and interests in these pools are then sold to investors, allowing the bank or other lending institution to have more money available to loan to home buyers. When homeowners make interest and principal payments, these payments are passed on to the investors in the pool. Some of these pools are guaranteed by U.S. government agencies or by government sponsored private corporations—familiarly called “Ginnie Mae,” “Fannie Mae” and “Freddie Mac.”

The underlying assets ( i.e., loans) are subject to prepayments, which can shorten the securities’ weighted average life and may lower their return. The value of these securities also may change because of actual or perceived changes in the creditworthiness of the originator, the servicing agent, the financial institution providing credit support, or swap counterparty. These securities are subject to high degrees of credit, valuation and liquidity risks.

BANK OBLIGATIONS RISK — The Fund’s investments in bank obligations may expose it to adverse developments in or related to the banking industry. The activities of U.S. and most foreign banks are subject to comprehensive regulations, which, in the case of U.S. regulations, have undergone substantial changes in the past decade. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the manner of operations and profitability of domestic and foreign banks. Banks may be particularly susceptible to certain economic factors, such as interest rate changes and adverse developments in the real estate markets. Fiscal and monetary policy and general economic cycles can affect the availability and cost of funds, loan demand and asset quality and thereby impact the earnings and financial conditions of banks. Obligations of foreign banks, including Yankee obligations, are subject to the same risks that pertain to domestic issuers, notably credit risk and market risk, but are also subject to certain additional risks such as adverse foreign political and economic developments, the extent and quality of foreign government regulation of the financial markets and institutions, foreign withholding taxes and other sovereign action such as nationalization or expropriation.

CAPITALIZATION SECURITIES RISK — The Fund’s investments may be composed primarily of, or have significant exposure to, securities in a particular capitalization range, e.g., large, mid or small-cap securities. As a result, the Fund may be subject to the risk that the predominate capitalization range represented in the Fund’s portfolio may underperform other segments of the equity market or the equity market as a whole. If the Fund has net short exposure to the components in its portfolio or underlying index or other benchmark it is subject to the risk that the predominate capitalization range represented in the Fund's portfolio or underlying index or benchmark may outperform other segments of the equity market or the equity market as a whole. In addition, in comparison to securities of companies with larger capitalizations, securities of small and medium-capitalization companies may experience more price volatility, greater spreads between their bid and ask prices, significantly lower trading volumes, and cyclical or static growth prospects. Small and medium-capitalization companies often have limited product lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies. These securities may or may not pay dividends.

CLO RISK — A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. The cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the “equity” tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Because it is partially protected from defaults, a senior tranche from a CLO trust typically has higher ratings and lower yields than its underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CLO securities as a class. The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the CLO in which the Fund invests. Normally, CLOs are privately offered and sold, and thus, are not registered under the securities laws. As a result, investments in CLOs may be characterized by the Fund as illiquid securities. However an active dealer market may exist for CLOs allowing a CLO to qualify under the Rule 144A “safe harbor” from the registration requirements of the Securities Act of 1933 for resales of certain securities to qualified institutional buyers .

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number of factors may adversely affect the Fund’s correlation with its benchmark, including fees, expenses, transaction costs, costs and risks associated with the use of leveraged investment techniques, income items, accounting standards and disruptions or illiquidity in the markets for the securities or financial instruments in which the Fund invests. The Fund may not have investment exposure to all securities in its underlying index or benchmark or its weighting of investment exposure to such securities or industries may be different from that of its underlying index or benchmark. In addition, the Fund may invest in securities or financial instruments not included in its underlying index or benchmark. The Fund may be subject to large movements of assets into and out of the Fund, potentially resulting in the Fund being over- or under-exposed to its benchmark. If the Fund seeks to meet its investment objective on a daily basis, activities surrounding annual index reconstitutions and other index rebalancing or reconstitution events may hinder the Fund’s ability to meet its daily investment objective on that day.

Each of the Nova Fund, Mid-Cap 1.5x Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Government Long Bond 1.2x Strategy Fund is considered a “leveraged” fund because it seeks to match or correlate to a multiple or a multiple of the inverse of the performance of the Fund’s underlying index or benchmark on a daily basis. The Europe 1.25x Strategy Fund and Japan 2x Strategy Fund are also “leveraged” funds but have investment objectives to correlate to a multiple of the performance of each Fund’s underlying index over time. The Funds listed above are subject to all of the correlation risks described above. In addition, there is a special form of correlation risk that derives from the Nova Fund, Mid-Cap 1.5x Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Government Long Bond 1.2x Strategy Fund having a single day investment objective in combination with the use of leverage, which is that for periods greater than one day, the effect of compounding may cause the performance of the Fund to be either greater than or less than the performance of the Fund’s underlying index or benchmark (or the inverse of the performance of the Fund’s underlying index or benchmark) times the stated multiple in the Fund objective, before accounting for fees and fund expenses.

COUNTERPARTY CREDIT RISK— The Fund may invest in financial instruments involving counterparties for the purpose of attempting to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. Such financial instruments may include, among others, total return, index, interest rate, and credit default swap agreements. The Fund will use short-term counterparty agreements to exchange the returns (or differentials in rates of return) earned or realized in particular predetermined investments or instruments. The Fund will not enter into any agreement with a counterparty unless the Advisor believes that the other party to the transaction is creditworthy. The use of swap agreements and similar instruments involves risks that are different from those associated with ordinary portfolio securities transactions. For example, 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. If a counterparty defaults on its payment obligations to the Fund, this default will cause the value of your investment in the Fund to decrease. In addition, the Fund may enter into swap agreements with a limited number of counterparties which may increase the Fund’s exposure to counterparty credit risk. The Advisor considers factors such as counterparty credit ratings and financial statements among others when determining whether a counterparty is creditworthy. The Advisor regularly monitors the creditworthiness of each counterparty that the Fund enters into a transaction with. Swap agreements also may be considered to be illiquid. Similarly, if the credit quality of an issuer or guarantor of a debt instrument improves, this change may adversely affect the value of the Fund’s investment.

To the extent the Fund’s financial instrument counterparties are concentrated in the financial services sector, the Fund bears the risk that those counterparties may be adversely affected by legislative or regulatory changes, adverse market conditions, increased competition, and/or wide scale credit losses resulting from financial difficulties or borrowers affecting that economic sector.

CREDIT RISK— It is possible that some issuers of fixed-income securities will not make payments on debt securities and derivatives held by the Fund or there could be defaults on repurchase agreements held by the Fund. This risk may be especially acute with respect to high yield securities ( i.e., “junk bonds”). Also, an issuer may suffer adverse changes in its financial condition that could lower the credit quality of a security, leading to greater volatility in the price of the security and in shares of the Fund. A change in the credit quality rating of a security can affect its liquidity and make it more difficult for the Fund to sell. Any applicable limitation on the credit quality of a security in which the Fund may invest is applied at the time the Fund purchases the security.

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Credit quality is a measure of the issuer’s expected ability to make all required interest and principal payments in a timely manner. An issuer with the highest credit rating has a very strong capacity with respect to making all payments. An issuer with the second highest credit rating has a strong capacity to make all payments, but the degree of safety is somewhat less. An issuer with the lowest credit quality rating may be in default or have extremely poor prospects of making timely payment of interest and principal. See Appendix A of the SAI for a more complete discussion of the meaning of the different credit quality ratings. Investment grade securities are fixed-income securities that have been determined by a nationally recognized statistical rating organization to have a medium to high probability of being paid (although there is always a risk of default), or which, if unrated, have been determined by the Advisor to be of comparable quality. Investment grade securities are designated BBB, A, AA or AAA by Standard & Poor’s Ratings Group, Fitch Investors Service, Inc. and Dominion Bond Rating Service Ltd., and Baa, A, Aa or Aaa by Moody’s Investors Service, or have been determined by the Advisor to be of comparable quality. If nationally recognized statistical rating organizations assign different ratings to the same security, the Fund will use the higher rating for purposes of determining the security’s credit quality.

The Advisor’s credit analysis includes looking at factors such as an issuer’s debt service coverage ( i.e., its ability to make interest payments on its debt), the issuer’s cash flow, general economic factors and market conditions, and global market conditions.

The bank loans and corporate debt securities in which the Fund may invest are generally rated lower than investment grade credit quality, e.g ., rated lower than “Baa” by Moody’s Investors Service (“Moody’s”) or “BBB” by Standard & Poor’s Corporation (“S&P”), or have been issued by issuers who have issued other debt securities which, if rated, would be rated lower than investment grade credit quality. Bridge loans in which the Fund may invest are generally unrated although the borrowers and their loans typically would be rated below investment grade. Investment decisions will be based largely on the credit risk analysis performed by the Advisor and not on rating agency evaluations. This analysis may be difficult to perform. Information about a syndicated bank loan and its issuer generally is not available in the public domain. Many issuers have not issued securities to the public and are not subject to reporting requirements under federal securities laws and generally little public information exists about these companies. Generally, however, issuers are required to provide financial information to lenders, and information may be available from other loan participants or agents that originate or administer syndicated bank loans.

CURRENCY RISK — 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. Similarly, the Strengthening Dollar 2x Strategy Fund’s exposure to the U.S. Dollar Index ^® subjects the Fund to the risk that foreign currencies will appreciate in value relative to the U.S. dollar. Conversely, the Weakening Dollar 2x Strategy Fund’s exposure to the U.S. Dollar Index ^® subjects the Fund to the risk that foreign currencies will depreciate in value relative to the U.S. dollar. To the extent the U.S. Dollar Index ^® is heavily weighted in a particular currency, the Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund will necessarily have concentrated exposures to that same currency. Currently, the Euro is the most heavily weighted of the six foreign currencies represented by the U.S. Dollar Index ^® at approximately 58%. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in sovereign debt levels and trade deficits; domestic and foreign inflation and interest rates and investors’ expectations concerning those rates; currency exchange rates; investment and trading activities of other funds, including hedge funds and currency funds; and global or regional political, economic or financial events and situations and the imposition of currency controls or other political developments in the U.S. or abroad. The Fund may incur transaction costs in connection with conversions between various currencies. The Fund may, but is not obligated to and in the case of the International Equity Funds does not intend to, engage in currency hedging transactions. Currency hedging transactions generally involve buying currency forward, options or futures contracts. Not all currency risk may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. Currency hedging strategies also may reduce the potential returns of the Fund. 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 Europe 1.25x Strategy Fund may have indirect and direct exposure to the euro, which has recently experienced increased volatility. The increased volatility in the price of the euro, which has fluctuated widely over the past several years, is due, in part, to concern over the sovereign debt levels of certain European Union (EU) members and the potential effect of this debt on EU members’ participation in the European Monetary Union and the value of the euro. If such volatility persists, the euro may not maintain its current purchasing power in the future. A decline in the price

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of the euro may adversely affect the Fund’s performance.

DEPOSITARY RECEIPT RISK—The Fund may hold the securities of non-U.S. companies in the form of ADRs. ADRs are negotiable certificates issued by a U.S. financial institution that represent a specified number of shares in a foreign stock and trade on a U.S. national securities exchange, such as the NYSE. The Fund will primarily invest in sponsored ADRs, which are issued with the support of the issuer of the foreign stock underlying the ADRs and which carry all of the rights of common shares, including voting rights. The underlying securities of the ADRs in the Fund’s portfolio are usually denominated or quoted in currencies other than the U.S. dollar. As a result, changes in foreign currency exchange rates may affect the value of the Fund’s portfolio. Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S. dollars. In addition, because the underlying securities of ADRs trade on foreign exchanges at times when the U.S. markets are not open for trading, the value of the securities underlying the ADRs may change materially at times when the U.S. markets are not open for trading, regardless of whether there is an active U.S. market for shares of the Fund. Investments in the underlying foreign securities may involve risks not typically associated with investing in U.S. companies. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets can be extremely volatile due to increased risks of adverse issuer, political, regulatory, market, or economic developments. 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. In addition, transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities.

DERIVATIVES RISK— The Fund may invest a percentage of its assets in derivatives, such as swaps, futures contacts and options contracts and other instruments described in the Fund’s principal investment strategies, to pursue its investment objective and to create economic leverage in the Fund, to enhance total return, to seek to hedge against fluctuations in securities prices, interest rates, currency rates, etc., to change the effective duration of the Fund’s portfolio, to manage certain investment risks, and/or as a substitute for the purchase or sale of securities or currencies. The use of such derivatives may expose the Fund to risks in addition to and greater than those associated with investing directly in the securities underlying those derivatives, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Use of derivatives may also cause the Fund to be subject to additional regulations, which may generate additional Fund expenses. These practices also entail transactional expenses. Certain risks are specific to the types of derivatives in which the Fund invests.

As an investment company registered with the SEC, the Fund must segregate liquid assets or engage in other measures to “cover” open positions with respect to certain kinds of derivatives and short sales. In the case of futures contracts that do not cash settle, for example, the Fund must set aside liquid assets equal to the full notional value of the contracts (less any amounts the Fund has posted as margin) while the positions are open. With respect to futures contracts that do cash settle, however, the Fund is permitted to set aside liquid assets in an amount equal to the Fund’s daily marked-to-market net obligations under the contracts (less any amounts the Fund has posted as margin), if any, rather than their full notional value.

The Fund may enter into swap agreements that would calculate the obligations of the parties to the agreement on a “net basis.” Consequently, the Fund’s current obligations (or rights) under a swap agreement will generally be equal only to the net amount to be paid or received under the agreement based on the relative values of the positions held by each party to the agreement (the “net amount”). The Fund’s current obligations under a swap agreement will be accrued daily (offset against any amounts owed to the Fund) and any accrued but unpaid net amounts owed to a swap counterparty will be covered by the segregation or “earmarking” of assets determined to be liquid.

The Fund’s obligations under a credit default swap agreement will be accrued daily (offset against any amounts owing to the Fund). In connection with credit default swaps in which the Fund is the buyer, the Fund will segregate or “earmark” cash or assets determined to be liquid, or enter into certain offsetting positions, with a value at least equal to the Fund’s exposure (any accrued but unpaid net amounts owed by the Fund to any counterparty), on a marked-to-market basis. In connection with credit default swaps in which the Fund is the seller, the Fund will segregate or “earmark” cash or assets determined to be liquid, or enter into offsetting positions, with a value at least equal to the full notional amount of the swap (minus any amounts owed to the Fund). Such segregation or “earmarking” seeks to ensure that the Fund has assets available to satisfy its obligations with respect to the transaction and will limit

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any potential leveraging of the Fund’s portfolio. However, such segregation or “earmarking” will not limit the Fund’s exposure to loss.

The Fund reserves the right to modify its asset segregation policies in the future to comply with any changes in the positions from time to time articulated by the SEC or its staff regarding asset segregation. By segregating or “earmarking” assets equal to only its net obligations under cash-settled instruments, the Fund will have the ability to employ leverage to a greater extent than if the Fund were required to segregate assets equal to the full notional amount of the instruments. The Fund may incur losses on derivatives and other leveraged investments (including the entire amount of the Fund’s investment in such investments) even if they are covered.

Historically, advisers to registered investment companies trading commodity interests (such as futures contracts, options on futures contracts, non-deliverable forwards, and swaps) have been able to claim an exclusion pursuant to CFTC Regulation 4.5. from the commodity pool operator (“CPO”) registration requirement prescribed by the Commodity Exchange Act (“CEA”). In February 2012, the CFTC adopted substantial amendments to that regulation. As a result of the amendments, a fund must either operate within certain trading and marketing limitations with respect to the fund’s use of financial instruments subject to regulation by the CFTC, or the fund’s investment adviser must register with the CFTC as a CPO subjecting the investment adviser and the fund to regulation by the CFTC. Under the amended rules, an investment adviser of a fund may claim an exclusion from registration as a CPO only if the fund it advises uses futures contracts, options on such futures, commodity options, and certain swaps solely for “bona fide hedging purposes,” or limits its use of such instruments for non-bona fide hedging purposes to certain de minimis amounts and complies with certain marketing restrictions.

The Advisor has claimed an exclusion from the definition of CPO pursuant to CFTC Regulation 4.5 with respect to the S&P 500 ^® Fund, NASDAQ-100 ^® Fund, Russell 2000 ^® Fund, 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, Sector Funds, Real Estate Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, Long Short Equity Fund, and U.S. Government Money Market Fund (the “eligible Funds”). Accordingly, neither the eligible Funds nor the Advisor (with respect to the eligible Funds) is subject to registration as a CPO under the CEA or regulation by the CFTC. To remain eligible for the exclusion, each of the eligible Funds will be limited in its ability to use financial instruments subject to regulation by the CFTC. In the event that an eligible Fund’s investments in such financial instruments are not within the thresholds set forth in the exclusion, the Advisor may be required to register as a CPO under the CEA with respect to that Fund. The Advisor’s eligibility to claim the exclusion with respect to a Fund will be based upon, among other things, the level and scope of the Fund’s investment in financial instruments subject to regulation by the CFTC, the purposes of such investments and the manner in which the Fund holds out its use of commodity interests. Each eligible Fund’s ability to invest in such financial instruments is limited by the Advisor’s intention to operate the Fund in a manner that would permit the Advisor to continue to claim the exclusion pursuant to CFTC Regulation 4.5, which may adversely affect the Fund’s total return. In the event the Advisor becomes unable to rely on the exclusion and is required to register with the CFTC as a CPO with respect to a Fund, the Fund’s expenses may increase, adversely affecting that Fund’s total return.

The Nova 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, Inverse Russell 2000 ^® Strategy Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund, and Event Driven and Distressed Strategies Fund are commodity pools under the CEA. As a result of the recent CFTC rule amendments, the Advisor has registered with the CFTC as a commodity pool operator with respect to each of the Funds. On August 13, 2013, the CFTC issued the final harmonization rule release specifying the disclosure, reporting and recordkeeping requirements that will apply to the Advisor and the Funds. Compliance with the CFTC’s new disclosure, reporting and recordkeeping requirements could increase Fund expenses. The Funds also will be subject to CFTC requirements related to processing derivatives transactions and tracking exposure levels to certain commodities. Compliance with certain of these requirements may adversely affect the Funds’ ability to obtain exposure to certain investments and the commodities markets generally.

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changing area of law and is subject to ongoing modification by government, self-regulatory and judicial action. The effect of any future regulatory change on the Funds is impossible to predict, but could be substantial and adverse to the Funds.

SWAP AGREEMENTS RISK — Swap agreements are contracts entered into primarily by institutional investors for periods ranging from one day to more than one year and may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. In a standard swap transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. The Fund may enter into swap agreements, including but not limited to total return swaps, index swaps, interest rate swaps and credit default swaps. The Fund may utilize swap agreements in an attempt to gain exposure to certain securities without purchasing those securities which is speculative, or to hedge a position. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due to the fact they could be considered illiquid and many swaps currently trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks.

Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free. The Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulatory developments will ultimately require the clearing and exchange-trading of many OTC derivative instruments that the CFTC and SEC recently defined as “swaps.” Mandatory exchange-trading and clearing will occur on a phased-in basis based on the type of market participant and CFTC approval of contracts for central clearing. The Advisor will continue to monitor developments in this area, particularly to the extent regulatory changes affect the Fund’s ability to enter into swap agreements.

CREDIT DEFAULT SWAP RISK —The High Yield Strategy Fund, Inverse High Yield Strategy Fund and Emerging Markets Bond Strategy Fund may each enter into credit default swap agreements. A credit default swap agreement is an agreement between two parties: a buyer of credit protection and a seller of credit protection. The Fund may be either the buyer of credit protection against a designated event of default, restructuring or other credit related event (each a “Credit Event”) or the seller of credit protection in a credit default swap. The buyer in a credit default swap agreement is obligated to pay the seller a periodic stream of payments over the term of the swap agreement. If no Credit Event occurs, the seller of credit protection will have received a fixed rate of income throughout the term of the swap agreement. If a Credit Event occurs, the seller of credit protection must pay the buyer of credit protection the full notional value of the reference obligation either through physical settlement or cash settlement. If no Credit Event occurs, the buyer of credit protection will have made a series of periodic payments through the term of the swap agreement. However, if a Credit Event occurs, the buyer of credit protection will receive the full notional value of the reference obligation either through physical settlement or cash settlement from the seller of credit protection. A credit default swap may involve greater risks than if the Fund invested directly in the underlying reference obligations. For example, a credit default swap may increase the Fund’s credit risk because it has exposure to both the issuer of the underlying reference obligation and the counterparty to the credit default swap. In addition, credit default swap agreements may be difficult to value depending on whether an active market exists for the credit default swaps in which the Fund invests.

FUTURES CONTRACTS RISK — Futures contracts are typically exchange-traded contracts that call for the future delivery of an asset at a certain price and date, or cash settlement (payment of the gain or loss on the contract). Futures are often used to manage or hedge risk because they enable the investor to buy or sell an asset in the future at an agreed-upon price and for other reasons such as to manage exposure to changes in interest rates and bond prices; as an efficient means of adjusting overall exposure to certain markets; in an effort to enhance income; to protect the value of portfolio securities; and to adjust portfolio duration. Risks of futures contracts may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid market. Futures markets can be highly volatile and the use of futures may increase the volatility of the Fund’s NAV. Exchanges can limit the number of options that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Futures are also subject to leveraging risk and can be subject to liquidity risk.

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OPTIONS CONTRACTS RISK — The buyer of an option acquires the right to buy (a call option) or sell (a put option) a certain quantity of a security (the underlying security) or instrument, including a futures contract or swap, at a certain price up to a specified point in time. The seller or writer of an option is obligated to sell (a call option) or buy (a put option) the underlying instrument. Options are often used to manage or hedge risk because they enable the investor to buy or sell an asset in the future at an agreed-upon price and for other reasons such as to manage exposure to changes in interest rates and bond prices; as an efficient means of adjusting overall exposure to certain markets; in an effort to enhance income; to protect the value of portfolio securities; and to adjust portfolio duration.

Options are subject to correlation risks. The writing and purchase of options is a highly specialized activity as the successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the markets for options and the underlying instruments. Exchanges can limit the number of futures options that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk. Because option premiums paid or received by the Fund are small in relation to the market value of the investments underlying the options, the Fund is exposed to the risk that buying and selling put and call options can be more speculative than investing directly in securities.

The Fund may also purchase or sell call and put options on a “covered” basis. A call option is “covered” if the Fund owns the security underlying the call or has an absolute right to acquire the security without additional cash consideration (or, if additional cash consideration is required, cash or cash equivalents in such amount are segregated by the Fund’s custodian). As a seller of covered call options, the Fund faces the risk that it will forgo the opportunity to profit from increases in the market value of the security covering the call option during an option’s life.

HYBRID SECURITIES — Hybrid instruments combine the characteristics of securities, futures and options. Typically, a hybrid instrument combines a traditional stock, bond or commodity with an option or forward contract. Generally, the principal amount, amount payable upon maturity or redemption, or interest rate of a hybrid is tied to the price of some security, commodity, currency or securities index, or another interest rate or some other economic factor. Hybrid instruments can be used as an efficient means of pursuing a variety of investment goals, including currency hedging and increased total return. The risks of such investments would reflect the risks of investing in futures, options and securities, including volatility and illiquidity. Such securities may bear interest or pay dividends at below market (or even relatively nominal) rates. Under certain conditions, the redemption value of such an investment could be zero.

EARLY CLOSING RISK — The normal close of trading of securities listed on NASDAQ and the NYSE is 4:00 p.m., Eastern Time. Unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day. If an exchange or market closes early on a day when the Fund needs to execute a high volume of trades late in a trading day, the Fund might incur substantial trading losses.

EMERGING MARKETS RISK—The Fund may invest in emerging markets. 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 the Advisor, 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.

EQUITY RISK—The Fund is subject to the risk that the value of the equity securities or equity-based derivatives in the Fund’s portfolio will decline or fluctuate dramatically from day to day due to volatility in the equity market. Such volatility could cause equity securities and equity-based derivatives to underperform other segments of the market as a whole. The equity market is volatile and can experience increased volatility for a variety of reasons, including as a result of general market and economic conditions, perceptions regarding particular industries represented in the

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equity market, or factors relating to specific companies to which the Fund has investment exposure. Equity securities generally have greater price volatility than fixed income securities.

EVENT DRIVEN STRATEGIES RISK — Generally, the success of event driven strategies depends on the successful prediction of whether various corporate events will occur or be consummated. Investing in or seeking exposure to companies in anticipation of an event carries the risk that the event may not happen or may take considerable time to unfold, it may happen in modified or conditional form, or the market may react differently than expected to the event, in which case the Fund may experience losses or fail to achieve a desired rate of return. For example, the consummation of mergers, exchange offers, tender offers and other similar transactions or of restructurings, liquidations, spin-offs or other special situations can be prevented or delayed, or the terms changed, by a variety of factors. If the proposed transaction later appears unlikely to be consummated or is delayed, the market price of the securities may decline by more than the difference between the purchase price and the anticipated consideration to be paid, resulting in a loss to the Fund. The Fund may also incur losses unwinding its event driven and distressed positions in the event that a proposed merger or other corporate event does not occur as expected by the Advisor or the Advisor determines the position no longer represents an attractive investment opportunity for the Fund and its shareholders. In addition, certain events, such as companies emerging from bankruptcy or restructurings resulting from bankruptcy, carry additional risks because of the issuer’s financial fragility and the likelihood that its management has little experience with bankruptcy, and the securities of such companies may be more likely to lose value than the securities of more financially stable companies. It also may be difficult to obtain complete financial information about companies involved in certain situations. Event driven strategies may fail when adequate information about the event is unavailable or information available is improperly analyzed. The actions of other market participants may also disrupt the events on which the Fund’s strategy depends. The Fund expects to employ strategies that are not designed to benefit from general market appreciation or improved economic conditions in the global economy. Accordingly, the Fund can be expected to underperform the markets under certain market conditions, such as periods when there is rapid appreciation in the markets.

EXCHANGE-TRADED NOTES (ETNS) RISK — The Fund may invest in ETNs. ETNs are a type of unsecured, unsubordinated debt security that have characteristics and risks similar to those of fixed-income securities and trade on a major exchange similar to shares of ETFs. However, this type of debt security differs from other types of bonds and notes because ETN returns are based upon the performance of a market index minus applicable fees, no period coupon payments are distributed, and no principal protections exist. The purpose of ETNs is to create a type of security that combines the aspects of both bonds and ETFs. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or securities markets, changes in the applicable interest rates, changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the referenced commodity or security. The Fund’s decision to sell its ETN holdings also may be limited by the availability of a secondary market. If the Fund must sell some or all of its ETN holdings and the secondary market is weak, it may have to sell such holdings at a discount. If the Fund holds its investment in an ETN until maturity, the issuer will give the Fund a cash amount that would be equal to principal amount (subject to the day’s index factor). ETNs are also subject to counterparty credit risk and fixed income risk.

EXTENSION RISK — When interests rate rise, an issuer may exercise its right to pay principal on an obligation, particularly asset-backed and mortgage-backed securities, later than expected. Under these circumstances, the value of the obligation will decrease and the Fund’s performance may suffer from its inability to invest in higher yielding securities.

FOREIGN ISSUER EXPOSURE RISK— The Fund may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and ETFs, that are indirectly linked to the performance of foreign issuers. The High Yield Strategy Fund and Inverse High Yield Strategy Fund may invest in instruments that are linked to the performance of foreign issuers, primarily Canadian 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 not typically associated with investing in U.S. issuers. The value of financial instruments denominated in foreign currencies, and of distributions from such financial instruments, 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 financial instruments 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

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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 Fund. With respect to the High Yield Strategy and Inverse High Yield Strategy Funds, the Canadian economy can be significantly affected by the U.S. economy and the price of natural resources. In addition, periodic demands by the Province of Quebec for sovereignty could significantly affect the Canadian market.

GEOGRAPHIC CONCENTRATION RISK—Funds that are less diversified across countries or geographic regions are generally riskier than more geographically diversified funds. A fund that focuses on a single country or a specific region is more exposed to that country’s or region’s economic cycles, currency exchange rates, stock market valuations and political risks (including defense concerns), among others, compared with a more geographically diversified fund. The economies and financial markets of certain regions, such as Asia or Eastern Europe, can be interdependent and may be adversely affected by the same events. In addition, many of these countries and regions have recently experienced economic downturns, making their markets more volatile than U.S. markets.

ASIA—Certain Asian economies have experienced over-extension of credit, currency devaluations and restrictions, high unemployment, high inflation, decreased exports and economic recessions. Economic events in any one country can have a significant economic effect on the entire Asian region as well as on major trading partners outside Asia and any adverse event in the Asian markets may have a significant adverse effect on certain emerging markets and the Hong Kong and Taiwanese economies.

EUROPE—The European economy is diverse and includes both large, competitive economies and small, struggling economies. As a whole, the European Union is the wealthiest and largest economy in the world. However, recent market events affecting several of the European Union (EU) member countries have adversely affected the sovereign debt issued by those countries, and contributed to increased volatility in the value of the euro. The Economic and Monetary Union of the EU requires compliance with restrictions on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls, each of which may significantly affect every country in Europe. Decreasing imports or exports, changes in governmental regulations on trade, changes in the exchange rate of the euro, and recessions in EU economies may have a significant adverse effect on the economies of EU member countries and their trading partners. The European financial markets have recently experienced volatility due to concerns about rising government debt levels of several European countries, including Greece, Spain, Ireland, Italy and Portugal. Economic uncertainty may have an adverse effect on the value of the Fund’s investments.

JAPAN—Targeting Japan could hurt the Fund’s performance if Japan’s economy performs poorly as a result of political and economic conditions that affect the Japanese market. Japanese economic growth has weakened after the sharp collapse of the stock market in the 1990s and the current economic condition remains uncertain. Japanese stocks tend to be more volatile than their U.S. counterparts, for reasons ranging from political and economic uncertainties to a higher risk that essential information may be incomplete or erroneous. The Fund may be more volatile than a geographically diversified equity fund.

GROWTH STOCKS RISK—Growth stocks generally are priced higher than non-growth stocks, in relation to the issuer’s earnings and other measures, because investors believe they have greater growth potential. However, there is no guarantee that such an issuer will realize that growth potential. In addition, an investment in growth stocks also may be susceptible to rapid price swings, especially during periods of economic uncertainty or in response to adverse news about the condition of the issuer, such as earnings disappointments. Growth stocks also typically have little or no dividend income to absorb the effect of adverse market conditions.

HIGH YIELD AND UNRATED SECURITIES RISK— The Fund may invest in high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”). High yield securities generally pay higher yields (greater income) than investment in higher quality securities; however, high yield securities may be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities, and are considered predominantly speculative with respect to an issuer’s continuing ability to make principal and interest payments. Successful investment high yield securities and unrated securities of similar quality involves greater investment risk and is highly dependent on the Advisor’s credit analysis. The value of these securities often fluctuates in response to company, political or economic developments and declines significantly over short periods of time or during periods of general economic difficulty. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the ability of the Fund to sell these securities (liquidity risk). These securities

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can also be thinly traded or have restrictions on resale, making them difficult to sell at an acceptable price. Because objective pricing data may be less available, judgment may play a greater role in the valuation process. If the issuer of a security is in default with respect to interest or principal payments, the Fund may lose its entire investment. The High Yield Strategy Fund seeks to correspond generally to the total return of the high yield bond market and thus an investment in the Fund will generally decline in value when the high yield bond market is losing value. By contrast, the Inverse High Yield Strategy Fund seeks to correspond generally to the inverse (opposite) of the total return of the high yield bond market, and thus an investment in the Fund will generally decline in value when the high yield bond market is gaining value.

INCOME RISK—The Fund is subject to income risk, which is the risk that the Fund’s income will decline during periods of falling interest rates or when the Fund experiences defaults on debt securities it holds. The Fund’s income declines when interest rates fall because, as the Fund’s higher-yielding debt securities mature or are prepaid, the Fund must re-invest the proceeds in debt securities that have lower, prevailing interest rates. The amount and rate of distributions that the Fund’s shareholders receive are affected by the income that the Fund receives from its portfolio holdings. If the income is reduced, distributions by the Fund to shareholders may be less.

INDUSTRY CONCENTRATION RISK—The Fund may concentrate its investments in a limited number of issuers conducting business in the same industry or group of related industries. Market conditions, interest rates, and economic, regulatory, or financial developments could significantly affect a single industry or a group of related industries, and the securities of companies in that industry or group of industries could react similarly to these or other developments.

INTEREST RATE RISK— Investments in fixed-income securities and financial instruments are subject to the possibility that interest rates could rise sharply, causing the value of the Fund’s securities and share price to decline. Longer term bonds and zero coupon bonds are generally more sensitive to interest rate changes than shorter-term bonds. Generally, the longer the average maturity of the bonds in the Fund, the more the Fund’s share price will fluctuate in response to interest rate changes. If an issuer calls or redeems an investment during a time of declining interest rates, the Fund might have to reinvest the proceeds in an investment offering a lower yield, and therefore might not benefit from any increase in value as a result of declining interest rates. Investors should note that interest rates currently are at, or near, historic lows. Securities with floating interest rates, such as syndicated bank loans, generally are less sensitive to interest rate changes, but may decline in value if their interest rates do not rise as much or as fast as interest rates in general.

CHANGING FIXED INCOME MARKET CONDITIONS — Following the financial crisis that began in 2007, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) has attempted to stabilize the U.S. economy and support the U.S. economic recovery by keeping the federal funds rate at or near zero percent. In addition, the Federal Reserve has purchased large quantities of securities issued or guaranteed by the U.S. government, its agencies or instrumentalities on the open market (“Quantitative Easing”). As the Federal Reserve “tapers” or reduces Quantitative Easing, and when the Federal Reserve raises the federal funds rate, there is a risk that interest rates across the U.S. financial system will rise. These policy changes may expose fixed-income markets to heightened volatility and may reduce liquidity for certain Fund investments, causing the value of the Fund’s investments and share price to decline. If the Fund invests in derivatives tied to fixed-income markets, the Fund may be more substantially exposed to these risks than a fund that does not invest in derivatives. To the extent the Fund experiences high redemptions because of these policy changes, the Fund may experience increased portfolio turnover, which will increase the costs that the Fund incurs and may lower the Fund’s performance.

INVESTMENT IN INVESTMENT VEHICLES RISK—The Fund may purchase shares of investment companies, such as ETFs, mutual funds, unit investment trusts, and closed-end investment companies, which may trade at a discount to their NAV, to gain exposure to a particular portion of the market while awaiting an opportunity to purchase securities directly or when such investments present a more cost efficient alternative to investing directly in securities. When the Fund invests in an investment company, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the investment company’s expenses. Further, in part because of these additional expenses, the performance of an investment company may differ from the performance the Fund would achieve if it invested directly in the underlying investments of the investment company. In addition, while the risks of owning shares of an investment company generally reflect the risks of owning the underlying investments of the investment company, the Fund may be subject to additional or different risks than if the Fund had invested directly

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in the underlying investments. For example, shares of an ETF are traded at market prices, which may vary from the NAV of its underlying investments. Also, the lack of liquidity in an ETF can contribute to the increased volatility of its value in comparison to the value of the underlying portfolio securities. In addition, the Fund may invest in investment companies or other pooled investment vehicles that are not registered pursuant to the 1940 Act and therefore, not subject to the regulatory scheme of the 1940 Act.

EXCHANGE-TRADED FUND (ETF) RISK—Certain of the Funds may invest in shares of ETFs to gain exposure to their respective investment objectives. ETFs are pooled investment vehicles, which may be managed or unmanaged, that generally seek to track the performance of a specific index. Although individual shares of an ETF are traded on an exchange (such as the NYSE or NASDAQ), large blocks of shares of ETFs are redeemable at NAV. This ability to redeem large blocks of shares has historically resulted in the market price of individual shares of ETFs being at or near the NAV of the ETF’s underlying investments. However, shares of ETFs may trade below their NAV. The NAV of shares will fluctuate with changes in the market value of the ETF’s holdings. The trading prices of shares will fluctuate in accordance with changes in NAV as well as market supply and demand. The difference between the bid price and ask price, commonly referred to as the “spread,” will also vary for an ETF depending on the ETF’s trading volume and market liquidity. Generally, the greater the trading volume and market liquidity, the smaller the spread is and vice versa. Any of these factors may lead to an ETF’s shares trading at a premium or a discount to NAV. The Fund, from time to time, may invest in exchange-traded investment funds that are not registered pursuant to the 1940 Act. Such exchange-traded investment funds may include commodity pools that are registered pursuant to the Securities Act of 1933 and the Commodity Exchange Act.

INVESTMENT IN LOANS RISK— Loans, such as syndicated bank loans, senior floating rate loans, secured and unsecured loans, second lien or more junior loans, bridge loans and unfunded commitments, may incur some of the same risks as other debt securities, such as prepayment risk, credit risk, interest rate risk, liquidity risk and risks found with high yield securities. Although some loans are secured by collateral, the collateral may be difficult to liquidate and the value of the collateral can decline or be insufficient to meet the obligation of the borrower. The Fund could also have its interest subordinated to other indebtedness of the obligor. As a result, a loan may not be fully collateralized and can decline significantly in value, which may result in the Fund not receiving payments to which it is entitled.

Loans may offer a fixed rate or floating rate of interest. Loans may decline in value if their interest rates do not rise as much or as fast as interest rates in general.

Loans are subject to the risk that the scheduled interest or principal payments will not be paid. Lower-rated loans and debt securities (those of less than investment grade quality), involve greater risk of default on interest and principal payments than higher-rated loans and securities. In the event that a non-payment occurs, the value of that obligation likely will decline. Debt securities rated below “BBB” category by S&P or “Baa” category by Moody’s are considered to have speculative characteristics and are commonly referred to as “junk bonds.” Junk bonds entail default and other risks greater than those associated with higher-rated securities.

Loans are vulnerable to market sentiment such that economic conditions or other events may reduce the demand for loans and cause their value to decline rapidly and unpredictably. Furthermore, while the resale, or secondary, market for loans is growing, it is currently limited. There is no organized exchange or board of trade on which loans are traded. Loans often trade in large denominations (typically $1 million and higher), and trades can be infrequent. The market has limited transparency so that information about actual trades may be difficult to obtain. Accordingly, some of the loans in which the Fund may invest will be relatively illiquid. Certain loans may be subject to restrictions on resale or assignment. The Fund may have difficulty in disposing of loans in a timely fashion, which could result in losses to the Fund.

Loans may be issued in connection with highly leveraged transactions, such as restructurings, leveraged buyouts, leveraged recapitalizations and other types of acquisition financing. In such highly leveraged transactions, the borrower assumes large amounts of debt in order to have the financial resources to attempt to achieve its business objectives. As such, such loans may be part of highly leveraged transactions and involve a significant risk that the borrower may default or go into bankruptcy.

The Fund values its assets daily. However, because the secondary market for loans is limited, they may be difficult to value. Market quotations may not be readily available for some loans or may be volatile and/or subject to large spreads between bid and ask prices, and valuation may require more research than for other securities. In addition, elements

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of judgment may play a greater role in valuation than for securities with a more active secondary market, because there is less reliable, objective market value data available.

The Fund may be in possession of material non-public information about a borrower as a result of its ownership of a loan and/or corporate debt security of a borrower. Because U.S. laws and regulations generally prohibit trading in securities of issuers while in possession of material, non-public information, the Fund might be unable to trade securities of such a borrower when it would otherwise be advantageous to do so and, as such, could incur a loss.

INVESTMENT TECHNIQUE RISK — The Fund may use investment techniques that may be considered aggressive. Risks associated with the use of derivatives, including futures contracts, options, and swap agreements, include potentially dramatic price changes (losses) in the value of the instruments and imperfect correlations between the price of the contract and the underlying security or index. These instruments may increase the volatility of the Fund and may involve a small investment of cash relative to the magnitude of the risk assumed. These techniques also may expose the Fund to risks different from or possibly greater than the risks associated with investing directly in the securities underlying the Fund’s derivative investments, including: 1) the risk that an instrument is temporarily mispriced; 2) credit or performance risk on the amount the Fund expects to receive from a counterparty; 3) the risk that security prices, interest rates and currency markets will move adversely and the Fund will incur significant losses; 4) imperfect correlation between the price of financial instruments and movements in the prices of the underlying securities; and 5) the possible absence of a liquid secondary market for any particular instrument and possible exchange imposed price fluctuation limits, both of which may make it difficult or impossible to adjust the Fund’s position in a particular instrument when desired.

ISSUER SPECIFIC RISK—The value of a security may increase or decrease for a number of reasons which directly relate to the issuer. For example, with respect to the High Yield Strategy Fund, perceived poor management performance, financial leverage or reduced demand of the issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities of an issuer or guarantor of a debt instrument may cause the value of your investment in the High Yield Strategy Fund to decrease. Conversely, with respect to the Inverse High Yield Strategy Fund, effective management, improved financial condition or increased demand of the issuer’s goods or services are factors that may contribute to an increase in the value of a security. An increase in the value of the securities of an issuer or guarantor of a debt instrument may cause the value of your investment in the Inverse High Yield Strategy Fund to decrease.

LEVERAGING RISK— The Long Short Equity Fund, Event Driven and Distressed Strategies Fund and Emerging Markets Bond Strategy Fund may each invest in leveraged instruments in pursuit of its investment objective. The Nova Fund, Mid-Cap 1.5x Strategy Fund, Russell 2000 ^® 1.5x Strategy Fund, International Equity Funds, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Government Long Bond 1.2x Strategy Fund achieve leveraged exposure to their respective underlying indices through the use of derivative instruments. The more the Fund invests in derivative instruments that give rise to leverage, the more this leverage will magnify any losses on those investments. Leverage will cause the value of the Fund’s shares to be more volatile than if the Fund did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities or other investments. The use of leverage also may cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations or to meet segregation requirements. Certain types of leveraging transactions, such as short sales that are not “against the box,” could theoretically be subject to unlimited losses in cases where the Fund, for any reason, is unable to close out the transaction. In addition, to the extent the Fund borrows money, interest costs on such borrowed money may not be recovered by any appreciation of the securities purchased with the borrowed funds and could exceed the Fund’s investment income, resulting in greater losses. The value of the Nova Fund’s, Mid-Cap 1.5x Strategy Fund’s, Russell 2000 ^® 1.5x Strategy Fund’s, International Equity Funds’, Strengthening Dollar 2x Strategy Fund’s, Weakening Dollar 2x Strategy Fund’s, and Government Long Bond 1.2x Strategy Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its underlying index due to the fact that the Fund’s investment strategies involve the use of leverage. Leverage will also have the effect of magnifying tracking error.

LIQUIDITY RISK—In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. To the extent that there is not an established retail market for instruments in which the Fund may invest, trading in such instruments may be relatively inactive. In addition, during periods of reduced market liquidity or in the absence of readily available market quotations for particular investments in the Fund’s portfolio, the ability of the Fund to assign an accurate daily value to these investments may be difficult and the Advisor may be required to fair value the investments. For additional information about fair valuation, see

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“Calculating Net Asset Value.”

MARKET RISK— Most securities fluctuate in price, and equity prices tend to fluctuate more dramatically over the shorter term than do the prices of other asset classes. These movements may result from factors affecting individual companies, or from broader influences like changes in interest rates, market conditions, investor confidence or changes in economic, political or financial market conditions. Volatility of financial markets can expose the Fund to greater market risk, possibly resulting in greater liquidity risk. Moreover, changing economic, political or financial market conditions in one country or geographic region could adversely affect the market value of the securities held by the Fund in a different country or geographic region due to increasingly interconnected global economies and financial markets. These market conditions also may lead to increased regulation of the Fund and the instruments in which the Fund may invest, which may, in turn, affect the Fund’s ability to pursue its investment objective and the Fund’s performance.

NON-DIVERSIFICATION RISK — To the extent that the Fund invests a significant percentage of its assets in a limited number of issuers, the Fund is subject to the risks of investing in those few issuers, and may be more susceptible to a single adverse economic or regulatory occurrence. 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 diversified fund.

OTC TRADING RISK—Certain of the derivatives in which the Fund invests may be traded (and privately negotiated) in the OTC market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated and lacks transparency with respect to the terms of OTC transactions. OTC derivatives are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to the Fund. In addition, such derivative instruments are often highly customized and tailored to meet the needs of the counterparties. If a derivative transaction is particularly large or if the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous time or price. As a result and similar to other privately negotiated contracts, the Fund is subject to counterparty credit risk with respect to such derivative contracts.

PASSIVE INVESTMENT RISK—The Fund is not actively managed and may be affected by a general decline in market segments, or rise in market segments for the Leveraged Inverse Funds and Inverse Funds, relating to its underlying index. The Fund invests in securities included in, or representative of, its underlying index regardless of their investment merits. The Advisor does not attempt to take defensive positions in declining or rising markets, as applicable. As a result, the Fund may be subject to greater losses in a declining market (or rising market for the Leveraged Inverse Funds and Inverse Funds) than a fund that does take defensive positions.

PORTFOLIO TURNOVER RISK— The daily rebalancing of certain of the Funds’ holdings pursuant to their daily investment objectives may lead to a greater number of portfolio transactions in the Funds than experienced by other mutual funds. Other of the Funds’ strategies also may involve the frequent purchase and sale of portfolio securities. Such frequent and active trading may lead to significantly higher transaction costs for the Funds because of increased broker commissions associated with such transactions. Each Fund calculates portfolio turnover without including the short term cash instruments or derivative transactions that comprise the majority of certain of the Funds’ trading. As such, if a Fund’s extensive use of derivative instruments were reflected, the calculated portfolio turnover rate would be significantly higher. Portfolio turnover may cause a Fund’s performance to be less than you expect.

PREPAYMENT RISK — The issuers of securities held by the Fund or investment companies in which the Funds invests may be able to prepay principal due on the securities, particularly during periods of declining interest rates. Securities subject to prepayment risk generally offer less potential for gains when interest rates decline, and may offer a greater potential for loss when interest rates rise. In addition, rising interest rates may cause prepayments to occur at a slower than expected rate, thereby effectively lengthening the maturity of the security and making the security more sensitive to interest rate changes. Prepayment risk is a major risk of mortgage-backed securities and certain asset-backed securities.

Most floating rate loans (such as syndicated bank loans) and debt securities allow for prepayment of principal without penalty. Accordingly, the potential for the value of a floating rate loan or security to increase in response to interest rate declines is limited. Corporate loans or securities purchased to replace a prepaid corporate loan or security may have lower yields than the yield on the prepaid corporate loan.

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REPURCHASE AGREEMENT RISK — The Fund will enter into repurchase agreements, which are transactions in which the Fund purchases securities or other obligations from a bank or securities dealer and simultaneously commits to resell them to a counterparty at an agreed-upon date or upon demand and at a price reflecting a market rate of interest unrelated to the coupon rate or maturity of the purchased obligations. The Fund will enter into repurchase agreements only with counterparties that the Advisor believes present acceptable credit risks, and the collateral securing the repurchase agreements generally will be limited to U.S. government securities and cash. If the market value of the underlying obligations of a repurchase agreement declines, the counterparty must provide additional collateral so that at all times the value of the collateral is greater than the repurchase price of the underlying obligations. Nonetheless, should a counterparty become insolvent or otherwise default, there could be a delay before the Fund is able to liquidate the collateral, which would subject the collateral and the Fund to market risk during that period.

SECTOR RISK—The Sector Risk applicable to each Fund is as follows:

BANKING SECTOR RISK — The risk that the securities of issuers in the banking sector that the Banking Fund and Long Short Equity Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the banking sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the banking sector. For example, government regulations may limit both the amounts and types of loans and financial commitments banking companies can make, and the interest rates and fees they can charge and the amount of capital they must maintain, which may affect the profitability of banking companies. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of Banking Companies. The prices of the securities of Banking Companies may fluctuate widely due to the broadening of regional and national interstate banking powers, the reduction in the number of publicly-traded Banking Companies, and general economic conditions that could create exposure to credit losses.

BASIC MATERIALS SECTOR RISK — The risk that the securities of issuers in the basic materials sector that the Basic Materials Fund and Long Short Equity Fund purchase will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the basic materials sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the basic materials sector. The prices of the securities of Basic Materials Companies may fluctuate widely due to the level and volatility of commodity prices, the exchange value of the U.S. dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

BIOTECHNOLOGY SECTOR RISK — The risk that the securities of issuers in the biotechnology sector that the Biotechnology Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the biotechnology sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the biotechnology sector. The prices of the securities of Biotechnology Companies may fluctuate widely due to patent considerations, intense competition, rapid technological change and obsolescence, and regulatory requirements of the Food and Drug Administration, the Environmental Protection Agency, state and local governments, and foreign regulatory authorities.

CONSUMER PRODUCTS SECTOR RISK — The risk that the securities of issuers in the consumer products sector that the Consumer Products Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the consumer products sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the consumer products sector. The performance of Consumer Products Companies has historically been closely tied to the performance of the overall economy, and also is affected by interest rates, competition, consumer confidence and relative levels of disposable household income and seasonal consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products in the marketplace.

ELECTRONICS SECTOR RISK — The risk that the securities of issuers in the electronics sector that the Electronics Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the electronics sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Electronics Companies may fluctuate widely due to risks of rapid obsolescence of products, intense

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competition, the economic performance of their customers, high technology and research costs, and may face competition from subsidized foreign competitors with lower production costs.

ENERGY SECTOR RISK — The risk that the securities of, or financial instruments tied to the performance of, issuers in the energy sector and energy sector commodities that the Energy Fund and Long Short Equity Fund purchase will underperform the market as a whole either by declining in value or failing to perform as well. To the extent that a Fund’s investments are exposed to issuers conducting business in the energy sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the energy and energy commodities sectors. The prices of the securities of Energy Companies and energy sector commodities may fluctuate widely due to changes in value and dividend yield, which depend largely on the price and supply of energy fuels, international political events relating to oil producing countries, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies.

ENERGY SERVICES SECTOR RISK — The risk that the securities of issuers in the energy services sector that the Energy Services Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the energy services sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the energy services sector. The prices of the securities of Energy Services Companies may fluctuate widely due to the supply and demand both for their specific products or services and for energy products in general, the price of oil and gas, exploration and production spending, governmental regulation and environmental issues, and world events and economic conditions generally affecting energy supply companies.

FINANCIAL SERVICES SECTOR RISK—The risk that the securities of issuers in the financial services sector that the Financial Services Fund and Long Short Equity Fund purchase will underperform the market as a whole. To the extent that a Fund’s investments are exposed to issuers conducting business in the financial services sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the financial services sector. Financial services companies are subject to extensive governmental regulation which may limit both the amounts and types of loans and other financial commitments they can make, and the interest rates and fees they can charge. Profitability is largely dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change or due to increased competition. In addition, the recent deterioration of the credit markets generally has caused an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. Recent events in the financial sector have resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign, and caused certain financial services companies to incur large losses. Numerous financial services companies have experienced substantial declines in the valuations of their assets, taken action to raise capital (such as the issuance of debt or equity securities), or even ceased operations. These actions have caused the securities of many financial services companies to experience a dramatic decline in value. Credit losses resulting from financial difficulties of borrowers and financial losses associated with investment activities can negatively impact the sector. Insurance companies may be subject to severe price competition.

HEALTH CARE SECTOR RISK—The risk that the securities of issuers in the health care sector that the Health Care Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the health care sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the health care sector. The prices of the securities of Health Care Companies may fluctuate widely due to government regulation and approval of their products and services, which can have a significant effect on their price and availability. Furthermore, the types of products or services produced or provided by these companies may quickly become obsolete. Moreover, liability for products that are later alleged to be harmful or unsafe may be substantial, and may have a significant impact on a Health Care Company’s market value and/or share price.

INTERNET SECTOR RISK—The risk that the securities of issuers in the Internet sector that the Internet Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the Internet sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the Internet sector. The prices of the securities of Internet Companies may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, problems related to bringing their products to market and rapid obsolescence of products.

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LEISURE SECTOR RISK—The risk that the securities of issuers in the leisure sector that the Leisure Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the leisure sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the leisure sector. Securities of Leisure Companies may be considered speculative, and generally exhibit greater volatility than the overall market. The prices of the securities of Leisure Companies may fluctuate widely due to unpredictable earnings, due in part to changing consumer tastes and intense competition, strong reaction to technological developments and to the threat of increased government regulation, particularly in the gaming arena.

PRECIOUS METALS AND INDUSTRIAL SECTOR RISK—The risk that the relatively few securities of, or financial instruments tied to the performance of, issuers in the mining industry that the Precious Metals Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the precious and/or industrial metals sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that industry, as well as to the volatility of global prices for precious and industrial metals. The prices of precious and industrial metals and securities of precious and industrial metals companies may fluctuate widely due to changes in inflation or inflation expectations, currency fluctuations, speculation, worldwide demand and political developments in precious metals producing countries.

REAL ESTATE SECTOR RISK— The risk that the securities of real estate companies that the Real Estate Fund and Long Short Equity Fund purchase will underperform the market as a whole. To the extent that the Fund’s investments are exposed to real estate companies, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting real estate companies. Investments in real estate companies also may subject the Fund to the risks associated with the direct ownership of real estate. The general performance of the real estate industry has historically been cyclical and particularly sensitive to economic downturns. Changes in prevailing real estate values and rental income, interest rates and changing demographics may affect the value of securities of issuers in the real estate industry. Also, Equity REITs may be affected by changes in the value of the underlying property owned by the REITs, while Mortgage REITs may be affected by the quality of the credit extended. In addition to these risks, REITs are dependent on specialized management skills, and some REITs may have investments in relatively few properties, in a small geographic area, or a single type of property. These factors may increase the volatility of the Fund’s investments in REITs.

RETAILING SECTOR RISK—The risk that the securities of issuers in the retailing sector that the Retailing Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the retailing sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the retailing sector. The prices of the securities of Retailing Companies may fluctuate widely due to consumer spending, which is affected by general economic conditions and consumer confidence levels. The retailing industry is highly competitive, and a Retailing Company’s success is often tied to its ability to anticipate and react to changing consumer tastes. Many Retailing Companies are thinly capitalized, and are dependent upon a relatively few number of business days to achieve their overall results.

TECHNOLOGY SECTOR RISK— The risk that the securities of issuers in the technology sector that the NASDAQ-100 ^® Fund, Inverse NASDAQ-100 ^® Strategy Fund, Technology Fund, and Long Short Equity Fund purchase will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the technology sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of technology companies may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, problems relating to bringing their products to market, very high price/earnings ratios, and high personnel turnover due to severe labor shortages for skilled technology professionals.

TELECOMMUNICATIONS SECTOR RISK—The risk that the securities of issuers in the telecommunications sector that the Telecommunications Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the telecommunications sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the telecommunications sector. The prices of the securities of Telecommunications Companies may fluctuate widely due to both federal and state regulations governing rates of return and services that may be offered, fierce competition for market share, and competitive challenges in the U.S. from foreign competitors engaged in

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strategic joint ventures with U.S. companies, and in foreign markets from both U.S. and foreign competitors. In addition, recent industry consolidation trends may lead to increased regulation of Telecommunications Companies in their primary markets.

TRANSPORTATION SECTOR RISK—The risk that the securities of issuers in the transportation sector that the Transportation Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the transportation sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the transportation sector. The prices of the securities of Transportation Companies may fluctuate widely due to their cyclical nature, occasional sharp price movements which may result from changes in the economy, fuel prices, labor agreements, and insurance costs, the recent trend of government deregulation, and increased competition from foreign companies, many of which are partially funded by foreign governments and which may be less sensitive to short-term economic pressures.

UTILITIES SECTOR RISK—The risk that the securities of issuers in the utilities sector that the Utilities Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the utilities sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the utilities sector. The prices of the securities of Utilities Companies may fluctuate widely due to government regulation; the effect of interest rates on capital financing; competitive pressures due to deregulation in the utilities industry; supply and demand for services; increased sensitivity to the cost of natural resources required for energy production; and environmental factors such as conservation of natural resources or pollution control.

SHORT SALES RISK— Short sales are transactions in which the Fund , sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. The Fund also is required to segregate other assets (not including the proceeds from the short sale) on its books to cover its obligation to return the security to the lender which means that those other assets may not be available to meet the Fund’s needs for immediate cash or other liquidity. The Fund’s investment performance also may suffer if the Fund is required to close out a short position earlier than it had intended. This would occur if the securities lender required the Fund to deliver the securities the Fund borrowed at the commencement of the short sale and the Fund was unable to borrow the securities from another securities lender or otherwise obtain the security by other means. In addition, the Fund may be subject to expenses related to short sales that are not typically associated with investing in securities directly, such as costs of borrowing and margin account maintenance costs associated with the Fund’s open short positions. These expenses negatively impact the performance of the Fund. For example, when the Fund short sells an interest-bearing security, such as a bond, it is obligated to pay the interest on the security it has sold. This cost is partially offset by the interest earned by the Fund on the investment of the cash generated by the short sale. When the Fund sells short an equity security that pays a dividend, the Fund must pay out the dividend rate of the equity security to the lender and records this as an expense of the Fund and reflects the expense in its financial statements. However, a dividend paid on a security sold short generally has the effect of reducing the market value of the shorted security and thus, increases the Fund’s unrealized gain or reduces the Fund’s unrealized loss on its short sale transaction. To the extent that the interest rate and/or dividend that the Fund is obligated to pay is greater than the interest earned by the Fund on investments, the performance of the Fund will be negatively impacted. These types of short sales expenses are sometimes referred to as the “negative cost of carry,” and will tend to cause the Fund to lose money on a short sale even in instances where the price of the underlying security sold short does not change over the duration of the short sale.

SOVEREIGN DEBT RISK — Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity’s debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further

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loans. There is no legal process for collecting sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

STABLE PRICE PER SHARE RISK—The Fund is subject to Stable Price Per Share Risk. The Fund’s assets are valued using the amortized cost method, which enables the Fund to maintain a stable price of $1.00 per share. Although the Fund is managed to maintain a stable price per share of $1.00, there is no guarantee that the price will be constantly maintained, and it is possible to lose money. The Fund is not a bank deposit and is not federally insured or guaranteed by any government agency or guaranteed to achieve its objective.

STATUS AS A REGULATED INVESTMENT COMPANY RISK— The Fund may realize gains from the sale or other disposition of foreign currencies and other income (including but not limited to gains from options, futures or forward contracts) derived from investing in stock, securities, or foreign currencies. The Secretary of the Treasury is authorized to issue regulations that might cause the Fund, as a result of its realization of such foreign currency gains, to fail to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). As of the date of this Prospectus, no regulations have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Please see the SAI under “Special Considerations Applicable to Certain Funds” for additional discussion of this issue.

A Fund's status as a regulated investment company under the Internal Revenue Code has no bearing on the Fund's status as an investment company under the 1940 Act.

STRESSED AND DISTRESSED SECURITIES RISK — The Fund may invest in or seek exposure to distressed securities, including loans, bonds and notes, many of which are not publicly traded and that may involve a substantial degree of risk. Distressed securities include securities of companies that are in financial distress and that may be in or about to enter bankruptcy or other similar event. In certain periods, there may be little or no liquidity in the markets for these securities or other instruments. In addition, the prices of distressed securities may be subject to periods of abrupt and erratic market movements and above-average price volatility. It may be difficult to obtain financial information regarding the financial condition of a borrower or issuer, and its financial condition may be changing rapidly. It may be more difficult to value such securities and the spread between the bid and asked prices of such securities may be greater than normally expected. If the Advisor’s evaluation of the risks and anticipated outcome of an investment in a distressed security should prove incorrect, the Fund may lose a substantial portion or all of its investment or it may be required to accept cash or securities with a value less than the Fund’s original investment.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund may be affected by a general decline in market specific market segments or the market as a whole. The Fund invests in securities included in a specific market segment, such as the commodity and financial futures markets, in an effort to achieve its investment objective and regardless of their investment merits. The Advisor does not attempt to take defensive positions in declining markets. As a result, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions.

TRACKING ERROR RISK—The Advisor may not be able to cause the Fund’s performance to match or correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of its underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

In addition, because the Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, NASDAQ-100^® Fund, Inverse NASDAQ-100^® Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, 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, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund is tracking the performance of its benchmark on a daily basis, mathematical compounding may prevent the Fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Tracking error may cause the Fund’s performance to be less than you expect.

The Europe 1.25x Strategy Fund and Japan 2x Strategy Fund seek to track their respective benchmarks over time, but are also subject to the effects of mathematical compounding. Tracking error may be more significant for the Europe 1.25x Strategy Fund and Japan 2x Strategy Fund compared to other Funds due to the Funds’ consistent application

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of leverage to increase exposure to their respective underlying indices.

The prices of the Europe 1.25x Strategy Fund and Japan 2x Strategy Fund are calculated at the close of the U.S. markets using fair value prices. Due to the differences in times between the close of the European and Japanese markets and the time the Funds price their shares, the value the Funds assign to securities generally will not be the same as the quoted or published prices of those securities on their primary markets or exchanges. On a daily basis, the Funds are priced with consideration to the performance of securities on their primary exchanges, foreign currency appreciation/depreciation, and market movement in the U.S. as related to the securities. As a result, the tracking error risk for the Europe 1.25x Strategy Fund and Japan 2x Strategy Fund may be higher than for other Funds.

TRADING HALT RISK—The Fund typically will hold short-term options and futures contracts. The major exchanges on which these contracts are traded, such as the Chicago Mercantile Exchange, have established limits on how much an option or futures contract may decline over various time periods within a day. In addition, the major securities exchanges, such as the NYSE, have established limits on how much the securities market, based on the Dow Jones Industrial Average^SM, may decline over various time periods within a day. If the price of a security, an option or a futures contract declines more than the established limits, trading on the exchange is halted on that instrument. If a trading halt occurs, the Fund may temporarily be unable to purchase or sell the options, futures contracts or securities that are the subject of the trading halt. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective. In such an event, the Fund also may be required to use a “fair value” method to price its outstanding contracts or securities.

VALUE STOCKS RISK—Value stocks tend to be inexpensive relative to their earnings or assets compared to other types of stocks. Over time, a value investing style may go in and out of favor, causing the Fund to sometimes underperform other equity funds that use different investing styles. Value stocks can react differently to issuer, political, market and economic developments than the market overall and other types of stock. In addition, the Fund’s value approach carries the risk that the market will not recognize a security’s intrinsic value for a long time or that a stock judged to be undervalued may actually be appropriately priced.

PORTFOLIO HOLDINGS

A description of the Funds’ policies and procedures with respect to the disclosure of Fund portfolio securities is available in the SAI.

COMPARABLE INDEX INFORMATION

The Event Driven and Distressed Strategies Fund employs an investment methodology that is similar to that used to compile the Credit Suisse Event Driven Liquid Index.

Credit Suisse Event Driven Liquid Index – The Credit Suisse Event Driven Liquid Index aims to synthetically replicate the performance of the Dow Jones Credit Suisse Event Driven Hedge Fund Index, which is non-investable, by using non-hedge fund, liquid tradable securities selected and weighted according to an algorithm. The Dow Jones Credit Suisse Event Driven Hedge Fund Index is an asset-weighted index containing event driven hedge fund constituents. Event driven hedge funds generally make short and long investments in the securities of corporations experiencing substantial change as a result of such corporate actions as liquidation, bankruptcy, emergence from bankruptcy, divestitures, acquisitions, or mergers. Event driven hedge funds may specialize in distressed debt, distressed equities, Regulation D transactions, capital structure arbitrage, merger arbitrage or other special situations, or they may invest across multiple event driven strategies. Such strategies typically involve buying long or selling short certain securities in the capital structures of various corporations representing a broad range of both debt and equity securities.

The Dow Jones Credit Suisse Event Driven Hedge Fund Index is compiled by Credit Suisse Hedge Index LLC. It is an asset-weighted hedge fund index and includes only hedge funds, as opposed to separate accounts. The Index uses the funds classified as event driven in the Credit Suisse database, which tracks over 5,000 hedge funds, and consists only of hedge funds with a minimum of US $50 million under management, a 12-month track record, and audited financial statements. It is calculated and rebalanced on a monthly basis, and shown net of all performance fees and expenses. It is the exclusive property of Credit Suisse Hedge Index LLC.

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More detailed information about the Credit Suisse Event Driven Liquid Index can be found on the Credit Suisse website and in the SAI under “More Information About the Comparable Index.”

MANAGEMENT OF THE FUNDS

INVESTMENT ADVISOR

The Advisor, Security Investors, LLC, is located at 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850, and serves as investment adviser of the Funds. The Advisor is a registered investment adviser and a registered commodity pool operator. The Advisor has served as the investment adviser of each Fund since its inception.

The Advisor makes investment decisions for the assets of the Funds and continuously reviews, supervises, and administers each Fund’s investment program. The Board of Trustees of the Trust supervises the Advisor and establishes policies that the Advisor must follow in its day-to-day management activities. Pursuant to an investment advisory agreement between the Trust and the Advisor, the Funds paid the Advisor a fee at an annualized rate for the fiscal year ended March 31, 2014, based on the average daily net assets of each Fund, as set forth below:



Fund	Advisory Fee
Nova Fund	0.75	%
S&P 500^® Fund	0.75	%
Inverse S&P 500^® Strategy Fund	0.90	%
NASDAQ-100^® Fund	0.75	%
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	%

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Fund	Advisory Fee
Inverse Russell 2000^® Strategy Fund	0.90	%
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	%
Sector Funds (Except for the Precious Metals Fund)	0.85	%
Precious Metals Fund	0.75	%
Europe 1.25x Strategy Fund	0.90	%
Japan 2x Strategy Fund	0.75	%
Emerging Markets 2x Strategy Fund	0.90	%
Inverse Emerging Markets 2x Strategy Fund	0.90	%
Strengthening Dollar 2x Strategy Fund	0.90	%
Weakening Dollar 2x Strategy Fund	0.90	%
Real Estate Fund	0.85	%
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	%
Emerging Markets Bond Strategy Fund	0.75	%
Long Short Equity Fund	0.90	%
Event Driven and Distressed Strategies Fund	0.90	%
U.S. Government Money Market Fund	0.50	%

The Advisor has contractually agreed to reduce fees and/or reimburse expenses to the extent necessary in order to keep net expenses (including Rule 12b-1 fees (if any), but exclusive of brokerage costs, dividends on securities sold short, expenses of other investment companies in which the Fund invests, interest, taxes, litigation, indemnification, and extraordinary expenses (as determined under generally accepted accounting principles) from exceeding the Event Driven and Distressed Strategies Fund’s average daily net assets as follows:



Fund	Expense Cap
Event Driven and Distressed Strategies Fund	1.90%

The above contractual fee waiver will be honored by the Advisor through July 31, 2015. The fee waiver may be renewed by the Advisor for subsequent periods thereafter. To maintain the expense limit, the Advisor may reduce a portion of its management fees and/or reimburse certain expenses of the Fund. This Agreement may be terminated only with the approval of the Fund’s Board of Trustees. In any event, this undertaking will continue for at least twelve months from the date of this Prospectus.

For the U.S. Government Money Market Fund, the Advisor and/or one or more of its affiliates may reimburse expenses or waive fees of the Fund to the extent necessary to maintain the Fund’s net yield at a certain level as determined by the Advisor. Any such waiver or expense reimbursement would be voluntary and could be discontinued at any time. There is no guarantee that the Fund will be able to avoid a negative yield or to continue paying periodic dividends when the yield is not positive.

The Advisor bears all of its own costs associated with providing these advisory services and the expenses of the members of the Board of Trustees who are affiliated with the Advisor. In addition, the Advisor may make payments from its own resources to broker-dealers and other financial institutions, including to the Advisor’s parent company, Guggenheim Capital, LLC and its affiliates, in connection with services provided to the Funds and for services provided in connection with the sale of Fund shares.

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A discussion regarding the basis for the Board’s most recent approval of the Funds’ investment advisory agreement in June 2014 will be available in the Funds’ June 2014 Semi-Annual Reports to Shareholders, which cover the period April 1, 2013 to September 30, 2013. A discussion regarding the basis for the Board’s approval of the Funds’ investment advisory agreement in June 2013 is currently available in the Funds’ June 2013 Semi-Annual Reports to Shareholders, which cover the period April 1, 2013 to September 30, 2013.

For each Fund, except the Nova Fund, Inverse S&P 500 ^® Strategy Fund, NASDAQ-100 ^® Fund, Inverse Mid-Cap Strategy Fund, S&P 500 ^® Pure Growth Fund, S&P 500 ^® Pure Value Fund, S&P MidCap 400 ^® Pure Value Fund, S&P SmallCap 600 ^® Pure Value Fund, Basic Materials Fund, Health Care Fund, Internet Fund, Retailing Fund, Transportation Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Real Estate Fund, Inverse Government Long Bond Strategy Fund, and Inverse High Yield Strategy Fund, the Advisor may hire one or more sub-advisers to oversee the day-to-day activities of the Funds. The Advisor and the Funds rely on an exemptive order obtained from the SEC to be able to function as a multi-manager structure. The order allows the Advisor to hire, replace or terminate unaffiliated sub-advisers without the approval of shareholders. The order also allows the Advisor to revise a sub-advisory agreement with an unaffiliated sub-adviser with the approval of the Funds’ Board of Trustees, but without shareholder approval. However, any increase in the aggregate advisory fee paid by a Fund, including any increase resulting from a change to a Fund's sub-advisory arrangements, remains subject to shareholder approval. If a new unaffiliated sub-adviser is hired, shareholders will receive information about the new sub-adviser within 90 days of the change. The order allows the Funds to operate more efficiently and with greater flexibility. In the event the Funds use a sub-advisor, the Advisor would provide the following oversight and evaluation services to the Funds:


•	performing initial due diligence on prospective sub-advisers for the Funds;


•	monitoring the performance of the sub-advisers;


•	communicating performance expectations to the sub-advisers; and


•	ultimately recommending to the Board whether a sub-adviser’s contract should be renewed, modified or terminated.

The Advisor does not expect to recommend frequent changes of sub-advisers. Although the Advisor will monitor the performance of the sub-advisers, there is no certainty that any sub-adviser or Fund will obtain favorable results at any given time. Currently the Funds are not managed by a sub-adviser.

To the extent sub-advisers provide sub-advisory services to the Funds, their activities with respect to the Funds are subject to oversight by the Advisor. The Advisor has ultimate responsibility for the investment performance of the Funds due to its responsibility to oversee each sub-adviser and recommend their hiring, termination and replacement. The Advisor is not required to disclose individual fees paid to any sub-adviser hired pursuant to the order.

PORTFOLIO MANAGEMENT

The Funds are managed by a team of investment professionals. On a day-to-day basis, Messrs. Michael P. Byrum, Michael J. Dellapa and Ryan Harder are jointly and primarily responsible for the day-to-day management of the Funds, with the exception of the Emerging Markets Bond Strategy Fund which is managed on a day-to-day basis solely by Messrs. Byrum and Harder. Biographical information for each of the portfolio managers is listed below.

Michael P. Byrum , CFA, Senior Vice President—Mr. Byrum has ultimate responsibility for the management of the Funds. In addition to generally overseeing all aspects of the management of each series of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Rydex ETF Trust, Mr. Byrum reviews the activities of Messrs. Dellapa and Harder. He has been associated with the Advisor since it was founded in 1993. During this time, he has played a key role in the development of the firm’s investment strategies and product offerings. As Portfolio Manager, Mr. Byrum was instrumental in the launch of the NASDAQ-100 ^® , Precious Metals, Government Long Bond 1.2x Strategy, Inverse Government Long Bond Strategy, Inverse S&P 500 ^® Strategy and Inverse NASDAQ-100 ^® Strategy Funds, and helped to create the Sector Funds. He was named Vice President of Portfolio for the Advisor in 1998, and Executive Vice President in 2000. Prior to joining the Advisor, Mr. Byrum worked for Money Management Associates, the investment adviser for Rushmore Funds, Inc. He holds a degree in finance from Miami University of Ohio and is a member of the CFA Institute and the Washington Society of Investment Analysts.

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the Alternative Funds. Mr. Dellapa joined the Advisor in 2000 as a Research Analyst and was promoted to portfolio manager in 2003. During his tenure as a portfolio manager, he had direct oversight for the Russell 2000 ^® 1.5x Strategy, Health Care, Biotechnology, and Consumer Products Funds. In 2005, Mr. Dellapa became Director of Investment Research and in 2007 became a Portfolio Manager. Prior to joining the Advisor, Mr. Dellapa worked as an equity analyst for Invista Capital and systems analyst for Accenture. He holds an engineering degree from the University of Maryland and MBA from the University of Chicago. Previously, he was owner/consultant of Dellapa Consulting Inc. as well as a senior consultant and an analyst at Andersen Consulting.

Ryan A. Harder , CFA, Portfolio Manager—Mr. Harder is involved in the management of each series of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust, but focuses particularly on the management of the Domestic Equity, International Equity, Fixed Income, and Alternative Funds. Mr. Harder joined the Advisor in 2004 as an Assistant Portfolio Manager, was promoted to Portfolio Manager in 2005 and has served in his current capacity since 2008. He was instrumental in the launch of the Multi-Hedge Strategies, High Yield Strategy and Inverse High Yield Strategy Funds. Prior to joining the Advisor, Mr. Harder served in various capacities with WestLB Asset Management, including as an Assistant Portfolio Manager, and worked in risk management at CIBC World Markets. He holds a B.A. in Economics from Brock University in Ontario, Canada and a Master of Science in International Securities, Investment and Banking from the ICMA Centre at the University of Reading in the U.K.

Additional information about the portfolio managers’ compensation, other accounts managed by the portfolio managers, and the portfolio managers’ ownership of securities in the Funds is available in the SAI.

SHAREHOLDER INFORMATION

CALCULATING NET ASSET VALUE

The price at which you buy, sell and exchange shares is the net asset value per share, which is also known as NAV.

Each Fund calculates its NAV by:


•	Taking the current market value of its total assets


•	Subtracting any liabilities


•	Dividing that amount by the total number of shares owned by shareholders

Each Fund, except for the S&P 500 ^® Fund, Russell 2000 ^® Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund, calculates its NAV once each Business Day as of the regularly scheduled close of normal trading on the NYSE (normally, 4:00 p.m., Eastern Time). The S&P 500 ^® Fund, Russell 2000 ^® Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund calculate NAV twice each Business Day, first in the morning and again in the afternoon, on each day that the NYSE is open for trading. The S&P 500 ^® Fund’s, Russell 2000 ^® Fund’s, Emerging Markets 2x Strategy Fund’s, Inverse Emerging Market 2x Strategy Fund’s, and Emerging Markets Bond Strategy Fund's morning NAV is calculated as of 10:45 a.m., Eastern Time and the Funds’ afternoon NAV is calculated as of the regularly scheduled close of normal trading on the NYSE (normally, 4:00 p.m., Eastern Time). The NYSE is open Monday through Friday, except in observation of the following holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. If the NYSE closes early - such as on days in advance of holidays generally observed by the NYSE - a Fund will calculate its NAV as of the earlier closing time. In addition, if the NYSE closes early the S&P 500 ^® Fund, Russell 2000 ^® Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund will calculate NAV only once and will not calculate the morning NAV. These dates are listed in the SAI. For more information, please call 800.820.0888 or visit the Guggenheim Investments website - www.guggenheiminvestments.com.

In calculating NAV, each Fund, except for the International Equity Funds, generally values its investment portfolio based on the market price of the securities as of the time the Fund determines NAV. If market prices are unavailable or the Advisor thinks that they are unreliable, the Advisor prices those securities at fair value as determined in good faith using methods approved by the Board of Trustees. For example, market prices may be unavailable if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation. The Advisor may view market prices as unreliable when the value of a security has been materially affected by events

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occurring after the market closes, but prior to the time as of which the Funds calculate NAV.

The Advisor generally values the assets of the International Equity Funds at fair value using procedures approved by the Board of Trustees because of the time difference between the close of the relevant foreign exchanges and the time the International Equity Funds price their shares at the close of the NYSE. As such, the value assigned to the International Equity Funds’ securities may not be the quoted or published prices of those securities on their primary markets or exchanges.

Securities traded on a domestic securities exchange (including ETF shares) are usually valued at the last sale price on that exchange on the day valuation is made, provided, however, that securities listed on NASDAQ will usually be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If no sale is reported, the last current bid price is used.

Debt securities with a remaining maturity greater than 60 days will usually be valued based on independent pricing services. Commercial paper and discount notes with a remaining maturity of 60 days or less may be valued at amortized cost.

With respect to an underlying open-end mutual fund (“underlying mutual fund”) in which a Fund may invest, the Fund generally values the shares of the underlying mutual fund at the underlying mutual fund’s NAV and the prospectus for the underlying mutual fund explains the circumstances under which the mutual fund will use fair value pricing and the effects of fair value pricing.

Total return index swaps will be valued based on the current index value as of the close of regular trading on the NYSE and credit default swaps generally will be valued at the price at which orders are being filled at the close of regular trading on the NYSE. Options contracts will be valued at the option’s last sale price on the exchange on which they are traded and futures contracts will be valued based on the first tick after the close of regular trading on the NYSE. Options on futures contracts and futures contracts traded on the CBOT or A/C/E or other recognized exchange shall be valued at the last trade price prior to the close of regular trading on the NYSE.

For foreign securities and other assets that are priced in a currency other than U.S. dollars, a Fund will convert the security or asset from the local currency into U.S. dollars using the relevant current exchange rate. Foreign securities may trade in their primary markets on weekends or other days when the Funds do not price their shares.

The use of fair valuation in pricing a security involves the consideration of a number of subjective factors and therefore, is susceptible to the unavoidable risk that the valuation may be higher or lower than the price at which the security might actually trade if a reliable market price were readily available.

The U.S. Government Money Market Fund values its assets using the amortized cost method of valuation pursuant to procedures approved by the Fund’s Board of Trustees. More information about the valuation of the Fund’s holdings and the amortized cost method can be found in the SAI.

EXPLANATION OF CERTAIN FUND FEES AND EXPENSES

Acquired Fund Fees and Expenses—As a shareholder in other investment companies, which may include other mutual funds, closed-end funds, and business development companies (the “Acquired Funds”), a Fund may indirectly bear its proportionate share of the fees and expenses of the Acquired Funds. “Acquired Fund Fees and Expenses” are based upon (i) the approximate allocation of the Fund’s assets among the Acquired Funds and (ii) the net expenses (excluding interest, taxes and extraordinary expenses) of the Acquired Funds during their most recently completed fiscal year. “Acquired Fund Fees and Expenses” are not direct costs paid by Fund shareholders and do not affect the calculation of the Fund’s NAV or the Fund’s cost of operations. “Acquired Fund Fees and Expenses” will vary with changes in the expenses of the Acquired Funds, as well as allocation of the Fund’s assets, and may be higher or lower than those shown.

Short Sales Dividend and Interest Expense—“Short Sales Dividend and Interest Expense” is incurred when a Fund short sells a security to gain the inverse exposure necessary to meet its investment objective. The Fund must pay out the dividend rate on an equity security, the coupon rate of a fixed income security, and interest expense associated with either, to the lender and records these as an expense of the Fund and reflects these expenses in its financial statements. However, any such dividend or interest expense on a security sold short generally has the effect of reducing the market value of the shorted security – thus increasing the Fund’s unrealized gain or reducing the Fund’s

366 | PROSPECTUS

unrealized loss on its short sale transaction. “Short Sales Dividend and Interest Expense” is not a fee charged to the shareholder by the Advisor or other service provider. Rather it is more similar to the transaction costs or capital expenditures associated with the day-to-day management of any mutual fund.

BUYING, SELLING AND EXCHANGING FUND SHARES

Advisor shares. Advisor shares are sold principally to clients of professional money managers (“financial intermediaries”) who (i) charge such clients an ongoing fee for advisory, investment, consulting or similar services, or (ii) have entered into agreement with the principal underwriter to offer Advisor shares through a no-load network or platform, and to investors who take part in certain asset allocation investment programs.

Investor shares and Class H shares. Investor shares and Class H shares are offered directly through the Funds' transfer agent, Rydex Fund Services, LLC, and also through authorized securities brokers and other financial intermediaries.

U.S. Government Money Market Fund shares. Shares of the U.S. Government Money Market Fund are sold principally to clients of professional money managers (“financial intermediaries”) who (i) charge such clients an ongoing fee for advisory, investment, consulting or similar services, or (ii) have entered into agreement with the principal underwriter to offer Advisor shares through a no-load network or platform, and to investors who take part in certain asset allocation investment programs. Shares of the U.S. Government Money Market Fund also are offered directly through the Fund's transfer agent, Rydex Fund Services, LLC, and also through authorized securities brokers and other financial intermediaries .

OPENING YOUR ACCOUNT

You will need to open a Guggenheim Investments shareholder account to make share transactions – buy, sell or exchange shares of the Funds directly with Guggenheim Investments. You can obtain an account application or request more information about opening an account by calling Guggenheim Investments Client Services at 800.820.0888 or 301.296.5100. You also may visit www.guggenheiminvestments.com/forms to access “Mutual Fund Forms & Applications.”

The type of application you will need depends on the type of account you want to open. For example, if you are opening a retirement account, such as an IRA, you will need to complete a different application than you would if you were opening a taxable account. When you call Guggenheim Investments to request an account application, be sure to let the Client Services representative know what type of account you want to open to ensure that you receive the correct application.

If you open your account through a broker or other financial intermediary, your financial intermediary will ordinarily assist you in completing the necessary application to open your account.

TIPS TO SUCCESSFULLY COMPLETE YOUR ACCOUNT APPLICATION


•	You must provide each account holder’s social security number or tax ID number and date of birth on the application to avoid a delay in processing.


•	Attach a copy of the trust document when establishing a trust account.

•

When establishing an account for your corporation, partnership or self-directed retirement plan, please indicate the correct account type to ensure proper tax reporting, and provide a copy of one of the following documents: registered articles of incorporation, government-issued business license, partnership papers, plan documents or other official documentation that verifies the entity and lists the authorized individuals. Failure to provide this supporting documentation may result in a delay in processing your application.


•	You must provide a street address (Guggenheim Investments does not accept P.O. Box only addresses). If any joint owner has a different address than the account registration, please indicate what it is on the application.


•	Be sure to sign the application.


•	If you open an account directly with Guggenheim Investments you will receive a confirmation statement by mail confirming your initial purchase. Review this confirmation carefully to ensure that all of the information is correct. Notify us promptly of any errors.


•	Any application that is sent to the transfer agent does not constitute a purchase order until the transfer agent processes the application and receives correct payment by check, wire transfer or ACH.

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TRANSACTION INFORMATION

This section provides important information about the procedures that you must follow when you buy, sell or exchange shares of the Funds. You may submit transaction orders to buy, sell or exchange Fund shares on any Business Day. On any day that the NYSE closes early – or as otherwise permitted by the SEC – the Funds reserve the right to advance the time that NAV is calculated and, correspondingly, the time by which purchase and redemption orders must be received. On any day that the Funds calculate NAV earlier than normal, Guggenheim Investments reserves the right to advance the time on that day by which shareholder transaction orders must be received by the transfer agent. The NYSE holiday schedule is included in the SAI and Guggenheim Investments will post advance notice of early NYSE and Bond Market closings at www.guggenheiminvestments.com.

Notwithstanding the foregoing, the U.S. Government Money Market Fund reserves the right to accept orders to purchase or redeem shares on any day that is not a Business Day and the Federal Reserve Bank of New York or National Securities Clearing Corporation remains open. In addition, the U.S. Government Money Market Fund may designate special hours of operation on any such day. In the event that the U.S. Government Money Market Fund invokes the right to accept orders to purchase or redeem shares on any day that is not a Business Day and/or adopt special hours of operation, the U.S. Government Money Market Fund will post advance notice of these events at www.guggenheiminvestments.com.

TRANSACTION CUT-OFF TIMES

All shareholder transaction orders are processed at the NAV next determined after your transaction order is received with all of the necessary information, sometimes referred to as “good order,” by the Funds’ transfer agent, Rydex Fund Services, LLC, the Funds' distributor, Guggenheim Funds Distributors, LLC (the “Distributor”), or authorized dealer. The following transaction cut-off times have been established in order to allow the transfer agent appropriate time to report the current day’s trading activity to the Advisor. Any purchase transaction that is sent to the transfer agent does not constitute a purchase order until the transfer agent processes the application and receives correct payment by check, wire transfer or ACH.

Some intermediaries may not offer intra-day trading or pricing regardless of when you place your order with your intermediary. All orders received in good order by a financial intermediary that does not offer intra-day pricing will be priced at the Funds’ afternoon NAV. For more information about your financial intermediary’s rules and procedures, you should contact your intermediary directly.



METHOD	FUND	MORNING CUT-OFF TIME	AFTERNOON CUT-OFF TIME
By Mail	All Funds	Not Available	Market Close
By Phone	Domestic Equity Funds (except for the S&P 500^® Fund and Russell 2000^® Fund), Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund	Not Available	3:45 P.M., Eastern Time
	S&P 500^® Fund, Russell 2000^® Fund, Emerging Markets 2x Strategy Fund, and Inverse Emerging Markets 2x Strategy Fund	10:30 A.M., Eastern Time	3:45 P.M., Eastern Time
	Emerging Markets Bond Strategy Fund	10:30 A.M., Eastern Time	3:30 P.M., Eastern Time
	Sector Funds, Real Estate Fund, High Yield Strategy Fund, and Inverse High Yield Strategy Fund	Not Available	3:30 P.M., Eastern Time
	Alternative Funds	Not Available	Market Close
	U.S. Government Money Market Fund*	Not Available	4:00 P.M., Eastern Time

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METHOD	FUND	MORNING CUT-OFF TIME	AFTERNOON CUT-OFF TIME
By Internet	Domestic Equity Funds (except for the S&P 500^® Fund, Russell 2000^® Fund, 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, and S&P SmallCap 600^® Pure Value Fund), Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund	Not Available	3:55 P.M., Eastern Time
	S&P 500^® Fund, Russell 2000^® Fund, Emerging Markets 2x Strategy Fund, and Inverse Emerging Markets 2x Strategy Fund	10:30 A.M., Eastern Time	3:55 P.M., Eastern Time
	Emerging Markets Bond Strategy Fund	10:30 A.M., Eastern Time	3:45 P.M., Eastern Time
	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, Sector Funds and Real Estate Fund	Not Available	3:50 P.M., Eastern Time
	High Yield Strategy Fund and Inverse High Yield Strategy Fund	Not Available	3:45 P.M., Eastern Time
	Alternative Funds	Not Available	Market Close
	U.S. Government Money Market Fund*	Not Available	4:00 P.M., Eastern Time
By Financial Intermediary	All Funds (except the S&P 500^® Fund, Russell 2000^® Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund)	Not Available	Market Close**
By Financial Intermediary	S&P 500^® Fund, Russell 2000^®Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund	10:30 A.M., Eastern Time**	Market Close**


*	To receive the current Business Day’s dividend for the Fund, the Fund must receive your wire purchase order by 1:00 p.m., Eastern Time. All redemption orders received prior to 1:00 p.m., Eastern Time will not receive the current Business Day’s dividend. All redemption orders received after 1:00 p.m., Eastern Time are entitled to receive the current Business Day’s dividend.


**	Each financial intermediary may have its own rules about share transactions, and may have earlier cut-off times for processing your transaction order.

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TRANSACTIONS THROUGH YOUR FINANCIAL INTERMEDIARY

If you opened your account through a financial intermediary, you will ordinarily submit your transaction orders through that financial intermediary, which may have its own rules about share transactions, and may have earlier cut-off times for processing your transaction order. Your financial intermediary is responsible for ensuring that your transaction order is in good order, and promptly transmitting your order to the Funds. Transaction orders received in good order by your financial intermediary will be processed at the Funds’ next determined NAV. Financial intermediaries may charge fees for the services they provide to you in connection with processing your transaction order or maintaining your account with them. Each financial intermediary also may have its own rules about minimum initial investment amounts, minimum account balances, share transactions and limits on the number of share transactions you are permitted to make in a given time period. Not all financial intermediaries are authorized to sell shares of the Funds. For more information about your financial intermediary’s rules and procedures, you should contact your financial intermediary directly.

BUYING FUND SHARES

Each Fund offers its shares continuously and investors may submit purchase orders to buy shares on any Business Day. However, Guggenheim Investments reserves the right to reject or refuse, in whole or in part, any purchase order for Fund shares within three business days of Guggenheim Investments receiving the purchase order. Purchase orders are subject to the Funds’ transaction cut-off times and will be processed at the NAV next determined after your purchase order is received in good order. For information regarding the minimum initial investment amounts applicable to purchases of Advisor shares, Investor shares and Class H shares of the Funds, as applicable, please see the Funds’ summary sections earlier in this Prospectus. Directors and officers of the Funds and other mutual funds managed by the Advisor or one or more of its affiliates, and directors, officers and employees of Guggenheim Partners, LLC and its affiliates are eligible to purchase Investor shares and Class H shares of the Funds (not including the Long Short Equity Fund and Event Driven and Distressed Strategies Fund) without meeting the minimum initial investment amount for accounts held directly at Guggenheim Investments.

Each Fund is generally required to report cost basis, gain or loss, and holding period information to you and the Internal Revenue Service when covered shares are redeemed. Shares acquired on or after January 1, 2012 are generally considered covered shares. The Fund will use a default average cost method for reporting your cost basis for covered shares, unless you instruct us to use another method. Under the average cost method, the basis per share is reported as an average of the bases of your Fund shares in the account. For these purposes, covered shares and non-covered shares are treated as held in separate accounts. If you wish to choose another default cost basis method for your account, you may select from among FIFO (“first-in-first-out”), LIFO (“last-in-first-out”) and HIFO (“highest-cost-in-first-out”). For redemptions of shares acquired before January 1, 2012 (“non-covered shares”), the Fund is not required to report cost basis information to you or the Internal Revenue Service.

Accounts opened through a financial intermediary may be subject to different cost basis method policies. For more information about your financial intermediary’s rules and procedures, you should contact your financial intermediary directly.

Fund shareholders should consult with their tax advisers prior to making redemptions to determine the best Internal Revenue Service accepted cost basis method for their tax situation and to obtain more information about the cost basis reporting rules. For more information, please see “Cost Basis.”

For additional discussion of the average cost method, see “Redemption Procedures.”

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PURCHASE PROCEDURES

The Funds offer you the option to submit purchase orders through your financial intermediary or send purchase orders by mail, fax or internet and send purchase proceeds by check, wire transfer or ACH to the Funds for accounts opened directly. The Funds do not accept cash or cash equivalents (such as travelers’ checks and money orders), starter checks, or checks drawn on a line of credit (including credit card convenience checks). The Funds typically do not accept third-party checks. Fund management reserves the right to refuse other payment instruments if, in the sole discretion of Fund management, it is deemed to be in the best interest of the Funds. Any payment instrument not accepted generally will be returned to you within twenty-four (24) hours of Fund management’s determination to not accept such instrument, but in no event later than three business days after such determination.

Guggenheim Investments does not accept purchase orders from non-resident U.S. citizens or non-resident aliens.

Retirement contributions will be considered as current year contributions unless otherwise instructed in writing at the time of the contribution.

You may buy shares and send your purchase proceeds by any of the following methods:



	Initial Purchase	Subsequent Purchases
BY CHECK (MAIL) IRA and other retirement accounts require additional paperwork. Call Guggenheim Investments Client Services to request an IRA kit or New Account application.	Complete the account application that corresponds to the type of account you are opening. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Complete the Guggenheim Investments investment slip included with your quarterly statement or send written purchase instructions that include: • Your name • Your shareholder account number • The Fund(s) you want to purchase.
	Make your check payable to Guggenheim Investments.
	Your check must be drawn on a U.S. bank and payable in U.S. dollars.
	Include the name of the Fund(s) you want to purchase on your check. If you do not specify the Fund(s) you want to purchase, your investment generally will be credited to shares of the U.S. Government Money Market Fund.
	Mail your application and check to:	Mail your written purchase instructions and check to:
	Mailing Addresses:
	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636

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	Initial Purchase	Subsequent Purchases
BY WIRE Guggenheim Investments Client Services Phone number: 800.820.0888 or 301.296.5100	Complete and submit the account application that corresponds to the type of account you are opening. Contact Guggenheim Investments Client Services at 800.820.0888 to obtain your new account number. Use the Wire Instructions below to send your wire. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Be sure to designate your wire instructions to the Fund(s) you want to purchase.
	To obtain “same-day credit” (to get that Business Day’s NAV) for your purchase order, you should call Guggenheim Investments Client Services and provide the following information prior to the transaction cut-off time for the Fund(s) you are purchasing: • Account Number • Fund Name • Amount of Wire • Fed Wire Reference Number (upon request) You will receive a confirmation number to verify that your purchase order has been accepted. If you do not notify Guggenheim Investments Client Services of the incoming wire, your purchase order may not be processed until the Business Day following the receipt of the wire. Wire Instructions: U.S. Bank Cincinnati, OH Routing Number: 0420-00013 For Account of: Guggenheim Investments Account Number: 48038-9030 [Your Name] [Your shareholder account number] [Your fund designation] If you do not specify the Fund(s) you want to purchase, your investment generally will be credited to shares of the U.S. Government Money Market Fund.

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BY ACH (FAX/MAIL) Guggenheim Investments Client Services Fax number: 301.296.5103	Initial Purchase	Subsequent Purchases
	Submit a new account application. Be sure to complete the “Electronic Investing via ACH” section. If you are establishing an Individual, Joint, or UGMA/UTMA account, you may fax the application to Guggenheim Investments. All other applications should be mailed. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Subsequent purchases made via ACH must be a minimum of $20. A maximum of $50,000 is allowed to be purchased via ACH per day. To make a subsequent purchase send written purchase instructions that include: • Your name • Your shareholder account number • The Fund(s) you want to purchase • ACH bank information (if not on record).
	Mailing Addresses:
	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn:Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
BY ACH (PHONE) Guggenheim Investments Client Services Phone number: 800.820.0888 or 301.296.5100	Purchase payments may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instruction on file, you may submit your purchase request by contacting Guggenheim Investments Client Services at 800.820.0888.
BY ACH (INTERNET)	Purchase payments may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instructions on file, log-in to your account at www.TradeRydex.com and click on “Electronic Investing.” If you currently do not have ACH instructions on file, download the Bank Information and Alternate Payee form from the www.guggenheiminvestments.com website, and follow the instructions for adding bank instructions.

CANCELLED PURCHASE ORDERS

Guggenheim Investments will ordinarily cancel your purchase order under the following circumstances:

• if your bank does not honor your check for any reason

• if the transfer agent (Rydex Fund Services, LLC) does not receive your wire transfer

• if the transfer agent (Rydex Fund Services, LLC) does not receive your ACH transfer

• if your bank does not honor your ACH transfer

If your purchase order is cancelled for any of these reasons, you will not be entitled to benefit from any increase in NAV that the Fund(s) may have experienced from the time of your order to the time of its cancellation. In addition, if the Fund(s) NAV decreases in value from the time of your order to the time of its cancellation, the Fund(s) will hold you liable for any losses that it incurs as a result of your cancelled order.

SELLING FUND SHARES

Each Fund redeems its shares continuously and investors may sell their shares back to the Fund on any Business Day. You may redeem all or any portion of your Fund shares at the Fund’s next determined NAV calculated after your

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redemption order is received in good order by the transfer agent or your financial intermediary.

The Funds may suspend your right to redeem your shares during times when trading on the NYSE is suspended or restricted, or otherwise as permitted by the SEC. The Funds reserve the right to pay all or part of your redemption proceeds in liquid securities with a market value equal to the redemption price. If a Fund redeems your shares in kind, you may bear transaction costs and will bear market risks until such time as such securities are converted to cash.

REDEMPTION PROCEDURES

You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account. If you opened your account directly with the Funds, you may send redemption orders to Guggenheim Investments by:



MAIL	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
FAX	301.296.5103 If you send your redemption order by fax, you must call Guggenheim Investments Client Services at 800.820.0888 or 301.296.5100 to verify that your fax was received and when it will be processed.
TELEPHONE	800.820.0888 or 301.296.5100 (not available for retirement accounts)
BY ACH	Redemption proceeds may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instructions on file, you may submit your redemption request via mail or telephone using the mailing addresses and telephone numbers provided above. If you currently do not have ACH instructions on file, download the Bank Information and Alternate Payee form from the www.guggenheiminvestments.com website, and follow the instructions for adding bank instructions. A maximum of $50,000 is allowed to be redeemed via ACH per day.

Whether you transmit your redemption order by mail, fax or telephone, you must include the following information in your redemption order:


•	your name


•	your shareholder account number


•	Fund name(s)


•	dollar amount or number of shares you would like to sell


•	whether you want your sale proceeds sent to you by check, wire or ACH (a new alternate payee or new wire instructions may require a Medallion signature guarantee)


•	signature of account owner(s) (not required for telephone redemptions)

You may only place a redemption order if you are the registered owner of the account or the registered owner has given Guggenheim Investments written authorization to allow you to make redemptions from the account. You will receive a confirmation number for your redemption. Please retain it for your records.

If shareholders choose not to use the default cost basis method of average cost for an account, such shareholders must choose a cost basis method from among FIFO, LIFO or HIFO with respect to the account. For situations where shareholders are unable to or do not provide instructions (i.e., systematic withdrawals and other non-shareholders generated activity) the account level default will be used.

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Unless requested otherwise at the time of the transaction, the Fund will redeem or exchange shares in the following order: undated non-covered shares, non-covered shares, followed by covered shares using the method in effect for the account.

Fund shareholders should consult their tax advisers prior to making redemptions to determine the best Internal Revenue Service accepted cost basis method for their tax situation and to obtain more information about the cost basis reporting rules. For more information see “Cost Basis.”

DISTRIBUTIONS FROM QUALIFIED RETIREMENT ACCOUNTS

Distributions from your tax-qualified plan or individual retirement account (IRA) may have adverse tax consequences to you. You should consult your tax adviser before redeeming shares and making distributions from your tax-qualified plan or IRA account. All requests for distributions of redemption proceeds from tax-qualified plan and IRA accounts must be in writing. All distributions from tax-qualified plans and IRAs are subject to tax withholding rules.

Distributions from 403(b) accounts may require employer or plan administrator approval.

RECEIVING YOUR REDEMPTION PROCEEDS

Your redemption proceeds normally will be sent within seven days of the transfer agent receiving your request. For redemption orders that settle on federal bank holidays, your redemption proceeds will be sent on the next Business Day following the holiday. For investments made by check or ACH (not wire purchases), purchases will be on hold for 10 business days before a payment of redemption proceeds may be made.

All redemptions will be mailed to your address of record, sent electronically via ACH, or wired to your bank account of record. You may request overnight mail service for an additional fee. If redemption proceeds are transmitted by ACH or wire and the payee instructions are not valid, the proceeds may be re-invested into shares of the U.S. Government Money Market Fund as of the date of the redemption. If you are setting up new alternate payee instructions (check) or new bank instructions (ACH or wire) the request must be in writing, include a Medallion signature guarantee, and may not be faxed. You may not send redemption proceeds to an address of record that was changed within the last 10 business days unless your request is Medallion signature guaranteed. For certain exceptions (e.g., accounts managed by financial professionals and requests to transfer between accounts), you may not be required to provide a Medallion signature guarantee. Please contact Guggenheim Investments Client Services at 800.820.0888 if you have any questions about your redemption request.

MEDALLION SIGNATURE GUARANTEES

Medallion signature guarantees help protect you and your account against fraud. You can obtain a Medallion signature guarantee at most banks and financial intermediaries. A notary public cannot provide a Medallion signature guarantee. You may not use fax to transmit a Medallion signature guarantee to the Funds.

UNCASHED CHECK POLICY

Any dividend, capital gain or partial redemption check that has remained outstanding for a period of 90 days from the issuance date will be canceled and re-issued. If a re-issued check is not cashed within 90 days, the check will be canceled and the proceeds will be deposited into the shareholder’s account as of the cancellation date.

For dividend and capital gain checks, the proceeds will be reinvested into the appropriate share class of the Fund from which such distribution was paid, or if the Fund position has subsequently been redeemed in full, the distribution will be reinvested into shares of the U.S. Government Money Market Fund. The account also will have the distribution payout option adjusted so that all future distributions are reinvested into the appropriate share class of the Fund from which the distribution would have been paid.

For partial redemption checks, the proceeds will be deposited into shares of the U.S. Government Money Market Fund.

Any full redemption check (one that brings your account balance to $0.00) that has remained outstanding for a period of 90 days from the issuance date will be cancelled and re-issued one time.

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Any redemption check from a retirement account (IRA, Roth, SEP, for example) that has remained outstanding for a period of 90 days from the issuance date will be cancelled and re-issued one time.

For checks returned in the mail, the Funds will attempt to contact the client. If no contact is made, the check will be processed according to the procedures mentioned above.

REDEEMING SHARES BY DRAFT WRITING

If you hold shares directly, you may redeem shares from the U.S. Government Money Market Fund by writing drafts for $100 or more on your existing account. The drafts may be made payable to any person or entity and your account will continue to earn dividends until the draft clears. Drafts may not be used for electronic funds transfers (i.e., electronic bill payments or ACH). If your balance in the U.S. Government Money Market Fund is insufficient to cover the amount of your draft, the transfer agent will automatically exchange sufficient funds from your Guggenheim Investments fund with the highest account balance to cover the draft.

You can obtain a check signature card and apply for draft writing privileges by calling Guggenheim Investments Client Services at 800.820.0888. Because of the difficulty of determining in advance the exact value of your Fund account, you may not use a draft to close your account. There is no fee for the draft writing privilege, but if payment on a draft is stopped upon your request, or if the draft cannot be honored because of insufficient funds or other valid reasons, you may be charged a fee by the financial institution where you presented your draft for payment. Guggenheim Investments also may charge a $25 fee for a draft that cannot be honored due to insufficient funds. The U.S. Government Money Market Fund may suspend the draft writing privilege at any time.

LOW BALANCE ACCOUNTS

To offset the administrative expense of servicing small accounts, the Funds may impose, without additional notice, an administrative fee of $15 per year during periods where your account balance falls below the account minimum requirements for any reason. The Funds may redeem your shares if the value of your account falls below the required minimum account balance. However, the Funds will provide you with at least 30 days’ written notice to allow you sufficient time to add to your account and avoid the redemption of your shares.

EXCHANGING FUND SHARES

An exchange is when you sell shares of one fund and use the proceeds from that sale to purchase shares of another fund. Investors may make exchanges on any Business Day of Advisor shares, Investor shares or Class H shares of any Rydex Series Fund or Rydex Dynamic Fund for Advisor shares, Investor shares, or Class H shares of any other Rydex Series Fund or Rydex Dynamic Fund, as applicable, on the basis of the respective NAVs of the shares involved. Investors also may make exchanges on any Business Day of Advisor shares, Investor shares or Class H shares of any Rydex Series Fund or Rydex Dynamic Fund for shares of the U.S. Government Money Market Fund.

For the U.S. Government Money Market Fund, investors may make exchanges on any Business Day of shares of the Fund for shares of any class of any other fund in the Guggenheim Investments family of funds, on the basis of the respective NAVs of the shares involved.

The Guggenheim Investments family of funds currently includes all closed- and open-end funds (including all of their portfolios) advised by the Advisor, including each series of Rydex Series Funds and Rydex Dynamic Funds, and any funds that have an investment adviser or servicing agent that is an affiliated person of the Advisor. For more information about the Funds’ exchange privileges with other funds in the Guggenheim Investments family of funds, please contact Guggenheim Investments Client Services at 800.020.0888 or 301.296.5100 or visit the Guggenheim Investments website at www.guggenheiminvestments.com. Exchanges of Fund shares for shares of another Guggenheim Investments fund will be subject to the purchaser eligibility requirements of the applicable share class of that Guggenheim Investments fund, which may include initial investment amount and account balance requirements, as disclosed in that Guggenheim Investment fund’s prospectus.

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different transaction cut-off times. All exchange requests must be received by the Funds’ transfer agent or your financial intermediary prior to the cut-off time of the fund you are exchanging out of or the fund you are exchanging into, whichever is earlier, to be processed at that Business Day’s NAV.

While many of the Rydex Series Funds offer unlimited exchange privileges with no minimum holding periods or transaction fees, certain funds in the Guggenheim Investments family of funds do not allow unlimited trading. If you are contemplating an exchange for shares of any fund not offered in this Prospectus, you should obtain and review that fund’s current prospectus before making the exchange. You can obtain a prospectus for any fund not offered in this Prospectus by calling 800.820.0888 or 301.296.5100 or visiting the Guggenheim Investments website at www.guggenheiminvestments.com.

The exchange privilege may be modified or discontinued at any time.

EXCHANGE PROCEDURES

You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account. If you opened your account directly with the Funds you may send exchange requests to Guggenheim Investments by:



MAIL	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
FAX	301.296.5103 If you send your exchange request by fax, you must call Guggenheim Investments Client Services at 800.820.0888 to verify that your fax was received and when it will be processed.
TELEPHONE	800.820.0888 or 301.296.5100
INTERNET	Follow the directions on the Guggenheim Investments website - Visit www.TradeRydex.com.

Whether you transmit your exchange request by mail, fax, telephone or internet, you must include the following information in your exchange request:


•	your name


•	your shareholder account number


•	Fund name(s) you are exchanging out of (selling) and Fund name(s) you are exchanging into (buying)


•	dollar amount, number of shares or percentage of Fund position involved in the exchange


•	signature of account owner(s) (not required for telephone or internet exchanges)

You may only place exchange orders if you are the registered owner of the account or the registered owner has given Guggenheim Investments written authorization to allow you to trade the account. You will receive a confirmation number for your exchange. Please retain it for your records.

DOLLAR-COST AVERAGING

Shareholders may elect to engage in dollar-cost averaging, which allows shareholders to make periodic exchanges of shares from one fund to one or more other funds at regular intervals. With dollar-cost averaging, the cost of the securities is averaged over time and possibly over various market cycles. Dollar-cost averaging does not guarantee profits, nor does it assure that a shareholder will not have losses.

Shareholders should contact Guggenheim Investments Client Services to enroll in dollar-cost averaging. Shareholders will need to choose whether amounts are to be exchanged on the basis of a specific dollar amount or a specific number of shares. Guggenheim Investments will exchange shares as requested on the date of your choosing. If the date selected falls on a weekend or holiday, your request will be processed on the previous business day.

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The Advisor will make exchanges until the shareholder’s value in the Fund from which exchanges are being made is depleted or until the shareholder instructs Guggenheim Investments to terminate dollar-cost averaging. Dollar-cost averaging may be terminated at any time by a shareholder by written request or by phone.

ACCOUNT POLICIES

SHAREHOLDER IDENTIFICATION AND VERIFICATION

Federal regulations may require the Funds to obtain your name, your date of birth (for a natural person), your residential street address or principal place of business and your Social Security Number, Employer Identification Number or other government issued identification when you open an account. Additional information may be required in certain circumstances or to open accounts for corporations or other entities. The Funds may use this information to attempt to verify your identity. The Funds may not be able to establish an account if the necessary information is not received. The Funds also may place limits on account transactions while they are in the process of attempting to verify your identity. Additionally, if the Funds are unable to verify your identity after your account is established, the Funds may be required to redeem your shares and close your account. If your account is closed for this reason, your shares will be redeemed at the NAV next calculated after your account is closed, and you will bear any risk of loss.

Guggenheim Investments provides accounts for resident U.S. citizens and resident aliens. We will not open a new account for non-resident aliens (natural person or entity) or non-resident U.S. citizens. If you are unsure of your status please consult your tax adviser.

Customer identification and verification is part of the Funds’ overall obligation to deter money laundering under applicable law. The Funds have adopted an anti-money laundering compliance program designed to prevent the Funds from being used for money laundering or the financing of terrorist activities. In this regard, the Funds reserve the right to (i) refuse, cancel or rescind any purchase or exchange order, (ii) freeze any account and/or suspend account services or (iii) involuntarily close your account in cases of threatening conduct or suspected fraudulent or illegal activity. These actions will be taken when, in the sole discretion of Fund management, they are deemed to be in the best interest of the Funds or in cases when the Funds are requested or compelled to do so by governmental or law enforcement authority. If your account is closed at the request of governmental or law enforcement authority, you may not receive proceeds of the redemption if the Fund is required to withhold such proceeds.

CHANGES TO YOUR ACCOUNT

For information on what is required to make changes and/or additions to your account, and to obtain the appropriate forms, please visit the Guggenheim Investments website at www.guggenheiminvestments.com or call 800.820.0888 or 301.296.5100. If you own shares that are registered in your financial intermediary’s name, and you want to transfer the registration to another financial intermediary or want the shares registered in your name, then you should contact your financial intermediary for instructions on how to make this change.

TRANSACTIONS OVER TELEPHONE OR INTERNET

Internet and telephone transactions are extremely convenient, but are not risk free. To ensure that your internet and telephone transactions are safe, secure, and as risk-free as possible, the Funds have instituted certain safeguards and procedures for determining the identity of website users (including the use of secure passwords and 128-bit encryption technology) and telephone callers and authenticity of instructions. As a result, neither the Funds nor their transfer agent will be responsible for any loss, liability, cost, or expense for following internet, telephone or wire instructions they reasonably believe to be genuine. If you or your intermediaries make exchange requests by telephone or internet, you will generally bear the risk of any loss. Neither the Funds nor their transfer agent are responsible for internet transactions that are not received.

During periods of unusually high market activity or other times, it may be difficult to reach Guggenheim Investments by telephone or access our internet site. Guggenheim Investments and its affiliates will not be liable for any losses resulting from a cause over which Guggenheim Investments or its affiliates do not have direct control, including but not limited to the failure of electronic or mechanical equipment or communication lines, telephone or other interconnect problems (e.g., if you are unable to access your online service provider), input errors on the internet, severe weather, facilities emergencies, earthquakes, floods and strikes or other labor problems. If you are not able to reach Guggenheim Investments by telephone, fax, or internet, consider sending written instructions.

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STATEMENTS & CONFIRMATIONS

You will receive statements and trade confirmations of your investment transactions. You may choose to receive your confirmations and/or statements either by mail or electronically (see “eDelivery Services” below).

eDELIVERY SERVICES

eDelivery offers shareholders the convenience of receiving most communications (such as trade confirmations, statements, prospectuses and shareholder reports, etc.) from the Funds through the web via email notification. For more information on eDelivery, please visit the Guggenheim Investments website at www.guggenheiminvestments.com. The Funds reserve the right to discontinue your eDelivery service if two (2) or more e-mail notices are returned as undeliverable.

GUGGENHEIM INVESTMENTS EXPRESS LINE – 1.800.717.7776

You may access information about the Funds and your Guggenheim Investments account anytime with the Guggenheim Investments Express Line. This automated line gives you telephone access to fund information including NAVs, daily factors, fund assets (fund assets information is available for most funds) and distributions as well as balance and history information on your Guggenheim Investments account.

SERVICE AND OTHER FEES

Guggenheim Investments may charge the following administrative fees on accounts held directly through the Funds’ transfer agent for services associated with the following:


•	$15 for wire transfers of redemption proceeds under $5,000


•	$50 on checks returned for insufficient funds


•	$25 to stop payment of a redemption check within 10 Business Days of the settlement date


•	$15 for standard overnight packages (fee may be higher for special delivery options)


•	$25 for bounced draft checks or ACH transactions


•	$15 per year for low balance accounts

•

Client requests for historical account transcripts or the retrieval of a significant amount of documentation may be honored to the extent that those records are readily available. The Funds reserve the right, upon notice, to charge you a fee to cover the costs of special requests for information that require extensive research or employee resources. Such requests could include a request for historical account transcripts or the retrieval of a significant number of documents.

Guggenheim Investments reserves the right to change any of these fees or add additional service fees at any time.

RETIREMENT ACCOUNT FEES

An annual maintenance fee of $15 will be charged on the following retirement plans: IRA, SEP, Roth IRA, 403(b), SIMPLE, Coverdell-ESA and Guggenheim Investments prototype money purchase plan and profit sharing plan accounts. You may pay the annual fee at any time during the calendar year by sending Guggenheim Investments a check. If the annual maintenance fee is not paid separately prior to December, it will be deducted automatically from your account.

An account closing fee of $15 will be charged upon liquidation of the following retirement accounts: IRA, SEP, Roth IRA, 403(b), SIMPLE and Coverdell-ESA. This fee will be deducted from the proceeds of your redemption. Guggenheim Investments will waive the annual maintenance fee if a liquidation fee is being charged. Guggenheim Investments also may waive the annual maintenance fee and any applicable account closing fee for certain 403(b) retirement plan accounts. For more information about the applicability of these fees, please contact Guggenheim Investments Client Services at 800.820.0888.

For additional information on fees for employee accounts please refer to the SAI.

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FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES

Frequent Trading Policy. Because the Funds (other than the Alternative 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 transaction fees, the Funds’ Board of Trustees has not adopted policies and procedures designed to prevent market timing or to monitor for frequent purchases and redemptions of Fund shares. A significant portion of the assets of the Funds come from investors who take part in certain strategic and tactical asset allocation programs. The Funds anticipate that investors who take part in these programs may frequently redeem or exchange shares of the Funds, which may cause the Funds to experience high portfolio turnover. Higher portfolio turnover may result in the Funds paying higher levels of transaction costs and generating greater tax liabilities for shareholders. In addition, large movements of assets into and out of the Funds may negatively impact the Funds’ ability to achieve their respective investment objectives.

The Alternative Funds are not suitable for purchase by active investors. Each Alternative Fund is intended for long-term investment purposes only and discourages shareholders from engaging in “market timing” or other types of excessive short-term trading. This frequent trading into and out of the Alternative Funds may present risks to the Funds’ long-term shareholders, all of which could adversely affect shareholder returns. The risks posed by frequent trading include interfering with the efficient implementation of the Alternative Funds’ investment strategies, triggering the recognition of taxable gains and losses on the sale of Fund investments, requiring the Funds to maintain higher cash balances to meet redemption requests, and experiencing increased transaction costs. The Alternative Funds do not accommodate frequent purchases and redemptions. Consequently, the Board of Trustees has adopted policies and procedures designed to prevent frequent purchases and redemptions of shares of the Alternative Funds.

For purposes of applying the Funds’ policies, the Advisor may consider the trading history of accounts under common ownership or control. In addition, the Funds reserve the right to reject any purchase request by any investor or group of investors for any reason without prior notice, including, in particular, if the Advisor reasonably believes that the trading activity would be harmful or disruptive to the Funds. Although these policies are designed to deter frequent trading, none of these measures alone nor all of them taken together eliminate the possibility that frequent trading in the Funds will occur, particularly with respect to trades placed by shareholders that invest in the Funds through omnibus accounts maintained by brokers, retirement plan accounts and other financial intermediaries. The Funds’ access to information about individual shareholder transactions made through such omnibus arrangements is often unavailable or severely limited. The Funds cannot assure that their policies will be enforced with regard to those Fund shares held through such omnibus arrangements (which may represent a majority of Fund shares), and frequent trading could adversely affect the Funds and their long-term shareholders as discussed above.

RIGHTS RESERVED BY THE FUNDS

The Funds reserve the right to close your account in cases of suspected fraudulent or illegal activity in accordance with applicable law. This action may be taken when, in the sole discretion of Fund management, it is deemed to be in the best interest of the Funds or in cases where the Funds are requested or compelled to do so by applicable law. If your account is closed at the request of governmental or law enforcement authority or pursuant to applicable law, you may not receive proceeds of the redemption if the Funds are required to withhold such proceeds.

DISTRIBUTION AND SHAREHOLDER SERVICES

ADVISOR SHARES

The Funds have adopted a Distribution and Shareholder Services Plan pursuant to Rule 12b-1 under the 1940 Act with respect to Advisor shares that allows the Funds to pay distribution and services fees to the Distributor and other firms that provide distribution or shareholder services (“Service Providers”). If a Service Provider provides distribution services, the Funds will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets. If a Service Provider provides shareholder services, the Funds will pay service fees to the Distributor at an annual rate not to exceed 0.25% of the average daily net assets of a Fund. The Distributor will, in turn, pay the Service Provider for the services it provides. Because these Funds pay these fees out of assets on an ongoing basis, over time these fees may cost you more than other types of sales charges.

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CLASS H SHARES

The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act with respect to Class H shares that allows each Fund to pay distribution fees to the Distributor and other Service Providers that provide distribution-related services at an annual rate not to exceed 0.25% of average daily net assets. The Funds also have adopted a Shareholder Services Plan that allows the Funds to pay Service Providers providing shareholder services a shareholder services fee at an annual rate not to exceed 0.25% of the average daily net assets of each Fund. Because the Funds pay these fees out of assets on an ongoing basis, over time these fees may cost you more than other types of sales charges and will increase the cost of your investment.

COMPENSATION TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

The Advisor, at its expense, may provide compensation to financial intermediaries for the sale of Fund shares. Such compensation, commonly referred to as “revenue sharing,” does not increase Fund expenses and is not reflected in the fees and expenses listed in the Funds expense table in this Prospectus. Compensation may be in the form of cash payments or non-cash compensation and may include ticket charges, additional compensation for sales, on-going fees for shareholder servicing and maintenance of investor accounts, one-time payments for ancillary services, such as setting up the Funds on a financial intermediary’s fund trading system, and finder’s fees that vary depending on the Fund or share class and the dollar amount of shares sold. Cash and non-cash compensation may be paid, at the discretion of the Advisor, to certain financial intermediaries who have sold shares of the Funds, promoted the distribution of the Funds, or rendered investor services to Fund shareholders. For example, such payments may be made to financial intermediaries that provide services to the Funds and/or Fund shareholders, including, without limitation, shareholder servicing, marketing support and/or access to meetings and/or events, sales representatives and management representatives of the financial intermediaries.

Payments also may be paid to financial intermediaries for providing the Funds with access to third-party platforms, including mutual fund “supermarket” platforms, and for inclusion of a Fund on a sales list, including a preferred or select sales list, in other sales programs, or as an expense reimbursement or compensation in cases where the financial intermediary provides services to fund shareholders. The Advisor also may pay expenses associated with meetings that facilitate educating financial intermediaries and shareholders about the Funds that are conducted by financial intermediaries. To the extent permitted by applicable law, the Advisor and its affiliates may pay or allow other incentives and compensation to financial intermediaries. Such payments and compensation are in addition to any applicable sales charges, Rule 12b-1 distribution fees, and service fees paid by the Funds. The level of payments made to financial intermediaries will generally vary, but may be significant. The Advisor determines the extent of such payments in its sole discretion in response to requests from financial intermediaries, based on factors it deems relevant, such as the financial intermediary’s sales, assets, share class utilized, and the quality of the financial intermediary’s relationship with the Advisor. The Advisor periodically determines the advisability of continuing these payments. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your sales person to recommend the Funds over another investment. Shareholders should inquire of an intermediary how the intermediary will be compensated for investments made in the Funds.

DIVIDENDS AND DISTRIBUTIONS

TIMING OF PAYMENTS

Income dividends, if any, are paid at least annually by each of the Funds, except the Government Long Bond 1.2x Strategy Fund and U.S. Government Money Market Fund, which declare dividends daily and pay them monthly or upon redemption. If you own Fund shares on a Fund’s record date, you will be entitled to receive the dividend. The Funds may declare and pay dividends on the same date. Each Fund makes distributions of capital gains, if any, at least annually. Each Fund, however, may declare a special capital gains distribution if the Board of Trustees believes that such a distribution would be in the best interest of the shareholders of the Fund.

DIVIDEND PAYMENT OPTIONS

Dividends and distributions will be paid in the form of additional Fund shares unless you have elected to receive payment in cash. If you did not elect to receive cash payments of dividends and distributions on your application, you must notify the Funds in writing to change your election prior to the date of the next distribution. Your election will become effective for dividends paid after the Funds receive your written notice. To cancel your election, simply send

PROSPECTUS | 381

written notice to the Funds. Dividends and distributions with values of $25 or less may be automatically reinvested.

ADDITIONAL TAX INFORMATION

The following is a summary of some important tax issues that affect the Funds and their shareholders. The summary is based on current tax laws, which may be changed by legislative, judicial or administrative action. You should not consider this summary to be a comprehensive explanation of the tax treatment of the Funds, or the tax consequences of an investment in the Funds. More information about taxes is located in the SAI. You are urged to consult your tax adviser regarding specific questions as to federal, state and local income taxes.

TAX STATUS OF EACH FUND

Each Fund is treated as a separate entity for federal tax purposes, and intends to qualify for the special tax treatment afforded to regulated investment companies. As long as each Fund qualifies for treatment as a regulated investment company, the Fund pays no federal income tax on the earnings it timely distributes to shareholders.

TAX STATUS OF DISTRIBUTIONS


•	Each Fund will, at least annually, distribute substantially all of its net investment income and net capital gains.


•	The income dividends you receive from the Funds will be taxed as either ordinary income or qualified dividend income.

•

For non-corporate shareholders, dividends that are reported as qualified dividend income, if any, are generally taxable at reduced maximum rates to the extent that the applicable Fund receives qualified dividend income and subject to certain limitations. The investment strategies of certain Funds may significantly limit their ability to distribute dividends eligible for treatment as qualified dividend income. Certain Funds do not expect to report any distributions as qualified dividend income.

•

Distributions of a Fund’s short-term capital gains are taxable as ordinary income. Long-term capital gains will result from gains on the sale or exchange of capital assets held by the Funds for more than one year. Any distributions of net capital gain (the excess of a Fund’s net long-term capital gains over its net short-term capital losses) that you receive from a Fund are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxable to non-corporate shareholders at reduced maximum rates.


•	Dividends and distributions are generally taxable to you whether you receive them in cash or in additional shares.

•

Corporate shareholders may be entitled to a dividends-received deduction for any portion of dividends they receive that are attributable to dividends received by a Fund from U.S. corporations, subject to certain limitations. The investment strategies of certain Funds may significantly limit their ability to distribute dividends eligible for the dividends-received deduction. Certain Funds do not expect to report any distributions as qualified dividend income.


•	Distributions paid in January but declared by the Funds in October, November or December of the previous year may be taxable to you in the previous year.


•	Shortly after the close of each calendar year, the Funds will inform you of the amount of your ordinary income dividends, qualified dividend income, and net capital gain distributions received from the Funds.


•	If you hold your shares in a tax-qualified retirement account, you generally will not be subject to federal taxation on Fund distributions until you begin receiving distributions from your retirement account. You should consult your tax adviser regarding the tax rules that apply to your retirement account.

•

Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries a portion of these withholding taxes is recoverable, the non-recovered portion will reduce the income received from the securities in the Funds. Certain Funds may be able to pass through foreign income taxes that they pay, allowing you to claim a credit or deduction for such taxes, subject to applicable limitations. A Fund will provide you with the information necessary to reflect foreign taxes paid on your income tax return if it elects to pass through foreign taxes.

382 | PROSPECTUS

TAX STATUS OF SHARE TRANSACTIONS

Each sale, exchange, or redemption of Fund shares will generally be a taxable event to you. For tax purposes, an exchange of Fund shares for shares of a different fund is treated the same as a sale. You should consider the tax consequences of any redemption or exchange before making such a request, especially with respect to redemptions if you invest in the Funds through a tax-qualified retirement plan.

MEDICARE CONTRIBUTION TAX

U.S. individuals with income exceeding certain thresholds are subject to a 3.8% Medicare contribution tax on all or a portion of their “net investment income,” which includes interest, dividends, and certain capital gains (including capital gains realized on the sale or exchange of shares of a Fund). This 3.8% tax also applies to all or a portion of the undistributed net investment income of certain shareholders that are estates and trusts.

STATE TAX CONSIDERATIONS

The Funds are not liable for any income or franchise tax in Delaware as long as they qualify as regulated investment companies for federal income tax purposes. In addition to federal taxes, distributions by the Funds and ownership of Fund shares may be subject to state and local taxes. You should consult your tax adviser regarding how state and local tax laws affect your investment in Fund shares.

COST BASIS

The Funds (or their administrative agents) are required to report to the Internal Revenue Service and furnish to Fund shareholders cost basis and holding period information upon a redemption of “covered shares” (those generally purchased on or after January 1, 2012). The Funds will permit Fund shareholders to elect from among several Internal Revenue Service accepted cost basis methods, including average cost, FIFO, LIFO and HIFO. In the absence of an election, the Funds will use a default cost basis method which is the average cost method. The cost basis method elected by a Fund shareholder (or the cost basis method applied by default) for each sale of Fund shares may not be changed after the close of business on the trade date of each such sale of Fund shares. Fund shareholders should consult with their tax advisers prior to making redemptions to determine the best Internal Revenue Service accepted cost basis method for their tax situation and to obtain more information about the cost basis reporting rules.

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FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand each Fund’s financial performance for the past 5 years (or, if shorter, the period of operations of that Fund’s Investor shares, Advisor Class Share or Class H shares, as applicable). Certain information reflects financial results for a single share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in a Fund (assuming reinvestment of all dividends and distributions). The information provided below has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose reports, along with the financial statements and related notes, appear in the Funds’ 2014 Annual Reports. The 2014 Annual Reports are available by telephoning the transfer agent at 800.820.0888 or 301.296.5100.

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Financial Highlights

NOVA FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$32.05			$26.82			$24.59			$20.28			$11.40
Income (loss) from investment operations:
Net investment income (loss)^a	0.14			0.05			0.08			0.02			0.06
Net gain (loss) on investments (realized and unrealized)	9.96			5.21			2.15			4.31			8.97
Total from investment operations	10.10			5.26			2.23			4.33			9.03
Less distributions from:
Net investment income	—			(0.03		)	—			(0.02		)	(0.15		)
Total distributions	—			(0.03		)	—			(0.02		)	(0.15		)
Net asset value, end of period		$42.15			$32.05			$26.82			$24.59			$20.28
Total Return^b	31.51		%	19.62		%	9.07		%	21.38		%	79.36		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$103,254			$52,785			$54,598			$65,102			$77,268
Ratios to average net assets:
Net investment income (loss)	0.37		%	0.20		%	0.36		%	0.11		%	0.33		%
Total expenses	1.28		%	1.26		%	1.26		%	1.29		%	1.28		%
Portfolio turnover rate	259		%	137		%	116		%	53		%	68		%

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Financial Highlights (continued)

NOVA FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$29.51			$24.85			$22.88			$18.97			$10.73
Income (loss) from investment operations:
Net investment income (loss)^a	(0.04		)	(0.11		)	(0.04		)	(0.07		)	(0.01		)
Net gain (loss) on investments (realized and unrealized)	9.17			4.80			2.01			4.00			8.40
Total from investment operations	9.13			4.69			1.97			3.93			8.39
Less distributions from:
Net investment income	—			(0.03		)	—			(0.02		)	(0.15		)
Total distributions	—			(0.03		)	—			(0.02		)	(0.15		)
Net asset value, end of period		$38.64			$29.51			$24.85			$22.88			$18.97
Total Return^b	30.94		%	18.93		%	8.57		%	20.75		%	78.35		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,183			$12,141			$11,112			$6,318			$11,746
Ratios to average net assets:
Net investment income (loss)	(0.12		)%	(0.43		)%	(0.18		)%	(0.37		)%	(0.03		)%
Total expenses	1.78		%	1.75		%	1.75		%	1.79		%	1.78		%
Portfolio turnover rate	259		%	137		%	116		%	53		%	68		%


^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.

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Financial Highlights

S&P 500^® FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$31.55			$28.20			$26.39			$23.17			$15.78
Income (loss) from investment operations:
Net investment income (loss)^a	0.05			0.07			(0.02		)	(0.09		)	0.06
Net gain (loss) on investments (realized and unrealized)	6.22			3.35			1.83			3.31			7.44
Total from investment operations	6.27			3.42			1.81			3.22			7.50
Less distributions from:
Net investment income	(0.04		)	(0.07		)	—			(—)^b			(0.11		)
Total distributions	(0.04		)	(0.07		)	—			(—)			(0.11		)
Net asset value, end of period		$37.78			$31.55			$28.20			$26.39			$23.17
Total Return^c	19.87		%	12.16		%	6.86		%	13.90		%	47.58		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$255,912			$265,358			$240,847			$249,090			$194,193
Ratios to average net assets:
Net investment income (loss)	0.15		%	0.24		%	(0.07		)%	(0.37		)%	0.29		%
Total expenses	1.56		%	1.50		%	1.50		%	1.54		%	1.53		%
Portfolio turnover rate	157		%	76		%	196		%	202		%	58		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Less than $0.01 per share.


^c	Total return does not reflect the impact of any applicable sales charges.

PROSPECTUS | 387

Financial Highlights

INVERSE S&P 500^® STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$21.03			$24.61			$28.50			$34.38			$54.23
Income (loss) from investment operations:
Net investment income (loss)^a	(0.25		)	(0.30		)	(0.38		)	(0.41		)	(0.47		)
Net gain (loss) on investments (realized and unrealized)	(3.96		)	(3.28		)	(3.51		)	(5.47		)	(19.32		)
Total from investment operations	(4.21		)	(3.58		)	(3.89		)	(5.88		)	(19.79		)
Less distributions from:
Net investment income	—			—			—			—			(0.06		)
Total distributions	—			—			—			—			(0.06		)
Net asset value, end of period		$16.82			$21.03			$24.61			$28.50			$34.38
Total Return^b	(20.02		)%	(14.55		)%	(13.65		)%	(17.10		)%	(36.51		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$79,172			$106,158			$112,334			$118,410			$171,423
Ratios to average net assets:
Net investment income (loss)	(1.35		)%	(1.27		)%	(1.31		)%	(1.22		)%	(1.16		)%
Total expenses^c	1.42		%	1.41		%	1.41		%	1.44		%	1.43		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 388

Financial Highlights (continued)

INVERSE S&P 500^® STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$19.31			$22.71			$26.44			$32.06			$50.83
Income (loss) from investment operations:
Net investment income (loss)^a	(0.32		)	(0.39		)	(0.48		)	(0.54		)	(0.63		)
Net gain (loss) on investments (realized and unrealized)	(3.63		)	(3.01		)	(3.25		)	(5.08		)	(18.08		)
Total from investment operations	(3.95		)	(3.40		)	(3.73		)	(5.62		)	(18.71		)
Less distributions from:
Net investment income	—			—			—			—			(0.06		)
Total distributions	—			—			—			—			(0.06		)
Net asset value, end of period		$15.36			$19.31			$22.71			$26.44			$32.06
Total Return^b	(20.46		)%	(14.97		)%	(14.11		)%	(17.53		)%	(36.82		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,061			$9,775			$5,978			$6,434			$9,607
Ratios to average net assets:
Net investment income (loss)	(1.85		)%	(1.77		)%	(1.81		)%	(1.72		)%	(1.63		)%
Total expenses^c	1.93		%	1.90		%	1.91		%	1.93		%	1.93		%
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	Does not include expenses of the underlying funds in which the Fund invests.

PROSPECTUS | 389

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 the Fund’s performance for the periods presented.



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$18.38			$17.92			$15.23			$12.83			$8.15
Income (loss) from investment operations:
Net investment income (loss)^a	0.02			0.02			(0.05		)	(0.07		)	(0.07		)
Net gain (loss) on investments (realized and unrealized)	5.01			0.44			2.74			2.47			4.75
Total from investment operations	5.03			0.46			2.69			2.40			4.68
Less distributions from:
Net realized gains	(2.03		)	—			—			—			—
Total distributions	(2.03		)	—			—			—			—
Net asset value, end of period		$21.38			$18.38			$17.92			$15.23			$12.83
Total Return^b	27.74		%	2.57		%	17.66		%	18.71		%	57.42		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$632,598			$461,269			$770,626			$579,925			$571,761
Ratios to average net assets:
Net investment income (loss)	0.10		%	0.13		%	(0.34		)%	(0.50		)%	(0.63		)%
Total expenses	1.29		%	1.26		%	1.27		%	1.31		%	1.30		%
Portfolio turnover rate	141		%	94		%	94		%	39		%	34		%

PROSPECTUS | 390

Financial Highlights (continued)

NASDAQ-100^® FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$17.04			$16.70			$14.27			$12.09			$7.72
Income (loss) from investment operations:
Net investment income (loss)^a	(0.01		)	(0.08		)	(0.13		)	(0.12		)	(0.12		)
Net gain (loss) on investments (realized and unrealized)	4.55			0.42			2.56			2.30			4.49
Total from investment operations	4.54			0.34			2.43			2.18			4.37
Less distributions from:
Net realized gains	(2.03		)	—			—			—			—
Total distributions	(2.03		)	—			—			—			—
Net asset value, end of period		$19.55			$17.04			$16.70			$14.27			$12.09
Total Return^b	27.02		%	2.04		%	17.03		%	18.03		%	56.61		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$36,751			$16,930			$65,970			$120,277			$17,859
Ratios to average net assets:
Net investment income (loss)	(0.05		)%	(0.51		)%	(0.87		)%	(1.00		)%	(1.13		)%
Total expenses	1.79		%	1.75		%	1.76		%	1.80		%	1.80		%
Portfolio turnover rate	141		%	94		%	94		%	39		%	34		%


^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.

PROSPECTUS | 391

Financial Highlights

INVERSE NASDAQ-100^® STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$43.91			$46.95			$59.62			$75.34			$125.44
Income (loss) from investment operations:
Net investment income (loss)^a	(0.54		)	(0.60		)	(0.80		)	(0.90		)	(1.25		)
Net gain (loss) on investments (realized and unrealized)	(10.28		)	(2.44		)	(11.87		)	(14.82		)	(48.85		)
Total from investment operations	(10.82		)	(3.04		)	(12.67		)	(15.72		)	(50.10		)
Net asset value, end of period		$33.09			$43.91			$46.95			$59.62			$75.34
Total Return^b	(24.62		)%	(6.50		)%	(21.22		)%	(20.90		)%	(39.94		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,865			$7,709			$8,792			$32,978			$21,137
Ratios to average net assets:
Net investment income (loss)	(1.44		)%	(1.32		)%	(1.38		)%	(1.30		)%	(1.35		)%
Total expenses	1.46		%	1.44		%	1.45		%	1.47		%	1.47		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 392

Financial Highlights (continued)

INVERSE NASDAQ-100^® STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$41.85			$45.01			$57.15			$72.70			$121.83
Income (loss) from investment operations:
Net investment income (loss)^a	(0.73		)	(0.80		)	(1.05		)	(1.20		)	(1.60		)
Net gain (loss) on investments (realized and unrealized)	(9.86		)	(2.36		)	(11.09		)	(14.35		)	(47.53		)
Total from investment operations	(10.59		)	(3.16		)	(12.14		)	(15.55		)	(49.13		)
Net asset value, end of period		$31.26			$41.85			$45.01			$57.15			$72.70
Total Return^b	(25.30		)%	(7.00		)%	(21.26		)%	(21.39		)%	(40.34		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$118			$2,171			$207			$642			$916
Ratios to average net assets:
Net investment income (loss)	(1.93		)%	(1.83		)%	(1.91		)%	(1.80		)%	(1.84		)%
Total expenses	1.96		%	1.95		%	1.95		%	1.97		%	1.97		%
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 periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.

PROSPECTUS | 393

Financial Highlights

MID-CAP 1.5X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$45.13			$36.27			$37.12			$26.89			$13.33
Income (loss) from investment operations:
Net investment income (loss)^a	(0.34		)	(0.15		)	(0.24		)	(0.28		)	(0.15		)
Net gain (loss) on investments (realized and unrealized)	13.77			9.01			(0.61		)	10.51			13.71
Total from investment operations	13.43			8.86			(0.85		)	10.23			13.56
Net asset value, end of period		$58.56			$45.13			$36.27			$37.12			$26.89
Total Return^b	29.76		%	24.43		%	(2.29		%)	38.04		%	101.73		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$19,413			$57,067			$16,974			$42,647			$30,825
Ratios to average net assets:
Net investment income (loss)	(0.66		)%	(0.41		)%	(0.72		)%	(0.91		)%	(0.73		)%
Total expenses	1.68		%	1.67		%	1.66		%	1.70		%	1.68		%
Portfolio turnover rate	563		%	447		%	141		%	211		%	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.

PROSPECTUS | 394

Financial Highlights

INVERSE MID-CAP STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$44.59			$54.57			$61.08			$82.06			$144.62
Income (loss) from investment operations:
Net investment income (loss)^a	(0.66		)	(0.81		)	(1.05		)	(1.20		)	(1.65		)
Net gain (loss) on investments (realized and unrealized)	(8.44		)	(9.17		)	(5.46		)	(19.78		)	(60.91		)
Total from investment operations	(9.10		)	(9.98		)	(6.51		)	(20.98		)	(62.56		)
Net asset value, end of period		$35.49			$44.59			$54.57			$61.08			$82.06
Total Return^b	(20.39		)%	(18.31		)%	(10.66		)%	(25.56		)%	(43.27		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,825			$1,409			$1,578			$1,845			$2,891
Ratios to average net assets:
Net investment income (loss)	(1.65		)%	(1.53		)%	(1.64		)%	(1.53		)%	(1.55		)%
Total expenses	1.67		%	1.65		%	1.67		%	1.69		%	1.68		%
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 periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

PROSPECTUS | 395

Financial Highlights

RUSSELL 2000^® 1.5X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$39.24			$32.13			$34.29			$25.21			$12.47
Income (loss) from investment operations:
Net investment income (loss)^a	(0.37		)	(0.08		)	(0.37		)	(0.35		)	(0.19		)
Net gain (loss) on investments (realized and unrealized)	14.26			7.19			(1.79		)	9.43			12.93
Total from investment operations	13.89			7.11			(2.16		)	9.08			12.74
Net asset value, end of period		$53.13			$39.24			$32.13			$34.29			$25.21
Total Return^b	35.40		%	22.13		%	(6.30		%)	36.02		%	102.17		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$19,056			$44,955			$14,902			$37,780			$23,320
Ratios to average net assets:
Net investment income (loss)	(0.81		)%	(0.25		)%	(1.24		)%	(1.25		)%	(0.94		)%
Total expenses	1.72		%	1.71		%	1.73		%	1.72		%	1.71		%
Portfolio turnover rate	472		%	527		%	177		%	211		%	109		%

^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.

PROSPECTUS | 396

Financial Highlights

RUSSELL 2000^® FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$32.25			$28.16			$28.52			$22.93			$14.31
Income (loss) from investment operations:
Net investment income (loss)^a	(0.27		)	(0.12		)	(0.22		)	(0.27		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	7.48			4.21			(0.14		)	5.86			8.78
Total from investment operations	7.21			4.09			(0.36		)	5.59			8.62
Less distributions from:
Net realized gains	(1.73		)	—			—			—			—
Total distributions	(1.73		)	—			—			—			—
Net asset value, end of period		$37.73			$32.25			$28.16			$28.52			$22.93
Total Return^b	22.69		%	14.52		%	(1.26		)%	24.32		%	60.24		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$44,185			$101,053			$63,447			$32,389			$32,790
Ratios to average net assets:
Net investment income (loss)	(0.78		)%	(0.42		)%	(0.83		)%	(1.09		)%	(0.83		)%
Total expenses	1.59		%	1.52		%	1.58		%	1.57		%	1.56		%
Portfolio turnover rate	267		%	160		%	121		%	284		%	370		%


^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.

PROSPECTUS | 397

Financial Highlights

INVERSE RUSSELL 2000^® STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$43.26			$52.42			$59.37			$81.03			$144.14
Income (loss) from investment operations:
Net investment income (loss)^a	(0.65		)	(0.84		)	(1.05		)	(1.14		)	(1.59		)
Net gain (loss) on investments (realized and unrealized)	(9.50		)	(8.32		)	(5.90		)	(20.52		)	(61.52		)
Total from investment operations	(10.15		)	(9.16		)	(6.95		)	(21.66		)	(63.11		)
Net asset value, end of period		$33.11			$43.26			$52.42			$59.37			$81.03
Total Return^b	(23.46		)%	(17.46		)%	(11.72		)%	(26.73		)%	(43.79		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,691			$12,822			$17,283			$9,572			$25,924
Ratios to average net assets:
Net investment income (loss)	(1.69		)%	(1.62		)%	(1.70		)%	(1.53		)%	(1.58		)%
Total expenses	1.72		%	1.74		%	1.77		%	1.71		%	1.71		%
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 periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

PROSPECTUS | 398

Financial Highlights

S&P 500^® PURE GROWTH FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$38.84			$34.52			$33.13			$26.50			$15.81
Income (loss) from investment operations:
Net investment income (loss)^a	(0.23		)	(0.15		)	(0.19		)	(0.26		)	(0.14		)
Net gain (loss) on investments (realized and unrealized)	12.19			4.47			1.81			6.89			10.83
Total from investment operations	11.96			4.32			1.62			6.63			10.69
Less distributions from:
Net realized gains	—			—			(0.23		)	—			—
Total distributions	—			—			(0.23		)	—			—
Net asset value, end of period		$50.80			$38.84			$34.52			$33.13			$26.50
Total Return^b	30.79		%	12.51		%	4.96		%	25.02		%	67.62		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$103,502			$52,483			$36,627			$38,831			$15,874
Ratios to average net assets:
Net investment income (loss)	(0.50		)%	(0.43		)%	(0.59		)%	(0.89		)%	(0.60		)%
Total expenses	1.52		%	1.50		%	1.51		%	1.55		%	1.53		%
Portfolio turnover rate	594		%	421		%	586		%	808		%	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.

PROSPECTUS | 399

Financial Highlights

S&P 500^® PURE VALUE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$112.06			$93.80			$90.50			$79.91			$35.67
Income (loss) from investment operations:
Net investment income (loss)^a	0.51			0.57			0.33			(0.02		)	0.32
Net gain (loss) on investments (realized and unrealized)	35.23			17.83			2.97			11.94			44.70
Total from investment operations	35.74			18.40			3.30			11.92			45.02
Less distributions from:
Net investment income	(0.23		)	(0.14		)	—			(1.33		)	(0.78		)
Net realized gains	(5.68		)	—			—			—			—
Total distributions	(5.91		)	(0.14		)	—			(1.33		)	(0.78		)
Net asset value, end of period		$141.89			$112.06			$93.80			$90.50			$79.91
Total Return^b	32.21		%	19.64		%	3.65		%	15.14		%	126.50		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$114,984			$78,480			$68,886			$26,852			$148,578
Ratios to average net assets:
Net investment income (loss)	0.40		%	0.58		%	0.38		%	(0.03		)%	0.47		%
Total expenses	1.52		%	1.52		%	1.51		%	1.54		%	1.54		%
Portfolio turnover rate	410		%	669		%	762		%	820		%	673		%


^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 period presented through April 19, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

PROSPECTUS | 400

Financial Highlights

S&P MIDCAP 400^® PURE GROWTH FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$49.80			$44.14			$42.81			$32.25			$18.21
Income (loss) from investment operations:
Net investment income (loss)^a	(0.18		)	(0.20		)	(0.44		)	(0.38		)	(0.26		)
Net gain (loss) on investments (realized and unrealized)	11.02			5.86			1.77			10.94			14.30
Total from investment operations	10.84			5.66			1.33			10.56			14.04
Less distributions from:
Net realized gains	(1.93		)	—			—			—			—
Total distributions	(1.93		)	—			—			—			—
Net asset value, end of period		$58.71			$49.80			$44.14			$42.81			$32.25
Total Return^b	21.91		%	12.82		%	3.11		%	32.74		%	77.10		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$186,863			$242,157			$312,510			$212,654			$64,449
Ratios to average net assets:
Net investment income (loss)	(0.33		)%	(0.45		)%	(1.08		)%	(1.02		)%	(0.99		)%
Total expenses	1.52		%	1.50		%	1.50		%	1.55		%	1.54		%
Portfolio turnover rate	131		%	188		%	226		%	448		%	626		%


^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.

PROSPECTUS | 401

Financial Highlights

S&P MIDCAP 400^® PURE VALUE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$36.16			$30.86			$31.42			$30.43			$13.67
Income (loss) from investment operations:
Net investment income (loss)^a	0.06			0.08			0.01			(0.06		)	0.10
Net gain (loss) on investments (realized and unrealized)	6.95			5.22			(0.57		)	3.73			16.76
Total from investment operations	7.01			5.30			(0.56		)	3.67			16.86
Less distributions from:
Net investment income	(0.19		)	—			—			(0.17		)	(0.10		)
Net realized gains	—			—			—			(2.51		)	—
Total distributions	(0.19		)	—			—			(2.68		)	(0.10		)
Net asset value, end of period		$42.98			$36.16			$30.86			$31.42			$30.43
Total Return^b	19.39		%	17.17		%	(1.78		)%	12.85		%	123.43		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,563			$78,237			$18,838			$54,206			$199,458
Ratios to average net assets:
Net investment income (loss)	0.15		%	0.24		%	0.02		%	(0.19		)%	0.37		%
Total expenses	1.52		%	1.52		%	1.51		%	1.54		%	1.53		%
Portfolio turnover rate	506		%	757		%	619		%	407		%	443		%


^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.

PROSPECTUS | 402

Financial Highlights

S&P SMALLCAP 600^® PURE GROWTH FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$41.94			$37.97			$36.07			$28.48			$16.94
Income (loss) from investment operations:
Net investment income (loss)^a	(0.38		)	(0.31		)	(0.39		)	(0.34		)	(0.25		)
Net gain (loss) on investments (realized and unrealized)	11.43			4.28			2.29			7.93			11.79
Total from investment operations	11.05			3.97			1.90			7.59			11.54
Net asset value, end of period		$52.99			$41.94			$37.97			$36.07			$28.48
Total Return^b	26.35		%	10.46		%	5.27		%	26.65		%	68.12		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,996			$5,844			$29,214			$92,084			$10,072
Ratios to average net assets:
Net investment income (loss)	(0.77		)%	(0.81		)%	(1.10		)%	(1.07		)%	(1.05		)%
Total expenses	1.52		%	1.50		%	1.52		%	1.55		%	1.53		%
Portfolio turnover rate	677		%	645		%	500		%	732		%	1,476		%

^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.

PROSPECTUS | 403

Financial Highlights

S&P SMALLCAP 600^® PURE VALUE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$19.47			$17.00			$17.38			$19.57			$11.07
Income (loss) from investment operations:
Net investment income (loss)^a	(0.06		)	(0.06		)	(0.11		)	(0.11		)	(0.12		)
Net gain (loss) on investments (realized and unrealized)	6.14			2.53			(0.27		)	1.17			15.41
Total from investment operations	6.08			2.47			(0.38		)	1.06			15.29
Less distributions from:
Net investment income	—			—			—			—			(0.03		)
Net realized gains	—			—			—			(3.25		)	(6.76		)
Total distributions	—			—			—			(3.25		)	(6.79		)
Net asset value, end of period		$25.55			$19.47			$17.00			$17.38			$19.57
Total Return^b	31.23		%	14.53		%	(2.19		%)	6.94		%	150.07		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$22,380			$30,743			$24,298			$15,980			$216,500
Ratios to average net assets:
Net investment income (loss)	(0.25		)%	(0.32		)%	(0.69		)%	(0.56		)%	(0.62		)%
Total expenses	1.53		%	1.51		%	1.49		%	1.54		%	1.54		%
Portfolio turnover rate	658		%	655		%	744		%	692		%	443		%

^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.

PROSPECTUS | 404

Financial Highlights

BANKING FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$52.58			$46.75			$49.75			$50.73			$32.62
Income (loss) from investment operations:
Net investment income (loss)^a	0.54			0.54			0.44			0.13			0.28
Net gain (loss) on investments (realized and unrealized)	11.09			5.44			(3.39		)	(0.99		)	20.05
Total from investment operations	11.63			5.98			(2.95		)	(0.86		)	20.33
Less distributions from:
Net investment income	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Total distributions	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Net asset value, end of period		$63.60			$52.58			$46.75			$49.75			$50.73
Total Return^b	22.17		%	12.84		%	(5.89		)%	(1.66		)%	63.48		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,241			$8,915			$29,061			$8,711			$26,340
Ratios to average net assets:
Net investment income (loss)	0.92		%	1.16		%	1.02		%	0.27		%	0.67		%
Total expenses	1.37		%	1.35		%	1.34		%	1.39		%	1.38		%
Portfolio turnover rate	481		%	382		%	544		%	1,130		%	986		%

PROSPECTUS | 405

Financial Highlights (continued)

BANKING FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$47.71			$42.63			$45.63			$46.79			$30.36
Income (loss) from investment operations:
Net investment income (loss)^a	0.23			0.17			0.12			(0.08		)	0.06
Net gain (loss) on investments (realized and unrealized)	10.07			5.06			(3.07		)	(0.96		)	18.59
Total from investment operations	10.30			5.23			(2.95		)	(1.04		)	18.65
Less distributions from:
Net investment income	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Total distributions	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Net asset value, end of period		$57.40			$47.71			$42.63			$45.63			$46.79
Total Return^b	21.64		%	12.32		%	(6.43		)%	(2.19		)%	62.66		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$540			$4,235			$1,105			$629			$1,291
Ratios to average net assets:
Net investment income (loss)	0.44		%	0.38		%	0.30		%	(0.18		)%	0.17		%
Total expenses	1.87		%	1.86		%	1.83		%	1.89		%	1.88		%
Portfolio turnover rate	481		%	382		%	544		%	1,130		%	986		%


^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 period presented through April 20, 2009, have been restated to reflect a 1:10 reverse share split effective April 20, 2009.

PROSPECTUS | 406

Financial Highlights

BASIC MATERIALS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$49.94			$49.80			$56.36			$44.65			$27.43
Income (loss) from investment operations:
Net investment income (loss)^a	0.32			0.46			0.09			—^c			0.24
Net gain (loss) on investments (realized and unrealized)	2.58			(0.15		)	(6.65		)	11.82			17.07
Total from investment operations	2.90			0.31			(6.56		)	11.82			17.31
Less distributions from:
Net investment income	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Total distributions	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Net asset value, end of period		$52.53			$49.94			$49.80			$56.36			$44.65
Total Return^b	5.84		%	0.65		%	(11.66		)%	26.50		%	63.12		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$33,687			$36,012			$36,847			$73,606			$44,582
Ratios to average net assets:
Net investment income (loss)	0.66		%	0.95		%	0.17		%	—		%	0.65		%
Total expenses	1.38		%	1.36		%	1.36		%	1.39		%	1.39		%
Portfolio turnover rate	349		%	251		%	217		%	292		%	455		%

PROSPECTUS | 407

Financial Highlights (continued)

BASIC MATERIALS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$46.50			$46.61			$53.00			$42.20			$26.06
Income (loss) from investment operations:
Net investment income (loss)^a	0.08			0.19			0.08			(0.20		)	0.03
Net gain (loss) on investments (realized and unrealized)	2.37			(0.13		)	(6.47		)	11.11			16.20
Total from investment operations	2.45			0.06			(6.39		)	10.91			16.23
Less distributions from:
Net investment income	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Total distributions	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Net asset value, end of period		$48.64			$46.50			$46.61			$53.00			$42.20
Total Return^b	5.31		%	0.16		%	(12.08		)%	25.88		%	62.30		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,678			$3,616			$5,287			$15,986			$8,799
Ratios to average net assets:
Net investment income (loss)	0.18		%	0.43		%	0.17		%	(0.44		)%	0.07		%
Total expenses	1.88		%	1.86		%	1.86		%	1.89		%	1.89		%
Portfolio turnover rate	349		%	251		%	217		%	292		%	455		%

^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 Net investment income is less than $0.01 per share.

PROSPECTUS | 408

Financial Highlights

BIOTECHNOLOGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$48.97			$36.90			$29.16			$27.34			$19.37
Income (loss) from investment operations:
Net investment income (loss)^a	(0.51		)	(0.40		)	(0.34		)	(0.33		)	(0.21		)
Net gain (loss) on investments (realized and unrealized)	20.01			12.47			8.08			2.15			8.18
Total from investment operations	19.50			12.07			7.74			1.82			7.97
Net asset value, end of period		$68.47			$48.97			$36.90			$29.16			$27.34
Total Return^b	39.82		%	32.71		%	26.54		%	6.66		%	41.15		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$313,324			$171,844			$89,027			$44,686			$147,631
Ratios to average net assets:
Net investment income (loss)	(0.82		)%	(0.98		)%	(1.09		)%	(1.26		)%	(0.90		)%
Total expenses	1.36		%	1.35		%	1.36		%	1.39		%	1.39		%
Portfolio turnover rate	119		%	197		%	333		%	337		%	316		%

PROSPECTUS | 409

Financial Highlights (continued)

BIOTECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$45.27			$34.27			$27.22			$25.66			$18.27
Income (loss) from investment operations:
Net investment income (loss)^a	(0.74		)	(0.56		)	(0.48		)	(0.43		)	(0.30		)
Net gain (loss) on investments (realized and unrealized)	18.45			11.56			7.53			1.99			7.69
Total from investment operations	17.71			11.00			7.05			1.56			7.39
Net asset value, end of period		$62.98			$45.27			$34.27			$27.22			$25.66
Total Return^b	39.12		%	32.10		%	25.90		%	6.08		%	40.45		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$37,978			$22,486			$8,313			$7,410			$9,144
Ratios to average net assets:
Net investment income (loss)	(1.32		)%	(1.46		)%	(1.65		)%	(1.77		)%	(1.38		)%
Total expenses	1.86		%	1.86		%	1.87		%	1.89		%	1.89		%
Portfolio turnover rate	119		%	197		%	333		%	337		%	316		%

^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.

PROSPECTUS | 410

Financial Highlights

CONSUMER PRODUCTS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$47.79			$40.19			$36.37			$37.83			$26.39
Income (loss) from investment operations:
Net investment income (loss)^a	0.46			0.57			0.49			0.69			0.50
Net gain (loss) on investments (realized and unrealized)	5.81			7.14			4.82			4.40			11.04
Total from investment operations	6.27			7.71			5.31			5.09			11.54
Less distributions from:
Net investment income	(0.46		)	(0.11		)	(0.57		)	(0.82		)	(0.10		)
Net realized gains	(1.52		)	—			(0.92		)	(5.73		)	—
Total distributions	(1.98		)	(0.11		)	(1.49		)	(6.55		)	(0.10		)
Net asset value, end of period		$52.08			$47.79			$40.19			$36.37			$37.83
Total Return^b	13.24		%	19.26		%	15.06		%	14.81		%	43.75		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$102,231			$181,945			$155,432			$57,876			$182,915
Ratios to average net assets:
Net investment income (loss)	0.91		%	1.38		%	1.29		%	1.84		%	1.46		%
Total expenses	1.37		%	1.35		%	1.35		%	1.38		%	1.37		%
Portfolio turnover rate	112		%	230		%	402		%	400		%	200		%

PROSPECTUS | 411

Financial Highlights (continued)

CONSUMER PRODUCTS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$43.87			$37.08			$33.84			$35.77			$25.09
Income (loss) from investment operations:
Net investment income (loss)^a	0.24			0.35			0.24			0.62			0.35
Net gain (loss) on investments (realized and unrealized)	5.26			6.55			4.49			4.00			10.43
Total from investment operations	5.50			6.90			4.73			4.62			10.78
Less distributions from:
Net investment income	(0.46		)	(0.11		)	(0.57		)	(0.82		)	(0.10		)
Net realized gains	(1.52		)	—			(0.92		)	(5.73		)	—
Total distributions	(1.98		)	(0.11		)	(1.49		)	(6.55		)	(0.10		)
Net asset value, end of period		$47.39			$43.87			$37.08			$33.84			$35.77
Total Return^b	12.66		%	18.66		%	14.49		%	14.32		%	42.99		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$27,162			$10,148			$16,975			$3,475			$5,824
Ratios to average net assets:
Net investment income (loss)	0.51		%	0.93		%	0.68		%	1.78		%	1.17		%
Total expenses	1.87		%	1.85		%	1.84		%	1.88		%	1.88		%
Portfolio turnover rate	112		%	230		%	402		%	400		%	200		%


^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.

PROSPECTUS | 412

Financial Highlights

ELECTRONICS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$52.11			$55.09			$60.57			$52.33			$32.76
Income (loss) from investment operations:
Net investment income (loss)^a	(0.04		)	0.22			(0.12		)	(0.13		)	(0.02		)
Net gain (loss) on investments (realized and unrealized)	17.79			(3.20		)	(5.36		)	8.37			19.59
Total from investment operations	17.75			(2.98		)	(5.48		)	8.24			19.57
Less distributions from:
Net investment income	(0.04		)	—			—			—			—
Total distributions	(0.04		)	—			—			—			—
Net asset value, end of period		$69.82			$52.11			$55.09			$60.57			$52.33
Total Return^b	34.07		%	(5.41		)%	(9.05		)%	15.75		%	59.74		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,655			$2,942			$5,453			$6,976			$15,988
Ratios to average net assets:
Net investment income (loss)	(0.07		)%	0.45		%	(0.22		)%	(0.23		)%	(0.06		)%
Total expenses	1.37		%	1.35		%	1.35		%	1.39		%	1.38		%
Portfolio turnover rate	1,436		%	1,640		%	1,329		%	1,171		%	592		%

PROSPECTUS | 413

Financial Highlights (continued)

ELECTRONICS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$48.33			$51.40			$56.77			$49.26			$31.01
Income (loss) from investment operations:
Net investment income (loss)^a	(0.17		)	(0.12		)	(0.34		)	(0.41		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	16.28			(2.95		)	(5.03		)	7.92			18.41
Total from investment operations	16.11			(3.07		)	(5.37		)	7.51			18.25
Less distributions from:
Net investment income	(0.04		)	—			—			—			—
Total distributions	(0.04		)	—			—			—			—
Net asset value, end of period		$64.40			$48.33			$51.40			$56.77			$49.26
Total Return^b	33.34		%	(5.97		)%	(9.46		)%	15.25		%	58.85		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,577			$1,288			$1,271			$3,081			$1,634
Ratios to average net assets:
Net investment income (loss)	(0.29		)%	(0.26		)%	(0.67		)%	(0.79		)%	(0.39		)%
Total expenses	1.87		%	1.85		%	1.86		%	1.89		%	1.87		%
Portfolio turnover rate	1,436		%	1,640		%	1,329		%	1,171		%	592		%

^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.

PROSPECTUS | 414

Financial Highlights

ENERGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$26.12			$24.58			$28.70			$20.91			$14.01
Income (loss) from investment operations:
Net investment income (loss)^a	0.15			0.12			0.07			—^b			0.10
Net gain (loss) on investments (realized and unrealized)	3.43			1.89			(4.19		)	7.82			6.82
Total from investment operations	3.58			2.01			(4.12		)	7.82			6.92
Less distributions from:
Net investment income	—			(0.07		)	—			(0.03		)	(0.02		)
Return of capital	—			(0.40		)	—			—			—
Total distributions	—			(0.47		)	—			(0.03		)	(0.02		)
Net asset value, end of period		$29.70			$26.12			$24.58			$28.70			$20.91
Total Return^c	13.71		%	8.50		%	(14.39		)%	37.43		%	49.37		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$35,546			$49,160			$40,947			$93,648			$35,228
Ratios to average net assets:
Net investment income (loss)	0.55		%	0.52		%	0.27		%	—		%	0.51		%
Total expenses	1.37		%	1.35		%	1.36		%	1.39		%	1.38		%
Portfolio turnover rate	231		%	248		%	288		%	273		%	228		%

PROSPECTUS | 415

Financial Highlights (continued)

ENERGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$24.23			$22.95			$26.93			$19.72			$13.28
Income (loss) from investment operations:
Net investment income (loss)^a	(0.02		)	0.01			(0.08		)	(0.11		)	—^b
Net gain (loss) on investments (realized and unrealized)	3.19			1.74			(3.90		)	7.35			6.46
Total from investment operations	3.17			1.75			(3.98		)	7.24			6.46
Less distributions from:
Net investment income	—			(0.07		)	—			(0.03		)	(0.02		)
Return of capital	—			(0.40		)	—			—			—
Total distributions	—			(0.47		)	—			(0.03		)	(0.02		)
Net asset value, end of period		$27.40			$24.23			$22.95			$26.93			$19.72
Total Return^c	13.08		%	7.92		%	(14.78		)%	36.75		%	48.62		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,764			$5,272			$11,080			$16,015			$6,489
Ratios to average net assets:
Net investment income (loss)	(0.09		)%	0.06		%	(0.33		)%	(0.53		)%	(0.02		)%
Total expenses	1.87		%	1.85		%	1.86		%	1.89		%	1.88		%
Portfolio turnover rate	231		%	248		%	288		%	273		%	228		%

^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.

PROSPECTUS | 416

Financial Highlights

FINANCIAL SERVICES FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$90.67			$78.47			$81.18			$75.23			$44.37
Income (loss) from investment operations:
Net investment income (loss)^a	0.78			0.76			0.61			0.15			0.41
Net gain (loss) on investments (realized and unrealized)	15.21			11.99			(3.29		)	6.75			31.07
Total from investment operations	15.99			12.75			(2.68		)	6.90			31.48
Less distributions from:
Net investment income	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Total distributions	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Net asset value, end of period		$106.10			$90.67			$78.47			$81.18			$75.23
Total Return^b	17.67		%	16.37		%	(3.31		)%	9.33		%	71.12		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$17,688			$17,007			$19,973			$4,885			$26,364
Ratios to average net assets:
Net investment income (loss)	0.81		%	0.95		%	0.86		%	0.19		%	0.64		%
Total expenses	1.37		%	1.36		%	1.34		%	1.39		%	1.38		%
Portfolio turnover rate	414		%	590		%	970		%	601		%	447		%

PROSPECTUS | 417

Financial Highlights (continued)

FINANCIAL SERVICES FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$84.51			$73.53			$76.47			$71.29			$42.28
Income (loss) from investment operations:
Net investment income (loss)^a	0.24			0.22			0.26			(0.14		)	0.12
Net gain (loss) on investments (realized and unrealized)	14.18			11.31			(3.17		)	6.27			29.51
Total from investment operations	14.42			11.53			(2.91		)	6.13			29.63
Less distributions from:
Net investment income	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Total distributions	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Net asset value, end of period		$98.37			$84.51			$73.53			$76.47			$71.29
Total Return^b	17.10		%	15.80		%	(3.80		)%	8.76		%	70.26		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,583			$7,103			$4,243			$3,634			$3,285
Ratios to average net assets:
Net investment income (loss)	0.26		%	0.29		%	0.37		%	(0.20		)%	0.21		%
Total expenses	1.87		%	1.85		%	1.85		%	1.89		%	1.88		%
Portfolio turnover rate	414		%	590		%	970		%	601		%	447		%


^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 period presented through April 20, 2009, have been restated to reflect a 1:10 reverse share split effective April 20, 2009.

PROSPECTUS | 418

Financial Highlights

HEALTH CARE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$22.35			$18.83			$17.14			$15.80			$11.20
Income (loss) from investment operations:
Net investment income (loss)^a	(0.03		)	0.09			0.01			(0.02		)	(0.01		)
Net gain (loss) on investments (realized and unrealized)	7.00			3.48			1.68			1.36			4.62
Total from investment operations	6.97			3.57			1.69			1.34			4.61
Less distributions from:
Net investment income	(0.03		)	(0.05		)	—			—			(0.01		)
Net realized gains	(1.53		)	—			—			—			—
Total distributions	(1.56		)	(0.05		)	—			—			(0.01		)
Net asset value, end of period		$27.76			$22.35			$18.83			$17.14			$15.80
Total Return^b	31.70		%	18.98		%	9.86		%	8.48		%	41.17		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$98,209			$104,525			$39,036			$19,534			$195,616
Ratios to average net assets:
Net investment income (loss)	(0.12		)%	0.45		%	0.08		%	(0.10		)%	(0.04		)%
Total expenses	1.37		%	1.35		%	1.36		%	1.38		%	1.37		%
Portfolio turnover rate	277		%	266		%	582		%	619		%	241		%

PROSPECTUS | 419

Financial Highlights (continued)

HEALTH CARE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$20.73			$17.55			$16.04			$14.85			$10.58
Income (loss) from investment operations:
Net investment income (loss)^a	(0.15		)	(0.06		)	(0.07		)	(0.05		)	(0.04		)
Net gain (loss) on investments (realized and unrealized)	6.47			3.29			1.58			1.24			4.32
Total from investment operations	6.32			3.23			1.51			1.19			4.28
Less distributions from:
Net investment income	(0.03		)	(0.05		)	—			—			(0.01		)
Net realized gains	(1.53		)	—			—			—			—
Total distributions	(1.56		)	(0.05		)	—			—			(0.01		)
Net asset value, end of period		$25.49			$20.73			$17.55			$16.04			$14.85
Total Return^b	31.03		%	18.43		%	9.41		%	8.01		%	40.46		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$38,480			$3,605			$4,275			$2,229			$3,432
Ratios to average net assets:
Net investment income (loss)	(0.62		)%	(0.31		)%	(0.44		)%	(0.36		)%	(0.33		)%
Total expenses	1.87		%	1.86		%	1.85		%	1.88		%	1.88		%
Portfolio turnover rate	277		%	266		%	582		%	619		%	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.

PROSPECTUS | 420

Financial Highlights

INTERNET FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$55.46			$51.90			$52.28			$41.74			$26.58
Income (loss) from investment operations:
Net investment income (loss)^a	(0.62		)	(0.44		)	(0.51		)	(0.34		)	(0.38		)
Net gain (loss) on investments (realized and unrealized)	20.53			5.26			0.13			10.88			15.54
Total from investment operations	19.91			4.82			(0.38		)	10.54			15.16
Less distributions from:
Net realized gains	(0.32		)	(1.26		)	—			—			—
Total distributions	(0.32		)	(1.26		)	—			—			—
Net asset value, end of period		$75.05			$55.46			$51.90			$52.28			$41.74
Total Return^b	35.93		%	9.65		%	(0.73		)%	25.25		%	57.04		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$26,828			$6,109			$6,206			$20,589			$21,924
Ratios to average net assets:
Net investment income (loss)	(0.87		)%	(0.87		)%	(1.05		)%	(0.69		)%	(1.12		)%
Total expenses	1.37		%	1.35		%	1.36		%	1.39		%	1.37		%
Portfolio turnover rate	472		%	442		%	380		%	291		%	443		%

PROSPECTUS | 421

Financial Highlights (continued)

INTERNET FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$51.70			$48.71			$49.31			$39.57			$25.32
Income (loss) from investment operations:
Net investment income (loss)^a	(1.07		)	(0.64		)	(0.71		)	(0.59		)	(0.58		)
Net gain (loss) on investments (realized and unrealized)	19.27			4.89			0.11			10.33			14.83
Total from investment operations	18.20			4.25			(0.60		)	9.74			14.25
Less distributions from:
Net realized gains	(0.32		)	(1.26		)	—			—			—
Total distributions	(0.32		)	(1.26		)	—			—			—
Net asset value, end of period		$69.58			$51.70			$48.71			$49.31			$39.57
Total Return^b	35.23		%	9.13		%	(1.24		)%	24.61		%	56.28		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,814			$552			$719			$2,124			$3,908
Ratios to average net assets:
Net investment income (loss)	(1.53		)%	(1.36		)%	(1.58		)%	(1.32		)%	(1.74		)%
Total expenses	1.87		%	1.85		%	1.86		%	1.89		%	1.88		%
Portfolio turnover rate	472		%	442		%	380		%	291		%	443		%


^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.

PROSPECTUS | 422

Financial Highlights

LEISURE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$44.93			$36.94			$33.50			$27.48			$15.40
Income (loss) from investment operations:
Net investment income (loss)^a	0.20			0.36			0.17			(0.02		)	0.03
Net gain (loss) on investments (realized and unrealized)	10.95			7.66			3.27			6.04			12.05
Total from investment operations	11.15			8.02			3.44			6.02			12.08
Less distributions from:
Net investment income	(0.27		)	(0.03		)	—			—			—
Total distributions	(0.27		)	(0.03		)	—			—			—
Net asset value, end of period		$55.81			$44.93			$36.94			$33.50			$27.48
Total Return^b	24.83		%	21.74		%	10.27		%	21.91		%	78.44		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$24,139			$22,005			$12,687			$2,141			$13,186
Ratios to average net assets:
Net investment income (loss)	0.39		%	0.92		%	0.49		%	(0.07		)%	0.13		%
Total expenses	1.37		%	1.35		%	1.35		%	1.39		%	1.37		%
Portfolio turnover rate	265		%	517		%	797		%	963		%	943		%

PROSPECTUS | 423

Financial Highlights (continued)

LEISURE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$41.54			$34.33			$31.29			$25.81			$14.53
Income (loss) from investment operations:
Net investment income (loss)^a	(0.11		)	0.29			(0.01		)	(0.16		)	(0.11		)
Net gain (loss) on investments (realized and unrealized)	10.15			6.95			3.05			5.64			11.39
Total from investment operations	10.04			7.24			3.04			5.48			11.28
Less distributions from:
Net investment income	(0.27		)	(0.03		)	—			—			—
Total distributions	(0.27		)	(0.03		)	—			—			—
Net asset value, end of period		$51.31			$41.54			$34.33			$31.29			$25.81
Total Return^b	24.18		%	21.12		%	9.72		%	21.23		%	77.63		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,115			$1,241			$1,379			$582			$1,111
Ratios to average net assets:
Net investment income (loss)	(0.23		)%	0.80		%	(0.03		)%	(0.61		)%	(0.56		)%
Total expenses	1.87		%	1.85		%	1.86		%	1.89		%	1.88		%
Portfolio turnover rate	265		%	517		%	797		%	963		%	943		%

^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.

PROSPECTUS | 424

Financial Highlights

PRECIOUS METALS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$51.65			$65.73			$86.74			$61.73			$46.36
Income (loss) from investment operations:
Net investment income (loss)^a	0.36			0.34			(0.02		)	(0.28		)	(0.44		)
Net gain (loss) on investments (realized and unrealized)	(16.06		)	(12.12		)	(20.70		)	25.32			15.96
Total from investment operations	(15.70		)	(11.78		)	(20.72		)	25.04			15.52
Less distributions from:
Net investment income	(0.17		)	(0.10		)	(0.29		)	(0.03		)	—
Net realized gains	—			(2.20		)	—			—			(0.08		)
Return of capital	—			—			—			—			(0.07		)
Total distributions	(0.17		)	(2.30		)	(0.29		)	(0.03		)	(0.15		)
Net asset value, end of period		$35.78			$51.65			$65.73			$86.74			$61.73
Total Return^b	(30.37		)%	(18.60		)%	(23.91		)%	40.57		%	33.44		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$42,846			$71,386			$79,637			$141,798			$113,546
Ratios to average net assets:
Net investment income (loss)	0.96		%	0.55		%	(0.03		)%	(0.37		)%	(0.76		)%
Total expenses	1.27		%	1.25		%	1.26		%	1.28		%	1.28		%
Portfolio turnover rate	348		%	206		%	235		%	322		%	383		%

PROSPECTUS | 425

Financial Highlights (continued)

PRECIOUS METALS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$49.20			$63.02			$83.59			$59.79			$45.12
Income (loss) from investment operations:
Net investment income (loss)^a	0.12			(0.02		)	(0.44		)	(0.61		)	(0.79		)
Net gain (loss) on investments (realized and unrealized)	(15.23		)	(11.50		)	(19.84		)	24.44			15.61
Total from investment operations	(15.11		)	(11.52		)	(20.28		)	23.83			14.82
Less distributions from:
Net investment income	(0.17		)	(0.10		)	(0.29		)	(0.03		)	—
Net realized gains	—			(2.20		)	—			—			(0.08		)
Return of capital	—			—			—			—			(0.07		)
Total distributions	(0.17		)	(2.30		)	(0.29		)	(0.03		)	(0.15		)
Net asset value, end of period		$33.92			$49.20			$63.02			$83.59			$59.79
Total Return^b	(30.71		)%	(18.99		)%	(24.29		)%	39.87		%	32.81		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,009			$3,148			$9,610			$30,418			$18,677
Ratios to average net assets:
Net investment income (loss)	0.34		%	(0.04		)%	(0.59		)%	(0.86		)%	(1.35		)%
Total expenses	1.77		%	1.75		%	1.76		%	1.78		%	1.77		%
Portfolio turnover rate	348		%	206		%	235		%	322		%	383		%

^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.

PROSPECTUS | 426

Financial Highlights

RETAILING FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$19.62			$17.45			$14.66			$12.75			$8.58
Income (loss) from investment operations:
Net investment income (loss)^a	—^b			0.09			0.01			0.05			0.03
Net gain (loss) on investments (realized and unrealized)	3.92			2.08			2.79			1.89			4.14
Total from investment operations	3.92			2.17			2.80			1.94			4.17
Less distributions from:
Net investment income	—			—			(0.01		)	(0.03		)	—
Total distributions	—			—			(0.01		)	(0.03		)	—
Net asset value, end of period		$23.54			$19.62			$17.45			$14.66			$12.75
Total Return^c	19.98		%	12.44		%	19.14		%	15.20		%	48.60		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$65,195			$14,671			$34,802			$3,776			$12,060
Ratios to average net assets:
Net investment income (loss)	0.01		%	0.51		%	0.04		%	0.34		%	0.28		%
Total expenses	1.37		%	1.35		%	1.34		%	1.39		%	1.38		%
Portfolio turnover rate	671		%	472		%	822		%	1,062		%	1,049		%

PROSPECTUS | 427

Financial Highlights (continued)

RETAILING FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$18.45			$16.45			$13.91			$12.14			$8.20
Income (loss) from investment operations:
Net investment income (loss)^a	(0.14		)	(0.01		)	(0.09		)	(0.07		)	(0.06		)
Net gain (loss) on investments (realized and unrealized)	3.69			2.01			2.64			1.87			4.00
Total from investment operations	3.55			2.00			2.55			1.80			3.94
Less distributions from:
Net investment income	—			—			(0.01		)	(0.03		)	—
Total distributions	—			—			(0.01		)	(0.03		)	—
Net asset value, end of period		$22.00			$18.45			$16.45			$13.91			$12.14
Total Return^c	19.24		%	12.16		%	18.38		%	14.81		%	48.05		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,391			$2,454			$3,979			$1,583			$2,350
Ratios to average net assets:
Net investment income (loss)	(0.64		)%	(0.05		)%	(0.66		)%	(0.58		)%	(0.57		)%
Total expenses	1.87		%	1.85		%	1.84		%	1.89		%	1.87		%
Portfolio turnover rate	671		%	472		%	822		%	1,062		%	1,049		%


^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.

PROSPECTUS | 428

Financial Highlights

TECHNOLOGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$43.58			$42.92			$41.81			$36.10			$23.09
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	0.03			(0.03		)	(0.18		)	(0.15		)
Net gain (loss) on investments (realized and unrealized)	12.41			0.63			1.14			5.89			13.16
Total from investment operations	12.32			0.66			1.11			5.71			13.01
Net asset value, end of period		$55.90			$43.58			$42.92			$41.81			$36.10
Total Return^b	28.24		%	1.54		%	2.65		%	15.88		%	56.23		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$32,858			$8,325			$19,985			$35,408			$37,391
Ratios to average net assets:
Net investment income (loss)	(0.18		)%	0.10		%	(0.10		)%	(0.48		)%	(0.52		)%
Total expenses	1.37		%	1.35		%	1.36		%	1.39		%	1.38		%
Portfolio turnover rate	321		%	324		%	487		%	393		%	335		%

PROSPECTUS | 429

Financial Highlights (continued)

TECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$40.65			$40.22			$39.39			$34.18			$21.97
Income (loss) from investment operations:
Net investment income (loss)^a	(0.27		)	(0.12		)	(0.33		)	(0.33		)	(0.33		)
Net gain (loss) on investments (realized and unrealized)	11.49			0.55			1.16			5.54			12.54
Total from investment operations	11.22			0.43			0.83			5.21			12.21
Net asset value, end of period		$51.87			$40.65			$40.22			$39.39			$34.18
Total Return^b	27.60		%	1.04		%	2.13		%	15.28		%	55.60		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,915			$1,286			$2,361			$6,565			$17,969
Ratios to average net assets:
Net investment income (loss)	(0.54		)%	(0.33		)%	(0.87		)%	(0.94		)%	(1.04		)%
Total expenses	1.87		%	1.85		%	1.85		%	1.88		%	1.87		%
Portfolio turnover rate	321		%	324		%	487		%	393		%	335		%


^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 February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

PROSPECTUS | 430

Financial Highlights

TELECOMMUNICATIONS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$40.76			$41.52			$47.13			$41.18			$30.86
Income (loss) from investment operations:
Net investment income (loss)^a	1.06			0.81			1.23			0.30			0.78
Net gain (loss) on investments (realized and unrealized)	4.26			(0.67		)	(5.52		)	5.89			10.56
Total from investment operations	5.32			0.14			(4.29		)	6.19			11.34
Less distributions from:
Net investment income	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Total distributions	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Net asset value, end of period		$45.51			$40.76			$41.52			$47.13			$41.18
Total Return^b	13.12		%	0.50		%	(8.77		)%	15.06		%	36.88		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,497			$2,970			$7,028			$48,089			$4,677
Ratios to average net assets:
Net investment income (loss)	2.47		%	2.06		%	2.86		%	0.73		%	2.03		%
Total expenses	1.38		%	1.35		%	1.36		%	1.39		%	1.39		%
Portfolio turnover rate	1,271		%	1,550		%	793		%	1,008		%	867		%

PROSPECTUS | 431

Financial Highlights (continued)

TELECOMMUNICATIONS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$37.75			$38.69			$44.21			$38.82			$29.26
Income (loss) from investment operations:
Net investment income (loss)^a	0.29			0.57			0.66			0.09			0.69
Net gain (loss) on investments (realized and unrealized)	4.39			(0.61		)	(4.86		)	5.54			9.89
Total from investment operations	4.68			(0.04		)	(4.20		)	5.63			10.58
Less distributions from:
Net investment income	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Total distributions	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Net asset value, end of period		$41.86			$37.75			$38.69			$44.21			$38.82
Total Return^b	12.53		%	(0.01		)%	(9.15		)%	14.59		%	36.35		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$316			$133			$200			$695			$279
Ratios to average net assets:
Net investment income (loss)	0.74		%	1.59		%	1.65		%	0.25		%	1.94		%
Total expenses	1.88		%	1.86		%	1.85		%	1.88		%	1.89		%
Portfolio turnover rate	1,271		%	1,550		%	793		%	1,008		%	867		%


^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 February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

PROSPECTUS | 432

Financial Highlights

TRANSPORTATION FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$32.07			$26.96			$27.85			$23.79			$14.38
Income (loss) from investment operations:
Net investment income (loss)^a	(0.04		)	(0.07		)	(0.06		)	—^c			(0.15		)
Net gain (loss) on investments (realized and unrealized)	12.60			5.18			(0.83		)	4.06			9.70
Total from investment operations	12.56			5.11			(0.89		)	4.06			9.55
Less distributions from:
Net investment income	—			—			—			—			(0.14		)
Total distributions	—			—			—			—			(0.14		)
Net asset value, end of period		$44.63			$32.07			$26.96			$27.85			$23.79
Total Return^b	39.16		%	18.95		%	(3.20		)%	17.07		%	66.51		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$44,021			$78,644			$8,031			$5,320			$22,292
Ratios to average net assets:
Net investment income (loss)	(0.09		)%	(0.25		)%	(0.22		)%	0.02		%	(0.68		)%
Total expenses	1.37		%	1.37		%	1.35		%	1.38		%	1.37		%
Portfolio turnover rate	593		%	737		%	1,082		%	1,217		%	1,073		%

PROSPECTUS | 433

Financial Highlights (continued)

TRANSPORTATION FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$29.32			$24.76			$25.70			$22.05			$13.40
Income (loss) from investment operations:
Net investment income (loss)^a	(0.18		)	(0.15		)	(0.14		)	(0.17		)	(0.18		)
Net gain (loss) on investments (realized and unrealized)	11.47			4.71			(0.80		)	3.82			8.97
Total from investment operations	11.29			4.56			(0.94		)	3.65			8.79
Less distributions from:
Net investment income	—			—			—			—			(0.14		)
Total distributions	—			—			—			—			(0.14		)
Net asset value, end of period		$40.61			$29.32			$24.76			$25.70			$22.05
Total Return^b	38.51		%	18.42		%	(3.66		)%	16.55		%	65.70		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,583			$4,483			$2,355			$2,902			$2,795
Ratios to average net assets:
Net investment income (loss)	(0.50		)%	(0.57		)%	(0.55		)%	(0.74		)%	(0.95		)%
Total expenses	1.87		%	1.86		%	1.86		%	1.89		%	1.88		%
Portfolio turnover rate	593		%	737		%	1,082		%	1,217		%	1,073		%


^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	Net investment income is less than $0.01 per share.

PROSPECTUS | 434

Financial Highlights

UTILITIES FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$32.71			$29.13			$27.00			$24.80			$20.56
Income (loss) from investment operations:
Net investment income (loss)^a	0.78			0.74			0.73			0.86			0.61
Net gain (loss) on investments (realized and unrealized)	1.98			3.96			1.80			2.96			4.85
Total from investment operations	2.76			4.70			2.53			3.82			5.46
Less distributions from:
Net investment income	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Total distributions	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Net asset value, end of period		$34.01			$32.71			$29.13			$27.00			$24.80
Total Return^b	8.88		%	16.75		%	9.44		%	15.94		%	26.58		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$95,854			$42,907			$37,469			$9,328			$9,912
Ratios to average net assets:
Net investment income (loss)	2.38		%	2.45		%	2.59		%	3.35		%	2.49		%
Total expenses	1.40		%	1.35		%	1.35		%	1.37		%	1.39		%
Portfolio turnover rate	508		%	534		%	549		%	800		%	758		%

PROSPECTUS | 435

Financial Highlights (continued)

UTILITIES FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$30.19			$27.10			$25.26			$23.40			$19.56
Income (loss) from investment operations:
Net investment income (loss)^a	0.69			0.48			0.56			0.62			0.47
Net gain (loss) on investments (realized and unrealized)	1.67			3.73			1.68			2.86			4.59
Total from investment operations	2.36			4.21			2.24			3.48			5.06
Less distributions from:
Net investment income	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Total distributions	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Net asset value, end of period		$31.09			$30.19			$27.10			$25.26			$23.40
Total Return^b	8.29		%	16.23		%	8.90		%	15.43		%	25.89		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,269			$4,812			$8,036			$1,240			$1,184
Ratios to average net assets:
Net investment income (loss)	2.30		%	1.70		%	2.11		%	2.53		%	2.07		%
Total expenses	1.88		%	1.85		%	1.84		%	1.87		%	1.88		%
Portfolio turnover rate	508		%	534		%	549		%	800		%	758		%

^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.

PROSPECTUS | 436

Financial Highlights

EUROPE 1.25X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$14.20			$12.59			$14.06			$14.20			$8.36
Income (loss) from investment operations:
Net investment income (loss)^a	0.03			(0.02		)	0.16			0.09			0.03
Net gain (loss) on investments (realized and unrealized)	3.03			1.66			(1.63		)	(0.23		)	5.81
Total from investment operations	3.06			1.64			(1.47		)	(0.14		)	5.84
Less distributions from:
Net investment income	—			(0.03		)	—			—			—
Total distributions	—			(0.03		)	—			—			—
Net asset value, end of period		$17.26			$14.20			$12.59			$14.06			$14.20
Total Return^b	21.55		%	13.06		%	(10.46		)%	(0.99		)%	69.86		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,553			$10,752			$7,759			$23,238			$6,989
Ratios to average net assets:
Net investment income (loss)	0.19		%	(0.18		)%	1.22		%	0.70		%	0.21		%
Total expenses	1.71		%	1.67		%	1.68		%	1.69		%	1.70		%
Portfolio turnover rate	654		%	903		%	318		%	515		%	1,353		%


^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.

PROSPECTUS | 437

Financial Highlights

JAPAN 2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$17.44			$15.49			$14.98			$16.48			$9.01
Income (loss) from investment operations:
Net investment income (loss)^a	(0.30		)	(0.20		)	(0.22		)	(0.23		)	(0.21		)
Net gain (loss) on investments (realized and unrealized)	2.24			2.15			0.73			(1.27		)	7.68
Total from investment operations	1.94			1.95			0.51			(1.50		)	7.47
Net asset value, end of period		$19.38			$17.44			$15.49			$14.98			$16.48
Total Return^b	11.12		%	12.59		%	3.40		%	(9.10		)%	82.91		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,104			$9,020			$4,574			$5,356			$5,414
Ratios to average net assets:
Net investment income (loss)	(1.50		)%	(1.40		)%	(1.48		)%	(1.44		)%	(1.44		)%
Total expenses	1.52		%	1.50		%	1.51		%	1.54		%	1.53		%
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.

PROSPECTUS | 438

Financial Highlights

EMERGING MARKETS 2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28			Year Ended March 31,			Period Ended March 31,
H-Class	2014^e			2013^e			2012^e			2011^a,e
Per Share Data
Net asset value, beginning of period		$73.87			$87.74			$134.69			$125.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.34		)	(0.35		)	(0.35		)	(0.55		)
Net gain (loss) on investments
(realized and unrealized)	(7.16		)	(13.52		)	(41.00		)	10.24
Total from investment operations	(7.50		)	(13.87		)	(41.35		)	9.69
Less distributions from:
Net realized gains	—			—			(5.60		)	—
Total distributions	—			—			(5.60		)	—
Net asset value, end of period		$66.37			$73.87			$87.74			$134.69
Total Return^c	(10.19		)%	(15.78		)%	(29.70		)%	7.76		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,719			$2,087			$4,713			$3,705
Ratios to average net assets:
Net investment income (loss)	(0.51		)%	(0.49		)%	(0.37		)%	(1.05		)%
Total expenses	1.80		%	1.83		%	1.77		%	1.85		%
Net expenses^d	1.74		%	1.69		%	1.69		%	1.74		%
Portfolio turnover rate	1,412		%	730		%	883		%	58		%


^a	Since commencement of operations: October 29, 2010. 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 and has not been annualized.


^d	Net expense information reflects the expense ratios after expense waivers.


^e	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.

PROSPECTUS | 439

Financial Highlights

INVERSE EMERGING MARKETS 2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
H-Class	2014			2013			2012			2011^a
Per Share Data
Net asset value, beginning of period		$19.22			$19.29			$21.15			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.35		)	(0.33		)	(0.38		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	(0.54		)	0.26			(1.48		)	(3.69		)
Total from investment operations	(0.89		)	(0.07		)	(1.86		)	(3.85		)
Net asset value, end of period		$18.33			$19.22			$19.29			$21.15
Total Return^c	(4.63		)%	(0.36		)%	(8.79		)%	(15.40		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,815			$1,942			$2,215			$2,892
Ratios to average net assets:
Net investment income (loss)	(1.74		)%	(1.56		)%	(1.67		)%	(1.63		)%
Total expenses	1.78		%	1.82		%	1.79		%	1.85		%
Net expenses^d	1.76		%	1.68		%	1.70		%	1.74		%
Portfolio turnover rate	—			—			—			—


^a	Since commencement of operations: October 29, 2010. 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 and has not been annualized.


^d	Net expense information reflects the expense ratios after expense waivers.

PROSPECTUS | 440

Financial Highlights

STRENGTHENING DOLLAR 2x STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$42.60			$40.17			$40.20			$48.92			$58.67
Income (loss) from investment operations:
Net investment income (loss)^a	(0.69		)	(0.63		)	(0.66		)	(0.75		)	(0.75		)
Net gain (loss) on investments (realized and unrealized)	(3.70		)	3.06			0.63			(7.97		)	(9.00		)
Total from investment operations	(4.39		)	2.43			(0.03		)	(8.72		)	(9.75		)
Net asset value, end of period		$38.21			$42.60			$40.17			$40.20			$48.92
Total Return^b	(10.31		)%	6.05		%	(0.07		)%	(17.84		)%	(16.62		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,764			$11,979			$21,982			$20,733			$60,944
Ratios to average net assets:
Net investment income (loss)	(1.72		)%	(1.53		)%	(1.62		)%	(1.55		)%	(1.57		)%
Total expenses	1.74		%	1.66		%	1.69		%	1.72		%	1.67		%
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 periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

PROSPECTUS | 441

Financial Highlights

WEAKENING DOLLAR 2x STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$16.93			$18.93			$20.32			$17.96			$16.37
Income (loss) from investment operations:
Net investment income (loss)^a	(0.30		)	(0.27		)	(0.32		)	(0.28		)	(0.30		)
Net gain (loss) on investments (realized and unrealized)	1.20			(1.73		)	(1.07		)	2.64			1.89
Total from investment operations	0.90			(2.00		)	(1.39		)	2.36			1.59
Net asset value, end of period		$17.83			$16.93			$18.93			$20.32			$17.96
Total Return^b	5.32		%	(10.57		)%	(6.84		)%	13.14		%	9.71		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,449			$10,058			$13,551			$23,432			$30,036
Ratios to average net assets:
Net investment income (loss)	(1.74		)%	(1.52		)%	(1.61		)%	(1.54		)%	(1.57		)%
Total expenses	1.76		%	1.64		%	1.69		%	1.71		%	1.68		%
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.

PROSPECTUS | 442

Financial Highlights

REAL ESTATE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$34.38			$30.23			$29.02			$24.22			$12.82
Income (loss) from investment operations:
Net investment income (loss)^a	0.52			0.46			0.42			0.29			0.50
Net gain (loss) on investments (realized and unrealized)	(0.03		)	4.29			1.10			5.13			11.04
Total from investment operations	0.49			4.75			1.52			5.42			11.54
Less distributions from:
Net investment income	(1.47		)	(0.60		)	(0.31		)	(0.62		)	(0.14		)
Total distributions	(1.47		)	(0.60		)	(0.31		)	(0.62		)	(0.14		)
Net asset value, end of period		$33.40			$34.38			$30.23			$29.02			$24.22
Total Return^b	1.84		%	15.95		%	5.42		%	22.70		%	90.15		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$19,753			$10,273			$13,511			$22,045			$34,926
Ratios to average net assets:
Net investment income (loss)	1.52		%	1.45		%	1.48		%	1.13		%	2.41		%
Total expenses	1.64		%	1.60		%	1.61		%	1.63		%	1.68		%
Portfolio turnover rate	788		%	699		%	974		%	485		%	1,520		%


^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.

PROSPECTUS | 443

Financial Highlights

GOVERNMENT LONG BOND 1.2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$48.55			$44.73			$34.28			$32.88			$41.21
Income (loss) from investment operations:
Net investment income (loss)^a	0.61			0.57			0.96			1.08			1.08
Net gain (loss) on investments (realized and unrealized)	(2.76		)	4.21			10.45			1.40			(8.33		)
Total from investment operations	(2.15		)	4.78			11.41			2.48			(7.25		)
Less distributions from:
Net investment income	(0.60		)	(0.72		)	(0.96		)	(1.08		)	(1.08		)
Net realized gains	—			(0.24		)	—			—			—
Total distributions	(0.60		)	(0.96		)	(0.96		)	(1.08		)	(1.08		)
Net asset value, end of period		$45.80			$48.55			$44.73			$34.28			$32.88
Total Return^b	(4.37		)%	10.63		%	33.38		%	7.42		%	(17.71		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$43,573			$281,800			$43,709			$44,707			$282,388
Ratios to average net assets:
Net investment income (loss)	1.22		%	1.15		%	2.24		%	3.03		%	3.16		%
Total expenses	0.97		%	0.95		%	0.95		%	0.98		%	0.98		%
Portfolio turnover rate	2,661		%	1,759		%	2,322		%	1,930		%	1,503		%

PROSPECTUS | 444

Financial Highlights (continued)

GOVERNMENT LONG BOND 1.2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$48.23			$44.33			$34.08			$32.65			$40.97
Income (loss) from investment operations:
Net investment income (loss)^a	0.25			0.33			0.75			0.93			0.96
Net gain (loss) on investments (realized and unrealized)	(2.63		)	4.26			10.25			1.40			(8.38		)
Total from investment operations	(2.38		)	4.59			11.00			2.33			(7.42		)
Less distributions from:
Net investment income	(0.37		)	(0.45		)	(0.75		)	(0.90		)	(0.90		)
Net realized gains	—			(0.24		)	—			—			—
Total distributions	(0.37		)	(0.69		)	(0.75		)	(0.90		)	(0.90		)
Net asset value, end of period		$45.48			$48.23			$44.33			$34.08			$32.65
Total Return^b	(4.93		)%	10.21		%	32.56		%	7.03		%	(18.18		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$129,785			$103,845			$11,600			$31,420			$28,990
Ratios to average net assets:
Net investment income (loss)	0.64		%	0.63		%	1.77		%	2.46		%	2.76		%
Total expenses	1.46		%	1.43		%	1.45		%	1.48		%	1.48		%
Portfolio turnover rate	2,661		%	1,759		%	2,322		%	1,930		%	1,503		%


^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 February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

PROSPECTUS | 445

Financial Highlights

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Investor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$43.94			$48.33			$65.42			$73.23			$66.61
Income (loss) from investment operations:
Net investment income (loss)^a	(1.65		)	(1.20		)	(2.15		)	(3.10		)	(1.65		)
Net gain (loss) on investments (realized and unrealized)	3.72			(3.19		)	(14.94		)	(4.71		)	8.27
Total from investment operations	2.07			(4.39		)	(17.09		)	(7.81		)	6.62
Net asset value, end of period		$46.01			$43.94			$48.33			$65.42			$73.23
Total Return^b	4.69		%	(9.10		)%	(26.07		)%	(10.72		)%	9.98		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$177,735			$143,739			$247,454			$406,031			$376,574
Ratios to average net assets:
Net investment income (loss)	(3.46		)%	(2.82		)%	(3.99		)%	(4.78		)%	(2.23		)%
Total expenses^d	3.50		%	2.99		%	4.13		%	5.06		%	2.53		%
Portfolio turnover rate	1,097		%	1,309		%	1,107		%	771		%	985		%

PROSPECTUS | 446

Financial Highlights (continued)

INVERSE GOVERNMENT LONG BOND STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Advisor Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$41.72			$46.17			$62.98			$70.84			$64.76
Income (loss) from investment operations:
Net investment income (loss)^a	(1.67		)	(1.35		)	(2.05		)	(3.30		)	(1.95		)
Net gain (loss) on investments (realized and unrealized)	3.68			(3.10		)	(14.76		)	(4.56		)	8.03
Total from investment operations	2.01			(4.45		)	(16.81		)	(7.86		)	6.08
Net asset value, end of period		$43.73			$41.72			$46.17			$62.98			$70.84
Total Return^b	4.87		%	(9.64		)%	(26.75		)%	(11.08		)%	9.42		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,679			$11,776			$199,137			$44,798			$66,668
Ratios to average net assets:
Net investment income (loss)	(3.69		)%	(3.29		)%	(4.22		)%	(5.28		)%	(2.79		)%
Total expenses^d	3.72		%	3.45		%	4.38		%	5.56		%	3.09		%
Portfolio turnover rate	1,097		%	1,309		%	1,107		%	771		%	985		%


^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 February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.


^d	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratios for the years ended would be:



	03/31/14	03/28/13	03/31/12	03/31/11	03/31/10
Investor Class	1.41%	1.39%	1.39%	1.42%	1.41%
Advisor Class	1.91%	1.88%	1.87%	1.91%	1.91%

PROSPECTUS | 447

Financial Highlights

HIGH YIELD STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$25.12			$22.90			$21.95			$20.38			$16.61
Income (loss) from investment operations:
Net investment income (loss)^a	(0.24		)	(0.24		)	(0.28		)	(0.30		)	(0.26		)
Net gain (loss) on investments (realized and unrealized)	2.16			3.14			1.78			3.38			5.38
Total from investment operations	1.92			2.90			1.50			3.08			5.12
Less distributions from:
Net investment income	(1.14		)	(0.43		)	(0.55		)	(1.51		)	(1.35		)
Net realized gains	(2.96		)	(0.25		)	—			—			—
Total distributions	(4.10		)	(0.68		)	(0.55		)	(1.51		)	(1.35		)
Net asset value, end of period		$22.94			$25.12			$22.90			$21.95			$20.38
Total Return^b	7.86		%	12.83		%	6.95		%	15.29		%	31.07		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$87,315			$434,113			$266,950			$116,106			$16,368
Ratios to average net assets:
Net investment income (loss)	(0.97		)%	(0.99		)%	(1.26		)%	(1.38		)%	(1.37		)%
Total expenses^c	1.53		%	1.51		%	1.49		%	1.53		%	1.53		%
Portfolio turnover rate	205		%	95		%	583		%	—			—


^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.

PROSPECTUS | 448

Financial Highlights

INVERSE HIGH YIELD STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$24.04			$28.22			$32.04			$38.60			$55.26
Income (loss) from investment operations:
Net investment income (loss)^a	(0.35		)	(0.36		)	(0.47		)	(0.50		)	(0.61		)
Net gain (loss) on investments (realized and unrealized)	(2.32		)	(3.82		)	(3.35		)	(6.06		)	(15.66		)
Total from investment operations	(2.67		)	(4.18		)	(3.82		)	(6.56		)	(16.27		)
Less distributions from:
Net realized gains	—			—			—			—			(0.39		)
Total distributions	—			—			—			—			(0.39		)
Net asset value, end of period		$21.37			$24.04			$28.22			$32.04			$38.60
Total Return^b	(11.11		)%	(14.81		)%	(11.92		)%	(16.99		)%	(29.47		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,453			$9,208			$13,357			$9,699			$27,954
Ratios to average net assets:
Net investment income (loss)	(1.50		)%	(1.38		)%	(1.51		)%	(1.38		)%	(1.43		)%
Total expenses	1.52		%	1.50		%	1.51		%	1.53		%	1.53		%
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.

PROSPECTUS | 449

Financial Highlights

EMERGING MARKETS BOND STRATEGY FUND

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



	Period Ended March 31,
H-Class	2014^a
Per Share Data
Net asset value, beginning of period		$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.19		)
Net gain (loss) on investments (realized and unrealized)	0.37
Total from investment operations	0.18
Net asset value, end of period		$25.18
Total Return^c	0.80		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,580
Ratios to average net assets:
Net investment income (loss)	(1.62		)%
Total expenses^d	1.64		%
Portfolio turnover rate	—


^a	Since commencement of operations: October 8, 2013. 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 and has not been annualized.


^d	Total expenses may include interest expense. Excluding interest expense, the operating expense ratios for the period presented would be:



	03/31/14
H-Class	1.57%

PROSPECTUS | 450

Financial Highlights

LONG SHORT EQUITY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
H-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$13.53			$13.33			$14.32			$12.63			$8.65
Income (loss) from investment operations:
Net investment income (loss)^a	(0.16		)	(0.04		)	0.03			(0.04		)	(0.07		)
Net gain (loss) on investments
(realized and unrealized)	1.75			0.29			(1.02		)	1.73			4.05
Total from investment operations	1.59			0.25			(0.99		)	1.69			3.98
Less distributions from:
Net investment income	—			(0.05		)	—			—			—
Total distributions	—			(0.05		)	—			—			—
Redemption fees collected	—			—			—			—^b			—^b
Net asset value, end of period		$15.12			$13.53			$13.33			$14.32			$12.63
Total Return^c	11.75		%	1.88		%	(6.91		)%	13.38		%	46.01		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$29,287			$26,257			$54,589			$87,212			$99,418
Ratios to average net assets:
Net investment income (loss)	(1.07		)%	(0.29		)%	0.20		%	(0.31		)%	(0.63		)%
Total expenses^d	2.36		%	1.88		%	1.66		%	1.70		%	1.68		%
Portfolio turnover rate	256		%	183		%	190		%	231		%	375		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Redemption fees collected are less than $0.01 per share.


^c	Total return does not reflect the impact of any applicable sales charges.


^d	Excluding interest and dividend expense related to short sales, the operating ratios for the years or periods presented would be:



	3/31/2014		3/28/2013		3/31/2012		3/31/2011		3/31/2010
H-Class	1.67	%	1.65	%	1.66	%	1.69	%	1.68	%

PROSPECTUS | 451

Financial Highlights

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
H-Class	2014			2013			2012			2011^a
Per Share Data
Net asset value, beginning of period		$27.57			$25.37			$26.86			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.49		)	(0.23		)	(0.34		)	(0.33		)
Net gain (loss) on investments (realized and unrealized)	3.08			2.43			(0.39		)	4.27
Total from investment operations	2.59			2.20			(0.73		)	3.94
Less distributions from:
Net realized gains	(1.74		)	—			(0.76		)	(2.08		)
Total distributions	(1.74		)	—			(0.76		)	(2.08		)
Net asset value, end of period		$28.42			$27.57			$25.37			$26.86
Total Return^c	9.54		%	8.67		%	(2.60		)%	16.24		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,809			$6,134			$6,183			$8,886
Ratios to average net assets:
Net investment income (loss)	(1.72		)%	(0.88		)%	(1.33		)%	(1.67		)%
Total expenses^d	2.02		%	2.03		%	1.91		%	2.04		%
Net expenses^e	1.90		%	1.91		%	1.85		%	1.90		%
Portfolio turnover rate	161		%	228		%	513		%	—


^a	Since commencement of operations: June 30, 2010. 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 and has not been annualized.


^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.

PROSPECTUS | 452

Financial Highlights

U.S. GOVERNMENT MONEY MARKET FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Money Market Class^a	2014			2013			2012			2011			2010
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)	—^b			—^b			—^b			—^b			—^b
Net gain (loss) on investments (realized and unrealized)	—^b			—^b			—^b			—^b			—
Total from investment operations	—^b			—^b			—^b			—^b			—^b
Less distributions from:
Net investment income	(—)^b			(—)^b			(—)^b			(—)^b			(—)^b
Net realized gains	(—)^b			—			(—)^b			(—)^b			—
Total distributions	(—)^b			(—)^b			(—)^b			(—)^b			(—)^b
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00
Total Return	—		%	—		%	—		%	0.01		%	0.01		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$780,135			$848,370			$607,565			$833,899			$872,765
Ratios to average net assets:
Net investment income (loss)	—%^d			—%^d			—%^d			0.01		%	0.01		%
Total expenses	0.93		%	0.95		%	0.91		%	0.94		%	0.93		%
Net expenses^c	0.09		%	0.17		%	0.11		%	0.22		%	0.37		%
Portfolio turnover rate	—			—			—			—			—


^a	Effective June 15, 2012, the Fund’s Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares and Investor2 Class shares were converted into the newly created Money Market Class. The financial highlights for periods prior to that date reflect the performance of the former Investor Class.


^b	Less than $0.01 per share.


^c	Net expense information reflects the expense ratios after expense waivers.


^d	Less than 0.01%.

PROSPECTUS | 453

INDEX PUBLISHERS INFORMATION

Standard & Poor’s

The Inverse S&P 500^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Nova Fund, S&P 500^® Fund, 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, and S&P SmallCap 600^® Pure Value Fund (the “Guggenheim S&P Funds”) are not sponsored, endorsed, sold or promoted by Standard & Poor’s (“S&P”). S&P makes no representation, condition, warranty, express or implied, to the owners of the Guggenheim S&P Funds or any member of the public regarding the advisability of investing in securities generally or in the Guggenheim S&P Funds particularly or the ability of the S&P 500^® Index, S&P MidCap 400^® Index, S&P 500 Pure Growth Index, S&P 500 Pure Value Index, S&P MidCap 400 Pure Growth Index, S&P MidCap 400 Pure Value Index, S&P SmallCap 600 Pure Growth Index, and S&P SmallCap 600 Pure Value Index (the “S&P Indices”) to track general stock market performance or provide a basis for superior investment performance. S&P’s only relationship to Guggenheim Investments (the “Licensee”) is the licensing of certain of their trademarks and of the S&P Indices which are determined, composed and calculated by S&P without regard to Licensee or the Guggenheim S&P Funds. S&P has no obligation to take the needs of Licensee or the owners of the Guggenheim S&P Funds into consideration in determining, composing or calculating the S&P Indices. S&P is not responsible for and has not participated in the determination of the prices and amount of the Guggenheim S&P Funds or the timing of the issuance or sale of the Guggenheim S&P Funds or in the determination or calculation of the equation by which the Guggenheim S&P Funds are to be converted into cash. S&P has no obligation or liability in connection with the administration, marketing, or trading of the Guggenheim S&P Funds.

S&P does not guarantee the accuracy and/or the completeness of the S&P Indices or any data included therein and S&P shall have no liability for any errors, omissions, or interruptions therein. S&P makes no warranty or condition, express or implied, as to results to be obtained by Licensee, owners of the Guggenheim S&P Funds, or any other person or entity from the use of the S&P Indices or any data included therein. S&P makes no express or implied warranties or conditions, and expressly disclaim all warranties or conditions of merchantability or fitness for a particular purpose or use with respect to the S&P Indices or any data included therein. Without limiting any of the foregoing, in no event shall S&P have any liability for any special, punitive, indirect, or consequential damages (including lost profits) resulting from the use of the S&P Indices or any data included therein, even if notified of the possibility of such damages.

“Standard & Poor’s^®,” S&P^®,” “S&P 500^®,” “Standard & Poor’s 500^®,” “500^®,” “Standard & Poor’s MidCap 400^®,” “S&P MidCap 400^®,” “Standard & Poor’s SmallCap,” “S&P SmallCap 600^®,” “S&P 500 Pure Value,” “S&P 500 Pure Growth,” “S&P MidCap 400 Pure Value,” “S&P MidCap 400 Pure Growth,” “S&P SmallCap 600 Pure Value,” and “S&P SmallCap 600 Pure Growth” are trademarks of The McGraw-Hill Companies, Inc.

Dow Jones STOXX

STOXX and its licensors (the “Licensors”) have no relationship to Guggenheim Investments the “Licensee”), other than the licensing of the STOXX Europe 50 ^® Index and the related trademarks for use in connection with the Europe 1.25x Strategy Fund.

STOXX and its Licensors do not:


•	Sponsor, endorse, sell or promote the Europe 1.25x Strategy Fund.


•	Recommend that any person invest in the Europe 1.25x Strategy Fund or any other securities.


•	Have any responsibility or liability for or make any decisions about the timing, amount or pricing of Europe 1.25x Strategy Fund.


•	Have any responsibility or liability for the administration, management or marketing of the Europe 1.25x Strategy Fund.


•	Consider the needs of the Europe 1.25x Strategy Fund or the owners of the Europe 1.25x Strategy Fund in determining, composing or calculating the STOXX Europe 50 ^® Index or have any obligation to do so.

STOXX and its Licensors will not have any liability in connection with the Europe 1.25x Strategy Fund. Specifically, STOXX and its Licensors do not make any warranty, express or implied and disclaim any and all warranty about:

454 | PROSPECTUS


•	The results to be obtained by the Europe 1.25x Strategy Fund, the owner of the Europe 1.25x Strategy Fund or any other person in connection with the use of the STOXX Europe 50 ^® Index and the data included in the STOXX Europe 50 ^® Index;


•	The accuracy or completeness of the STOXX Europe 50 ^® Index and its data;


•	The merchantability and the fitness for a particular purpose or use of the STOXX Europe 50 ^® Index and its data;


•	STOXX and its Licensors will have no liability for any errors, omissions or interruptions in the STOXX Europe 50 ^® Index or its data;


•	Under no circumstances will STOXX or its Licensors be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if STOXX or its Licensors knows that they might occur.

The licensing agreement between the Licensee and STOXX is solely for their benefit and not for the benefit of the owners of the Europe 1.25x Strategy Fund or any other third parties.

NASDAQ OMX Group, Inc.

The Inverse NASDAQ-100^® Strategy Fund and NASDAQ-100^® Fund (the “Guggenheim NASDAQ Funds”) are not sponsored, endorsed, sold or promoted by The NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the “Corporations”).The Corporations have not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Guggenheim NASDAQ Funds. The Corporations make no representation or warranty, express or implied to the owners of the Guggenheim NASDAQ Funds or any member of the public regarding the advisability of investing in securities generally or in the Guggenheim NASDAQ Funds particularly, or the ability of the NASDAQ-100 Index^® to track general stock market performance. The Corporations’ only relationship to Guggenheim Investments (“Licensee”) is in the licensing of the NASDAQ^®, NASDAQ-100^®, and NASDAQ-100 Index^® registered trademarks, and certain trade names of the Corporations and the use of the NASDAQ-100 Index^® which is determined, composed and calculated by the Corporations without regard to Licensee or the Guggenheim NASDAQ Funds. The Corporations have no obligation to take the needs of the Licensee or the owners of the Guggenheim NASDAQ Funds into consideration in determining, composing or calculating the NASDAQ-100 Index^®. The Corporations are not responsible for and have not participated in the determination of the timing of, prices at, or quantities of the Guggenheim NASDAQ Funds to be issued or in the determination or calculation of the equation by which the Guggenheim NASDAQ Funds are to be converted into cash. The Corporations have no liability in connection with the administration, marketing or trading of the Guggenheim NASDAQ Funds.

The Corporations do not guarantee the accuracy and/or uninterrupted calculation of the NASDAQ-100 Index^® or any data included therein. The Corporations make no warranty, express or implied, as to results to be obtained by Licensee, owners of the Guggenheim NASDAQ Funds, or any other person or entity from the use of the NASDAQ-100 Index^® or any data included therein. The Corporations make no express or implied warranties, and expressly disclaim all warranties of merchantability or fitness for a particular purpose or use with respect to the NASDAQ-100 Index^® or any data included therein. Without limiting any of the foregoing, in no event shall the Corporations have any liability for any lost profits or special, incidental, punitive, indirect, or consequential damages, even if notified of such damages.

Nikkei Inc.

Nikkei Inc. (the “Index Publisher”) does not sponsor, endorse, sell or promote any Guggenheim Fund and makes no representation or warranty, implied or express, to the investors in the Japan 2x Strategy Fund, or any members of the public, regarding:


•	The advisability of investing in index funds;


•	The ability of any index to track stock market performance;


•	The accuracy and/or the completeness of the aforementioned index or any data included therein;


•	The results to be obtained by the Japan 2x Strategy Fund, the investors in the Japan 2x Strategy Fund, or any person or entity from the use of the index or data included therein; and


•	The merchantability or fitness for a particular purpose for use with respect to the index or any data included therein.

PROSPECTUS | 455

Further, the Index Publisher does not:


•	Recommend that any person invest in the Japan 2x Strategy Fund or any other securities;


•	Have any responsibility or liability for or make any decisions about the timing, amount or pricing of the Japan 2x Strategy Fund;


•	Have any responsibility or liability for the administration, management or marketing of the Japan 2x Strategy Fund;


•	Consider the needs of the Japan 2x Strategy Fund or the investors in the Japan 2x Strategy Fund in determining, composing or calculating the index or has any obligation to do so;


•	Have any liability in connection with the Japan 2x Strategy Fund or for any errors, omissions or interruptions in connection with the index or the related data;


•	Have any liability for any lost profits or indirect punitive, special or consequential damages or losses, even if Nikkei Inc. knows that they might occur.

Frank Russell Company

The Inverse Russell 2000^® Strategy Fund, Russell 2000^® Fund and Russell 2000^® 1.5x Strategy Fund (the “Guggenheim Russell Funds”) are not sponsored or endorsed by, nor in any way affiliated with Frank Russell Company (“Russell”). Russell is not responsible for and has not reviewed the Guggenheim Russell Funds nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.

Russell reserves the right, at any time and without notice, to alter, amend, terminate or in any way change the Russell 2000^® Index (the “Russell Index”) which is a trademark/service mark of Russell. Russell has no obligation to take the needs of any of the Guggenheim Russell Funds or their participants or any other product or person into consideration in determining, composing or calculating the Russell Index.

Russell’s publication of the Russell Index in no way suggests or implies an opinion by Russell as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell Index is based.

Russell makes no representation, warranty, or guarantee as to the accuracy, completeness, reliability, or otherwise of the Russell Index or any data included in the Russell Index. Russell makes no representation, warranty or guarantee regarding the use, or the results of use, of the Russell Index or any data included therein, or any security (or combination thereof) comprising the Russell Index. Russell makes no other express or implied warranty, and expressly disclaims any warranty, of any kind, including without limitation, any warranty of merchantability or fitness for a particular purpose with respect to the Russell Index or any data or any security (or combination thereof) included therein.

Russell^® is a trademark of the Frank Russell Company.

ICE Futures U.S., Inc.

The Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (the “Products”) are not sponsored, endorsed, sold or promoted by ICE Futures U.S., Inc. (“ICE Futures”). ICE Futures makes no representation or warranty, express or implied, to the owners of the Products or any member of the public regarding the advisability of investing in securities generally or in the Products particularly or the ability of the U.S. Dollar Index ^® to track market performance of either Product. ICE Futures’ only relationship to Guggenheim Investments (“Licensee”) is the licensing of certain names and marks and of the U.S. Dollar Index ^® , which is determined, composed and calculated without regard to the Licensee or the Products. ICE Futures has no obligation to take the needs of the Licensee or the owners of the Products into consideration in determining, composing or calculating the U.S. Dollar Index ^® . ICE Futures is not responsible for and has not participated in any determination or calculation made with respect to the issuance or redemption of interests in the Products. ICE Futures has no obligation or liability in connection with the administration, purchase, sale marketing, promotion or trading of the Products.

ICE Futures does not guarantee the accuracy and/or the completeness of the U.S. Dollar Index^® or any data included therein. ICE Futures makes no warranty, express or implied, as to results to be obtained by Licensee, owners of the

456 | PROSPECTUS

Products, or any other person or entity from the use of the U.S. Dollar Index^® or any data included therein in connection with the rights licensed hereunder, in connection with the purchase, sale or trading of any Product, or for any other use. ICE Futures makes no express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the U.S. Dollar Index^® or any data included therein. Without limiting any of the foregoing, in no event shall ICE Futures have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

More information about the Index Publishers is located in the SAI.

PROSPECTUS | 457

ADDITIONAL INFORMATION

Additional and more detailed information about the Funds is included in the SAI dated August 1, 2014. The SAI has been filed with the SEC and is incorporated by reference into this Prospectus and, therefore, legally forms a part of this Prospectus. The SEC maintains the EDGAR database on its website (“http://www.sec.gov”) that contains the SAI, material incorporated by reference, and other information regarding registrants that file electronically with the SEC. You also may review and copy documents at the SEC's Public Reference Room in Washington, D.C. (for information on the operation of the Public Reference Room, call 202.551.8090). You may request documents from the SEC by mail, upon payment of a duplication fee, by writing to: U.S. Securities and Exchange Commission, Public Reference Section, Washington, D.C. 20549-1520, or by emailing the SEC at the following address: publicinfo@sec.gov.

Additional information about the Funds’ investments is available in the Annual and Semi-Annual Reports. Also, in the Funds’ Annual Reports, you will find a discussion of the market conditions and investment strategies that significantly affected the Funds’ performance during their last fiscal year. You may obtain a copy of the SAI or the Annual or Semi-Annual Reports, without charge by calling 800.820.0888 or 301.296.5100, visiting the Guggenheim Investments website at www.guggenheiminvestments.com, or writing to Rydex Series Funds at 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850.

No one has been authorized to give any information or to make any representations not contained in this Prospectus or in the SAI in connection with the offering of Fund shares. Do not rely on any such information or representations as having been authorized by the Funds or Guggenheim Investments. This Prospectus does not constitute an offering by the Funds in any jurisdiction where such an offering is not lawful.

The Trust’s U.S. Securities and Exchange Commission registration number is 811-07584.

458 | PROSPECTUS

805 King Farm Boulevard, Suite 600

Rockville, MD 20850

800.820.0888

guggenheiminvestments.com



Mutual Funds	\|	\|	8.1.2014

Rydex Funds Prospectus
Class A, Class C and Institutional



Ticker Symbol		Fund Name
Class A	Class C
Rydex Domestic Equity - Broad Market Funds
RYANX	RYNCX	Nova Fund*
RYSOX	RYSYX	S&P 500^® Fund
RYARX	RYUCX	Inverse S&P 500^® Strategy Fund*
RYATX	RYCOX	NASDAQ-100^® Fund
RYAPX	RYACX	Inverse NASDAQ-100^® Strategy Fund*
RYAHX	RYDCX	Mid-Cap 1.5x Strategy Fund*
RYAGX	RYCLX	Inverse Mid-Cap Strategy Fund*
RYAKX	RYCMX	Russell 2000^® 1.5x Strategy Fund*
RYRRX	RYROX	Russell 2000^® Fund
RYAFX	RYCQX	Inverse Russell 2000^® Strategy Fund*
Rydex Domestic Equity - Pure Style Funds
RYLGX	RYGRX	S&P 500^® Pure Growth Fund
RYLVX	RYVVX	S&P 500^® Pure Value Fund
RYMGX	RYCKX	S&P MidCap 400^® Pure Growth Fund
RYMVX	RYMMX	S&P MidCap 400^® Pure Value Fund
RYSGX	RYWCX	S&P SmallCap 600^® Pure Growth Fund
RYSVX	RYYCX	S&P SmallCap 600^® Pure Value Fund
Rydex Sector Funds
RYBKX	RYKCX	Banking Fund
RYBMX	RYBCX	Basic Materials Fund
RYBOX	RYCFX	Biotechnology Fund
RYPDX	RYCPX	Consumer Products Fund
RYELX	RYSCX	Electronics Fund
RYENX	RYECX	Energy Fund
RYESX	RYVCX	Energy Services Fund
RYFNX	RYFCX	Financial Services Fund
RYHEX	RYHCX	Health Care Fund
RYINX	RYICX	Internet Fund
RYLSX	RYLCX	Leisure Fund
RYMNX	RYZCX	Precious Metals Fund



Ticker Symbol			Fund Name
Class A	Class C
Rydex Sector Funds (continued)
RYRTX	RYRCX		Retailing Fund
RYTHX	RYCHX		Technology Fund
RYTLX	RYCSX		Telecommunications Fund
RYTSX	RYCNX		Transportation Fund
RYUTX	RYCUX		Utilities Fund
Rydex International Equity Funds
RYAEX	RYCEX		Europe 1.25x Strategy Fund*
RYJSX	RYJTX		Japan 2x Strategy Fund*
RYWTX	RYWUX		Emerging Markets 2x Strategy Fund*
RYWWX	RYWZX		Inverse Emerging Markets 2x Strategy Fund*
Rydex Specialty Funds
RYSDX	RYSJX		Strengthening Dollar 2x Strategy Fund*
RYWDX	RYWJX		Weakening Dollar 2x Strategy Fund*
RYREX	RYCRX		Real Estate Fund
Rydex Fixed Income Funds
RYABX	RYCGX		Government Long Bond 1.2x Strategy Fund*
RYAQX	RYJCX		Inverse Government Long Bond Strategy Fund*
RYHDX	RYHHX		High Yield Strategy Fund
RYILX	RYIYX		Inverse High Yield Strategy Fund*
RYIEX	RYFTX		Emerging Markets Bond Strategy Fund
Guggenheim Alternative Funds
Class A	Class C	Institutional
RYAMX	RYISX	RYQTX	Guggenheim Long Short Equity Fund (formerly, U.S. Long Short Momentum Fund)
RYDOX	RYDQX	RYDTX	Guggenheim Event Driven and Distressed Strategies Fund
Rydex Money Market Fund
RYFXX			U.S. Government Money Market Fund


*	For important information regarding the Funds' investment objectives and their use of leverage, please see the following page.



SERACI-1-0814x0815	guggenheiminvestments.com

The Funds are very different from most mutual funds in that they seek to provide leveraged, leveraged inverse or inverse investment results. Certain of the Funds seek to provide such investment results on a daily basis. The Leveraged Inverse and Inverse Funds pursue investment goals which are inverse to the performance of their respective benchmark, a result opposite of most other mutual funds. The pursuit of such leveraged and inverse investment goals has the following implications: • The Leveraged and Leveraged Inverse Funds are riskier than alternatives that do not use leverage because the performance of an investment in a Leveraged or Leveraged Inverse Fund is magnified. • The effect of leverage on a Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark over a period of time greater than one day. This means that the return of a Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from the return of the Fund’s benchmark or underlying index for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of a Fund’s stated investment goal ( e.g. , 2x) and the cumulative performance of the Fund’s benchmark or underlying index. In addition, as a result of compounding, a Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the Fund’s benchmark or underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and fund expenses. • The Funds are not suitable for all investors and are designed to be utilized only by sophisticated 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. Investors who do not understand the Funds or do not intend to actively manage and monitor their investments should not buy shares of the Funds.

There is no assurance that any Fund will achieve its objectives and an investment in a Fund could lose money. No single Fund is a complete investment program.

TABLE OF CONTENTS

FUND SUMMARIES



Domestic Equity Funds
Nova Fund	1
S&P 500^® Fund	10
Inverse S&P 500^® Strategy Fund	16
NASDAQ-100^® Fund	25
Inverse NASDAQ-100^® Strategy Fund	33
Mid-Cap 1.5x Strategy Fund	42
Inverse Mid-Cap Strategy Fund	51
Russell 2000^® 1.5x Strategy Fund	60
Russell 2000^® Fund	69
Inverse Russell 2000^® Strategy Fund	76
S&P 500^® Pure Growth Fund	85
S&P 500^® Pure Value Fund	91
S&P MidCap 400^® Pure Growth Fund	97
S&P MidCap 400^® Pure Value Fund	103
S&P SmallCap 600^® Pure Growth Fund	109
S&P SmallCap 600^® Pure Value Fund	115

Sector Funds
Banking Fund	121
Basic Materials Fund	127
Biotechnology Fund	133
Consumer Products Fund	139
Electronics Fund	145
Energy Fund	151
Energy Services Fund	157
Financial Services Fund	163
Health Care Fund	169
Internet Fund	175
Leisure Fund	181
Precious Metals Fund	187
Retailing Fund	193
Technology Fund	199
Telecommunications Fund	205
Transportation Fund	211
Utilities Fund	217

i | PROSPECTUS



International Equity Funds
Europe 1.25x Strategy Fund	223
Japan 2x Strategy Fund	233
Emerging Markets 2x Strategy Fund	243
Inverse Emerging Markets 2x Strategy Fund	252

Specialty Funds
Strengthening Dollar 2x Strategy Fund	261
Weakening Dollar 2x Strategy Fund	271
Real Estate Fund	281

Fixed Income Funds
Government Long Bond 1.2x Strategy Fund	287
Inverse Government Long Bond Strategy Fund	296
High Yield Strategy Fund	305
Inverse High Yield Strategy Fund	313
Emerging Markets Bond Strategy Fund	322

Alternative Funds
Long Short Equity Fund	329
Event Driven and Distressed Strategies Fund	338

Money Market Fund
U.S. Government Money Market Fund	347
MORE INFORMATION ABOUT THE TRUST AND THE FUNDS	351
COMPARABLE INDEX INFORMATION	380
MANAGEMENT OF THE FUNDS	381
SHAREHOLDER INFORMATION	384
BUYING, SELLING AND EXCHANGING FUND SHARES	386
SALES CHARGES	390
CLASS A SHARES	390
CLASS C SHARES	392
BUYING FUND SHARES	393
SELLING FUND SHARES	397
EXCHANGING FUND SHARES	399
ACCOUNT POLICIES	401
DISTRIBUTION AND SHAREHOLDER SERVICES	404
DIVIDENDS AND DISTRIBUTIONS	405
ADDITIONAL TAX INFORMATION	405
FINANCIAL HIGHLIGHTS	407
INDEX PUBLISHERS INFORMATION	505
ADDITIONAL INFORMATION	509

PROSPECTUS | ii

NOVA FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class A shares or Class C shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in certain funds in the Guggenheim Investments family of funds. More information about these and other discounts is available from your financial professional and under the “Sales Charges” section on page 390 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 91 of the Fund’s Statement of Additional Information (the “SAI”).



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.53%	0.53%
Total Annual Fund Operating Expenses	1.53%	2.28%

1 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$623	$935	$1,270	$2,212
Class C	$331	$712	$1,220	$2,615

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



	1 Year	3 Years	5 Years	10 Years
Class C	$231	$712	$1,220	$2,615

PORTFOLIO TURNOVER

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 2

derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

3 | PROSPECTUS

than the return of the Fund’s benchmark. This effect becomes more pronounced as volatility increases.



Index Performance		Annualized Volatility
1x	1.5x	10%	25%	50%	75%	100%
-60%	-90%	-75%	-75%	-77%	-79%	-83%
-50%	-75%	-65%	-65%	-68%	-72%	-76%
-40%	-60%	-54%	-55%	-58%	-62%	-68%
-30%	-45%	-42%	-43%	-47%	-52%	-60%
-20%	-30%	-29%	-31%	-34%	-42%	-51%
-10%	-15%	-15%	-17%	-23%	-32%	-41%
0%	0%	0%	-2%	-9%	-19%	-32%
10%	15%	14%	13%	5%	-6%	-21%
20%	30%	31%	29%	19%	9%	-9%
30%	45%	47%	45%	35%	20%	2%
40%	60%	65%	62%	50%	35%	13%
50%	75%	83%	79%	68%	49%	25%
60%	90%	102%	98%	85%	63%	38%

PROSPECTUS | 4

5 | PROSPECTUS

income securities with longer durations are subject to greater volatility than those with shorter durations. Thus, if interest rates rise sharply, the value of the Fund’s fixed income investments and share price could decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 6

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.27% .

7 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	23.61%	Q4 2008	-34.90	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	41.68%	23.00%	6.28%
Return After Taxes on Distributions	41.68%	22.91%	5.77%
Return After Taxes on Distributions and Sale of Fund Shares	23.59%	18.91%	4.80%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	46.58%	23.26%	6.18%
Return After Taxes on Distributions	46.58%	23.16%	5.66%
Return After Taxes on Distributions and Sale of Fund Shares	26.36%	19.13%	4.73%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

PROSPECTUS | 8

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Accounts opened through a financial intermediary (non-direct) will be subject to your financial intermediary’s minimum initial investment amount and minimum account balance requirements, which may be different than the amounts above.

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

9 | PROSPECTUS

S&P 500^® FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.57%	0.57%
Total Annual Fund Operating Expenses	1.57%	2.32%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$627	$947	$1,290	$2,254
Class C	$335	$724	$1,240	$2,656

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



	1 Year	3 Years	5 Years	10 Years
Class C	$235	$724	$1,240	$2,656

PROSPECTUS | 10

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 157% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The S&P 500 ^® Index is a capitalization-weighted index composed of 500 common stocks, which are chosen by the Standard & Poor’s Corporation (“S&P”) on a statistical basis, and which generally represent large-capitalization companies with capitalizations ranging from $3.8 billion to $560.6 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

11 | PROSPECTUS

the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 12

contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

13 | PROSPECTUS

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 5.90% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	15.41%	Q4 2008	-22.84	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	24.00%	14.99%	5.20%
Return After Taxes on Distributions	23.94%	14.92%	5.03%
Return After Taxes on Distributions and Sale of Fund Shares	13.58%	12.06%	4.03%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.35%



Class C	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	28.26%	15.22%	5.05%
Return After Taxes on Distributions	28.19%	15.15%	4.88%
Return After Taxes on Distributions and Sale of Fund Shares	15.99%	12.25%	3.90%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.35%

PROSPECTUS | 14

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

15 | PROSPECTUS

INVERSE S&P 500^® STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.53%	0.52%
Total Annual Fund Operating Expenses	1.68%	2.42%

PROSPECTUS | 16

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$638	$979	$1,344	$2,368
Class C	$345	$754	$1,290	$2,756

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



	1 Year	3 Years	5 Years	10 Years
Class C	$245	$754	$1,290	$2,756

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

17 | PROSPECTUS

industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and Fund expenses.

PROSPECTUS | 18

inverse of the return of the underlying index. This effect becomes more pronounced as volatility increases.



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

19 | PROSPECTUS

PROSPECTUS | 20

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

21 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -8.13% .



Highest Quarter Return		Lowest Quarter Return
Q4 2008	16.04%	Q2 2009	-15.73	%

PROSPECTUS | 22

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	-29.94%	-20.26%	-9.31%
Return After Taxes on Distributions	-29.94%	-20.27%	-9.66%
Return After Taxes on Distributions and Sale of Fund Shares	-16.95%	-13.52%	-6.21%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-27.76%	-20.09%	-9.51%
Return After Taxes on Distributions	-27.76%	-20.09%	-9.86%
Return After Taxes on Distributions and Sale of Fund Shares	-15.71%	-13.42%	-6.29%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

23 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 24

NASDAQ-100^® FUND

INVESTMENT OBJECTIVE

The NASDAQ-100^® Fund (the “Fund”) 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”).

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.54%	0.54%
Total Annual Fund Operating Expenses	1.54%	2.29%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$624	$938	$1,275	$2,222
Class C	$332	$715	$1,225	$2,626

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



	1 Year	3 Years	5 Years	10 Years
Class C	$232	$715	$1,225	$2,626

25 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 141% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain exposure to international companies included in the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PROSPECTUS | 26

PRINCIPAL RISKS

A SSET-BACKED AND MORTGAGE-BACKED SECURITIES RISK — Through its investments in other investment companies, the Fund may have exposure to asset-backed securities, including mortgage-backed securities and structured finance investments. Investors in these securities generally receive payments that are part interest and part return of principal. These payments may vary based on the rate at which the underlying borrowers pay off their loans. Some asset-backed securities, including mortgage-backed securities, may have structures that make their reaction to interest rates and other factors difficult to predict, making their prices very volatile and they are subject to liquidity risk.

27 | PROSPECTUS

PROSPECTUS | 28

that economic sector. The prices of the securities of technology companies also may fluctuate widely in response to such events.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

LIQUIDITY RISK —I n certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

29 | PROSPECTUS

greater potential for income loss when interest rates rise.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 6.67% .

PROSPECTUS | 30



Highest Quarter Return		Lowest Quarter Return
Q1 2012	20.53%	Q4 2008	-24.39	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	28.39%	22.42%	8.63%
Return After Taxes on Distributions	25.50%	21.86%	8.36%
Return After Taxes on Distributions and Sale of Fund Shares	18.33%	18.44%	7.05%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.65%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	32.84%	22.72%	7.91%
Return After Taxes on Distributions	29.59%	22.12%	7.63%
Return After Taxes on Distributions and Sale of Fund Shares	21.13%	18.70%	6.43%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.16%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

31 | PROSPECTUS

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 32

INVERSE NASDAQ-100^® STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.56%	0.56%
Total Annual Fund Operating Expenses	1.71%	2.46%

33 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$641	$988	$1,359	$2,398
Class C	$349	$767	$1,311	$2,796

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



	1 Year	3 Years	5 Years	10 Years
Class C	$249	$767	$1,311	$2,796

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Unlike a traditional index fund, the Fund’s investment objective is to perform exactly opposite the underlying index, and the Fund generally will not own the securities included in the underlying index. Instead, the Fund employs as its investment strategy a program of engaging in short sales of securities included in the underlying index and investing to a significant extent in derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to write swaps. The Fund’s investment in derivatives serves as a substitute for directly selling short each of the securities included in the underlying index and produces inverse exposure to the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain inverse exposure to international companies included in the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index.

PROSPECTUS | 34

The NASDAQ-100 Index ^® is a modified capitalization-weighted index composed of 100 of the largest non-financial companies listed on The Nasdaq Stock Market with capitalizations ranging from $7.0 billion to $560.6 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. Currently, the NASDAQ-100 Index ^® is concentrated in technology companies. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and

35 | PROSPECTUS

Fund expenses.



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

PROSPECTUS | 36

and/or interest payments, or to otherwise meet its obligations. The issuer of a debt instrument, such as a bond, could also suffer a decrease in quality rating, which may affect the volatility of the price and liquidity of the bond.

37 | PROSPECTUS

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 38

could cause greater fluctuations in the value of Fund shares than would occur in a diversified fund.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

39 | PROSPECTUS

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -8.93% .



Highest Quarter Return		Lowest Quarter Return
Q4 2008	18.42%	Q1 2012	-18.29	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	-32.39%	-25.26%	-12.76%
Return After Taxes on Distributions	-32.39%	-25.26%	-13.05%
Return After Taxes on Distributions and Sale of Fund Shares	-18.33%	-16.10%	-7.98%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.65%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-30.32%	-25.08%	-12.59%
Return After Taxes on Distributions	-30.32%	-25.08%	-12.89%
Return After Taxes on Distributions and Sale of Fund Shares	-17.16%	-16.01%	-7.83%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	36.92%	25.56%	10.16%

PROSPECTUS | 40

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

41 | PROSPECTUS

MID-CAP 1.5X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.67%	2.42%

PROSPECTUS | 42

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$637	$976	$1,339	$2,357
Class C	$345	$754	$1,290	$2,756

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



	1 Year	3 Years	5 Years	10 Years
Class C	$245	$754	$1,290	$2,756

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 563% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Advisor will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of the underlying index. As a result, the Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies included in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

43 | PROSPECTUS

7% of the U.S. equities market and generally represents mid-capitalization companies with capitalizations ranging from $1.3 billion to $10.9 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 44



Index Performance		Annualized Volatility
1x	1.5x	10%	25%	50%	75%	100%
-60%	-90%	-75%	-75%	-77%	-79%	-83%
-50%	-75%	-65%	-65%	-68%	-72%	-76%
-40%	-60%	-54%	-55%	-58%	-62%	-68%
-30%	-45%	-42%	-43%	-47%	-52%	-60%
-20%	-30%	-29%	-31%	-34%	-42%	-51%
-10%	-15%	-15%	-17%	-23%	-32%	-41%
0%	0%	0%	-2%	-9%	-19%	-32%
10%	15%	14%	13%	5%	-6%	-21%
20%	30%	31%	29%	19%	9%	-9%
30%	45%	47%	45%	35%	20%	2%
40%	60%	65%	62%	50%	35%	13%
50%	75%	83%	79%	68%	49%	25%
60%	90%	102%	98%	85%	63%	38%

45 | PROSPECTUS

also suffer a decrease in quality rating, which may affect the volatility of the price and liquidity of the bond.

PROSPECTUS | 46

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

47 | PROSPECTUS

associated with such transactions.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.60% .

PROSPECTUS | 48



Highest Quarter Return		Lowest Quarter Return
Q3 2009	29.99%	Q4 2008	-39.16	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	43.04%	27.93%	8.85%
Return After Taxes on Distributions	43.04%	27.93%	8.51%
Return After Taxes on Distributions and Sale of Fund Shares	24.36%	23.29%	7.15%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	33.50%	21.89%	10.07%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	48.06%	28.24%	9.10%
Return After Taxes on Distributions	48.06%	28.24%	8.74%
Return After Taxes on Distributions and Sale of Fund Shares	27.20%	23.57%	7.39%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	33.50%	21.89%	10.36%

49 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 50

INVERSE MID-CAP STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.67%	2.42%

51 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$637	$976	$1,339	$2,357
Class C	$345	$754	$1,290	$2,756

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



	1 Year	3 Years	5 Years	10 Years
Class C	$245	$754	$1,290	$2,756

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The S&P MidCap 400 ^® Index is a modified capitalization-weighted index composed of 400 mid-cap stocks chosen by the Standard & Poor's Corporation ("S&P") for market size, liquidity, and industry group representation. The S&P MidCap 400 ^® Index covers approximately 7% of the U.S. equities market and generally represents mid-capitalization companies with capitalizations ranging from $1.3 billion to $10.9 billion as of June 30, 2014. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

PROSPECTUS | 52

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and Fund expenses.

53 | PROSPECTUS

inverse of the return of the underlying index. This effect becomes more pronounced as volatility increases.



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

DERIVATIVES RISK — The Fund’s investments in derivatives may pose risks in addition to and greater than those

PROSPECTUS | 54

associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

55 | PROSPECTUS

if interest rates rise sharply, the value of the Fund’s fixed income investments and share price could decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 56

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -8.76% .

57 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2011	18.95%	Q2 2009	-18.69	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	-31.10%	-24.12%	-12.61%
Return After Taxes on Distributions	-31.10%	-24.12%	-12.96%
Return After Taxes on Distributions and Sale of Fund Shares	-17.60%	-15.54%	-7.92%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	33.50%	21.89%	10.07%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	-28.96%	-23.97%	-12.91%
Return After Taxes on Distributions	-28.96%	-23.97%	-13.26%
Return After Taxes on Distributions and Sale of Fund Shares	-16.39%	-15.47%	-8.02%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	33.50%	21.89%	10.10%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

PROSPECTUS | 58

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

59 | PROSPECTUS

RUSSELL 2000^® 1.5X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.57%	0.57%
Acquired Fund Fees and Expenses	0.06%	0.06%
Total Annual Fund Operating Expenses*	1.78%	2.53%


*	The Total Annual Fund Operating Expenses in this fee table may not correlate to the expense ratios in the Fund’s financial highlights and financial statements because the financial highlights and financial statements reflect only the operating expenses of the Fund and do not include Acquired Fund Fees and Expenses, which are fees and

PROSPECTUS | 60

expenses incurred indirectly by the Fund through its investments in certain underlying investment companies.

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$647	$1,009	$1,394	$2,470
Class C	$356	$788	$1,345	$2,866

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



	1 Year	3 Years	5 Years	10 Years
Class C	$256	$788	$1,345	$2,866

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 472% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Advisor will attempt to consistently apply leverage to increase the Fund’s exposure to 150% of the underlying index. As a result, the Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform similarly to the securities of companies included in the underlying index.

61 | PROSPECTUS

PRINCIPAL RISKS

PROSPECTUS | 62

a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.



Index Performance		Annualized Volatility
1x	1.5x	10%	25%	50%	75%	100%
-60%	-90%	-75%	-75%	-77%	-79%	-83%
-50%	-75%	-65%	-65%	-68%	-72%	-76%
-40%	-60%	-54%	-55%	-58%	-62%	-68%
-30%	-45%	-42%	-43%	-47%	-52%	-60%
-20%	-30%	-29%	-31%	-34%	-42%	-51%
-10%	-15%	-15%	-17%	-23%	-32%	-41%
0%	0%	0%	-2%	-9%	-19%	-32%
10%	15%	14%	13%	5%	-6%	-21%
20%	30%	31%	29%	19%	9%	-9%
30%	45%	47%	45%	35%	20%	2%
40%	60%	65%	62%	50%	35%	13%
50%	75%	83%	79%	68%	49%	25%
60%	90%	102%	98%	85%	63%	38%

63 | PROSPECTUS

PROSPECTUS | 64

in other investment companies.

65 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 2.87% .

PROSPECTUS | 66



Highest Quarter Return		Lowest Quarter Return
Q2 2009	31.43%	Q4 2008	-40.51	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	51.38%	25.28%	7.39%
Return After Taxes on Distributions	51.38%	25.28%	7.31%
Return After Taxes on Distributions and Sale of Fund Shares	29.08%	20.96%	6.01%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	8.63%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	56.74%	25.54%	7.81%
Return After Taxes on Distributions	56.74%	25.54%	7.73%
Return After Taxes on Distributions and Sale of Fund Shares	32.11%	21.19%	6.38%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	9.07%

67 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 68

RUSSELL 2000^® FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSE (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.60%	0.62%
Acquired Fund Fees and Expenses	0.05%	0.05%
Total Annual Fund Operating Expenses*	1.65%	2.42%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$635	$971	$1,329	$2,337
Class C	$345	$754	$1,290	$2,756

69 | PROSPECTUS

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



	1 Year	3 Years	5 Years	10 Years
Class C	$245	$754	$1,290	$2,756

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the 267% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

The Russell 2000 ^® Index is composed of the 2,000 smallest companies in the Russell 3000 ^® Index, representing approximately 10% of the Russell 3000 ^® total market capitalization and consisting of capitalizations ranging from $49.3 million to $4.5 billion as of June 30, 2014. The Russell 3000 ^® Index is composed of the 3,000 largest U.S. companies ranked by total market capitalization, representing approximately 98% of the U.S. investable equity market. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents to collateralize its derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 70

income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

71 | PROSPECTUS

to which the Fund has investment exposure.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 72

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.93% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	20.43%	Q4 2008	-27.03	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	30.02%	17.21%	5.65%
Return After Taxes on Distributions	27.41%	16.73%	5.31%
Return After Taxes on Distributions and Sale of Fund Shares	16.92%	13.72%	4.30%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	7.99%

73 | PROSPECTUS



Class C	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	34.36%	17.33%	5.47%
Return After Taxes on Distributions	31.47%	16.83%	5.11%
Return After Taxes on Distributions and Sale of Fund Shares	19.37%	13.81%	4.15%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	7.99%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PROSPECTUS | 74

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

75 | PROSPECTUS

INVERSE RUSSELL 2000^® STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.57%	0.57%
Total Annual Fund Operating Expenses	1.72%	2.47%

PROSPECTUS | 76

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$642	$991	$1,364	$2,409
Class C	$350	$770	$1,316	$2,806

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



	1 Year	3 Years	5 Years	10 Years
Class C	$250	$770	$1,316	$2,806

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

77 | PROSPECTUS

market. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivatives positions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index, before accounting for fees and Fund expenses.

PROSPECTUS | 78



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

79 | PROSPECTUS

PROSPECTUS | 80

generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Fixed income securities with longer durations are subject to greater volatility than those with shorter durations. Thus, if interest rates rise sharply, the value of the Fund’s fixed income investments and share price could decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

81 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -5.65% .

PROSPECTUS | 82



Highest Quarter Return		Lowest Quarter Return
Q3 2011	21.00%	Q2 2009	-20.54	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	-34.27%	-24.57%	-13.39%
Return After Taxes on Distributions	-34.27%	-24.57%	-13.74%
Return After Taxes on Distributions and Sale of Fund Shares	-19.40%	-15.77%	-8.26%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	8.63%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	-32.12%	-24.39%	-13.67%
Return After Taxes on Distributions	-32.12%	-24.39%	-14.02%
Return After Taxes on Distributions and Sale of Fund Shares	-18.18%	-15.68%	-8.35%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	38.82%	20.08%	8.75%

83 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 84

S&P 500^® PURE GROWTH FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.52%	2.27%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$622	$932	$1,265	$2,201
Class C	$330	$709	$1,215	$2,605

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



	1 Year	3 Years	5 Years	10 Years
Class C	$230	$709	$1,215	$2,605

85 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 594% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PRINCIPAL RISKS

PROSPECTUS | 86

the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

87 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.30% .

PROSPECTUS | 88



Highest Quarter Return		Lowest Quarter Return
Q2 2009	21.41%	Q4 2008	-24.56	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	34.54%	22.85%	7.89%
Return After Taxes on Distributions	34.54%	22.80%	7.82%
Return After Taxes on Distributions and Sale of Fund Shares	19.55%	18.82%	6.38%
S&P 500 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	43.88%	26.36%	11.57%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	39.20%	23.12%	6.48%
Return After Taxes on Distributions	39.20%	23.07%	6.41%
Return After Taxes on Distributions and Sale of Fund Shares	22.19%	19.05%	5.20%
S&P 500 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	43.88%	26.36%	10.49%

89 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 90

S&P 500^® PURE VALUE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.52%	2.27%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$622	$932	$1,265	$2,201
Class C	$330	$709	$1,215	$2,605

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



	1 Year	3 Years	5 Years	10 Years
Class C	$230	$709	$1,215	$2,605

PORTFOLIO TURNOVER

91 | PROSPECTUS

are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 410% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PRINCIPAL RISKS

PROSPECTUS | 92

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

93 | PROSPECTUS

could cause greater fluctuations in the value of Fund shares than would occur in a diversified fund.

VALUE STOCKS RISK—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.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 8.96% .

PROSPECTUS | 94



Highest Quarter Return		Lowest Quarter Return
Q2 2009	43.92%	Q4 2008	-31.55	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	38.44%	23.80%	6.96%
Return After Taxes on Distributions	35.89%	23.09%	4.79%
Return After Taxes on Distributions and Sale of Fund Shares	21.72%	19.27%	4.41%
S&P 500 Pure Value Index (reflects no deduction for fees, expenses or taxes)	48.07%	28.65%	11.56%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	43.27%	24.15%	6.20%
Return After Taxes on Distributions	40.37%	23.38%	4.08%
Return After Taxes on Distributions and Sale of Fund Shares	24.46%	19.55%	3.84%
S&P 500 Pure Value Index (reflects no deduction for fees, expenses or taxes)	48.07%	28.65%	11.51%

95 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 96

S&P MIDCAP 400^® PURE GROWTH FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.52%	2.27%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$622	$932	$1,265	$2,201
Class C	$330	$709	$1,215	$2,605

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



	1 Year	3 Years	5 Years	10 Years
Class C	$230	$709	$1,215	$2,605

PORTFOLIO TURNOVER

97 | PROSPECTUS

are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the 131% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PRINCIPAL RISKS

PROSPECTUS | 98

99 | PROSPECTUS

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.26% .

PROSPECTUS | 100



Highest Quarter Return		Lowest Quarter Return
Q2 2009	26.03%	Q4 2008	-25.54	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	27.95%	25.05%	11.49%
Return After Taxes on Distributions	26.60%	24.78%	10.86%
Return After Taxes on Distributions and Sale of Fund Shares	16.25%	20.67%	9.20%
S&P MidCap 400 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	36.14%	28.34%	14.04%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	32.34%	25.32%	10.07%
Return After Taxes on Distributions	30.82%	25.03%	9.47%
Return After Taxes on Distributions and Sale of Fund Shares	18.79%	20.90%	8.01%
S&P MidCap 400 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	36.14%	28.34%	13.02%

101 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 102

S&P MIDCAP 400^® PURE VALUE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.53%
Acquired Fund Fees and Expenses	0.04%	0.04%
Total Annual Fund Operating Expenses*	1.56%	2.32%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$626	$944	$1,285	$2,243
Class C	$335	$724	$1,240	$2,656

103 | PROSPECTUS

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



	1 Year	3 Years	5 Years	10 Years
Class C	$235	$724	$1,240	$2,656

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 506% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PRINCIPAL RISKS

PROSPECTUS | 104

Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

105 | PROSPECTUS

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

VALUE STOCKS RISK—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.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

PROSPECTUS | 106

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 5.37% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	37.65%	Q4 2008	-34.76	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	28.95%	19.92%	7.09%
Return After Taxes on Distributions	28.70%	19.12%	6.55%
Return After Taxes on Distributions and Sale of Fund Shares	16.38%	15.88%	5.46%
S&P MidCap 400 Pure Value Index (reflects no deduction for fees, expenses or taxes)	38.83%	25.32%	10.70%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	33.34%	20.13%	6.20%
Return After Taxes on Distributions	33.05%	19.28%	5.67%
Return After Taxes on Distributions and Sale of Fund Shares	18.87%	16.04%	4.74%
S&P MidCap 400 Pure Value Index (reflects no deduction for fees, expenses or taxes)	38.83%	25.32%	10.22%

107 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 108

S&P SMALLCAP 600^® PURE GROWTH FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.53%	0.53%
Total Annual Fund Operating Expenses	1.53%	2.28%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$623	$935	$1,270	$2,212
Class C	$331	$712	$1,220	$2,615

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



	1 Year	3 Years	5 Years	10 Years
Class C	$231	$712	$1,220	$2,615

PORTFOLIO TURNOVER

109 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 677% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PRINCIPAL RISKS

PROSPECTUS | 110

111 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.30% .

PROSPECTUS | 112



Highest Quarter Return		Lowest Quarter Return
Q2 2009	28.25%	Q4 2008	-26.43	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	34.22%	20.63%	9.15%
Return After Taxes on Distributions	34.22%	20.63%	8.87%
Return After Taxes on Distributions and Sale of Fund Shares	19.37%	16.91%	7.35%
S&P SmallCap 600 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	43.75%	24.83%	12.22%



Class C Shares	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	38.83%	20.90%	8.14%
Return After Taxes on Distributions	38.83%	20.90%	7.88%
Return After Taxes on Distributions and Sale of Fund Shares	21.98%	17.15%	6.51%
S&P SmallCap 600 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	43.75%	24.83%	11.82%

113 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 114

S&P SMALLCAP 600^® PURE VALUE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.52%	2.27%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$622	$932	$1,265	$2,201
Class C	$330	$709	$1,215	$2,605

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



	1 Year	3 Years	5 Years	10 Years
Class C	$230	$709	$1,215	$2,605

PORTFOLIO TURNOVER

115 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 658% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities included in the underlying index or in the same proportion that those securities are represented in the underlying index. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PRINCIPAL RISKS

PROSPECTUS | 116

117 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

VALUE STOCKS RISK—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.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.68% .

PROSPECTUS | 118



Highest Quarter Return		Lowest Quarter Return
Q2 2009	68.58%	Q4 2008	-37.72	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	35.32%	22.30%	6.01%
Return After Taxes on Distributions	35.32%	18.23%	3.89%
Return After Taxes on Distributions and Sale of Fund Shares	19.99%	16.05%	3.67%
S&P SmallCap 600 Pure Value Index (reflects no deduction for fees, expenses or taxes)	45.49%	28.17%	10.90%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	40.08%	22.53%	5.49%
Return After Taxes on Distributions	40.08%	18.21%	3.38%
Return After Taxes on Distributions and Sale of Fund Shares	22.69%	16.15%	3.27%
S&P SmallCap 600 Pure Value Index (reflects no deduction for fees, expenses or taxes)	45.49%	28.17%	10.46%

119 | PROSPECTUS

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 120

BANKING FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

121 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 481% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PRINCIPAL RISKS

PROSPECTUS | 122

correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

123 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.96% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	19.74%	Q1 2009	-32.41	%

PROSPECTUS | 124

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	22.97%	5.50%	-4.67%
Return After Taxes on Distributions	22.40%	4.96%	-5.25%
Return After Taxes on Distributions and Sale of Fund Shares	12.99%	4.04%	-3.54%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	27.15%	5.87%	-4.06%
Return After Taxes on Distributions	26.51%	5.30%	-4.62%
Return After Taxes on Distributions and Sale of Fund Shares	15.36%	4.32%	-3.10%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

125 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 126

BASIC MATERIALS FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.53%	0.53%
Total Annual Fund Operating Expenses	1.63%	2.38%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$633	$965	$1,319	$2,316
Class C	$341	$742	$1,270	$2,716

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



	1 Year	3 Years	5 Years	10 Years
Class C	$241	$742	$1,270	$2,716

PORTFOLIO TURNOVER

127 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 349% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the basic materials sector and, therefore, may be concentrated in an industry or group of industries within the basic materials sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 128

that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

129 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 7.59% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	19.99%	Q3 2008	-30.08	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)

PROSPECTUS | 130



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	-3.65%	12.21%	7.03%
Return After Taxes on Distributions	-3.93%	12.08%	6.82%
Return After Taxes on Distributions and Sale of Fund Shares	-2.07%	9.71%	5.57%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.58%	12.47%	6.72%
Return After Taxes on Distributions	-0.88%	12.33%	6.51%
Return After Taxes on Distributions and Sale of Fund Shares	-0.33%	9.92%	5.33%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

131 | PROSPECTUS

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 132

BIOTECHNOLOGY FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.51%	0.51%
Total Annual Fund Operating Expenses	1.61%	2.36%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$631	$959	$1,309	$2,295
Class C	$339	$736	$1,260	$2,696

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



	1 Year	3 Years	5 Years	10 Years
Class C	$239	$736	$1,260	$2,696

133 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 119% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the biotechnology sector and, therefore, may be concentrated in an industry or group of industries within the biotechnology sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 134

MARKET RISK—The market value of the securities and derivatives held by the Fund may fluctuate resulting from factors affecting the individual company or other factors such as changing economic, political or financial market conditions. Moreover, changing economic, political or financial market conditions in one country or geographic region could adversely impact the market value of the securities held by the Fund in a different country or geographic region.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

135 | PROSPECTUS

than you expect.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 12.89% .



Highest Quarter Return		Lowest Quarter Return
Q1 2012	21.43%	Q2 2010	-17.02	%

PROSPECTUS | 136

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	46.96%	23.91%	13.31%
Return After Taxes on Distributions	46.96%	23.91%	13.31%
Return After Taxes on Distributions and Sale of Fund Shares	26.58%	19.77%	11.16%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	52.14%	24.20%	11.37%
Return After Taxes on Distributions	52.14%	24.20%	11.37%
Return After Taxes on Distributions and Sale of Fund Shares	29.51%	20.02%	9.49%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

137 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 138

CONSUMER PRODUCTS FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

139 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 112% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the consumer products sector and, therefore, may be concentrated in an industry or group of industries within the consumer products sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 140

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

141 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 6.16% .



Highest Quarter Return		Lowest Quarter Return
Q1 2013	15.10%	Q4 2008	-14.56	%

PROSPECTUS | 142

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	22.51%	16.35%	9.24%
Return After Taxes on Distributions	20.57%	14.18%	8.00%
Return After Taxes on Distributions and Sale of Fund Shares	12.91%	12.12%	6.91%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	26.66%	16.61%	8.76%
Return After Taxes on Distributions	24.45%	14.29%	7.54%
Return After Taxes on Distributions and Sale of Fund Shares	15.28%	12.28%	6.54%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

143 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 144

ELECTRONICS FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

145 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,436% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the electronics sector and, therefore, may be concentrated in an industry or group of industries within the electronics sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 146

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

147 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 17.50% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	22.86%	Q4 2008	-29.06	%

PROSPECTUS | 148

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	27.66%	14.40%	2.32%
Return After Taxes on Distributions	27.62%	14.39%	2.32%
Return After Taxes on Distributions and Sale of Fund Shares	15.65%	11.59%	1.80%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	31.89%	14.70%	-2.01%
Return After Taxes on Distributions	31.85%	14.69%	-2.01%
Return After Taxes on Distributions and Sale of Fund Shares	18.05%	11.85%	-1.50%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

149 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 150

ENERGY FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

151 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 231% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the energy sector and, therefore, may be concentrated in an industry or group of industries within the energy sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 152

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

153 | PROSPECTUS

than you expect.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 14.53% .



Highest Quarter Return		Lowest Quarter Return
Q2 2008	27.24%	Q3 2008	-34.08	%

PROSPECTUS | 154

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	17.62%	13.39%	9.69%
Return After Taxes on Distributions	17.62%	13.21%	9.36%
Return After Taxes on Distributions and Sale of Fund Shares	9.97%	10.67%	7.92%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	21.60%	13.66%	10.45%
Return After Taxes on Distributions	21.60%	13.46%	10.12%
Return After Taxes on Distributions and Sale of Fund Shares	12.23%	10.88%	8.64%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

155 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 156

ENERGY SERVICES FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

157 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 350% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the energy services sector and, therefore, may be concentrated in an industry or group of industries within the energy services sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 158

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

159 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 15.10% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	31.35%	Q4 2008	-47.28	%

PROSPECTUS | 160

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	18.10%	17.19%	9.59%
Return After Taxes on Distributions	18.10%	17.19%	9.59%
Return After Taxes on Distributions and Sale of Fund Shares	10.24%	13.96%	7.88%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	22.05%	17.46%	10.67%
Return After Taxes on Distributions	22.05%	17.46%	10.67%
Return After Taxes on Distributions and Sale of Fund Shares	12.48%	14.19%	8.87%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

161 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 162

FINANCIAL SERVICES FUND

INVESTMENT OBJECTIVE

The Financial Services Fund (the “Fund”) seeks to provide capital appreciation by investing in companies that are involved in the financial services sector (“Financial Services Companies”).

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Acquired Fund Fees and Expenses	0.03%	0.03%
Total Annual Fund Operating Expenses*	1.65%	2.40%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$635	$971	$1,329	$2,337
Class C	$343	$748	$1,280	$2,736

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



	1 Year	3 Years	5 Years	10 Years
Class C	$243	$748	$1,280	$2,736

163 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 414% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund invests substantially all (at least 80%) of its net assets in equity securities of Financial Services Companies that are traded in the United States and in derivatives, which primarily consist of futures contracts and options on securities, futures contracts, and stock indices. The Fund will invest to a significant extent in the securities of Financial Services Companies that have small to mid-sized capitalizations. Financial Service Companies include commercial banks, savings and loan associations, insurance companies, brokerage companies and real-estate investment trusts. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Financial Services Companies and U.S. government securities. Under U.S. Securities and Exchange Commission regulations, the Fund may not invest more than 5% of its total assets in the equity securities of any company that derives more than 15% of its revenues from brokerage or investment management activities.

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the financial services sector and, therefore, may be concentrated in an industry or group of industries within the financial services sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 164

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

165 | PROSPECTUS

than you expect.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 5.41% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	25.84%	Q4 2008	-31.93	%

PROSPECTUS | 166

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	21.15%	11.61%	-0.30%
Return After Taxes on Distributions	20.84%	11.31%	-0.72%
Return After Taxes on Distributions and Sale of Fund Shares	11.97%	9.12%	-0.40%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	25.27%	11.91%	-0.08%
Return After Taxes on Distributions	24.93%	11.59%	-0.50%
Return After Taxes on Distributions and Sale of Fund Shares	14.30%	9.36%	-0.23%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

167 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 168

HEALTH CARE FUND

INVESTMENT OBJECTIVE

The Health Care Fund (the “Fund”) seeks to provide capital appreciation by investing in companies that are involved in the health care industry (“Health Care Companies”).

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

169 | PROSPECTUS

277% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the health care sector and, therefore, may be concentrated in an industry or group of industries within the health care sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 170

contracts may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid market. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Futures markets are highly volatile and the use of futures may increase the volatility of the Fund’s NAV. Futures are also subject to leverage risks and to liquidity risk.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

171 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 9.25% .



Highest Quarter Return		Lowest Quarter Return
Q1 2013	13.92%	Q4 2008	-15.88	%

PROSPECTUS | 172

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	35.28%	17.13%	8.60%
Return After Taxes on Distributions	33.30%	16.76%	8.42%
Return After Taxes on Distributions and Sale of Fund Shares	21.49%	13.88%	7.01%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	39.97%	17.42%	7.62%
Return After Taxes on Distributions	37.76%	17.02%	7.44%
Return After Taxes on Distributions and Sale of Fund Shares	24.33%	14.13%	6.20%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

173 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 174

INTERNET FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

175 | PROSPECTUS

472% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the Internet sector and, therefore, may be concentrated in an industry or group of industries within the Internet sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 176

invests.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

177 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 1.14% .



Highest Quarter Return		Lowest Quarter Return
Q3 2010	23.01%	Q4 2008	-23.42	%

PROSPECTUS | 178

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	44.08%	24.71%	9.76%
Return After Taxes on Distributions	43.92%	24.58%	9.60%
Return After Taxes on Distributions and Sale of Fund Shares	25.07%	20.47%	7.96%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	49.13%	24.99%	7.92%
Return After Taxes on Distributions	48.94%	24.85%	7.76%
Return After Taxes on Distributions and Sale of Fund Shares	27.94%	20.72%	6.40%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

179 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 180

LEISURE FUND

INVESTMENT OBJECTIVE

The Leisure Fund (the “Fund”) seeks to provide capital appreciation by investing in companies engaged in leisure and entertainment businesses (“Leisure Companies”).

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

181 | PROSPECTUS

265% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the leisure sector and, therefore, may be concentrated in an industry or group of industries within the leisure sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 182

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

183 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 3.06% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	24.19%	Q4 2008	-29.92	%

PROSPECTUS | 184

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	35.73%	24.18%	8.02%
Return After Taxes on Distributions	35.42%	24.12%	7.99%
Return After Taxes on Distributions and Sale of Fund Shares	20.21%	19.96%	6.51%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	40.45%	24.46%	7.30%
Return After Taxes on Distributions	40.11%	24.39%	7.27%
Return After Taxes on Distributions and Sale of Fund Shares	22.89%	20.21%	5.91%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

185 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 186

PRECIOUS METALS FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.52%	2.27%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$622	$932	$1,265	$2,201
Class C	$330	$709	$1,215	$2,605

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



	1 Year	3 Years	5 Years	10 Years
Class C	$230	$709	$1,215	$2,605

PORTFOLIO TURNOVER

187 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 348% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the precious metals sector and, therefore, may be concentrated in an industry or group of industries within the precious metals sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 188

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

189 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 20.19% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	22.69%	Q3 2008	-34.02	%

PROSPECTUS | 190

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	-49.11%	-5.11%	-1.64%
Return After Taxes on Distributions	-49.22%	-5.30%	-1.75%
Return After Taxes on Distributions and Sale of Fund Shares	-27.80%	-3.63%	-1.14%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-47.49%	-4.89%	-3.48%
Return After Taxes on Distributions	-47.62%	-5.11%	-3.59%
Return After Taxes on Distributions and Sale of Fund Shares	-26.88%	-3.46%	-2.46%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

191 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 192

RETAILING FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

193 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 671% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the retailing sector and, therefore, may be concentrated in an industry or group of industries within the retailing sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 194

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

195 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -1.55% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	16.22%	Q4 2008	-24.27	%

PROSPECTUS | 196

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	29.98%	23.08%	8.37%
Return After Taxes on Distributions	29.98%	23.06%	8.35%
Return After Taxes on Distributions and Sale of Fund Shares	16.97%	19.02%	6.81%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	34.47%	23.34%	7.06%
Return After Taxes on Distributions	34.47%	23.31%	7.04%
Return After Taxes on Distributions and Sale of Fund Shares	19.51%	19.25%	5.72%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

197 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 198

TECHNOLOGY FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

199 | PROSPECTUS

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 321% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the technology sector and, therefore, may be concentrated in an industry or group of industries within the technology sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 200

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TECHNOLOGY SECTOR RISK—To the extent that the Fund’s investments are exposed to issuers conducting business

201 | PROSPECTUS

in the technology sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Technology Companies also may fluctuate widely in response to such events.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 4.86% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	18.91%	Q4 2008	-27.13	%

PROSPECTUS | 202

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	28.75%	17.83%	6.30%
Return After Taxes on Distributions	28.75%	17.83%	6.28%
Return After Taxes on Distributions and Sale of Fund Shares	16.27%	14.51%	5.05%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	33.19%	18.14%	3.90%
Return After Taxes on Distributions	33.19%	18.14%	3.89%
Return After Taxes on Distributions and Sale of Fund Shares	18.79%	14.77%	3.08%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

203 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 204

TELECOMMUNICATIONS FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.53%	0.53%
Total Annual Fund Operating Expenses	1.63%	2.38%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$633	$965	$1,319	$2,316
Class C	$341	$742	$1,270	$2,716

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



	1 Year	3 Years	5 Years	10 Years
Class C	$241	$742	$1,270	$2,716

PORTFOLIO TURNOVER

205 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,271% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the telecommunications sector and, therefore, may be concentrated in an industry or group of industries within the telecommunications sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 206

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

207 | PROSPECTUS

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 3.31% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	18.46%	Q4 2008	-21.05	%

PROSPECTUS | 208

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	11.21%	8.07%	1.90%
Return After Taxes on Distributions	10.53%	7.24%	1.22%
Return After Taxes on Distributions and Sale of Fund Shares	6.32%	6.00%	1.18%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	15.83%	8.53%	1.45%
Return After Taxes on Distributions	15.07%	7.64%	0.79%
Return After Taxes on Distributions and Sale of Fund Shares	8.94%	6.35%	0.85%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

209 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 210

TRANSPORTATION FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.62%	2.37%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$632	$962	$1,314	$2,306
Class C	$340	$739	$1,265	$2,706

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



	1 Year	3 Years	5 Years	10 Years
Class C	$240	$739	$1,265	$2,706

PORTFOLIO TURNOVER

211 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 593% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the transportation sector and, therefore, may be concentrated in an industry or group of industries within the transportation sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 212

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

213 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 12.22% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	18.44%	Q3 2011	-24.54	%

PROSPECTUS | 214

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	43.38%	16.30%	7.91%
Return After Taxes on Distributions	43.48%	16.25%	7.88%
Return After Taxes on Distributions and Sale of Fund Shares	24.55%	13.17%	6.41%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	48.41%	16.51%	6.99%
Return After Taxes on Distributions	48.41%	16.45%	6.97%
Return After Taxes on Distributions and Sale of Fund Shares	27.40%	13.35%	5.66%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

215 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 216

UTILITIES FUND

INVESTMENT OBJECTIVE

The Utilities Fund (the “Fund”) seeks to provide capital appreciation by investing in companies that operate public utilities (“Utilities Companies”).

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.53%	0.53%
Total Annual Fund Operating Expenses	1.63%	2.38%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$633	$965	$1,319	$2,316
Class C	$341	$742	$1,270	$2,716

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



	1 Year	3 Years	5 Years	10 Years
Class C	$241	$742	$1,270	$2,716

PORTFOLIO TURNOVER

217 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 508% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the utilities sector and, therefore, may be concentrated in an industry or group of industries within the utilities sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 218

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

219 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 16.65% .



Highest Quarter Return		Lowest Quarter Return
Q1 2013	13.11%	Q3 2008	-17.62	%

PROSPECTUS | 220

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	8.34%	9.37%	6.71%
Return After Taxes on Distributions	6.10%	7.63%	5.51%
Return After Taxes on Distributions and Sale of Fund Shares	4.71%	6.62%	4.84%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	11.87%	9.59%	6.59%
Return After Taxes on Distributions	9.27%	7.69%	5.38%
Return After Taxes on Distributions and Sale of Fund Shares	6.70%	6.74%	4.76%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.41%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

221 | PROSPECTUS

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 222

EUROPE 1.25X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than a single trading day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from 1.25x of the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 1.25x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking leveraged investment results, and (c) intend to actively monitor and manage their investments. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.57%	0.57%
Total Annual Fund Operating Expenses	1.72%	2.47%

223 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$642	$991	$1,364	$2,409
Class C	$350	$770	$1,316	$2,806

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



	1 Year	3 Years	5 Years	10 Years
Class C	$250	$770	$1,316	$2,806

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 654% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts (including currency futures), and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Advisor will attempt to consistently apply leverage to increase the Fund’s exposure to 125% of the underlying index. As a result, the Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PROSPECTUS | 224

Ltd. from 16 countries under criteria designed to identify highly liquid companies that are leaders in their sectors. The Fund's investment in instruments denominated in foreign currencies exposes the Fund to the risk of fluctuations in the value of such currency in comparison to the U.S. dollar. The Fund generally does not intend to hedge such foreign currency exposure. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

PRINCIPAL RISKS

225 | PROSPECTUS

the underlying index calculate their respective NAVs, the Fund’s performance is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.



Index Performance		Annualized Volatility
1x	1.25x	10%	25%	50%	75%	100%
-60%	-75%	-68%	-68%	-69%	-71%	-73%
-50%	-63%	-58%	-58%	-60%	-62%	-64%
-40%	-50%	-47%	-48%	-49%	-52%	-54%
-30%	-38%	-36%	-37%	-39%	-41%	-45%
-20%	-25%	-25%	-26%	-27%	-31%	-36%
-10%	-13%	-12%	-13%	-16%	-20%	-25%
0%	0%	0%	-1%	-4%	-8%	-15%
10%	13%	12%	12%	9%	4%	-4%
20%	25%	25%	25%	20%	17%	8%
30%	38%	38%	38%	33%	27%	18%
40%	50%	52%	51%	46%	40%	29%
50%	63%	65%	64%	60%	53%	41%
60%	75%	80%	78%	73%	65%	54%

PROSPECTUS | 226

227 | PROSPECTUS

to leverage risk and can be subject to liquidity risk.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 228

amount invested in those instruments. Since the Fund’s investment strategy involves consistently applied 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. Leverage also will have the effect of magnifying tracking error.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking

229 | PROSPECTUS

error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 4.12% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	34.44%	Q4 2008	-33.50	%

PROSPECTUS | 230

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	18.07%	8.07%	1.92%
Return After Taxes on Distributions	18.07%	8.05%	1.61%
Return After Taxes on Distributions and Sale of Fund Shares	10.23%	6.35%	1.42%
STOXX Europe 50^® Index (reflects no deduction for fees, expenses or taxes)	22.36%	10.57%	5.52%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	20.77%	8.10%	1.25%
Return After Taxes on Distributions	20.77%	8.08%	0.93%
Return After Taxes on Distributions and Sale of Fund Shares	11.76%	6.38%	0.90%
STOXX Europe 50^® Index (reflects no deduction for fees, expenses or taxes)	22.36%	10.57%	5.20%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

231 | PROSPECTUS

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 232

JAPAN 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund should be utilized only by investors who (a) understand the risks associated with the use of leverage, (b) understand the consequences of seeking leveraged investment results, and (c) intend to actively monitor and manage their investments. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.52%	0.52%
Total Annual Fund Operating Expenses	1.52%	2.27%

233 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$622	$932	$1,265	$2,201
Class C	$330	$709	$1,215	$2,605

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



	1 Year	3 Years	5 Years	10 Years
Class C	$230	$709	$1,215	$2,605

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of investing in the common stock of companies that are generally within the capitalization range of the underlying index and derivative instruments, which primarily consist of equity index swaps, futures contracts (including currency futures), and options on securities, futures contracts, and stock indices. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Fund’s use of derivatives and the leveraged investment exposure created by such use are expected to be significant. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index.

PROSPECTUS | 234

capitalizations ranging from $273.3 million to $190.3 billion. The Fund's investment in instruments denominated in foreign currencies exposes the Fund to the risk of fluctuations in the value of such currency in comparison to the U.S. dollar. The Fund generally does not intend to hedge such foreign currency exposure. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

PRINCIPAL RISKS

235 | PROSPECTUS

less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

PROSPECTUS | 236

237 | PROSPECTUS

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 238

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking

239 | PROSPECTUS

error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

The following bar chart shows the performance of the Class C shares of the Fund from year to year. The variability of performance over time provides an indication of the risks of investing in the Fund. The following tables show the performance of the Class A shares and Class C shares of the Fund as an average over different periods of time in comparison to the performance of a broad-based market index. Effective May 1, 2009, the Fund changed comparative benchmarks from the Topix 100 Index to the Nikkei 225 Stock Average. This change occurred as a result of the Fund’s change in name and investment strategy. Prior to May 1, 2009, the Fund’s investment strategy sought to provide 125% exposure to the Topix 100 Index; therefore, the performance and average annual total returns shown below for periods prior to May 1, 2009 may have differed had the Fund’s current investment strategy, which seeks to provide 200% exposure to the Nikkei 225 Stock Average, been in effect during those periods. The Nikkei 225 Stock Average more appropriately reflects the Fund’s investment universe. The figures in the bar chart and tables assume the reinvestment of dividends and capital gains distributions but do not reflect sales charges. If they did, returns would be lower. Of course, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -9.23% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	44.18%	Q1 2009	-33.18	%

PROSPECTUS | 240

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (2/22/2008)
Return Before Taxes	47.35%	10.08%	-2.36%
Return After Taxes on Distributions	47.35%	10.08%	-2.36%
Return After Taxes on Distributions and Sale of Fund Shares	26.80%	8.01%	-1.77%
Nikkei 225 Stock Average (reflects no deduction for fees, expenses or taxes)	28.39%	9.59%	3.56%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/22/2008)
Return Before Taxes	52.94%	10.35%	-2.23%
Return After Taxes on Distributions	52.94%	10.35%	-2.23%
Return After Taxes on Distributions and Sale of Fund Shares	29.96%	8.22%	-1.68%
Nikkei 225 Stock Average (reflects no deduction for fees, expenses or taxes)	28.39%	9.59%	3.56%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

241 | PROSPECTUS

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 242

EMERGING MARKETS 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.66%	0.76%
Total Annual Fund Operating Expenses	1.81%	2.66%

243 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$650	$1,017	$1,408	$2,501
Class C	$369	$826	$1,410	$2,993

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



	1 Year	3 Years	5 Years	10 Years
Class C	$269	$826	$1,410	$2,993

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,412% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 244

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

245 | PROSPECTUS



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

PROSPECTUS | 246

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LARGE-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

247 | PROSPECTUS

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 248

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 10.57% .



Highest Quarter Return		Lowest Quarter Return
Q1 2012	19.10%	Q3 2011	-43.35	%

249 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Since Inception (10/29/2010)
Return Before Taxes	-18.73%	-16.36%
Return After Taxes on Distributions	-18.73%	-17.04%
Return After Taxes on Distributions and Sale of Fund Shares	-10.60%	-12.03%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-4.76%	-3.67%



Class C	Past 1 Year	Since Inception (10/29/2010)
Return Before Taxes	-15.79%	-15.33%
Return After Taxes on Distributions	-15.79%	-16.02%
Return After Taxes on Distributions and Sale of Fund Shares	-8.94%	-11.33%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-4.76%	-3.67%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

PROSPECTUS | 250

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

251 | PROSPECTUS

INVERSE EMERGING MARKETS 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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.

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.63%	0.58%
Total Annual Fund Operating Expenses	1.78%	2.48%

PROSPECTUS | 252

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$647	$1,009	$1,394	$2,470
Class C	$351	$773	$1,321	$2,816

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



	1 Year	3 Years	5 Years	10 Years
Class C	$251	$773	$1,321	$2,816

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

253 | PROSPECTUS

$195.4 billion as of June 30, 2014. The Fund's investments may expose the Fund to the risk of fluctuations in the value of foreign currencies in comparison to the U.S. dollar. The Fund generally does not intend to hedge such foreign currency exposure. To the extent the underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

PROSPECTUS | 254



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

255 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PROSPECTUS | 256

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

257 | PROSPECTUS

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -12.99% .



Highest Quarter Return		Lowest Quarter Return
Q3 2011	47.21%	Q4 2011	-20.41	%

PROSPECTUS | 258

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Since Inception (10/29/2010)
Return Before Taxes	-5.01%	-11.21%
Return After Taxes on Distributions	-5.01%	-11.21%
Return After Taxes on Distributions and Sale of Fund Shares	-2.84%	-8.27%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-4.76%	-3.67%



Class C	Past 1 Year	Since Inception (10/29/2010)
Return Before Taxes	-1.89%	-8.73%
Return After Taxes on Distributions	-1.89%	-8.73%
Return After Taxes on Distributions and Sale of Fund Shares	-1.07%	-6.49%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-4.76%	-3.67%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

259 | PROSPECTUS

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 260

STRENGTHENING DOLLAR 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.59%	0.60%
Total Annual Fund Operating Expenses	1.74%	2.50%

261 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$643	$997	$1,374	$2,429
Class C	$353	$779	$1,331	$2,836

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



	1 Year	3 Years	5 Years	10 Years
Class C	$253	$779	$1,331	$2,836

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 262

PRINCIPAL RISKS

263 | PROSPECTUS

table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses, including the cost of leverage, were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

PROSPECTUS | 264

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

265 | PROSPECTUS

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration

PROSPECTUS | 266

of the repurchase agreement term.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -2.91% .

267 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2008	17.02%	Q3 2010	-17.79	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (5/25/2005)
Return Before Taxes	-7.60%	-7.76%	-4.87%
Return After Taxes on Distributions	-7.60%	-7.76%	-5.61%
Return After Taxes on Distributions and Sale of Fund Shares	-4.30%	-5.67%	-3.33%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	0.34%	-0.31%	-0.88%



Class C	Past 1 Year	Past 5 Years	Since Inception (5/25/2005)
Return Before Taxes	-4.72%	-7.45%	-4.99%
Return After Taxes on Distributions	-4.72%	-7.45%	-5.76%
Return After Taxes on Distributions and Sale of Fund Shares	-2.67%	-5.46%	-3.38%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	0.34%	-0.31%	-0.88%

PROSPECTUS | 268

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

269 | PROSPECTUS

PROSPECTUS | 270

WEAKENING DOLLAR 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.60%	0.62%
Total Annual Fund Operating Expenses	1.75%	2.52%

271 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$644	$1,000	$1,379	$2,439
Class C	$355	$785	$1,340	$2,856

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



	1 Year	3 Years	5 Years	10 Years
Class C	$255	$785	$1,340	$2,856

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 272

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

273 | PROSPECTUS



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

PROSPECTUS | 274

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

275 | PROSPECTUS

LEVERAGING RISK — The Fund achieves leveraged exposure to the underlying index through the use of derivative instruments. The more the Fund invests in leveraged instruments, the more this leverage will magnify any losses on those investments. The Fund’s investment in these instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. Since the Fund’s investment strategy involves consistently applied 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. Leverage also will have the effect of magnifying tracking error.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

PROSPECTUS | 276

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 0.24% .

277 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2010	18.89%	Q3 2008	-16.09	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (5/25/2005)
Return Before Taxes	-7.60%	-1.13%	0.20%
Return After Taxes on Distributions	-7.60%	-1.13%	-1.22%
Return After Taxes on Distributions and Sale of Fund Shares	-4.30%	-0.86%	-0.22%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	0.34%	-0.31%	-0.88%



Class C	Past 1 Year	Past 5 Years	Since Inception (5/25/2005)
Return Before Taxes	-4.63%	-0.92%	0.01%
Return After Taxes on Distributions	-4.63%	-0.92%	-1.44%
Return After Taxes on Distributions and Sale of Fund Shares	-2.62%	-0.70%	-0.34%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	0.34%	-0.31%	-0.88%

PROSPECTUS | 278

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

279 | PROSPECTUS

PROSPECTUS | 280

REAL ESTATE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.85%	0.85%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.55%	0.53%
Total Annual Fund Operating Expenses	1.65%	2.38%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$635	$971	$1,329	$2,337
Class C	$341	$742	$1,270	$2,716

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



	1 Year	3 Years	5 Years	10 Years
Class C	$241	$742	$1,270	$2,716

PORTFOLIO TURNOVER

281 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 788% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund invests in the securities of a limited number of issuers conducting business in the real estate sector and, therefore, may be concentrated in an industry or group of industries within the real estate sector. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 282

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

283 | PROSPECTUS

SMALL-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Fund does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions in declining markets.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 13.39% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	29.27%	Q4 2008	-38.41	%

PROSPECTUS | 284

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (9/1/2004)
Return Before Taxes	-1.43%	12.56%	3.24%
Return After Taxes on Distributions	-3.38%	11.63%	2.49%
Return After Taxes on Distributions and Sale of Fund Shares	-0.82%	9.62%	2.19%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.89%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/20/2004)
Return Before Taxes	1.72%	12.76%	3.46%
Return After Taxes on Distributions	-0.49%	11.76%	2.70%
Return After Taxes on Distributions and Sale of Fund Shares	0.96%	9.76%	2.37%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	32.39%	17.94%	7.18%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

285 | PROSPECTUS

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 286

GOVERNMENT LONG BOND 1.2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.50%	0.50%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.47%	0.47%
Total Annual Fund Operating Expenses	1.22%	1.97%

287 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$593	$844	$1,113	$1,882
Class C	$300	$618	$1,062	$2,296

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



	1 Year	3 Years	5 Years	10 Years
Class C	$200	$618	$1,062	$2,296

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 2,661% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 288

financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK — A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the Long Treasury Bond has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the Long Treasury Bond times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following

289 | PROSPECTUS

factors: (a) the performance of the Long Treasury Bond; (b) volatility of the Long Treasury Bond; (c) financing rates associated with leverage; (d) other Fund expenses; and (e) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no Fund expenses; and (b) a cost of leverage of zero percent. If Fund expenses, including the cost of leverage, were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	1.2x	10%	25%	50%	75%	100%
-60%	-72%	-67%	-67%	-68%	-69%	-71%
-50%	-60%	-57%	-57%	-58%	-60%	-62%
-40%	-48%	-46%	-46%	-48%	-49%	-51%
-30%	-36%	-35%	-35%	-37%	-39%	-42%
-20%	-24%	-24%	-25%	-25%	-28%	-32%
-10%	-12%	-12%	-13%	-15%	-18%	-22%
0%	0%	0%	0%	-3%	-6%	-12%
10%	12%	12%	11%	9%	5%	-1%
20%	24%	24%	24%	20%	18%	11%
30%	36%	37%	36%	32%	28%	21%
40%	48%	49%	48%	45%	40%	32%
50%	60%	62%	61%	58%	53%	43%
60%	72%	76%	75%	71%	65%	56%

PROSPECTUS | 290

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

291 | PROSPECTUS

of the underlying investment vehicles’ expenses.

LEVERAGING RISK — The Fund achieves leveraged exposure to the Long Treasury Bond through the use of derivative instruments. The more the Fund invests in leveraged instruments, the more this leverage will magnify any losses on those investments. The Fund’s investment in these instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. Since the Fund’s investment strategy involves consistently applied 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 Long Treasury Bond. Leverage also will have the effect of magnifying tracking error.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

PROSPECTUS | 292

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correspond to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and the Long Treasury Bond, rounding of share prices, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 16.04% .



Highest Quarter Return		Lowest Quarter Return
Q4 2008	41.17%	Q1 2009	-16.35	%

293 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	-20.06%	-2.10%	4.81%
Return After Taxes on Distributions	-20.40%	-2.84%	3.79%
Return After Taxes on Distributions and Sale of Fund Shares	-11.34%	-1.85%	3.36%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.53%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-17.62%	-1.94%	5.05%
Return After Taxes on Distributions	-17.71%	-2.42%	4.31%
Return After Taxes on Distributions and Sale of Fund Shares	-9.97%	-1.63%	3.70%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.94%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

PROSPECTUS | 294

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

295 | PROSPECTUS

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	2.63%	2.59%
Short Sales Dividend and Interest Expense	2.12%	2.08%
Remaining Other Expenses	0.51%	0.51%
Total Annual Fund Operating Expenses	3.78%	4.49%

PROSPECTUS | 296

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$837	$1,575	$2,331	$4,303
Class C	$550	$1,357	$2,274	$4,606

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



	1 Year	3 Years	5 Years	10 Years
Class C	$450	$1,357	$2,274	$4,606

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,097% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

297 | PROSPECTUS

Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The risk of the Fund not achieving its daily investment objective will be more acute when the Long Treasury Bond has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the Long Treasury Bond times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Compounding affects all investments, but has a more significant impact on a leveraged fund. In general, particularly during periods of higher index volatility, compounding will cause longer term results to be more or less than the inverse of the return of the benchmark. This effect becomes more pronounced as volatility increases.

PROSPECTUS | 298

associated with leverage; (d) other Fund expenses; and (e) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no Fund expenses; and (b) a cost of leverage of zero percent. If Fund expenses, including the cost of leverage, were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	-1x	10%	25%	50%	75%	100%
-60%	60%	148%	132%	96%	42%	-6%
-50%	50%	98%	87%	57%	14%	-28%
-40%	40%	65%	56%	30%	-5%	-38%
-30%	30%	42%	34%	13%	-18%	-47%
-20%	20%	24%	18%	-3%	-28%	-54%
-10%	10%	10%	4%	-13%	-36%	-59%
0%	0%	-1%	-6%	-22%	-43%	-64%
10%	-10%	-10%	-15%	-29%	-48%	-67%
20%	-20%	-17%	-22%	-35%	-53%	-69%
30%	-30%	-24%	-28%	-40%	-56%	-71%
40%	-40%	-29%	-33%	-44%	-60%	-73%
50%	-50%	-34%	-37%	-48%	-62%	-76%
60%	-60%	-38%	-41%	-51%	-65%	-78%

299 | PROSPECTUS

result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

PROSPECTUS | 300

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

301 | PROSPECTUS

turnover rate all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -13.27% .



Highest Quarter Return		Lowest Quarter Return
Q2 2009	12.70%	Q4 2008	-26.25	%

PROSPECTUS | 302

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	11.87%	-5.45%	-6.79%
Return After Taxes on Distributions	11.87%	-5.45%	-7.03%
Return After Taxes on Distributions and Sale of Fund Shares	6.72%	-4.04%	-4.75%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.53%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	15.58%	-5.22%	-7.44%
Return After Taxes on Distributions	15.58%	-5.22%	-7.67%
Return After Taxes on Distributions and Sale of Fund Shares	8.82%	-3.87%	-5.13%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-12.66%	2.28%	5.94%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

303 | PROSPECTUS

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 304

HIGH YIELD STRATEGY FUND

INVESTMENT OBJECTIVE

The High Yield Strategy Fund (the “Fund”) seeks to provide investment results that correlate, before fees and expenses, to the performance of the high yield bond market.

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.53%	0.53%
Acquired Fund Fees and Expenses	0.03%	0.03%
Total Annual Fund Operating Expenses*	1.56%	2.31%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$626	$944	$1,285	$2,243
Class C	$334	$721	$1,235	$2,646

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

305 | PROSPECTUS



	1 Year	3 Years	5 Years	10 Years
Class C	$234	$721	$1,235	$2,646

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the 205% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment

PROSPECTUS | 306

purposes, in financial instruments that in combination have economic characteristics similar to the U.S. and Canadian high yield bond markets and/or in high yield debt securities.

PRINCIPAL RISKS

CURRENCY RISK — The Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that

307 | PROSPECTUS

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 also may incur transaction costs in connection with conversions between various currencies. The Fund may attempt to, but is not obligated to, hedge its currency exposure. However, currency hedging strategies may not effectively eliminate all currency risk.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

PROSPECTUS | 308

securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

OTC TRADING RISK—Certain of the derivatives in which the Fund may invest may be traded (and privately negotiated)

309 | PROSPECTUS

in the OTC market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated. As a result and similar to other privately negotiated contracts, the Fund is subject to counterparty credit risk with respect to such derivative contracts.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

TRADING HALT RISK — If a trading halt occurs, the Fund may temporarily be unable to purchase or sell securities, options or futures contracts. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 2.50% .

PROSPECTUS | 310



Highest Quarter Return		Lowest Quarter Return
Q3 2009	9.31%	Q1 2009	-13.23	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	6.05%	9.99%	6.37%
Return After Taxes on Distributions	-1.00%	7.15%	3.27%
Return After Taxes on Distributions and Sale of Fund Shares	3.41%	6.63%	3.56%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	7.44%	18.93%	8.56%



Class C	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	9.56%	10.25%	6.34%
Return After Taxes on Distributions	1.76%	7.26%	3.13%
Return After Taxes on Distributions and Sale of Fund Shares	5.40%	6.79%	3.51%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	7.44%	18.93%	8.56%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

311 | PROSPECTUS

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 312

INVERSE HIGH YIELD STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

Because the Fund seeks daily inverse investment results, the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from the inverse of the return of the high yield bond market for that period. As a consequence, especially in periods of market volatility, the path or trend of the high yield bond market during the longer period may be at least as important to the Fund’s return for the longer period as the cumulative return of the high yield bond market for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -1x) and the cumulative performance of the high yield bond market.

INVESTMENT OBJECTIVE

The Fund seeks to provide investment results that inversely correlate, before fees and expenses, to the performance of the high yield bond market.

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.54%	0.55%
Total Annual Fund Operating Expenses	1.54%	2.30%

313 | PROSPECTUS

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$624	$938	$1,275	$2,222
Class C	$333	$718	$1,230	$2,636

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



	1 Year	3 Years	5 Years	10 Years
Class C	$233	$718	$1,230	$2,636

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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 Fund also may invest in other financial instruments including corporate notes, convertible debt securities, preferred securities and derivatives thereof, as well as other investment companies, including exchange-traded funds ("ETFs"), unit investment trusts, and closed-end funds, that provide inverse exposure to the high yield debt market. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

PROSPECTUS | 314

PRINCIPAL RISKS

315 | PROSPECTUS

collateral securities and the class of the CLO in which the Fund invests.

PROSPECTUS | 316

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses .

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

317 | PROSPECTUS

ISSUER SPECIFIC RISK — The value of a security may increase or decrease for a number of reasons which directly relate to the issuer. For example, with respect to the Fund, perceived poor management performance, financial leverage or reduced demand of the issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities of an issuer or guarantor of a debt instrument may cause the value of your investment in the Fund to decrease.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SHORT SALES RISK — Short selling a security involves selling a borrowed security with the expectation that the value of the security will decline, so that the security may be purchased at a lower price when returning the borrowed security. The risk for loss on short selling is greater than the original value of the securities sold short because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Government actions also may affect the Fund’s ability to engage in short selling.

TRADING HALT RISK — If a trading halt occurs, the Fund may temporarily be unable to purchase or sell securities, options or futures contracts. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective.

PROSPECTUS | 318

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -5.32% .



Highest Quarter Return		Lowest Quarter Return
Q1 2009	10.17%	Q3 2009	-11.04	%

319 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-18.13%	-16.00%	-11.88%
Return After Taxes on Distributions	-18.13%	-16.05%	-12.03%
Return After Taxes on Distributions and Sale of Fund Shares	-10.26%	-11.05%	-8.15%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	7.44%	18.93%	8.56%



Class C	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-15.60%	-15.83%	-11.88%
Return After Taxes on Distributions	-15.60%	-15.89%	-12.03%
Return After Taxes on Distributions and Sale of Fund Shares	-8.83%	-10.95%	-8.14%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	7.44%	18.93%	8.56%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

PROSPECTUS | 320

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

321 | PROSPECTUS

EMERGING MARKETS BOND STRATEGY FUND

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75%	0.75%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.83%	0.64%
Short Sales Dividend and Interest Expense	0.25%	0.07%
Remaining Other Expenses	0.58%	0.57%
Total Annual Fund Operating Expenses	1.83%	2.39%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$652	$1,023	$1,418	$2,521
Class C	$342	$745	$1,275	$2,726

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



	1 Year	3 Years	5 Years	10 Years
Class C	$242	$745	$1,275	$2,726

PORTFOLIO TURNOVER

PROSPECTUS | 322

are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund will invest primarily in emerging markets credit default swaps, U.S. Treasury futures, and bonds. By investing in a combination of emerging markets credit default swaps, U.S. Treasury futures, and bonds, the Fund’s portfolio will have the characteristics of emerging markets bonds without having to invest directly in emerging markets bonds. 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. The Fund will normally be a seller of credit protection as it seeks to gain exposure to the emerging markets bond market. U.S. Treasury futures are derivatives that track the prices of specific U.S. Treasury securities. The emerging markets bond market tends to consist of bonds that are rated below investment grade (below BBB-/Baa3) by nationally recognized statistical rating organizations.

323 | PROSPECTUS

The Fund’s strategy may frequently involve buying and selling portfolio securities to rebalance the Fund’s exposure to various market sectors.

The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 324

CREDIT DEFAULT SWAP RISK — The Fund’s investments in credit default swaps may subject the Fund to greater risks than if the Fund were to invest directly in high yield bonds. When investing in credit default swaps, the Fund is exposed to the credit risk of both the counterparty to the credit default swap and the issuer of the underlying reference obligation. The Fund could realize a loss on its investment if it does not correctly evaluate the creditworthiness of the issuer of the bond or other reference obligation on which the credit default swap is based, as well as the continued creditworthiness of the counterparty. Investments in credit default swaps also are subject to liquidity risk.

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

EMERGING MARKETS RISK — The Fund’s investments may have exposure to emerging markets. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile because they are 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 the Advisor.

325 | PROSPECTUS

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

INVESTMENT IN INVESTMENT VEHICLES RISK — Investing in other investment vehicles, including, ETFs, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

ISSUER SPECIFIC RISK — The value of a security may increase or decrease for a number of reasons which directly relate to the issuer. For example, with respect to the Fund, perceived poor management performance, financial leverage or reduced demand of the issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities of an issuer or guarantor of a debt instrument may cause the value of your investment in the Fund to decrease.

LEVERAGING RISK — The Fund’s investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. The cost of investing in such instruments generally increases as interest rates increase, which will lower the Fund’s return.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

PROSPECTUS | 326

conditions. Moreover, changing economic, political or financial market conditions in one country or geographic region could adversely impact the market value of the securities held by the Fund in a different country or geographic region.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SOVEREIGN DEBT RISK —Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt.

TRADING HALT RISK — If a trading halt occurs, the Fund may temporarily be unable to purchase or sell securities, options or futures contracts. Such a trading halt near the time the Fund prices its shares may limit the Fund’s ability to use leverage and may prevent the Fund from achieving its investment objective.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund's website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

327 | PROSPECTUS

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”) excluding bond market holidays. You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments directly. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 328

LONG SHORT EQUITY FUND (FORMERLY, U.S. LONG SHORT MOMENTUM FUND)

INVESTMENT OBJECTIVE

The Long Short Equity Fund (the “Fund”) seeks long-term capital appreciation.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class A shares, Class C shares or Institutional shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in certain funds in the Guggenheim Investments family of funds. More information about these and other discounts is available from your financial professional and under the “Sales Charges” section on page 390 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 91 of the Fund’s Statement of Additional Information (the “SAI”).



	Class A	Class C	Institutional
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%	None
Other Expenses	1.19%	1.21%	1.21%
Short Sales Dividend and Interest Expense	0.66%	0.69%	0.69%
Remaining Other Expenses	0.53%	0.52%	0.52%
Acquired Fund Fees and Expenses	0.05%	0.05%	0.05%
Total Annual Fund Operating Expenses*	2.39%	3.16%	2.16%

EXAMPLE

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



	1 Year	3 Years	5 Years	10 Years
Class A	$706	$1,185	$1,690	$3,072
Class C	$419	$974	$1,654	$3,467
Institutional	$219	$676	$1,159	$2,493

329 | PROSPECTUS

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



	1 Year	3 Years	5 Years	10 Years
Class C	$319	$974	$1,654	$3,467

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 256% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

The Fund will invest, under normal circumstances, at least 80% of its assets (net assets plus the amount of borrowings for investment purposes) in long and short equity or equity-like securities, including individual securities and derivatives (based on their notional value for purposes of this 80% calculation) giving exposure (i.e., economic characteristics similar to) to different sectors or industries to which the Fund is seeking exposure. The Fund seeks to respond to the dynamically changing economy by moving its investments among different industries and styles (i.e., non-industry factors including, but not limited to, valuations, growth prospects and capitalization). The Advisor allocates investments to industries and styles according to several measures of momentum. Companies associated with industries and/or styles demonstrating positive momentum are favored while those experiencing negative momentum are disfavored. The Fund may hold both long and short positions. Equity positions are determined based on their associated industry and style momentum, risk characteristics, and liquidity. The Fund invests in equity securities, including small-, mid-, and large-capitalization securities, such as U.S. traded common stocks and American Depositary Receipts (“ADRs”), but also may invest in derivative instruments which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps and futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities of companies included in the different sectors or industries to which the Fund is seeking exposure. The Fund may invest in derivatives to hedge or gain leveraged exposure to a particular sector, industry or company depending on market conditions.

PROSPECTUS | 330

a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

331 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

PROSPECTUS | 332

may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

LEVERAGING RISK — The Fund’s investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed. As a result, such investments may give rise to losses that exceed the amount invested in those instruments. The cost of investing in such instruments generally increases as interest rates increase, which will lower the Fund’s return.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PORTFOLIO TURNOVER RISK—The Fund’s strategy may frequently involve buying and selling portfolio securities, which may lead to increased costs to the Fund. Portfolio turnover risk may cause the Fund’s performance to be less than you expect.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration

333 | PROSPECTUS

of the repurchase agreement term.

ENERGY SECTOR RISK—To the extent that the Fund’s investments are focused in the energy sector, the Fund is subject to the risk that the securities of such issuers will underperform the market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the energy and energy commodities sectors. The prices of the securities of energy companies also may fluctuate widely due to changes in value and dividend yield, which depend largely on the price and supply of energy fuels, international political events relating to oil producing countries, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies.

PROSPECTUS | 334

SHORT SALES RISK—Short selling a security involves selling a borrowed security with the expectation that the value of the security will decline, so that the security may be purchased at a lower price when returning the borrowed security. The risk for loss on short selling is greater than the original value of the security sold short because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Government actions also may affect the Fund’s ability to engage in short selling.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

The following bar chart shows the performance of the Class C shares of the Fund from year to year. The variability of performance over time provides an indication of the risks of investing in the Fund. The following tables show the performance of the Class A shares, Class C shares and Institutional shares of the Fund as an average over different periods of time in comparison to the performance of a broad-based market index. The figures in the bar chart and tables assume the reinvestment of dividends and capital gains distributions but do not reflect sales charges. If they did, returns would be lower. Of course, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. On May 28, 2010 and October 30, 2013, the Fund’s principal investment strategies were revised; therefore, the performance and average annual total returns shown for periods prior to May 28, 2010 and October 30, 2013 may have differed had the Fund’s current investment strategy been in effect during those periods.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is -0.79% .



Highest Quarter Return		Lowest Quarter Return
Q3 2009	15.68%	Q4 2008	-21.85	%

335 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Past 5 Years	Since Inception (3/31/2004)
Return Before Taxes	12.59%	8.99%	4.43%
Return After Taxes on Distributions	12.59%	8.96%	4.20%
Return After Taxes on Distributions and Sale of Fund Shares	7.13%	7.10%	3.52%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	11.14%	3.04%	0.10%
Russell 3000^® Index(reflects no deduction for fees, expenses or taxes)	33.55%	18.71%	7.85%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	16.30%	9.22%	4.33%
Return After Taxes on Distributions	16.30%	9.19%	4.10%
Return After Taxes on Distributions and Sale of Fund Shares	9.23%	7.29%	3.45%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	11.14%	3.04%	0.39%
Russell 3000^® Index(reflects no deduction for fees, expenses or taxes)	33.55%	18.71%	7.88%



Institutional	Past 1 Year	Since Inception (11/30/2011)
Return Before Taxes	18.43%	10.92%
Return After Taxes on Distributions	18.43%	10.90%
Return After Taxes on Distributions and Sale of Fund Shares	10.43%	8.42%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	11.14%	7.15%
Russell 3000^® Index(reflects no deduction for fees, expenses or taxes)	33.55%	24.06%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.

PROSPECTUS | 336


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

To purchase Institutional shares of the Fund, you generally must invest a minimum amount of $2 million in the Fund or meet certain other eligibility criteria. The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Class A and Class C accounts opened through a financial intermediary (non-direct) will be subject to your financial intermediary’s minimum initial investment amount and minimum account balance requirements, which may be different than the amounts above.

Class A and Class C accounts held directly at Guggenheim Investments (other than those that are managed by financial professionals) are subject to a minimum initial investment and account balance of $5,000. Class A and Class C direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

For Institutional shares, if you are deemed to be an “eligible investor” by virtue of an initial investment directly with the Fund’s transfer agent or through a financial intermediary in an amount of $2 million or more, your account may be subject to a minimum account balance requirement of $1 million.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you. For questions about Institutional shares investor eligibility requirements, contact Guggenheim Investments Client Services at 800.820.0888 or 301.296.5100.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

337 | PROSPECTUS

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

INVESTMENT OBJECTIVE

The Event Driven and Distressed Strategies Fund (the “Fund”) seeks to achieve capital growth.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class A shares,Class C shares or Institutional shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in certain funds in the Guggenheim Investments family of funds. More information about these and other discounts is available from your financial professional and under the “Sales Charges” section on page 390 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 91 of the Fund’s Statement of Additional Information (the “SAI”).



	Class A	Class C	Institutional
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90%	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%	None
Other Expenses	0.87%	0.87%	0.87%
Acquired Fund Fees and Expenses	0.01%	0.01%	0.01%
Total Annual Fund Operating Expenses*	2.03%	2.78%	1.78%
Fee Waiver and/or Expense Reimbursement**	0.12%	0.12%	0.12%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement*	1.91%	2.66%	1.66%

The Advisor has contractually agreed to reduce fees and/or reimburse expenses to the extent necessary to keep net operating expenses for Class A shares, Class C shares and Institutional Class Shares (including Rule 12b-1 fees (if any), but exclusive of brokerage costs, dividends on securities sold short, expenses of other investment companies in which the Fund invests, interest, taxes, litigation, indemnification, and extraordinary expenses (as determined under generally accepted accounting principles) (“Excluded Expenses”)) from exceeding 1.90%, 2.65% and 1.65%, respectively, of the Fund’s Class A shares, Class C shares and Institutional shares average daily net assets. 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 1.90%, 2.65% and 1.65%, respectively. This Agreement may be terminated only with the approval of the Fund’s Board of Trustees. In any event, this undertaking will continue for at least twelve months from the date of this Prospectus.

EXAMPLE

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

The Example assumes that you invest $10,000 in the Fund for the time periods indicated, and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses (including one year of capped expenses each period) remain the same.

PROSPECTUS | 338

Although your actual costs may be higher or lower, based on these assumptions your costs would be:



	1 Year	3 Years	5 Years	10 Years
Class A	$660	$1,070	$1,506	$2,712
Class C	$369	$851	$1,459	$3,100
Institutional	$169	$549	$953	$2,085

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



	1 Year	3 Years	5 Years	10 Years
Class C	$269	$851	$1,459	$3,100

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 161% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

339 | PROSPECTUS

In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. The Fund also may engage in frequent and active trading or portfolio investments to achieve its investment objective. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments. The Fund also may enter into short sales of broad-based stock indices for hedging purposes in an effort to reduce portfolio risk or volatility. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. On a day-to-day basis, the Fund may hold U.S. g overnment securities, short-term, high quality (rated AA or higher) fixed income securities, money market instruments, overnight and fixed-term repurchase agreements, cash and other cash equivalents with maturities of one year or less to collateralize its derivatives positions or for defensive purposes to seek to avoid losses during adverse market conditions. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct significant trading activity at or just prior to the close of the U.S. financial markets. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

PROSPECTUS | 340

grade or equivalent unrated loans. The cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to CLO securities as a class. The risks of an investment in a CLO depend largely on the type of the collateral securities and the class of the CLO in which the Fund invests.

COUNTERPARTY CREDIT RISK— The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

DERIVATIVES RISK— The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

341 | PROSPECTUS

EARLY CLOSING RISK — The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

PROSPECTUS | 342

LARGE-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

MARKET RISK— The market value of the securities and derivatives held by the Fund may fluctuate resulting from factors affecting the individual company or other factors such as changing economic, political or financial market conditions. Moreover, changing economic, political or financial market conditions in one country or geographic region could adversely impact the market value of the securities held by the Fund in a different country or geographic region.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PORTFOLIO TURNOVER RISK—The Fund’s strategy may frequently involve buying and selling portfolio securities, which may lead to increased costs to the Fund. Portfolio turnover risk may cause the Fund’s performance to be less than you expect.

343 | PROSPECTUS

decline, because issuers of the securities may be able to prepay the principal due on the securities, and may offer a greater potential for income loss when interest rates rise.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

SHORT SALES RISK—Short selling a security involves selling a borrowed security with the expectation that the value of the security will decline, so that the security may be purchased at a lower price when returning the borrowed security. The risk for loss on short selling is greater than the original value of the security sold short because the price of the borrowed security may rise, thereby increasing the price at which the security must be purchased. Government actions also may affect the Fund’s ability to engage in short selling.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below for Class C shares is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 0.18% .



Highest Quarter Return		Lowest Quarter Return
Q4 2011	7.74%	Q3 2011	-11.12	%

PROSPECTUS | 344

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



Class A	Past 1 Year	Since Inception (6/30/2010)
Return Before Taxes	6.19%	7.12%
Return After Taxes on Distributions	3.99%	5.35%
Return After Taxes on Distributions and Sale of Fund Shares	4.00%	4.85%
S&P 500^® Index(reflects no deduction for fees, expenses or taxes)	32.39%	20.69%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	10.88%	9.74%



Class C	Past 1 Year	Since Inception (6/30/2010)
Return Before Taxes	9.62%	7.77%
Return After Taxes on Distributions	7.27%	5.96%
Return After Taxes on Distributions and Sale of Fund Shares	5.98%	5.36%
S&P 500^® Index(reflects no deduction for fees, expenses or taxes)	32.39%	20.69%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	10.88%	9.74%



Institutional	Past 1 Year	Since Inception (6/30/2010)
Return Before Taxes	11.74%	8.90%
Return After Taxes on Distributions	9.45%	7.11%
Return After Taxes on Distributions and Sale of Fund Shares	7.17%	6.25%
S&P 500^® Index(reflects no deduction for fees, expenses or taxes)	32.39%	20.69%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	10.88%	9.74%

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

345 | PROSPECTUS

PURCHASE AND SALE OF FUND SHARES


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 346

U.S. GOVERNMENT MONEY MARKET FUND

INVESTMENT OBJECTIVE

The U.S. Government Money Market Fund (the “Fund”) seeks to provide security of principal, high current income, and liquidity.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.



SHAREHOLDER FEES* (fees paid directly from your investment)	N/A
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.50	%
Distribution and Shareholder Service (12b-1) Fees	0.00	%
Other Expenses	0.43	%
Total Annual Fund Operating Expenses	0.93	%


*	If you exchange your Class A shares or Class C shares of another Guggenheim Investments fund for shares of the Fund, and your Class A shares or Class C shares are subject to a deferred sales charge at the time of the exchange, no deferred sales charge will be incurred on the exchange itself. However, any such deferred sales charge will be assessed at the time you redeem your shares of the Fund.

EXAMPLE

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



1 Year	3 Years	5 Years	10 Years
$95	$296	$515	$1,143

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 0% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

347 | PROSPECTUS

the Fund must have remaining maturities of 397 days or less, and must be found by the Advisor to represent minimal credit risk and be of eligible quality.

PRINCIPAL RISKS – As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. In addition to this risk, the Fund is subject to a number of additional risks that may affect the value of its shares, including:

CREDIT RISK— The Fund could lose money if the issuer or guarantor of a debt instrument in which it invests or a counterparty to a derivatives transaction or other transaction becomes unwilling or unable to make timely principal and/or interest payments, or to otherwise meet its obligations. The issuer of a debt instrument, such as a bond, could also suffer a decrease in quality rating, which may affect the volatility of the price and liquidity of the bond.

INCOME RISK — Income Risk involves the potential for decline in the Fund’s yield (the rate of dividends the Fund pays) in the event of declining interest rates.

INTEREST RATE RISK— The market value of fixed income investments and related financial instruments will change in response to interest rate changes. During periods of falling interest rates, the values of fixed income securities generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Fixed income securities with longer durations are subject to greater volatility than those with shorter durations. Thus, if interest rates rise sharply, the value of the Fund’s fixed income investments and share price could decline. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

REPURCHASE AGREEMENT RISK — The Fund’s investment in repurchase agreements may be subject to market and credit risk with respect to the repurchase agreement counterparty and underlying collateral securing the repurchase agreements. Investments in repurchase agreements also may be subject to the risk that the market value of the underlying obligations may decline prior to the expiration of the repurchase agreement term.

PERFORMANCE INFORMATION

Effective upon the close of business on June 15, 2012, the Fund converted its existing Investor Class Shares, Advisor Class Shares, A-Class Shares, C-Class Shares and Investor2 Class Shares with a single share class. Therefore, the returns shown in the bar chart below for periods prior to June 15, 2012 are the returns of the Fund’s former Investor Class Shares, which were subject to the same fees and expenses as the shares offered in this Prospectus. The Fund’s shares would have annual returns substantially similar to those of the former Investor Class Shares because they are invested in the same portfolio of securities. The variability of performance over time provides an indication of the risks of investing the Fund. Of course, this past performance (before taxes) does not necessarily indicate how the Fund will perform in the future.

Updated performance information is available on the Fund’s website at www.guggenheiminvestments.com or by calling Guggenheim Investments Client Services at 800.820.0888.

The performance information shown below is based on a calendar year. The year-to-date return for the period from January 1, 2014 through June 30, 2014 is 0.00%.

PROSPECTUS | 348



Highest Quarter Return		Lowest Quarter Return
Q4 2006	1.10%	Q3 2013	0.00	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2013)



	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.00%	0.01%	1.27%

YIELD

Call 800.820.0888 for the U.S. Government Money Market Fund’s current yield.

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

Shares of the Money Market Fund held either directly with Guggenheim Investments or through a third party ( e.g. , a brokerage account) are not subject to a minimum initial investment amount or a minimum account balance. However, if you exchange shares of the Fund for shares of another fund in the Guggenheim Investments family of funds you will be subject to the purchaser eligibility requirements of the applicable share class of that fund, which may include initial investment amount and account balance requirements. Any such requirements will be disclosed in each fund’s prospectus. In addition, accounts opened through a financial intermediary (non-direct) may be subject to that financial intermediary’s minimum initial investment amount and account balance requirements.

349 | PROSPECTUS

The Fund redeems its shares continuously and investors may sell their shares back to the Fund on any day that the New York Stock Exchange (the “NYSE”) is open for business (a “Business Day”). You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account or through Guggenheim Investments if you opened your account directly with the Fund. The Fund also offers you the option to send redemption orders to Guggenheim Investments by mail, fax or telephone.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 350

MORE INFORMATION ABOUT THE TRUST AND THE FUNDS

Rydex Series Funds (the “Trust”) is a Delaware statutory trust offering a number of professionally managed investment portfolios, or funds, that are grouped into several categories according to each fund’s investment strategy. This Prospectus describes the Class A shares, Class C shares and Institutional shares of the Funds listed below, as well as shares of the U.S. Government Money Market Fund (each, a “Fund” and collectively, the “Funds”).

The acquisition of shares of the Trust’s funds by other registered investment companies is subject to the restrictions of Section 12(d)(1) of the 1940 Act. The Trust, however, has been granted an exemptive order by the U.S. Securities and Exchange Commission (the "SEC") that permits registered investment companies to invest in the Trust’s funds beyond those limitations subject to conditions set forth in the exemptive order. The Nova Fund, Inverse S&P 500 ^® Strategy Fund, NASDAQ-100 ^® Fund, Inverse NASDAQ-100 ^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000 ^® 1.5x Strategy Fund, Inverse Russell 2000 ^® Strategy Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Long Short Equity Fund, Event Driven and Distressed Strategies Fund and Emerging Markets Bond Strategy Fund (collectively, the "Ineligible Funds"), however, are not currently eligible for investment in excess of the Section 12(d)(1) limitations in reliance on the Trust's exemptive order. Accordingly, registered investment companies that would like to invest in those Funds must adhere to the limits set forth in Section 12(d)(1) of the 1940 Act when investing in the Funds.

DOMESTIC EQUITY FUNDS

SECTOR FUNDS

INTERNATIONAL EQUITY FUNDS

Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Emerging Markets 2x Strategy Fund, and Inverse Emerging Markets 2x Strategy Fund

SPECIALTY FUNDS

Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Real Estate 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 and Emerging Markets Bond Strategy Fund

ALTERNATIVE FUNDS

Long Short Equity Fund and Event Driven and Distressed Strategies Fund

INVESTMENT OBJECTIVES

The investment objective of each Fund is non-fundamental and may be changed without shareholder approval.

The following sections provide additional information regarding certain of the Funds’ investment objectives.

351 | PROSPECTUS

Government Long Bond 1.2x Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares should increase on a daily basis by 120% of any price increase by the Long Treasury Bond. In contrast, when the price of the Long Treasury Bond declines, the value of the Fund’s shares should decline on a daily basis by 120% of any price decline of the Long Treasury Bond (e.g., if the Long Treasury Bond goes down by 5%, the value of the Fund’s shares should go down by 6% on that day).

PROSPECTUS | 352

PRINCIPAL INVESTMENT STRATEGIES

The following Funds – Mid-Cap 1.5x Strategy Fund, Nova Fund, Russell 2000^® 1.5x Strategy Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Emerging Markets 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund – are invested to achieve returns that exceed the returns of the indices underlying their benchmarks. These leveraged returns are achieved not by borrowing, but by the use of futures contracts and options on securities, futures contracts, and stock indices, and other instruments that simulate leveraged returns without requiring a commitment of cash in excess of the Fund’s assets.

353 | PROSPECTUS

For the Inverse Mid-Cap Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Inverse Russell 2000^® Strategy Fund, Inverse S&P 500 Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Inverse Government Long Bond Strategy Fund, the Advisor uses short selling techniques to produce returns that move inversely to the performance of their respective underlying indices.

PROSPECTUS | 354

similar to the high yield bond market. A seller of credit default swaps is selling credit protection or assuming credit risk. A buyer of credit default swaps is buying credit protection or mitigating credit risk. The High Yield Strategy Fund will generally be a seller of credit protection and the Inverse High Yield Strategy Fund will generally be a buyer of credit protection. To manage interest rate risk, the Funds invest in bond futures. The High Yield Strategy Fund will typically buy bond futures, whereas the Inverse High Yield Strategy Fund will typically sell bond futures short. Additionally, the Advisor evaluates the relative liquidity of underlying securities to determine the optimal mix of assets for each Fund.

IMPORTANT INFORMATION REGARDING FUNDS THAT SEEK LEVERAGED AND INVERSE INVESTMENT RESULTS

As discussed in each Fund’s Summary section, the Funds’ performance is subject to the effects of compounding and leverage, which are discussed in more detail below.

355 | PROSPECTUS

UNDERSTANDING COMPOUNDING & THE EFFECT OF LEVERAGE

PROSPECTUS | 356

357 | PROSPECTUS

MARKET VOLATILITY.

Table 1



Benchmark Annualized Volatility Range	Hypothetical 2x Leveraged Fund Loss	Hypothetical 2x Inverse Fund Loss
10%	-1.0%	-2.9%
20%	-3.9%	-11.3%
30%	-8.6%	-23.6%
40%	-14.8%	-38.0%
50%	-22.2%	-52.7%
60%	-30.4%	-66.0%
70%	-39.1%	-77.1%
80%	-47.5%	-85.3%
90%	-56.2%	-91.3%
100%	-64.0%	-95.1%

PROSPECTUS | 358

Table 2



Index	Volatility Average for the Five Year Period Ended June 30, 2014
S&P 500^® Index	3.87%
S&P MidCap 400^® Index	4.65%
Russell 2000^® Index	5.26%
NASDAQ-100 Index^®	4.49%
Nikkei 225 Stock Average	5.62%
BNY Mellon Emerging Markets 50 ADR Index	5.82%
STOXX Europe 50^® Index	6.99%
U.S. Dollar Index^®	2.38%

359 | PROSPECTUS

The following charts set out a range of hypothetical daily performances during a given 10 trading days of an index and demonstrate how changes in the index affect a Daily Leveraged Fund’s and Leveraged Inverse Fund’s performance for a trading day and cumulatively up to, and including, the entire 10 trading day period. The charts are based on a hypothetical $100 investment in a Daily Leveraged Fund and Leveraged Inverse Fund over a 10 trading day period and do not reflect expenses of any kind.

TABLE 1: NO CLEAR TREND IN THE MARKET



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	105	5.00%	5.00%	$110.00	10.00%	10.00%	$90.00	-10.00%	-10.00%
Day 2	110	4.76%	10.00%	$120.48	9.52%	20.48%	$81.43	-9.52%	-18.57%
Day 3	100	-9.09%	0.00%	$98.57	-18.18%	-1.43%	$96.23	18.18%	-3.77%
Day 4	90	-10.00%	-10.00%	$78.86	-20.00%	-21.14%	$115.48	20.00%	15.48%
Day 5	85	-5.56%	-15.00%	$70.10	-11.11%	-29.90%	$128.31	11.11%	28.31%
Day 6	100	17.65%	0.00%	$94.83	35.29%	-5.17%	$83.03	-35.29%	-16.97%
Day 7	95	-5.00%	-5.00%	$85.35	-10.00%	-14.65%	$91.33	10.00%	-8.67%
Day 8	100	5.26%	0.00%	$94.34	10.53%	-5.66%	$81.71	-10.53%	-18.29%
Day 9	105	5.00%	5.00%	$103.77	10.00%	3.77%	$73.54	-10.00%	-26.46%
Day 10	100	-4.76%	0.00%	$93.89	-9.52%	-6.11%	$80.55	9.52%	-19.45%

TABLE 2: CLEAR TREND THAT MARKET RISES



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	102	2.00%	2.00%	$104.00	4.00%	4.00%	$96.00	-4.00%	-4.00%
Day 2	104	1.96%	4.00%	$108.08	3.92%	8.08%	$92.24	-3.92%	-7.76%
Day 3	106	1.92%	6.00%	$112.24	3.85%	12.24%	$88.69	-3.85%	-11.31%
Day 4	108	1.89%	8.00%	$116.47	3.77%	16.47%	$85.34	-3.77%	-14.66%
Day 5	110	1.85%	10.00%	$120.78	3.70%	20.78%	$82.18	-3.70%	-17.82%
Day 6	112	1.82%	12.00%	$125.18	3.64%	25.18%	$79.19	-3.64%	-20.81%
Day 7	114	1.79%	14.00%	$129.65	3.57%	29.65%	$76.36	-3.57%	-23.64%
Day 8	116	1.75%	16.00%	$134.20	3.51%	34.20%	73. 68	-3.51%	-26.32%
Day 9	118	1.72%	18.00%	$138.82	3.45%	38.82%	$71.14	-3.45%	-28.86%
Day 10	120	1.69%	20.00%	$143.53	3.39%	43.53%	$68.73	-3.39%	-31.27%

PROSPECTUS | 360

TABLE 3: CLEAR TREND THAT MARKET DECLINES



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	98	-2.00%	-2.00%	$96.00	-4.00%	-4.00%	$104.00	4.00%	4.00%
Day 2	96	-2.04%	-4.00%	$92.08	-4.08%	-7.92%	$108.24	4.08%	8.24%
Day 3	94	-2.08%	-6.00%	$88.24	-4.17%	-11.76%	$112.76	4.17%	12.76%
Day 4	92	-2.13%	-8.00%	$84.49	-4.26%	-15.51%	$117.55	4.26%	17.55%
Day 5	90	-2.17%	-10.00%	$80.82	-4.35%	-19.18%	$122.66	4.35%	22.66%
Day 6	88	-2.22%	-12.00%	$77.22	-4.44%	-22.78%	$128.12	4.44%	28.12%
Day 7	86	-2.27%	-14.00%	$73.71	-4.55%	-26.29%	$133.94	4.55%	33.94%
Day 8	84	-2.33%	-16.00%	$70.29	-4.65%	-29.71%	$140.17	4.65%	40.17%
Day 9	82	-2.38%	-18.00%	$66.94	-4.76%	-33.06%	$146.84	4.76%	46.84%
Day 10	80	-2.44%	-20.00%	$63.67	-4.88%	-36.33%	$154.01	4.88%	54.01%

PRINCIPAL INVESTMENT RISKS

ACTIVE TRADING RISK —The Advisor expects a significant portion of the Fund’s assets to come from investors who take part in certain strategic and tactical asset allocation programs that involve frequent trading to take advantage of anticipated changes in market conditions. Frequent trading could increase the rate of the Fund’s portfolio turnover, which correspondingly may increase the transaction expenses borne by the Fund, including brokerage commissions or dealer mark-ups/markdowns and other transaction costs on the sale of securities and reinvestments in other securities. The trading costs associated with portfolio turnover may adversely affect the Fund’s performance. In addition, large movements of assets into and out of the Fund may have a negative impact on its ability to achieve its investment objective or its desired level of operating expenses. The risks associated with frequent trading activity and high portfolio turnover will have a negative impact on longer-term investments.

361 | PROSPECTUS

PROSPECTUS | 362

CREDIT RISK — It is possible that some issuers of fixed-income securities will not make payments on debt securities and derivatives held by the Fund or there could be defaults on repurchase agreements held by the Fund. This risk may be especially acute with respect to high yield securities ( i.e., “junk bonds”). Also, an issuer may suffer adverse changes in its financial condition that could lower the credit quality of a security, leading to greater volatility in the price of the security and in shares of the Fund. A change in the credit quality rating of a security can affect its liquidity and make it more difficult for the Fund to sell. Any applicable limitation on the credit quality of a security in which the Fund may invest is applied at the time the Fund purchases the security.

363 | PROSPECTUS

PROSPECTUS | 364

of the euro may adversely affect the Fund’s performance.

365 | PROSPECTUS

any potential leveraging of the Fund’s portfolio. However, such segregation or “earmarking” will not limit the Fund’s exposure to loss.

The Advisor has claimed an exclusion from the definition of CPO pursuant to CFTC Regulation 4.5 with respect to the S&P 500 ^® Fund, NASDAQ-100 ^® Fund, Russell 2000 ^® Fund, 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, Sector Funds, Real Estate Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, Long Short Equity Fund, and U.S. Government Money Market Fund(the “eligible Funds”). Accordingly, neither the eligible Funds nor the Advisor (with respect to the eligible Funds) is subject to registration as a CPO under the CEA or regulation by the CFTC. To remain eligible for the exclusion, each of the eligible Funds will be limited in its ability to use financial instruments subject to regulation by the CFTC. In the event that an eligible Fund’s investments in such financial instruments are not within the thresholds set forth in the exclusion, the Advisor may be required to register as a CPO under the CEA with respect to that Fund. The Advisor’s eligibility to claim the exclusion with respect to a Fund will be based upon, among other things, the level and scope of the Fund’s investment in financial instruments subject to regulation by the CFTC, the purposes of such investments and the manner in which the Fund holds out its use of commodity interests. Each eligible Fund’s ability to invest in such financial instruments is limited by the Advisor’s intention to operate the Fund in a manner that would permit the Advisor to continue to claim the exclusion pursuant to CFTC Regulation 4.5, which may adversely affect the Fund’s total return. In the event the Advisor becomes unable to rely on the exclusion and is required to register with the CFTC as a CPO with respect to a Fund, the Fund’s expenses may increase, adversely affecting that Fund’s total return.

PROSPECTUS | 366

367 | PROSPECTUS

PROSPECTUS | 368

equity market, or factors relating to specific companies to which the Fund has investment exposure. Equity securities generally have greater price volatility than fixed income securities.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and ETFs, that are indirectly linked to the performance of foreign issuers. The High Yield Strategy Fund and Inverse High Yield Strategy Fund may invest in instruments that are linked to the performance of foreign issuers, primarily Canadian 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 not typically associated with investing in U.S. issuers. The value of financial instruments denominated in foreign currencies, and of distributions from such financial instruments, 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 financial instruments 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

369 | PROSPECTUS

HIGH YIELD AND UNRATED SECURITIES RISK — The Fund may invest in high yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”). High yield securities generally pay higher yields (greater income) than investment in higher quality securities; however, high yield securities may be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities, and are considered predominantly speculative with respect to an issuer’s continuing ability to make principal and interest payments. Successful investment high yield securities and unrated securities of similar quality involves greater investment risk and is highly dependent on the Advisor’s credit analysis. The value of these securities often fluctuates in response to company, political or economic developments and declines significantly over short periods of time or during periods of general economic difficulty. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the ability of the Fund to sell these securities (liquidity risk). These securities

PROSPECTUS | 370

INVESTMENT IN INVESTMENT VEHICLES RISK —The Fund may purchase shares of investment companies, such as ETFs, mutual funds, unit investment trusts, and closed-end investment companies, which may trade at a discount to their NAV, to gain exposure to a particular portion of the market while awaiting an opportunity to purchase securities directly or when such investments present a more cost efficient alternative to investing directly in securities. When the Fund invests in an investment company, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the investment company’s expenses. Further, in part because of these additional expenses, the performance of an investment company may differ from the performance the Fund would achieve if it invested directly in the underlying investments of the investment company. In addition, while the risks of owning shares of an investment company generally reflect the risks of owning the underlying investments of the investment company, the Fund may be subject to additional or different risks than if the Fund had invested directly

371 | PROSPECTUS

EXCHANGE-TRADED FUND (ETF) RISK— Certain of the Funds may invest in shares of ETFs to gain exposure to their respective investment objectives. ETFs are pooled investment vehicles, which may be managed or unmanaged, that generally seek to track the performance of a specific index. Although individual shares of an ETF are traded on an exchange (such as the NYSE or NASDAQ), large blocks of shares of ETFs are redeemable at NAV. This ability to redeem large blocks of shares has historically resulted in the market price of individual shares of ETFs being at or near the NAV of the ETF’s underlying investments. However, shares of ETFs may trade below their NAV. The NAV of shares will fluctuate with changes in the market value of the ETF’s holdings. The trading prices of shares will fluctuate in accordance with changes in NAV as well as market supply and demand. The difference between the bid price and ask price, commonly referred to as the “spread,” will also vary for an ETF depending on the ETF’s trading volume and market liquidity. Generally, the greater the trading volume and market liquidity, the smaller the spread is and vice versa. Any of these factors may lead to an ETF’s shares trading at a premium or a discount to NAV. The Fund, from time to time, may invest in exchange-traded investment funds that are not registered pursuant to the 1940 Act. Such exchange-traded investment funds may include commodity pools that are registered pursuant to the Securities Act of 1933 and the Commodity Exchange Act.

INVESTMENT IN LOANS RISK — Loans, such as syndicated bank loans, senior floating rate loans, secured and unsecured loans, second lien or more junior loans, bridge loans and unfunded commitments, may incur some of the same risks as other debt securities, such as prepayment risk, credit risk, interest rate risk, liquidity risk and risks found with high yield securities. Although some loans are secured by collateral, the collateral may be difficult to liquidate and the value of the collateral can decline or be insufficient to meet the obligation of the borrower. The Fund could also have its interest subordinated to other indebtedness of the obligor. As a result, a loan may not be fully collateralized and can decline significantly in value, which may result in the Fund not receiving payments to which it is entitled.

Loans may offer a fixed rate or floating rate of interest. Loans may decline in value if their interest rates do not rise as much or as fast as interest rates in general.

PROSPECTUS | 372

of judgment may play a greater role in valuation than for securities with a more active secondary market, because there is less reliable, objective market value data available.

373 | PROSPECTUS

“Calculating Net Asset Value.”

PROSPECTUS | 374

REPURCHASE AGREEMENT RISK—The Fund will enter into repurchase agreements, which are transactions in which the Fund purchases securities or other obligations from a bank or securities dealer and simultaneously commits to resell them to a counterparty at an agreed-upon date or upon demand and at a price reflecting a market rate of interest unrelated to the coupon rate or maturity of the purchased obligations. The Fund will enter into repurchase agreements only with counterparties that the Advisor believes present acceptable credit risks, and the collateral securing the repurchase agreements generally will be limited to U.S. government securities and cash. If the market value of the underlying obligations of a repurchase agreement declines, the counterparty must provide additional collateral so that at all times the value of the collateral is greater than the repurchase price of the underlying obligations. Nonetheless, should a counterparty become insolvent or otherwise default, there could be a delay before the Fund is able to liquidate the collateral, which would subject the collateral and the Fund to market risk during that period.

SECTOR RISK—The Sector Risk applicable to each Fund is as follows:

BANKING SECTOR RISK— The risk that the securities of issuers in the banking sector that the Banking Fund and Long Short Equity Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the banking sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the banking sector. For example, government regulations may limit both the amounts and types of loans and financial commitments banking companies can make, and the interest rates and fees they can charge and the amount of capital they must maintain, which may affect the profitability of banking companies. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of Banking Companies. The prices of the securities of Banking Companies may fluctuate widely due to the broadening of regional and national interstate banking powers, the reduction in the number of publicly-traded Banking Companies, and general economic conditions that could create exposure to credit losses.

BASIC MATERIALS SECTOR RISK— The risk that the securities of issuers in the basic materials sector that the Basic Materials Fund and Long Short Equity Fund purchase will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the basic materials sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the basic materials sector. The prices of the securities of Basic Materials Companies may fluctuate widely due to the level and volatility of commodity prices, the exchange value of the U.S. dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

BIOTECHNOLOGY SECTOR RISK—The risk that the securities of issuers in the biotechnology sector that the Biotechnology Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the biotechnology sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the biotechnology sector. The prices of the securities of Biotechnology Companies may fluctuate widely due to patent considerations, intense competition, rapid technological change and obsolescence, and regulatory requirements of the Food and Drug Administration, the Environmental Protection Agency, state and local governments, and foreign regulatory authorities.

CONSUMER PRODUCTS SECTOR RISK—The risk that the securities of issuers in the consumer products sector that the Consumer Products Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the consumer products sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the consumer products sector. The performance of Consumer Products Companies has historically been closely tied to the performance of the overall economy, and also is affected by interest rates, competition, consumer confidence and relative levels of disposable household income and seasonal consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products in the marketplace.

ELECTRONICS SECTOR RISK—The risk that the securities of issuers in the electronics sector that the Electronics Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the electronics sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that economic sector. The prices of the securities of Electronics Companies may fluctuate widely due to risks of rapid obsolescence of products, intense

375 | PROSPECTUS

competition, the economic performance of their customers, high technology and research costs, and may face competition from subsidized foreign competitors with lower production costs.

ENERGY SECTOR RISK— The risk that the securities of, or financial instruments tied to the performance of, issuers in the energy sector and energy sector commodities that the Energy Fund and Long Short Equity Fund purchase will underperform the market as a whole either by declining in value or failing to perform as well. To the extent that a Fund’s investments are exposed to issuers conducting business in the energy sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the energy and energy commodities sectors. The prices of the securities of Energy Companies and energy sector commodities may fluctuate widely due to changes in value and dividend yield, which depend largely on the price and supply of energy fuels, international political events relating to oil producing countries, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies.

ENERGY SERVICES SECTOR RISK—The risk that the securities of issuers in the energy services sector that the Energy Services Fund purchases will underperform the market as a whole. To the extent that the Fund’s investments are exposed to issuers conducting business in the energy services sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the energy services sector. The prices of the securities of Energy Services Companies may fluctuate widely due to the supply and demand both for their specific products or services and for energy products in general, the price of oil and gas, exploration and production spending, governmental regulation and environmental issues, and world events and economic conditions generally affecting energy supply companies.

FINANCIAL SERVICES SECTOR RISK— The risk that the securities of issuers in the financial services sector that the Financial Services Fund and Long Short Equity Fund purchase will underperform the market as a whole. To the extent that a Fund’s investments are exposed to issuers conducting business in the financial services sector, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the financial services sector. Financial services companies are subject to extensive governmental regulation which may limit both the amounts and types of loans and other financial commitments they can make, and the interest rates and fees they can charge. Profitability is largely dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change or due to increased competition. In addition, the recent deterioration of the credit markets generally has caused an adverse impact in a broad range of markets, including U.S. and international credit and interbank money markets generally, thereby affecting a wide range of financial institutions and markets. Recent events in the financial sector have resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign, and caused certain financial services companies to incur large losses. Numerous financial services companies have experienced substantial declines in the valuations of their assets, taken action to raise capital (such as the issuance of debt or equity securities), or even ceased operations. These actions have caused the securities of many financial services companies to experience a dramatic decline in value. Credit losses resulting from financial difficulties of borrowers and financial losses associated with investment activities can negatively impact the sector. Insurance companies may be subject to severe price competition.

PROSPECTUS | 376

377 | PROSPECTUS

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A Fund's status as a regulated investment company under the Internal Revenue Code has no bearing on the Fund's status as an investment company under the 1940 Act.

379 | PROSPECTUS

of leverage to increase exposure to their respective underlying indices.

PORTFOLIO HOLDINGS

A description of the Funds’ policies and procedures with respect to the disclosure of Fund portfolio securities is available in the SAI.

COMPARABLE INDEX INFORMATION

The Event Driven and Distressed Strategies Fund employs an investment methodology that is similar to that used to compile the Credit Suisse Event Driven Liquid Index.

Credit Suisse Event Driven Liquid Index - The Credit Suisse Event Driven Liquid Index aims to synthetically replicate the performance of the Dow Jones Credit Suisse Event Driven Hedge Fund Index, which is non-investable, by using non-hedge fund, liquid tradable securities selected and weighted according to an algorithm. The Dow Jones Credit Suisse Event Driven Hedge Fund Index is an asset-weighted index containing event driven hedge fund constituents. Event driven hedge funds generally make short and long investments in the securities of corporations experiencing substantial change as a result of such corporate actions as liquidation, bankruptcy, emergence from bankruptcy, divestitures, acquisitions, or mergers. Event driven hedge funds may specialize in distressed debt, distressed equities, Regulation D transactions, capital structure arbitrage, merger arbitrage or other special situations, or they may invest across multiple event driven strategies. Such strategies typically involve buying long or selling short certain securities in the capital structures of various corporations representing a broad range of both debt and equity securities.

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More detailed information about the Credit Suisse Event Driven Liquid Index can be found on the Credit Suisse website and in the SAI under “More Information About the Comparable Index.”

MANAGEMENT OF THE FUNDS

INVESTMENT ADVISOR



Fund	Advisory Fee
Nova Fund	0.75	%
S&P 500^® Fund	0.75	%
Inverse S&P 500^® Strategy Fund	0.90	%
NASDAQ-100^® Fund	0.75	%
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	%

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Fund	Advisory Fee
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	%
Sector Funds (Except for the Precious Metals Fund)	0.85	%
Precious Metals Fund	0.75	%
Europe 1.25x Strategy Fund	0.90	%
Japan 2x Strategy Fund	0.75	%
Emerging Markets 2x Strategy Fund	0.90	%
Inverse Emerging Markets 2x Strategy Fund	0.90	%
Strengthening Dollar 2x Strategy Fund	0.90	%
Weakening Dollar 2x Strategy Fund	0.90	%
Real Estate Fund	0.85	%
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	%
Emerging Markets Bond Strategy Fund	0.75	%
Long Short Equity Fund	0.90	%
Event Driven and Distressed Strategies Fund	0.90	%
U.S. Government Money Market Fund	0.50	%



	Expense Cap
Fund	Class A	Class C	Institutional
Event Driven and Distressed Strategies Fund	1.90%	2.65%	1.65%

PROSPECTUS | 382

in connection with the sale of Fund shares.


•	performing initial due diligence on prospective sub-advisers for the Funds;


•	monitoring the performance of the sub-advisers;


•	communicating performance expectations to the sub-advisers; and


•	ultimately recommending to the Board whether a sub-adviser’s contract should be renewed, modified or terminated.

PORTFOLIO MANAGEMENT

Michael P. Byrum, CFA, Senior Vice President—Mr. Byrum has ultimate responsibility for the management of the Funds. In addition to generally overseeing all aspects of the management of each series of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Rydex ETF Trust, Mr. Byrum reviews the activities of Messrs. Dellapa and Harder. He has been associated with the Advisor since it was founded in 1993. During this time, he has played a key role in the development of the firm’s investment strategies and product offerings. As Portfolio Manager, Mr. Byrum was instrumental in the launch of the NASDAQ-100^®, Precious Metals, Government Long Bond 1.2x Strategy, Inverse Government Long Bond Strategy, Inverse S&P 500^® Strategy and Inverse NASDAQ-100^® Strategy Funds, and helped to create the Sector Funds. He was named Vice President of Portfolio for the Advisor in 1998, and Executive Vice President in 2000. Prior to joining the Advisor, Mr. Byrum worked for Money Management Associates, the investment adviser for Rushmore Funds, Inc. He holds a degree in finance from Miami University of Ohio and is a member of the CFA Institute and the Washington Society of Investment Analysts.

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Michael J. Dellapa, CFA, CAIA, Portfolio Manager—Mr. Dellapa plays a key role in the development of new products and research processes and systems that enhance the management of each series of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust. In particular, Mr. Dellapa focuses on the management of the Alternative Funds. Mr. Dellapa joined the Advisor in 2000 as a Research Analyst and was promoted to portfolio manager in 2003. During his tenure as a portfolio manager, he had direct oversight for the Russell 2000^® 1.5x Strategy, Health Care, Biotechnology, and Consumer Products Funds. In 2005, Mr. Dellapa became Director of Investment Research and in 2007 became a Portfolio Manager. Prior to joining the Advisor, Mr. Dellapa worked as an equity analyst for Invista Capital and systems analyst for Accenture. He holds an engineering degree from the University of Maryland and MBA from the University of Chicago. Previously, he was owner/consultant of Dellapa Consulting Inc. as well as a senior consultant and an analyst at Andersen Consulting.

Ryan A. Harder, CFA, Portfolio Manager—Mr. Harder is involved in the management of each series of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust, but focuses particularly on the management of the Domestic Equity, International Equity, Fixed Income, and Alternative Funds. Mr. Harder joined the Advisor in 2004 as an Assistant Portfolio Manager, was promoted to Portfolio Manager in 2005 and has served in his current capacity since 2008. He was instrumental in the launch of the Multi-Hedge Strategies, High Yield Strategy and Inverse High Yield Strategy Funds. Prior to joining the Advisor, Mr. Harder served in various capacities with WestLB Asset Management, including as an Assistant Portfolio Manager, and worked in risk management at CIBC World Markets. He holds a B.A. in Economics from Brock University in Ontario, Canada and a Master of Science in International Securities, Investment and Banking from the ICMA Centre at the University of Reading in the U.K.

SHAREHOLDER INFORMATION

CALCULATING NET ASSET VALUE

The price at which you buy, sell and exchange shares is the net asset value per share, which is also known as NAV, plus any applicable sales charges.

Each Fund calculates its NAV by:


•	Taking the current market value of its total assets


•	Subtracting any liabilities


•	Dividing that amount by the total number of shares owned by shareholders

PROSPECTUS | 384

or the Advisor thinks that they are unreliable, the Advisor prices those securities at fair value as determined in good faith using methods approved by the Board of Trustees. For example, market prices may be unavailable if trading in a particular portfolio security was halted during the day and did not resume prior to the Funds’ NAV calculation. The Advisor may view market prices as unreliable when the value of a security has been materially affected by events occurring after the market closes, but prior to the time as of which the Funds calculate NAV.

EXPLANATION OF CERTAIN FUND FEES AND EXPENSES

Acquired Fund Fees and Expenses – As a shareholder in other investment companies, which may include other mutual funds, closed-end funds, and business development companies (the “Acquired Funds”), a Fund may indirectly bear its proportionate share of the fees and expenses of the Acquired Funds. “Acquired Fund Fees and Expenses” are based upon (i) the approximate allocation of the Fund’s assets among the Acquired Funds and (ii) the net expenses (excluding interest, taxes and extraordinary expenses) of the Acquired Funds during their most recently completed fiscal year. “Acquired Fund Fees and Expenses” are not direct costs paid by Fund shareholders and do not affect the calculation of the Fund’s NAV or the Fund’s cost of operations. “Acquired Fund Fees and Expenses” will vary with changes in the expenses of the Acquired Funds, as well as allocation of the Fund’s assets, and may be higher or lower than those shown.

Short Sales Dividend and Interest Expense – “Short Sales Dividend and Interest Expense” is incurred when a Fund short sells a security to gain the inverse exposure necessary to meet its investment objective. The Fund must pay out

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the dividend rate on an equity security, the coupon rate of a fixed income security, and interest expense associated with either, to the lender and records these as an expense of the Fund and reflects these expenses in its financial statements. However, any such dividend or interest expense on a security sold short generally has the effect of reducing the market value of the shorted security – thus increasing the Fund’s unrealized gain or reducing the Fund’s unrealized loss on its short sale transaction. “Short Sales Dividend and Interest Expense” is not a fee charged to the shareholder by the Advisor or other service provider. Rather it is more similar to the transaction costs or capital expenditures associated with the day-to-day management of any mutual fund.

BUYING, SELLING AND EXCHANGING FUND SHARES

Class A Shares and Class C Shares. Class A shares and Class C shares are offered primarily through authorized securities brokers and other financial intermediaries. Shares are also offered directly through Rydex Fund Services, LLC.

Institutional Shares. Institutional shares are offered directly through the Funds’ transfer agent, Rydex Fund Services, LLC, and also through authorized securities brokers and other financial intermediaries.

Institutional shares generally may be purchased by the following types of investors:


•	Institutional investors, such as corporations, pension and profit sharing plans, and foundations, who invest the minimum initial investment amount of $2 million in a Fund;


•	Investors who invest the minimum initial investment amount of $2 million directly with the Funds’ transfer agent;


•	Employee benefit plan programs that have at least $25 million in plan assets;


•	Directors and officers of the Funds and other mutual funds managed by the Advisor or one or more of its affiliates, and directors, officers and employees of Guggenheim Partners, LLP and its affiliates;


•	Broker-dealer managed account or wrap programs that charge an asset-based fee, have program assets of at least $50 million, and invest in the Funds via omnibus accounts;


•	Registered investment adviser mutual fund wrap programs that charge an asset-based fee, have program assets of at least $50 million, and invest in the Funds via omnibus accounts;


•	Internal Revenue Code Section 529 college savings plan accounts;


•	Funds of Funds advised by the Advisor or its affiliates; and


•	Funds of Funds advised by unaffiliated investment advisers.

If you are deemed to be an “eligible investor” by virtue of an initial investment directly with the Funds’ transfer agent, Rydex Fund Services, LLC, in an amount of $2 million or more, your account may be subject to a minimum account balance requirement of $1 million.

The Funds reserve the right to waive the minimum initial investment amount, account balance, and certain other investor eligibility requirements at any time, with or without prior notice to you. In addition, the minimum initial investment amount, account balance, and investor eligibility requirements for purchases of Institutional shares may be amended from time to time as reflected in the Funds’ then-current registration statement.

Class A shares and Class C shares shareholders of a Guggenheim Investments fund that offers Institutional shares may convert their Class A shares or Class C shares into Institutional shares of that Fund if they meet the eligibility criteria for Institutional shares described above. Sales charges may apply to any such conversion. Please see “Sales Charges - Class A Shares and Class C Shares Sales Charges Applicable Upon Conversion” for more information.

For questions about Institutional shares investor eligibility requirements, contact Guggenheim Investments Client Services at 800.820.0888 or 301.296.5100.

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U.S. Government Money Market Fund Shares. Shares of the U.S. Government Money Market Fund are sold principally to clients of professional money managers (“financial intermediaries”) who (i) charge such clients an ongoing fee for advisory, investment, consulting or similar services, or (ii) have entered into agreement with the principal underwriter to offer Advisor shares through a no-load network or platform, and to investors who take part in certain asset allocation investment programs. Shares of the U.S. Government Money Market Fund also are offered directly through the Fund's transfer agent, Rydex Fund Services, LLC and also through authorized securities brokers and other financial intermediaries.

OPENING YOUR ACCOUNT

If you open your account through a broker or other financial intermediary, your financial intermediary will ordinarily assist you in completing the necessary application to open your account.

TIPS TO SUCCESSFULLY COMPLETE YOUR ACCOUNT APPLICATION


•	You must provide each account holder’s social security number or tax ID number and date of birth on the application to avoid a delay in processing.


•	Attach a copy of the trust document when establishing a trust account.

•


•	You must provide a street address (Guggenheim Investments does not accept P.O. Box only addresses). If any joint owner has a different address than the account registration, please indicate what it is on the application.


•	Be sure to sign the application.


•	If you open an account directly with Guggenheim Investments you will receive a confirmation statement by mail confirming your initial purchase. Review this confirmation carefully to ensure that all of the information is correct. Notify us promptly of any errors.


•	Any application that is sent to the transfer agent does not constitute a purchase order until the transfer agent processes the application and receives correct payment by check, wire transfer or ACH.

TRANSACTION INFORMATION

387 | PROSPECTUS

TRANSACTION CUT-OFF TIMES

All shareholder transaction orders are processed at the NAV next determined after your transaction order is received with all of the necessary information, sometimes referred to as “good order,” by the Funds’ transfer agent, Rydex Fund Services, LLC, the Funds' distributor, Guggenheim Funds Distributors, LLC (the “Distributor”), or authorized dealer, subject to any applicable front-end sales charge. The following transaction cut-off times have been established in order to allow the transfer agent appropriate time to report the current day’s trading activity to the Advisor. Any purchase transaction that is sent to the transfer agent does not constitute a purchase order until the transfer agent processes the application and receives correct payment by check, wire transfer or ACH.



METHOD	FUND	MORNING CUT-OFF TIME	AFTERNOON CUT-OFF TIME
By Mail	All Funds	Not Available	Market Close
By Phone	Domestic Equity Funds (except for the S&P 500^® Fund and Russell 2000^® Fund), Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund	Not Available	3:45 P.M., Eastern Time
	S&P 500^® Fund, Russell 2000^® Fund, Emerging Markets 2x Strategy Fund, and Inverse Emerging Markets 2x Strategy Fund	10:30 A.M., Eastern Time	3:45 P.M., Eastern Time
	Emerging Markets Bond Strategy Fund	10:30 A.M., Eastern Time	3:30 P.M., Eastern Time
	Sector Funds, Real Estate Fund, High Yield Strategy Fund, and Inverse High Yield Strategy Fund	Not Available	3:30 P.M., Eastern Time
	Alternative Funds	Not Available	Market Close
	U.S. Government Money Market Fund*	Not Available	4:00 P.M., Eastern Time

PROSPECTUS | 388



METHOD	FUND	MORNING CUT-OFF TIME	AFTERNOON CUT-OFF TIME
By Internet	Domestic Equity Funds (except for the S&P 500^® Fund, Russell 2000^® Fund, 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, and S&P SmallCap 600^® Pure Value Fund), Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund	Not Available	3:55 P.M., Eastern Time
	S&P 500^® Fund, Russell 2000^® Fund, Emerging Markets 2x Strategy Fund, and Inverse Emerging Markets 2x Strategy Fund	10:30 A.M., Eastern Time	3:55 P.M., Eastern Time
	Emerging Markets Bond Strategy Fund	10:30 A.M., Eastern Time	3:45 P.M., Eastern Time
	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, Sector Funds and Real Estate Fund	Not Available	3:50 P.M., Eastern Time
	High Yield Strategy Fund and Inverse High Yield Strategy Fund	Not Available	3:45 P.M., Eastern Time
	Alternative Funds	Not Available	Market Close
	U.S. Government Money Market Fund*	Not Available	4:00 P.M., Eastern Time
By Financial Intermediary	All Funds (except the S&P 500^® Fund, Russell 2000® Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund)	Not Available	Market Close**
By Financial Intermediary	S&P 500^® Fund, Russell 2000^®Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, and Emerging Markets Bond Strategy Fund	10:30 A.M., Eastern Time**	Market Close**


*	To receive the current Business Day’s dividend for the Fund, the Fund must receive your wire purchase order by 1:00 p.m., Eastern Time. All redemption orders received prior to 1:00 p.m., Eastern Time will not receive the current Business Day’s dividend. All redemption orders received after 1:00 p.m., Eastern Time are entitled to receive the current Business Day’s dividend.


**	Each financial intermediary may have its own rules about share transactions, and may have earlier cut-off times for processing your transaction order.

TRANSACTIONS THROUGH YOUR FINANCIAL INTERMEDIARY

389 | PROSPECTUS

for processing your transaction order. Your financial intermediary is responsible for ensuring that your transaction order is in good order, and promptly transmitting your order to the Funds. Transaction orders received in good order by your financial intermediary will be processed at the Funds’ next determined NAV. Financial intermediaries may charge fees for the services they provide to you in connection with processing your transaction order or maintaining your account with them. Each financial intermediary also may have its own rules about minimum initial investment amounts, minimum account balances, share transactions and limits on the number of share transactions you are permitted to make in a given time period. Not all financial intermediaries are authorized to sell shares of the Funds. For more information about your financial intermediary’s rules and procedures, you should contact your financial intermediary directly.

SALES CHARGES

CLASS A SHARES

Class A shares are sold at NAV, plus the applicable front-end sales charge. The sales charge is used to pay your financial intermediary a sales commission up to a total of 4.75% of the purchase price of your investment in connection with your initial purchase. The NAV plus the sales charge is the “offering price.” However, in some cases, described below, your purchase may not be subject to an initial sales charge, and the offering price will be the NAV. In other cases, you may be eligible for a reduced sales charge. The sales charge varies depending on the amount of your purchase. The current sales charge rates are as follows:



Amount of Investment	Sales Charge as % of Offering Price	Sales Charge as % of Net Amount Invested
Less than $100,000	4.75%	4.99%
$100,000 but less than $250,000	3.75%	3.90%
$250,000 but less than $500,000	2.75%	2.83%
$500,000 but less than $1,000,000	2.00%	2.04%
$1,000,000 or greater	*	*

For investments of $1 million or more, Class A shares are sold at NAV, without any up-front sales charge. However, if you sell your shares within 12 months of purchase, you will normally have to pay a 1% contingent deferred sales charge (“CDSC”) based on your initial purchase price or current market value, whichever is lower. The CDSC is used to reimburse the Distributor for paying your financial intermediary a sales commission up to a total of 1.00% of the purchase price of your investment in connection with your initial purchase. For more information about whether your financial intermediary has entered into such an arrangement, contact your financial intermediary directly.

In addition to the information in this Prospectus, you may obtain more information about share classes, sales charges and sales charges reductions and waivers from the SAI or your financial adviser. You may also find information regarding share classes, sales charges and sales charges reductions and waivers on the Funds’ website, guggenheiminvestments.com. To access this information, log on to the Funds’ website at www.guggenheiminvestments.com and click on the “Products — Mutual Funds” tab. Once on the “Products — Mutual Funds” page, choose the “Share Class Information” tab on the left side of the page.

HOW TO REDUCE YOUR SALES CHARGE

You may be eligible to purchase Class A shares for reduced sales charges. To qualify for these reductions, you or your financial intermediary must provide sufficient information, in writing and at the time of purchase , to verify that your purchase qualifies for such treatment. For additional information, including information on aggregating purchases among related accounts to receive reduced sales charges, see the SAI. Consistent with the policies described in this Prospectus, you and your family may combine your Fund holdings to reduce your sales charge.


•	Rights of Accumulation. To qualify for the lower sales charge rates that apply to larger purchases of Class A shares, you may combine your new purchases of Class A shares with the shares of any other Class A shares or Class C shares of any other series of Rydex Series Funds, Rydex Dynamic Funds and Guggenheim Funds

PROSPECTUS | 390

Trust (some of which are offered in a separate prospectus) that you already own. Current share value may be more or less than at the time of purchase due to price fluctuations and account activity. The applicable initial sales charge for the new purchase is based on the total of your current purchase and the current value of all other Class A shares and Class C shares that you own. Additionally, you may combine simultaneous purchases of Class A shares of one series of Rydex Series Funds, Rydex Dynamic Funds, or Guggenheim Funds Trust with Class A shares of any other series of Rydex Series Funds, Rydex Dynamic Funds, or Guggenheim Funds Trust to reduce the sales charge rate that applies to the purchase of Class A shares of any series of Rydex Series Funds, Rydex Dynamic Funds, or Guggenheim Funds Trust. The reduced sales charge will apply only to current purchases and must be requested in writing when you buy your shares.

•

Letters of Intent. Under a Letter of Intent (“LOI”), you commit to purchase a specified dollar amount of Class A shares of any series of Rydex Series Funds, Rydex Dynamic Funds, or Guggenheim Funds Trust during a 13-month period. At your written request, Class A shares purchases made during the previous 90 days may be included. The amount you agree to purchase determines the initial sales charge you pay. If the full-face amount of the LOI is not invested by the end of the 13-month period, your account will be adjusted to the higher initial sales charge level for the amount actually invested. You are not legally bound by the terms of your LOI to purchase the amount of your shares stated in the LOI. The LOI does, however, authorize the Fund to hold in escrow 4% of the total amount you intend to purchase. If you do not complete the total intended purchase at the end of the 13-month period, the Funds’ transfer agent will redeem the necessary portion of the escrowed shares to make up the difference between the reduced rate sales charge (based on the amount you intended to purchase) and the sales charge that would normally apply (based on the actual amount you purchased).

A LOI may be revised during the 13-month period. Additional Class A shares acquired through reinvestment of income dividends and capital gains distributions are not applied to the LOI. A LOI may be obtained from the Funds.

•

Reinstatement Privilege . If you have redeemed Class A shares of any series of Rydex Series Funds, Rydex Dynamic Funds, or Guggenheim Funds Trust within the past 30 days, you may repurchase an equivalent amount of Class A shares of any series of Rydex Series Funds, Rydex Dynamic Funds, or Guggenheim Funds Trust at NAV, without the normal front-end sales charge. In effect, this allows you to reacquire shares that you may have had to redeem, without re-paying the front-end sales charge. You may exercise this privilege only once and must notify the Funds that you intend to do so in writing. The Funds must receive your purchase order within 30 days of your redemption.

SALES CHARGE WAIVERS

Class A shares of the Funds may be purchased at NAV by the following:


•	Directors and officers of the Funds or any other mutual funds managed by the Advisor or one or more of its affiliates;


•	Directors, officers and employees of Guggenheim Partners, LLC and its affiliates, and spouses, grandparents, parents, children, grandchildren, siblings, nieces and nephews of such directors, officers and employees (and their spouses);


•	Any trust, pension, profit sharing or other benefit plan established by any of the foregoing corporations for persons described above;


•	Retirement plans where third party administrators of such plans have entered into certain arrangements with the Distributor or its affiliates provided that no commission is paid to dealers;

•

Officers, directors, partners or registered representatives (and their spouses and minor children) of broker-dealers who have a selling agreement with the Distributor. Such sales are made upon the written assurance of the purchaser that the purchase is made for investment purposes and that the securities will not be transferred or resold except through redemption or repurchase by or on behalf of the funds;

391 | PROSPECTUS


•	A registered investment adviser, trustee or financial intermediary who has authority to make investment decisions on behalf of investors;


•	A registered broker-dealer or registered investment advisor not affiliated with a broker-dealer who either charges periodic fees to its customers for financial planning, investment advisory or asset management services including investment accounts for which a “wrap fee” is imposed;


•	Customers of financial intermediaries that have a contractual arrangement with the Distributor or Advisor where such contract provides for the waiver of the front-end sales charge; and

•

When the purchase is made by retirement plans that: (1) buy shares of the Funds worth $50,000 or more; (2) have 100 or more eligible employees at the time of purchase; (3) certify it expects to have annual plan purchases of shares of the Funds of $200,000 or more; (4) are provided administrative services by certain third-party administrators that have entered into a special service arrangement with the Funds relating to such plans; (5) have at the time of purchase, aggregate assets of at least $1,000,000 (purchases made pursuant to this provision may be subject to a deferred sales charge of up to 1% in the event of a redemption within one year of purchase).

The Funds do not waive sales charges for the reinvestment of proceeds from the sale of shares of a non-Guggenheim Investments fund where those shares were subject to a front-end sales charge (sometimes called an NAV Transfer).

SALES CHARGE EXCEPTIONS

You will not pay initial sales charges on the following:


•	Class A shares purchased by reinvesting dividends and distributions.


•	When exchanging Class A shares of one Fund for Class A shares of another series of Rydex Series Funds, Rydex Dynamic Funds or Guggenheim Funds Trust, unless you are exchanging shares of the U.S. Government Money Market Fund that have not previously been subject to a sales charge.

CLASS C SHARES

Class C shares are sold at NAV, without any up-front sales charge, so that the full amount of your purchase is invested in the Fund. However, if you sell your shares within 12 months of purchase, you will normally have to pay a 1% CDSC based on your initial purchase price or current market value, whichever is lower. Shares that are not subject to the CDSC are redeemed first. Then, shares held the longest will be the first to be redeemed. The CDSC is used to reimburse the Distributor for paying your financial intermediary a sales commission up to a total of 1.00% of the purchase price of your investment in connection with your initial purchase. If your intermediary has entered into arrangements with the Distributor to forego receipt of that initial 1.00% sales commission, the Fund will waive any otherwise applicable CDSC when you redeem your Class C shares. For more information about whether your broker-dealer has entered into such an arrangement, contact your intermediary directly.

WAIVER OF CDSC

The CDSC (when applicable) will be waived for the redemption of Class A shares and Class C shares under the following circumstances:


•	An initial 1.00% sales commission was not paid to the intermediary at the time of purchase;


•	Following the death or disability of the shareholder;


•	For the redemption of the first 10% of shares sold within 12 months of purchase;


•	In connection with the required minimum distributions from a retirement plan qualified under Section 401(a), 401(k), 403(b) or 408 of the Internal Revenue Code;


•	In connection with distributions from retirement plans qualified under Section 401(a), 401(k), 403(b) of the Internal Revenue Code for:


•	returns of excess contributions to the plan;


•	retirement of a participant in the plan;


•	a loan from the plan (loan repayments are treated as new sales for purposes of the deferred sales charge);

PROSPECTUS | 392


•	financial hardship (as defined in regulations under the Internal Revenue Code) of a participant in a plan;


•	termination of employment of a participant in a plan;


•	any other permissible withdrawal under the terms of the plan.

The policy of waiving the CDSC for certain redemptions may be modified or discontinued, with respect to new shareholders, at any time.

CLASS A SHARES AND CLASS C SHARES SALES CHARGES APPLICABLE UPON CONVERSION

Shareholders of Class A shares that were not subject to an up-front sales charge because they invested $1 million or more in a Fund at the time of their initial investment and that are eligible to convert their shares into Institutional shares would be subject to a 1.00% CDSC if they elect to convert their Class A shares within 12 months of their purchase of such Class A shares. The 1.00% CDSC would be based on the initial purchase price or current market value, whichever is lower.

Shareholders of Class C shares that are eligible and elect to convert their Class C shares into Institutional shares within 12 months of their purchase of such Class C shares will be subject to a 1.00% CDSC based on their initial purchase price or current market value, whichever is lower.

BUYING FUND SHARES

Purchases of Class C shares of a Fund requested in an amount of $1,000,000 or more will be automatically made in Class A shares of that Fund.

For additional discussion of the average cost method, see “Redemption Procedures.”

PURCHASE PROCEDURES

393 | PROSPECTUS

party checks. Fund management reserves the right to refuse other payment instruments if, in the sole discretion of Fund management, it is deemed to be in the best interest of the Funds. Any payment instrument not accepted generally will be returned to you within twenty-four (24) hours of Fund management’s determination to not accept such instrument, but in no event later than three business days after such determination.

Guggenheim Investments does not accept purchase orders from non-resident U.S. citizens or non-resident aliens.

Retirement contributions will be considered as current year contributions unless otherwise instructed in writing at the time of the contribution.

You may buy shares and send your purchase proceeds by any of the following methods:



	Initial Purchase	Subsequent Purchases
BY CHECK (MAIL) IRA and other retirement accounts require additional paperwork. Call Guggenheim Investments Client Services to request an IRA kit or New Account application.	Complete the account application that corresponds to the type of account you are opening. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Complete the Guggenheim Investments investment slip included with your quarterly statement or send written purchase instructions that include: • Your name • Your shareholder account number • The Fund(s) you want to purchase.
	Make your check payable to Guggenheim Investments.
	Your check must be drawn on a U.S. bank and payable in U.S. dollars.
	Include the name of the Fund(s) you want to purchase on your check. If you do not specify the Fund(s) you want to purchase, your investment generally will be credited to shares of the U.S. Government Money Market Fund.
	Mail your application and check to:	Mail your written purchase instructions and check to:
	Mailing Addresses:
	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636

PROSPECTUS | 394



	Initial Purchase	Subsequent Purchases
BY WIRE Guggenheim Investments Client Services Phone number: 800.820.0888 or 301.296.5100	Complete and submit the account application that corresponds to the type of account you are opening. Contact Guggenheim Investments Client Services at 800.820.0888 to obtain your new account number. Use the Wire Instructions below to send your wire. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Be sure to designate your wire instructions to the Fund(s) you want to purchase.
	To obtain “same-day credit” (to get that Business Day’s NAV) for your purchase order, you should call Guggenheim Investments Client Services and provide the following information prior to the transaction cut-off time for the Fund(s) you are purchasing: • Account Number • Fund Name • Amount of Wire • Fed Wire Reference Number (upon request) You will receive a confirmation number to verify that your purchase order has been accepted. If you do not notify Guggenheim Investments Client Services of the incoming wire, your purchase order may not be processed until the Business Day following the receipt of the wire. Wire Instructions: U.S. Bank Cincinnati, OH Routing Number: 0420-00013 For Account of: Guggenheim Investments Account Number: 48038-9030 [Your Name] [Your shareholder account number] [Your fund designation] If you do not specify the Fund(s) you want to purchase, your investment generally will be credited to shares of the U.S. Government Money Market Fund.

395 | PROSPECTUS



BY ACH (FAX/MAIL) Guggenheim Investments Client Services Fax number: 301.296.5103	Initial Purchase	Subsequent Purchases
	Submit a new account application. Be sure to complete the “Electronic Investing via ACH” section. If you are establishing an Individual, Joint, or UGMA/UTMA account, you may fax the application to Guggenheim Investments. All other applications should be mailed. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Subsequent purchases made via ACH must be a minimum of $20. A maximum of $50,000 is allowed to be purchased via ACH per day. To make a subsequent purchase send written purchase instructions that include: • Your name • Your shareholder account number • The Fund(s) you want to purchase • ACH bank information (if not on record).
	Mailing Addresses:
	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn:Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
BY ACH (PHONE) Guggenheim Investments Client Services Phone number: 800.820.0888 or 301.296.5100	Purchase payments may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instruction on file, you may submit your purchase request by contacting Guggenheim Investments Client Services at 800.820.0888.
BY ACH (INTERNET)	Purchase payments may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instructions on file, log-in to your account at www.TradeRydex.com and click on “Electronic Investing.” If you currently do not have ACH instructions on file, download the Bank Information and Alternate Payee form from the www.guggenheiminvestments.com website, and follow the instructions for adding bank instructions.

CANCELLED PURCHASE ORDERS

Guggenheim Investments will ordinarily cancel your purchase order under the following circumstances:

• if your bank does not honor your check for any reason

• if the transfer agent (Rydex Fund Services, LLC) does not receive your wire transfer

• if the transfer agent (Rydex Fund Services, LLC) does not receive your ACH transfer

• if your bank does not honor your ACH transfer

PROSPECTUS | 396

SELLING FUND SHARES

REDEMPTION PROCEDURES



MAIL	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
FAX	301.296.5103 If you send your redemption order by fax, you must call Guggenheim Investments Client Services at 800.820.0888 or 301.296.5100 to verify that your fax was received and when it will be processed.
TELEPHONE	800.820.0888 or 301.296.5100 (not available for retirement accounts)
BY ACH	Redemption proceeds may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instructions on file, you may submit your redemption request via mail or telephone using the mailing addresses and telephone numbers provided above. If you currently do not have ACH instructions on file, download the Bank Information and Alternate Payee form from the www.guggenheiminvestments.com website, and follow the instructions for adding bank instructions. A maximum of $50,000 is allowed to be redeemed via ACH per day.

Whether you transmit your redemption order by mail, fax or telephone, you must include the following information in your redemption order:


•	your name


•	your shareholder account number


•	Fund name(s)


•	dollar amount or number of shares you would like to sell


•	whether you want your sale proceeds sent to you by check, wire or ACH (a new alternate payee or new wire instructions may require a Medallion signature guarantee)


•	signature of account owner(s) (not required for telephone redemptions)

397 | PROSPECTUS

receive a confirmation number for your redemption. Please retain it for your records.

DISTRIBUTIONS FROM QUALIFIED RETIREMENT ACCOUNTS

Distributions from 403(b) accounts may require employer or plan administrator approval.

RECEIVING YOUR REDEMPTION PROCEEDS

MEDALLION SIGNATURE GUARANTEES

UNCASHED CHECK POLICY

PROSPECTUS | 398

For partial redemption checks, the proceeds will be deposited into shares of the U.S. Government Money Market Fund.

Any full redemption check (one that brings your account balance to $0.00) that has remained outstanding for a period of 90 days from the issuance date will be cancelled and re-issued one time.

Any redemption check from a retirement account (IRA, Roth, SEP, for example) that has remained outstanding for a period of 90 days from the issuance date will be cancelled and re-issued one time.

For checks returned in the mail, the Funds will attempt to contact the client. If no contact is made, the check will be processed according to the procedures mentioned above.

REDEEMING SHARES BY DRAFT WRITING

LOW BALANCE ACCOUNTS

EXCHANGING FUND SHARES

An exchange is when you sell shares of one fund and use the proceeds from that sale to purchase shares of another fund. Investors may make exchanges on any Business Day of Class A shares, Class C shares or Institutional shares of any Fund for Class A shares, Class C shares or Institutional shares of any other fund within the Guggenheim Investments family of funds on the basis of the respective NAVs of the shares involved. Investors also may make exchanges on any Business Day of Class A shares, Class C shares or Institutional shares of any Fund for shares of the U.S. Government Money Market Fund.

399 | PROSPECTUS

If you exchange your Class A shares or Class C shares of a Rydex Fund for shares of the U.S. Government Money Market Fund, and your Class A shares or Class C shares are subject to a deferred sales charge at the time of the exchange, no deferred sales charge will be incurred on the exchange itself. However, any such deferred sales charge will be assessed at the time you redeem your shares of the U.S. Government Money Market Fund. For shareholders that exchange Class A shares or Class C shares of a Rydex Fund for shares of the U.S. Government Money Market Fund and subsequently exchange shares of the U.S. Government Money Market Fund for Class A shares or Class C shares of a Rydex Fund, the period of time during which the shareholder held shares of the U.S. Government Money Market Fund will not be counted toward the 12-month holding period applicable to Class A shares and Class C shares of the Rydex Fund. However, upon a subsequent exchange of shares of the U.S. Government Money Market Fund for Class A shares or Class C shares of another Rydex Fund, you will be given credit for the period during which you held Class A shares or Class C shares prior to the exchange of such shares for shares of the U.S. Government Money Market Fund.

Exchanges of Fund shares for shares of another Guggenheim Investments fund will be subject to the purchaser eligibility requirements of the applicable share class of that Guggenheim Investments fund, which may include initial investment amount and account balance requirements, as disclosed in that Guggenheim Investment fund’s prospectus.

Exchange requests, like any other share transaction, will be processed at the NAV next determined after your exchange order is received in good order. Exchanges involving other funds not included in this Prospectus may be subject to different transaction cut-off times. All exchange requests must be received by the Funds’ transfer agent or your financial intermediary prior to the cut-off time of the fund you are exchanging out of or the fund you are exchanging into, whichever is earlier, to be processed at that Business Day’s NAV.

The exchange privilege may be modified or discontinued at any time.

EXCHANGE PROCEDURES

You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account. If you opened your account directly with the Funds you may send exchange requests to Guggenheim Investments by:



MAIL	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
FAX	301.296.5103 If you send your exchange request by fax, you must call Guggenheim Investments Client Services at 800.820.0888 to verify that your fax was received and when it will be processed.
TELEPHONE	800.820.0888 or 301.296.5100
INTERNET	Follow the directions on the Guggenheim Investments website - Visit www.TradeRydex.com.

Whether you transmit your exchange request by mail, fax, telephone or internet, you must include the following information in your exchange request:


•	your name


•	your shareholder account number

PROSPECTUS | 400


•	Fund name(s) you are exchanging out of (selling) and Fund name(s) you are exchanging into (buying)


•	dollar amount, number of shares or percentage of Fund position involved in the exchange


•	signature of account owner(s) (not required for telephone or internet exchanges)

DOLLAR-COST AVERAGING

ACCOUNT POLICIES

SHAREHOLDER IDENTIFICATION AND VERIFICATION

CHANGES TO YOUR ACCOUNT

401 | PROSPECTUS

your financial intermediary for instructions on how to make this change.

TRANSACTIONS OVER TELEPHONE OR INTERNET

STATEMENTS & CONFIRMATIONS

eDELIVERY SERVICES

GUGGENHEIM INVESTMENTS EXPRESS LINE – 1.800.717.7776

SERVICE AND OTHER FEES

Guggenheim Investments may charge the following administrative fees on accounts held directly through the Funds’ transfer agent for services associated with the following:


•	$15 for wire transfers of redemption proceeds under $5,000


•	$50 on checks returned for insufficient funds


•	$25 to stop payment of a redemption check within 10 Business Days of the settlement date


•	$15 for standard overnight packages (fee may be higher for special delivery options)


•	$25 for bounced draft checks or ACH transactions


•	$15 per year for low balance accounts

•

PROSPECTUS | 402

Guggenheim Investments reserves the right to change any of these fees or add additional service fees at any time.

RETIREMENT ACCOUNT FEES

For additional information on fees for employee accounts please refer to the SAI.

FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES

RIGHTS RESERVED BY THE FUNDS

403 | PROSPECTUS

If your account is closed at the request of governmental or law enforcement authority or pursuant to applicable law, you may not receive proceeds of the redemption if the Funds are required to withhold such proceeds.

DISTRIBUTION AND SHAREHOLDER SERVICES

CLASS A SHARES

The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act with respect to Class A shares that allows each Fund to pay distribution fees to the Distributor and other firms that provide distribution-related services (“Service Providers”). Each Fund will pay distribution fees to the Distributor at an annual rate not to exceed 0.25% of average daily net assets. Because the Funds pay these fees out of assets on an ongoing basis, over time these fees may cost you more than other types of sales charges and will increase the cost of your investment.

CLASS C SHARES

The Funds have adopted a Distribution and Shareholder Services Plan pursuant to Rule 12b-1 under the 1940 Act, applicable to Class C shares that allows each Fund to pay annual distribution and service fees of 1.00% of the Fund’s average daily net assets. The annual 0.75% distribution fee reimburses the Distributor for paying your intermediary a sales commission. The annual 0.25% service fee compensates your intermediary for providing on-going services to you. The Distributor advances the first year’s distribution and service fees, and retains the distribution and service fees on accounts with no authorized intermediary of record. Because the Funds pay these fees out of assets on an ongoing basis, over time these fees may cost you more than other types of sales charges and will increase the cost of your investment.

COMPENSATION TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 404

DIVIDENDS AND DISTRIBUTIONS

TIMING OF PAYMENTS

DIVIDEND PAYMENT OPTIONS

ADDITIONAL TAX INFORMATION

TAX STATUS OF EACH FUND

TAX STATUS OF DISTRIBUTIONS


•	Each Fund will, at least annually, distribute substantially all of its net investment income and net capital gains.


•	The income dividends you receive from the Funds will be taxed as either ordinary income or qualified dividend income.

•


•	Dividends and distributions are generally taxable to you whether you receive them in cash or in additional shares.


•	Corporate shareholders may be entitled to a dividends-received deduction for any portion of dividends they receive that are attributable to dividends received by a Fund from U.S. corporations, subject to certain limitations. The investment strategies of certain Funds may significantly limit their ability to distribute

405 | PROSPECTUS

dividends eligible for the dividends-received deduction. Certain Funds do not expect to report any distributions as qualified dividend income.


•	Distributions paid in January but declared by the Funds in October, November or December of the previous year may be taxable to you in the previous year.


•	Shortly after the close of each calendar year, the Funds will inform you of the amount of your ordinary income dividends, qualified dividend income, and net capital gain distributions received from the Funds.


•	If you hold your shares in a tax-qualified retirement account, you generally will not be subject to federal taxation on Fund distributions until you begin receiving distributions from your retirement account. You should consult your tax adviser regarding the tax rules that apply to your retirement account.

•

TAX STATUS OF SHARE TRANSACTIONS

MEDICARE CONTRIBUTION TAX

STATE TAX CONSIDERATIONS

COST BASIS

PROSPECTUS | 406

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand each Fund’s financial performance for the past 5 years (or, if shorter, the period of operations of that Fund’s Class A shares, Class C shares or Institutional shares, as applicable). Certain information reflects financial results for a single share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in a Fund (assuming reinvestment of all dividends and distributions). The information provided below has been audited by Ernst & Young LLP, an independent registered public accounting firm, whose reports, along with the financial statements and related notes, appear in the Funds’ 2014 Annual Reports. The 2014 Annual Reports are available by telephoning the transfer agent at 800.820.0888 or 301.296.5100.

407 | PROSPECTUS

Financial Highlights

NOVA FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$30.23			$25.38			$23.32			$19.28			$10.88
Income (loss) from investment operations:
Net investment income (loss)^a	0.05			(0.01		)	0.01			(0.02		)	0.03
Net gain (loss) on investments (realized and unrealized)	9.39			4.89			2.05			4.08			8.52
Total from investment operations	9.44			4.88			2.06			4.06			8.55
Less distributions from:
Net investment income	—			(0.03		)	—			(0.02		)	(0.15		)
Total distributions	—			(0.03		)	—			(0.02		)	(0.15		)
Net asset value, end of period		$39.67			$30.23			$25.38			$23.32			$19.28
Total Return^b	31.23		%	19.28		%	8.79		%	21.09		%	78.74		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,237			$1,189			$1,472			$5,843			$1,876
Ratios to average net assets:
Net investment income (loss)	0.14		%	(0.04		)%	0.06		%	(0.11		)%	0.18		%
Total expenses	1.53		%	1.50		%	1.51		%	1.54		%	1.54		%
Portfolio turnover rate	259		%	137		%	116		%	53		%	68		%

PROSPECTUS | 408

Financial Highlights (continued)

NOVA FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$28.11			$23.77			$22.01			$18.33			$10.42
Income (loss) from investment operations:
Net investment income (loss)^a	(0.20		)	(0.19		)	(0.13		)	(0.16		)	(0.09		)
Net gain (loss) on investments (realized and unrealized)	8.71			4.56			1.89			3.86			8.15
Total from investment operations	8.51			4.37			1.76			3.70			8.06
Less distributions from:
Net investment income	—			(0.03		)	—			(0.02		)	(0.15		)
Total distributions	—			(0.03		)	—			(0.02		)	(0.15		)
Net asset value, end of period		$36.62			$28.11			$23.77			$22.01			$18.33
Total Return^b	30.27		%	18.39		%	8.00		%	20.22		%	77.51		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,394			$8,705			$8,829			$10,461			$10,661
Ratios to average net assets:
Net investment income (loss)	(0.62		)%	(0.79		)%	(0.62		)%	(0.85		)%	(0.61		)%
Total expenses	2.28		%	2.25		%	2.26		%	2.29		%	2.28		%
Portfolio turnover rate	259		%	137		%	116		%	53		%	68		%


^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.

409 | PROSPECTUS

Financial Highlights

S&P 500^® FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$31.55			$28.20			$26.41			$23.18			$15.79
Income (loss) from investment operations:
Net investment income (loss)^a	0.07			0.06			0.01			(0.06		)	0.07
Net gain (loss) on investments (realized and unrealized)	6.20			3.36			1.78			3.29			7.43
Total from investment operations	6.27			3.42			1.79			3.23			7.50
Less distributions from:
Net investment income	(0.04		)	(0.07		)	—			(—)^b			(0.11		)
Total distributions	(0.04		)	(0.07		)	—			(—)^a			(0.11		)
Net asset value, end of period		$37.78			$31.55			$28.20			$26.41			$23.18
Total Return^c	19.87		%	12.16		%	6.78		%	13.94		%	47.55		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$28,028			$12,014			$13,413			$10,288			$46,312
Ratios to average net assets:
Net investment income (loss)	0.19		%	0.22		%	0.05		%	(0.25		)%	0.34		%
Total expenses	1.57		%	1.50		%	1.51		%	1.54		%	1.53		%
Portfolio turnover rate	157		%	76		%	196		%	202		%	58		%

PROSPECTUS | 410

Financial Highlights (continued)

S&P 500^® FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$29.87			$26.91			$25.41			$22.50			$15.44
Income (loss) from investment operations:
Net investment income (loss)^a	(0.19		)	(0.14		)	(0.20		)	(0.27		)	(0.08		)
Net gain (loss) on investments (realized and unrealized)	5.87			3.17			1.70			3.18			7.25
Total from investment operations	5.68			3.03			1.50			2.91			7.17
Less distributions from:
Net investment income	(0.04		)	(0.07		)	—			(—)^b			(0.11		)
Total distributions	(0.04		)	(0.07		)	—			(—)^a			(0.11		)
Net asset value, end of period		$35.51			$29.87			$26.91			$25.41			$22.50
Total Return^c	19.01		%	11.29		%	5.90		%	12.93		%	46.49		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,182			$10,231			$10,110			$10,032			$11,456
Ratios to average net assets:
Net investment income (loss)	(0.59		)%	(0.52		)%	(0.80		)%	(1.11		)%	(0.41		)%
Total expenses	2.32		%	2.28		%	2.26		%	2.29		%	2.28		%
Portfolio turnover rate	157		%	76		%	196		%	202		%	58		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Less than $0.01 per share.


^c	Total return does not reflect the impact of any applicable sales charges.

411 | PROSPECTUS

Financial Highlights

INVERSE S&P 500^® STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$19.69			$23.10			$26.82			$32.43			$51.30
Income (loss) from investment operations:
Net investment income (loss)^a	(0.28		)	(0.34		)	(0.42		)	(0.48		)	(0.53		)
Net gain (loss) on investments (realized and unrealized)	(3.70		)	(3.07		)	(3.30		)	(5.13		)	(18.28		)
Total from investment operations	(3.98		)	(3.41		)	(3.72		)	(5.61		)	(18.81		)
Less distributions from:
Net investment income	—			—			—			—			(0.06		)
Total distributions	—			—			—			—			(0.06		)
Net asset value, end of period		$15.71			$19.69			$23.10			$26.82			$32.43
Total Return^b	(20.21		)%	(14.76		)%	(13.87		)%	(17.30		)%	(36.68		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,468			$5,912			$7,915			$5,029			$28,565
Ratios to average net assets:
Net investment income (loss)	(1.58		)%	(1.52		)%	(1.56		)%	(1.47		)%	(1.42		)%
Total expenses^c	1.68		%	1.65		%	1.66		%	1.68		%	1.67		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 412

Financial Highlights (continued)

INVERSE S&P 500^® STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$18.46			$21.83			$25.53			$31.12			$49.59
Income (loss) from investment operations:
Net investment income (loss)^a	(0.38		)	(0.48		)	(0.59		)	(0.67		)	(0.79		)
Net gain (loss) on investments (realized and unrealized)	(3.46		)	(2.89		)	(3.11		)	(4.92		)	(17.62		)
Total from investment operations	(3.84		)	(3.37		)	(3.70		)	(5.59		)	(18.41		)
Less distributions from:
Net investment income	—			—			—			—			(0.06		)
Total distributions	—			—			—			—			(0.06		)
Net asset value, end of period		$14.62			$18.46			$21.83			$25.53			$31.12
Total Return^b	(20.80		)%	(15.44		)%	(14.49		)%	(17.96		)%	(37.14		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,177			$7,041			$7,870			$11,817			$16,041
Ratios to average net assets:
Net investment income (loss)	(2.34		)%	(2.27		)%	(2.31		)%	(2.23		)%	(2.15		)%
Total expenses^c	2.42		%	2.40		%	2.42		%	2.44		%	2.43		%
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	Does not include expenses of the underlying funds in which the Fund invests.

413 | PROSPECTUS

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 the Fund’s performance for the periods presented.



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$17.42			$17.03			$14.52			$12.27			$7.82
Income (loss) from investment operations:
Net investment income (loss)^a	(0.03		)	(0.02		)	(0.09		)	(0.11		)	(0.09		)
Net gain (loss) on investments (realized and unrealized)	4.74			0.41			2.60			2.36			4.54
Total from investment operations	4.71			0.39			2.51			2.25			4.45
Less distributions from:
Net realized gains	(2.03		)	—			—			—			—
Total distributions	(2.03		)	—			—			—			—
Net asset value, end of period		$20.10			$17.42			$17.03			$14.52			$12.27
Total Return^b	27.42		%	2.29		%	17.29		%	18.34		%	56.91		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$21,751			$23,656			$14,553			$19,806			$15,128
Ratios to average net assets:
Net investment income (loss)	(0.14		)%	(0.09		)%	(0.61		)%	(0.81		)%	(0.86		)%
Total expenses	1.54		%	1.52		%	1.53		%	1.56		%	1.55		%
Portfolio turnover rate	141		%	94		%	94		%	39		%	34		%

PROSPECTUS | 414

Financial Highlights (continued)

NASDAQ-100^® FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$16.22			$15.97			$13.72			$11.67			$7.49
Income (loss) from investment operations:
Net investment income (loss)^a	(0.16		)	(0.13		)	(0.19		)	(0.19		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	4.39			0.38			2.44			2.24			4.34
Total from investment operations	4.23			0.25			2.25			2.05			4.18
Less distributions from:
Net realized gains	(2.03		)	—			—			—			—
Total distributions	(2.03		)	—			—			—			—
Net asset value, end of period		$18.42			$16.22			$15.97			$13.72			$11.67
Total Return^b	26.46		%	1.57		%	16.40		%	17.57		%	(55.81		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$19,175			$13,015			$15,177			$11,864			$12,216
Ratios to average net assets:
Net investment income (loss)	(0.89		)%	(0.84		)%	(1.35		)%	(1.52		)%	(1.63		)%
Total expenses	2.29		%	2.26		%	2.27		%	2.31		%	2.30		%
Portfolio turnover rate	141		%	94		%	94		%	39		%	34		%


^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.

415 | PROSPECTUS

Financial Highlights

INVERSE NASDAQ-100^® STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$42.61			$45.77			$58.30			$73.88			$123.33
Income (loss) from investment operations:
Net investment income (loss)^a	(0.60		)	(0.70		)	(0.90		)	(1.05		)	(1.30		)
Net gain (loss) on investments (realized and unrealized)	(10.01		)	(2.46		)	(11.63		)	(14.53		)	(48.15		)
Total from investment operations	(10.61		)	(3.16		)	(12.53		)	(15.58		)	(49.45		)
Net asset value, end of period		$32.00			$42.61			$45.77			$58.30			$73.88
Total Return^b	(24.88		)%	(6.89		)%	(21.53		)%	(21.11		)%	(40.09		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$372			$183			$474			$946			$1,041
Ratios to average net assets:
Net investment income (loss)	(1.69		)%	(1.56		)%	(1.62		)%	(1.54		)%	(1.37		)%
Total expenses	1.71		%	1.68		%	1.69		%	1.72		%	1.71		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 416

Financial Highlights (continued)

INVERSE NASDAQ-100^® STRATEGY FUND



	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	March 31,			March 28,			March 31,			March 31,			March 31,
C- Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$38.42			$41.58			$53.34			$68.10			$114.53
Income (loss) from investment operations:
Net investment income (loss)^a	(0.80		)	(0.95		)	(1.20		)	(1.45		)	(1.95		)
Net gain (loss) on investments (realized and unrealized)	(8.99		)	(2.21		)	(10.56		)	(13.31		)	(44.48		)
Total from investment operations	(9.79		)	(3.16		)	(11.76		)	(14.76		)	(46.43		)
Net asset value, end of period		$28.63			$38.42			$41.58			$53.34			$68.10
Total Return^b	(25.44		)%	(7.58		)%	(22.12		)%	(21.66		)%	(40.55		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$561			$678			$752			$2,435			$1,858
Ratios to average net assets:
Net investment income (loss)	(2.44		)%	(2.32		)%	(2.37		)%	(2.29		)%	(2.33		)%
Total expenses	2.46		%	2.44		%	2.45		%	2.47		%	2.47		%
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 periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.

417 | PROSPECTUS

Financial Highlights

MID-CAP 1.5X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$45.07			$36.23			$37.14			$26.89			$13.33
Income (loss) from investment operations:
Net investment income (loss)^a	(0.35		)	(0.16		)	(0.23		)	(0.26		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	13.76			9.00			(0.68		)	10.51			13.72
Total from investment operations	13.41			8.84			(0.91		)	10.25			13.56
Net asset value, end of period		$58.48			$45.07			$36.23			$37.14			$26.89
Total Return^b	29.75		%	24.40		%	(2.45		)%	38.12		%	101.73		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,632			$2,199			$1,997			$1,877			$1,567
Ratios to average net assets:
Net investment income (loss)	(0.68		)%	(0.43		)%	(0.68		)%	(0.88		)%	(0.79		)%
Total expenses	1.67		%	1.66		%	1.66		%	1.70		%	1.69		%
Portfolio turnover rate	563		%	447		%	141		%	211		%	219		%

PROSPECTUS | 418

Financial Highlights (continued)

MID-CAP 1.5X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$40.97			$33.18			$34.26			$24.98			$12.47
Income (loss) from investment operations:
Net investment income (loss)^a	(0.64		)	(0.41		)	(0.43		)	(0.43		)	(0.27		)
Net gain (loss) on investments (realized and unrealized)	12.44			8.20			(0.65		)	9.71			12.78
Total from investment operations	11.80			7.79			(1.08		)	9.28			12.51
Net asset value, end of period		$52.77			$40.97			$33.18			$34.26			$24.98
Total Return^b	28.80		%	23.48		%	(3.15		)%	37.15		%	100.32		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,549			$5,107			$4,815			$6,045			$4,069
Ratios to average net assets:
Net investment income (loss)	(1.40		)%	(1.23		)%	(1.42		)%	(1.59		)%	(1.43		)%
Total expenses	2.42		%	2.40		%	2.41		%	2.44		%	2.44		%
Portfolio turnover rate	563		%	447		%	141		%	211		%	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.

419 | PROSPECTUS

Financial Highlights

INVERSE MID-CAP STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$44.64			$54.64			$61.14			$82.10			$144.64
Income (loss) from investment operations:
Net investment income (loss)^a	(0.64		)	(0.84		)	(1.02		)	(1.17		)	(1.56		)
Net gain (loss) on investments (realized and unrealized)	(8.45		)	(9.16		)	(5.48		)	(19.79		)	(60.98		)
Total from investment operations	(9.09		)	(10.00		)	(6.50		)	(20.96		)	(62.54		)
Net asset value, end of period		$35.55			$44.64			$54.64			$61.14			$82.10
Total Return^b	(20.36		)%	(18.29		)%	(10.65		)%	(25.54		)%	(43.23		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$93			$26			$115			$268			$733
Ratios to average net assets:
Net investment income (loss)	(1.65		)%	(1.52		)%	(1.63		)%	(1.54		)%	(1.56		)%
Total expenses	1.67		%	1.64		%	1.66		%	1.69		%	1.69		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 420

Financial Highlights (continued)

INVERSE MID-CAP STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$41.49			$51.18			$57.72			$78.09			$138.72
Income (loss) from investment operations:
Net investment income (loss)^a	(0.90		)	(1.14		)	(1.44		)	(1.65		)	(2.25		)
Net gain (loss) on investments (realized and unrealized)	(7.81		)	(8.55		)	(5.10		)	(18.72		)	(58.38		)
Total from investment operations	(8.71		)	(9.69		)	(6.54		)	(20.37		)	(60.63		)
Net asset value, end of period		$32.78			$41.49			$51.18			$57.72			$78.09
Total Return^b	(20.99		)%	(18.93		)%	(11.33		)%	(26.09		)%	(43.71		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$131			$216			$121			$337			$268
Ratios to average net assets:
Net investment income (loss)	(2.40		)%	(2.29		)%	(2.39		)%	(2.29		)%	(2.30		)%
Total expenses	2.42		%	2.40		%	2.42		%	2.44		%	2.43		%
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 periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

421 | PROSPECTUS

Financial Highlights

RUSSELL 2000^® 1.5X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$39.32			$32.20			$34.37			$25.24			$12.49
Income (loss) from investment operations:
Net investment income (loss)^a	(0.37		)	(0.16		)	(0.39		)	(0.35		)	(0.11		)
Net gain (loss) on investments (realized and unrealized)	14.28			7.28			(1.78		)	9.48			12.86
Total from investment operations	13.91			7.12			(2.17		)	9.13			12.75
Net asset value, end of period		$53.23			$39.32			$32.20			$34.37			$25.24
Total Return^b	35.38		%	22.11		%	(6.31		)%	36.17		%	102.08		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$614			$392			$1,355			$2,312			$585
Ratios to average net assets:
Net investment income (loss)	(0.78		)%	(0.51		)%	(1.24		)%	(1.25		)%	(0.59		)%
Total expenses	1.72		%	1.71		%	1.73		%	1.72		%	1.71		%
Portfolio turnover rate	472		%	527		%	177		%	211		%	109		%

PROSPECTUS | 422

Financial Highlights (continued)

RUSSELL 2000^® 1.5X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$35.78			$29.52			$31.75			$23.50			$11.71
Income (loss) from investment operations:
Net investment income (loss)^a	(0.65		)	(0.34		)	(0.54		)	(0.47		)	(0.24		)
Net gain (loss) on investments (realized and unrealized)	12.95			6.60			(1.69		)	8.72			12.03
Total from investment operations	12.30			6.26			(2.23		)	8.25			11.79
Net asset value, end of period		$48.08			$35.78			$29.52			$31.75			$23.50
Total Return^b	34.38		%	21.21		%	(7.02		)%	35.11		%	100.68		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,864			$1,685			$1,839			$2,786			$2,782
Ratios to average net assets:
Net investment income (loss)	(1.55		)%	(1.15		)%	(1.99		)%	(1.90		)%	(1.36		)%
Total expenses	2.47		%	2.46		%	2.49		%	2.47		%	2.46		%
Portfolio turnover rate	472		%	527		%	177		%	211		%	109		%

^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.

423 | PROSPECTUS

Financial Highlights

RUSSELL 2000^® FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$32.26			$28.20			$28.54			$22.96			$14.31
Income (loss) from investment operations:
Net investment income (loss)^a	(0.27		)	(0.13		)	(0.23		)	(0.24		)	(0.15		)
Net gain (loss) on investments (realized and unrealized)	7.54			4.19			(0.11		)	5.82			8.80
Total from investment operations	7.27			4.06			(0.34		)	5.58			8.65
Less distributions from:
Net realized gains	(1.73		)	—			—			—			—
Total distributions	(1.73		)	—			—			—			—
Net asset value, end of period		$37.80			$32.26			$28.20			$28.54			$22.96
Total Return^b	22.87		%	14.40		%	(1.19		)%	24.30		%	60.45		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,219			$3,723			$670			$755			$1,313
Ratios to average net assets:
Net investment income (loss)	(0.77		)%	(0.44		)%	(0.89		)%	(1.01		)%	(0.81		)%
Total expenses	1.60		%	1.55		%	1.58		%	1.56		%	1.57		%
Portfolio turnover rate	267		%	160		%	121		%	284		%	370		%

PROSPECTUS | 424

Financial Highlights (continued)

RUSSELL 2000^® FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$30.54			$26.90			$27.46			$22.29			$14.00
Income (loss) from investment operations:
Net investment income (loss)^a	(0.48		)	(0.31		)	(0.46		)	(0.47		)	(0.34		)
Net gain (loss) on investments (realized and unrealized)	7.03			3.95			(0.10		)	5.64			8.63
Total from investment operations	6.55			3.64			(0.56		)	5.17			8.29
Less distributions from:
Net realized gains	(1.73		)	—			—			—			—
Total distributions	(1.73		)	—			—			—			—
Net asset value, end of period		$35.36			$30.54			$26.90			$27.46			$22.29
Total Return^b	21.78		%	13.53		%	(2.04		)%	23.25		%	59.21		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,245			$2,599			$6,285			$7,068			$2,860
Ratios to average net assets:
Net investment income (loss)	(1.47		)%	(1.19		)%	(1.83		)%	(1.87		)%	(1.56		)%
Total expenses	2.37		%	2.31		%	2.34		%	2.31		%	2.30		%
Portfolio turnover rate	267		%	160		%	121		%	284		%	370		%


^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.

425 | PROSPECTUS

Financial Highlights

INVERSE RUSSELL 2000^® STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$43.21			$52.38			$59.31			$81.01			$144.06
Income (loss) from investment operations:
Net investment income (loss)^a	(0.61		)	(0.81		)	(1.02		)	(1.14		)	(1.62		)
Net gain (loss) on investments (realized and unrealized)	(9.59		)	(8.36		)	(5.91		)	(20.56		)	(61.43		)
Total from investment operations	(10.20		)	(9.17		)	(6.93		)	(21.70		)	(63.05		)
Net asset value, end of period		$33.01			$43.21			$52.38			$59.31			$81.01
Total Return^b	(23.59		)%	(17.53		)%	(11.68		)%	(26.78		)%	(43.77		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,302			$635			$612			$1,114			$1,765
Ratios to average net assets:
Net investment income (loss)	(1.69		)%	(1.60		)%	(1.66		)%	(1.53		)%	(1.58		)%
Total expenses	1.72		%	1.72		%	1.75		%	1.71		%	1.71		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 426

Financial Highlights (continued)

INVERSE RUSSELL 2000^® STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$40.30			$49.22			$56.14			$77.26			$138.44
Income (loss) from investment operations:
Net investment income (loss)^a	(0.83		)	(1.14		)	(1.41		)	(1.65		)	(2.28		)
Net gain (loss) on investments (realized and unrealized)	(8.88		)	(7.78		)	(5.51		)	(19.47		)	(58.90		)
Total from investment operations	(9.71		)	(8.92		)	(6.92		)	(21.12		)	(61.18		)
Net asset value, end of period		$30.59			$40.30			$49.22			$56.14			$77.26
Total Return^b	(24.08		)%	(18.16		)%	(12.29		)%	(27.34		)%	(44.20		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$568			$409			$837			$1,158			$2,003
Ratios to average net assets:
Net investment income (loss)	(2.45		)%	(2.35		)%	(2.43		)%	(2.28		)%	(2.34		)%
Total expenses	2.47		%	2.47		%	2.51		%	2.46		%	2.46		%
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 periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

427 | PROSPECTUS

Financial Highlights

S&P 500^® PURE GROWTH FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$38.86			$34.54			$33.15			$26.51			$15.82
Income (loss) from investment operations:
Net investment income (loss)^a	(0.23		)	(0.13		)	(0.20		)	(0.18		)	(0.18		)
Net gain (loss) on investments
(realized and unrealized)	12.18			4.45			1.82			6.82			10.87
Total from investment operations	11.95			4.32			1.62			6.64			10.69
Less distributions from:
Net realized gains	—			—			(0.23		)	—			—
Total distributions	—			—			(0.23		)	—			—
Net asset value, end of period		$50.81			$38.86			$34.54			$33.15			$26.51
Total Return^b	30.75		%	12.51		%	4.96		%	25.05		%	67.57		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$19,978			$15,001			$2,846			$2,704			$1,774
Ratios to average net assets:
Net investment income (loss)	(0.51		)%	(0.38		)%	(0.62		)%	(0.65		)%	(0.81		)%
Total expenses	1.52		%	1.51		%	1.52		%	1.53		%	1.52		%
Portfolio turnover rate	594		%	421		%	586		%	808		%	699		%

PROSPECTUS | 428

Financial Highlights (continued)

S&P 500^® PURE GROWTH FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$36.27			$32.48			$31.42			$25.32			$15.23
Income (loss) from investment operations:
Net investment income (loss)^a	(0.52		)	(0.38		)	(0.41		)	(0.41		)	(0.30		)
Net gain (loss) on investments (realized and unrealized)	11.32			4.17			1.70			6.51			10.39
Total from investment operations	10.80			3.79			1.29			6.10			10.09
Less distributions from:
Net realized gains	—			—			(0.23		)	—			—
Total distributions	—			—			(0.23		)	—			—
Net asset value, end of period		$47.07			$36.27			$32.48			$31.42			$25.32
Total Return^b	29.78		%	11.70		%	4.15		%	24.09		%	66.25		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$17,042			$8,692			$11,623			$8,384			$6,494
Ratios to average net assets:
Net investment income (loss)	(1.24		)%	(1.19		)%	(1.35		)%	(1.53		)%	(1.40		)%
Total expenses	2.27		%	2.25		%	2.26		%	2.29		%	2.28		%
Portfolio turnover rate	594		%	421		%	586		%	808		%	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.

429 | PROSPECTUS

Financial Highlights

S&P 500^® PURE VALUE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$111.68			$93.49			$90.21			$79.66			$35.58
Income (loss) from investment operations:
Net investment income (loss)^a	0.61			0.58			0.30			0.01			0.26
Net gain (loss) on investments (realized and unrealized)	35.01			17.75			2.98			11.87			44.60
Total from investment operations	35.62			18.33			3.28			11.88			44.86
Less distributions from:
Net investment income	(0.23		)	(0.14		)	—			(1.33		)	(0.78		)
Net realized gains	(5.68		)	—			—			—			—
Total distributions	(5.91		)	(0.14		)	—			(1.33		)	(0.78		)
Net asset value, end of period		$141.39			$111.68			$93.49			$90.21			$79.66
Total Return^b	32.21		%	19.63		%	3.64		%	15.14		%	126.37		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,435			$1,303			$1,846			$2,329			$8,156
Ratios to average net assets:
Net investment income (loss)	0.47		%	0.61		%	0.34		%	0.01		%	0.39		%
Total expenses	1.52		%	1.51		%	1.51		%	1.54		%	1.52		%
Portfolio turnover rate	410		%	669		%	762		%	820		%	673		%

PROSPECTUS | 430

Financial Highlights (continued)

S&P 500^® PURE VALUE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$102.46			$86.42			$83.99			$74.81			$33.66
Income (loss) from investment operations:
Net investment income (loss)^a	(0.30		)	(0.19		)	(0.36		)	(0.51		)	(0.02		)
Net gain (loss) on investments (realized and unrealized)	31.94			16.37			2.79			11.02			41.95
Total from investment operations	31.64			16.18			2.43			10.51			41.93
Less distributions from:
Net investment income	(0.23		)	(0.14		)	—			(1.33		)	(0.78		)
Net realized gains	(5.68		)	—			—			—			—
Total distributions	(5.91		)	(0.14		)	—			(1.33		)	(0.78		)
Net asset value, end of period		$128.19			$102.46			$86.42			$83.99			$74.81
Total Return^b	31.21		%	18.76		%	2.88		%	14.28		%	124.86		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,090			$3,430			$2,128			$5,690			$4,876
Ratios to average net assets:
Net investment income (loss)	(0.26		)%	(0.22		)%	(0.45		)%	(0.68		)%	(0.03		)%
Total expenses	2.27		%	2.26		%	2.27		%	2.29		%	2.27		%
Portfolio turnover rate	410		%	669		%	762		%	820		%	673		%


^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 period presented through April 19, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

431 | PROSPECTUS

Financial Highlights

S&P MIDCAP 400^® PURE GROWTH FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$49.76			$44.11			$42.76			$32.21			$18.19
Income (loss) from investment operations:
Net investment income (loss)^a	(0.22		)	(0.19		)	(0.45		)	(0.38		)	(0.28		)
Net gain (loss) on investments (realized and unrealized)	11.05			5.84			1.80			10.93			14.30
Total from investment operations	10.83			5.65			1.35			10.55			14.02
Less distributions from:
Net realized gains	(1.93		)	—			—			—			—
Total distributions	(1.93		)	—			—			—			—
Net asset value, end of period		$58.66			$49.76			$44.11			$42.76			$32.21
Total Return^b	21.90		%	12.81		%	3.16		%	32.75		%	77.08		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$59,293			$45,638			$36,052			$25,237			$2,242
Ratios to average net assets:
Net investment income (loss)	(0.40		)%	(0.43		)%	(1.09		)%	(1.04		)%	(1.03		)%
Total expenses	1.52		%	1.50		%	1.50		%	1.54		%	1.53		%
Portfolio turnover rate	131		%	188		%	226		%	448		%	626		%

PROSPECTUS | 432

Financial Highlights

S&P MIDCAP 400^® PURE GROWTH FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$46.39			$41.43			$40.47			$30.71			$17.48
Income (loss) from investment operations:
Net investment income (loss)^a	(0.58		)	(0.49		)	(0.71		)	(0.63		)	(0.44		)
Net gain (loss) on investments (realized and unrealized)	10.25			5.45			1.67			10.39			13.67
Total from investment operations	9.67			4.96			0.96			9.76			13.23
Less distributions from:
Net realized gains	(1.93		)	—			—			—			—
Total distributions	(1.93		)	—			—			—			—
Net asset value, end of period		$54.13			$46.39			$41.43			$40.47			$30.71
Total Return^b	20.98		%	12.00		%	2.35		%	31.78		%	75.69		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$28,567			$18,837			$16,228			$10,102			$3,780
Ratios to average net assets:
Net investment income (loss)	(1.15		)%	(1.19		)%	(1.83		)%	(1.83		)%	(1.77		)%
Total expenses	2.27		%	2.25		%	2.25		%	2.29		%	2.28		%
Portfolio turnover rate	131		%	188		%	226		%	448		%	626		%


^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.

433 | PROSPECTUS

Financial Highlights

S&P MIDCAP 400^® PURE VALUE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$36.18			$30.88			$31.43			$30.45			$13.68
Income (loss) from investment operations:
Net investment income (loss)^a	(0.03		)	0.07			0.06			0.02			0.12
Net gain (loss) on investments
(realized and unrealized)	7.08			5.23			(0.61		)	3.64			16.75
Total from investment operations	7.05			5.30			(0.55		)	3.66			16.87
Less distributions from:
Net investment income	(0.19		)	—			—			(0.17		)	(0.10		)
Net realized gains	—			—			—			(2.51		)	—
Total distributions	(0.19		)	—			—			(2.68		)	(0.10		)
Net asset value, end of period		$43.04			$36.18			$30.88			$31.43			$30.45
Total Return^b	19.49		%	17.16		%	(1.75		)%	12.81		%	123.41		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,357			$1,571			$6,817			$785			$10,888
Ratios to average net assets:
Net investment income (loss)	(0.06		)%	0.23		%	0.22		%	0.08		%	0.43		%
Total expenses	1.52		%	1.51		%	1.49		%	1.53		%	1.52		%
Portfolio turnover rate	506		%	757		%	619		%	407		%	443		%

PROSPECTUS | 434

Financial Highlights (continued)

S&P MIDCAP 400^® PURE VALUE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$33.46			$28.78			$29.53			$28.96			$13.12
Income (loss) from investment operations:
Net investment income (loss)^a	(0.25		)	(0.13		)	(0.16		)	(0.23		)	(0.06		)
Net gain (loss) on investments
(realized and unrealized)	6.46			4.81			(0.59		)	3.48			16.00
Total from investment operations	6.21			4.68			(0.75		)	3.25			15.94
Less distributions from:
Net investment income	(0.19		)	—			—			(0.17		)	(0.10		)
Net realized gains	—			—			—			(2.51		)	—
Total distributions	(0.19		)	—			—			(2.68		)	(0.10		)
Net asset value, end of period		$39.48			$33.46			$28.78			$29.53			$28.96
Total Return^b	18.57		%	16.26		%	(2.54		)%	12.03		%	121.59		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,207			$3,413			$2,194			$2,311			$2,478
Ratios to average net assets:
Net investment income (loss)	(0.71		)%	(0.45		)%	(0.60		)%	(0.83		)%	(0.24		)%
Total expenses	2.28		%	2.26		%	2.26		%	2.30		%	2.29		%
Portfolio turnover rate	506		%	757		%	619		%	407		%	443		%


^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.

435 | PROSPECTUS

Financial Highlights

S&P SMALLCAP 600^® PURE GROWTH FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$41.94			$37.97			$36.06			$28.49			$16.93
Income (loss) from investment operations:
Net investment income (loss)^a	(0.31		)	(0.12		)	(0.35		)	(0.34		)	(0.28		)
Net gain (loss) on investments (realized and unrealized)	11.36			4.09			2.26			7.91			11.84
Total from investment operations	11.05			3.97			1.91			7.57			11.56
Net asset value, end of period		$52.99			$41.94			$37.97			$36.06			$28.49
Total Return^b	26.35		%	10.46		%	5.30		%	26.57		%	68.28		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,265			$995			$1,018			$2,115			$750
Ratios to average net assets:
Net investment income (loss)	(0.60		)%	(0.31		)%	(1.00		)%	(1.15		)%	(1.15		)%
Total expenses	1.53		%	1.51		%	1.52		%	1.54		%	1.54		%
Portfolio turnover rate	677		%	645		%	500		%	732		%	1,476		%

PROSPECTUS | 436

Financial Highlights (continued)

S&P SMALLCAP 600^® PURE GROWTH FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$39.24			$35.79			$34.25			$27.25			$16.32
Income (loss) from investment operations:
Net investment income (loss)^a	(0.66		)	(0.42		)	(0.57		)	(0.54		)	(0.42		)
Net gain (loss) on investments (realized and unrealized)	10.63			3.87			2.11			7.54			11.35
Total from investment operations	9.97			3.45			1.54			7.00			10.93
Net asset value, end of period		$49.21			$39.24			$35.79			$34.25			$27.25
Total Return^b	25.41		%	9.64		%	4.50		%	25.69		%	66.97		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,268			$3,122			$2,568			$3,072			$1,658
Ratios to average net assets:
Net investment income (loss)	(1.46		)%	(1.17		)%	(1.71		)%	(1.80		)%	(1.82		)%
Total expenses	2.28		%	2.26		%	2.26		%	2.29		%	2.28		%
Portfolio turnover rate	677		%	645		%	500		%	732		%	1,476		%


^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.

437 | PROSPECTUS

Financial Highlights

S&P SMALLCAP 600^® PURE VALUE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$19.55			$17.07			$17.42			$19.60			$11.08
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	(0.01		)	(0.12		)	(0.13		)	(0.13		)
Net gain (loss) on investments (realized and unrealized)	6.20			2.49			(0.23		)	1.20			15.44
Total from investment operations	6.11			2.48			(0.35		)	1.07			15.31
Less distributions from:
Net investment income	—			—			—			—			(0.03		)
Net realized gains	—			—			—			(3.25		)	(6.76		)
Total distributions	—			—			—			(3.25		)	(6.79		)
Net asset value, end of period		$25.66			$19.55			$17.07			$17.42			$19.60
Total Return^b	31.25		%	14.53		%	(2.01		)%	6.98		%	150.09		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,016			$1,551			$961			$8,845			$5,529
Ratios to average net assets:
Net investment income (loss)	(0.39		)%	(0.08		)%	(0.71		)%	(0.73		)%	(0.62		)%
Total expenses	1.52		%	1.51		%	1.53		%	1.53		%	1.53		%
Portfolio turnover rate	658		%	655		%	744		%	692		%	443		%

PROSPECTUS | 438

Financial Highlights (continued)

S&P SMALLCAP 600^® PURE VALUE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$17.51			$15.40			$15.85			$18.27			$10.62
Income (loss) from investment operations:
Net investment income (loss)^a	(0.22		)	(0.13		)	(0.20		)	(0.23		)	(0.27		)
Net gain (loss) on investments (realized and unrealized)	5.52			2.24			(0.25		)	1.06			14.71
Total from investment operations	5.30			2.11			(0.45		)	0.83			14.44
Less distributions from:
Net investment income	—			—			—			—			(0.03		)
Net realized gains	—			—			—			(3.25		)	(6.76		)
Total distributions	—			—			—			(3.25		)	(6.79		)
Net asset value, end of period		$22.81			$17.51			$15.40			$15.85			$18.27
Total Return^b	30.27		%	13.70		%	(2.84		)%	6.12		%	148.23		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,514			$3,932			$1,955			$2,243			$8,999
Ratios to average net assets:
Net investment income (loss)	(1.10		)%	(0.84		)%	(1.39		)%	(1.37		)%	(1.39		)%
Total expenses	2.27		%	2.26		%	2.26		%	2.28		%	2.28		%
Portfolio turnover rate	658		%	655		%	744		%	692		%	443		%


^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.

439 | PROSPECTUS

Financial Highlights

BANKING FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$48.74			$43.45			$46.38			$47.41			$30.67
Income (loss) from investment operations:
Net investment income (loss)^a	0.39			0.36			0.30			0.04			0.02
Net gain (loss) on investments (realized and unrealized)	10.23			5.08			(3.18		)	(0.95		)	18.94
Total from investment operations	10.62			5.44			(2.88		)	(0.91		)	18.96
Less distributions from:
Net investment income	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Total distributions	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Net asset value, end of period		$58.75			$48.74			$43.45			$46.38			$47.41
Total Return^b	21.84		%	12.60		%	(6.19		)%	(1.89		)%	63.04		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,305			$2,103			$3,088			$913			$6,381
Ratios to average net assets:
Net investment income (loss)	0.71		%	0.88		%	0.73		%	0.09		%	0.06		%
Total expenses	1.62		%	1.59		%	1.61		%	1.64		%	1.63		%
Portfolio turnover rate	481		%	382		%	544		%	1,130		%	986		%

PROSPECTUS | 440

Financial Highlights (continued)

BANKING FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$45.74			$41.09			$44.20			$45.51			$29.90
Income (loss) from investment operations:
Net investment income (loss)^a	(0.05		)	0.01			(0.01		)	(0.29		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	9.61			4.79			(3.05		)	(0.90		)	17.99
Total from investment operations	9.56			4.80			(3.06		)	(1.19		)	17.83
Less distributions from:
Net investment income	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Total distributions	(0.61		)	(0.15		)	(0.05		)	(0.12		)	(2.22		)
Net asset value, end of period		$54.69			$45.74			$41.09			$44.20			$45.51
Total Return^b	20.95		%	11.74		%	(6.88		)%	(2.58		)%	60.86		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,307			$4,036			$3,841			$2,844			$5,607
Ratios to average net assets:
Net investment income (loss)	(0.10		)%	0.02		%	(0.03		)%	(0.67		)%	(0.42		)%
Total expenses	2.37		%	2.35		%	2.35		%	2.38		%	2.38		%
Portfolio turnover rate	481		%	382		%	544		%	1,130		%	986		%


^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 period presented through April 20, 2009, have been restated to reflect a 1:10 reverse share split effective April 20, 2009.

441 | PROSPECTUS

Financial Highlights

BASIC MATERIALS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$47.60			$47.58			$53.99			$42.88			$26.41
Income (loss) from investment operations:
Net investment income (loss)^a	0.22			0.32			(0.01		)	(0.09		)	0.15
Net gain (loss) on investments (realized and unrealized)	2.42			(0.13		)	(6.40		)	11.31			16.41
Total from investment operations	2.64			0.19			(6.41		)	11.22			16.56
Less distributions from:
Net investment income	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Total distributions	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Net asset value, end of period		$49.93			$47.60			$47.58			$53.99			$42.88
Total Return^b	5.58		%	0.41		%	(11.87		)%	26.20		%	62.72		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,347			$11,104			$9,410			$18,187			$8,159
Ratios to average net assets:
Net investment income (loss)	0.47		%	0.69		%	(0.03		)%	(0.19		)%	0.40		%
Total expenses	1.63		%	1.61		%	1.61		%	1.64		%	1.65		%
Portfolio turnover rate	349		%	251		%	217		%	292		%	455		%

PROSPECTUS | 442

Financial Highlights (continued)

BASIC MATERIALS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$44.12			$44.45			$50.80			$40.67			$25.24
Income (loss) from investment operations:
Net investment income (loss)^a	(0.15		)	(0.03		)	(0.33		)	(0.40		)	(0.13		)
Net gain (loss) on investments (realized and unrealized)	2.25			(0.13		)	(6.02		)	10.64			15.65
Total from investment operations	2.10			(0.16		)	(6.35		)	10.24			15.52
Less distributions from:
Net investment income	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Total distributions	(0.31		)	(0.17		)	—			(0.11		)	(0.09		)
Net asset value, end of period		$45.91			$44.12			$44.45			$50.80			$40.67
Total Return^b	4.80		%	(0.35		)%	(12.50		)%	25.21		%	61.51		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,150			$6,666			$8,317			$13,353			$9,125
Ratios to average net assets:
Net investment income (loss)	(0.34		)%	(0.07		)%	(0.73		)%	(0.93		)%	(0.37		)%
Total expenses	2.38		%	2.36		%	2.36		%	2.39		%	2.40		%
Portfolio turnover rate	349		%	251		%	217		%	292		%	455		%


^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.

443 | PROSPECTUS

Financial Highlights

BIOTECHNOLOGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$46.18			$34.88			$27.64			$25.98			$18.45
Income (loss) from investment operations:
Net investment income (loss)^a	(0.62		)	(0.48		)	(0.37		)	(0.37		)	(0.25		)
Net gain (loss) on investments (realized and unrealized)	18.85			11.78			7.61			2.03			7.78
Total from investment operations	18.23			11.30			7.24			1.66			7.53
Net asset value, end of period		$64.41			$46.18			$34.88			$27.64			$25.98
Total Return^b	39.48		%	32.40		%	26.19		%	6.39		%	40.81		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$51,270			$26,391			$4,741			$2,211			$2,869
Ratios to average net assets:
Net investment income (loss)	(1.07		)%	(1.21		)%	(1.30		)%	(1.51		)%	(1.12		)%
Total expenses	1.61		%	1.61		%	1.61		%	1.64		%	1.64		%
Portfolio turnover rate	119		%	197		%	333		%	337		%	316		%

PROSPECTUS | 444

Financial Highlights (continued)

BIOTECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$43.41			$33.04			$26.38			$24.96			$17.87
Income (loss) from investment operations:
Net investment income (loss)^a	(0.99		)	(0.73		)	(0.58		)	(0.54		)	(0.38		)
Net gain (loss) on investments (realized and unrealized)	17.68			11.10			7.24			1.96			7.47
Total from investment operations	16.69			10.37			6.66			1.42			7.09
Net asset value, end of period		$60.10			$43.41			$33.04			$26.38			$24.96
Total Return^b	38.45		%	31.39		%	25.25		%	5.65		%	39.68		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$27,170			$13,677			$6,969			$3,393			$4,705
Ratios to average net assets:
Net investment income (loss)	(1.82		)%	(1.96		)%	(2.06		)%	(2.27		)%	(1.78		)%
Total expenses	2.36		%	2.36		%	2.36		%	2.39		%	2.39		%
Portfolio turnover rate	119		%	197		%	333		%	337		%	316		%


^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.

445 | PROSPECTUS

Financial Highlights

CONSUMER PRODUCTS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$45.00			$37.93			$34.49			$36.26			$25.37
Income (loss) from investment operations:
Net investment income (loss)^a	0.33			0.44			0.40			0.41			0.55
Net gain (loss) on investments (realized and unrealized)	5.44			6.74			4.53			4.37			10.44
Total from investment operations	5.77			7.18			4.93			4.78			10.99
Less distributions from:
Net investment income	(0.46		)	(0.11		)	(0.57		)	(0.82		)	(0.10		)
Net realized gains	(1.52		)	—			(0.92		)	(5.73		)	—
Total distributions	(1.98		)	(0.11		)	(1.49		)	(6.55		)	(0.10		)
Net asset value, end of period		$48.79			$45.00			$37.93			$34.49			$36.26
Total Return^b	12.95		%	18.98		%	14.80		%	14.58		%	43.34		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$25,538			$21,604			$21,021			$5,033			$21,277
Ratios to average net assets:
Net investment income (loss)	0.70		%	1.12		%	1.11		%	1.14		%	1.72		%
Total expenses	1.62		%	1.60		%	1.60		%	1.63		%	1.63		%
Portfolio turnover rate	112		%	230		%	402		%	400		%	200		%

PROSPECTUS | 446

Financial Highlights (continued)

CONSUMER PRODUCTS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$41.32			$35.11			$32.28			$34.57			$24.36
Income (loss) from investment operations:
Net investment income (loss)^a	(0.01		)	0.13			0.12			0.30			0.24
Net gain (loss) on investments (realized and unrealized)	4.96			6.19			4.20			3.96			10.07
Total from investment operations	4.95			6.32			4.32			4.26			10.31
Less distributions from:
Net investment income	(0.46		)	(0.11		)	(0.57		)	(0.82		)	(0.10		)
Net realized gains	(1.52		)	—			(0.92		)	(5.73		)	—
Total distributions	(1.98		)	(0.11		)	(1.49		)	(6.55		)	(0.10		)
Net asset value, end of period		$44.29			$41.32			$35.11			$32.28			$34.57
Total Return^b	12.11		%	18.06		%	13.91		%	13.78		%	42.35		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$14,125			$11,699			$9,712			$3,484			$4,194
Ratios to average net assets:
Net investment income (loss)	(0.02		)%	0.37		%	0.36		%	0.90		%	0.77		%
Total expenses	2.37		%	2.35		%	2.35		%	2.38		%	2.38		%
Portfolio turnover rate	112		%	230		%	402		%	400		%	200		%


^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.

447 | PROSPECTUS

Financial Highlights

ELECTRONICS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$49.29			$52.23			$57.59			$49.88			$31.31
Income (loss) from investment operations:
Net investment income (loss)^a	(0.33		)	0.24			(0.19		)	(0.21		)	(0.14		)
Net gain (loss) on investments (realized and unrealized)	16.95			(3.18		)	(5.17		)	7.92			18.71
Total from investment operations	16.62			(2.94		)	(5.36		)	7.71			18.57
Less distributions from:
Net investment income	(0.04		)	—			—			—			—
Total distributions	(0.04		)	—			—			—			—
Net asset value, end of period		$65.87			$49.29			$52.23			$57.59			$49.88
Total Return^b	33.72		%	(5.63		)%	(9.31		)%	15.46		%	59.31		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,329			$299			$659			$1,619			$1,329
Ratios to average net assets:
Net investment income (loss)	(0.59		)%	0.51		%	(0.36		)%	(0.43		)%	(0.31		)%
Total expenses	1.62		%	1.60		%	1.62		%	1.64		%	1.62		%
Portfolio turnover rate	1,436		%	1,640		%	1,329		%	1,171		%	592		%

PROSPECTUS | 448

Financial Highlights (continued)

ELECTRONICS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$46.32			$49.50			$55.03			$47.90			$30.28
Income (loss) from investment operations:
Net investment income (loss)^a	(0.54		)	(0.18		)	(0.70		)	(0.65		)	(0.51		)
Net gain (loss) on investments (realized and unrealized)	15.66			(3.00		)	(4.83		)	7.78			18.13
Total from investment operations	15.12			(3.18		)	(5.53		)	7.13			17.62
Less distributions from:
Net investment income	(0.04		)	—			—			—			—
Total distributions	(0.04		)	—			—			—			—
Net asset value, end of period		$61.40			$46.32			$49.50			$55.03			$47.90
Total Return^b	32.65		%	(6.44		)%	(10.01		)%	14.86		%	58.19		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,043			$667			$263			$1,246			$3,342
Ratios to average net assets:
Net investment income (loss)	(1.03		)%	(0.41		)%	(1.42		)%	(1.31		)%	(1.21		)%
Total expenses	2.37		%	2.35		%	2.36		%	2.39		%	2.38		%
Portfolio turnover rate	1,436		%	1,640		%	1,329		%	1,171		%	592		%


^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.

449 | PROSPECTUS

Financial Highlights

ENERGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$24.76			$23.38			$27.40			$20.01			$13.44
Income (loss) from investment operations:
Net investment income (loss)^a	0.08			0.08			(0.01		)	(0.08		)	0.06
Net gain (loss) on investments (realized and unrealized)	3.23			1.77			(4.01		)	7.50			6.53
Total from investment operations	3.31			1.85			(4.02		)	7.42			6.59
Less distributions from:
Net investment income	—			(0.07		)	—			(0.03		)	(0.02		)
Return of capital	—			(0.40		)	—			—			—
Total distributions	—			(0.47		)	—			(0.03		)	(0.02		)
Net asset value, end of period		$28.07			$24.76			$23.38			$27.40			$20.01
Total Return^b	13.37		%	8.20		%	(14.67		)%	37.11		%	49.01		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,624			$5,586			$5,622			$14,752			$3,903
Ratios to average net assets:
Net investment income (loss)	0.30		%	0.38		%	(0.05		)%	(0.38		)%	0.35		%
Total expenses	1.62		%	1.60		%	1.61		%	1.64		%	1.63		%
Portfolio turnover rate	231		%	248		%	288		%	273		%	228		%

PROSPECTUS | 450

Financial Highlights (continued)

ENERGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$22.93			$21.85			$25.78			$18.97			$12.84
Income (loss) from investment operations:
Net investment income (loss)^a	(0.12		)	(0.09		)	(0.19		)	(0.20		)	(0.08		)
Net gain (loss) on investments (realized and unrealized)	2.99			1.64			(3.74		)	7.04			6.23
Total from investment operations	2.87			1.55			(3.93		)	6.84			6.15
Less distributions from:
Net investment income	—			(0.07		)	—			(0.03		)	(0.02		)
Return of capital	—			(0.40		)	—			—			—
Total distributions	—			(0.47		)	—			(0.03		)	(0.02		)
Net asset value, end of period		$25.80			$22.93			$21.85			$25.78			$18.97
Total Return^b	12.52		%	7.40		%	(15.24		)%	36.09		%	47.87		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,357			$9,693			$13,153			$19,993			$13,972
Ratios to average net assets:
Net investment income (loss)	(0.52		)%	(0.45		)%	(0.84		)%	(0.99		)%	(0.48		)%
Total expenses	2.37		%	2.35		%	2.36		%	2.39		%	2.38		%
Portfolio turnover rate	231		%	248		%	288		%	273		%	228		%


^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.

451 | PROSPECTUS

Financial Highlights

ENERGY SERVICES FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$51.86			$48.59			$60.01			$41.12			$24.13
Income (loss) from investment operations:
Net investment income (loss)^a	(0.13		)	(0.17		)	(0.25		)	(0.31		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	7.61			3.44			(11.17		)	19.20			17.15
Total from investment operations	7.48			3.27			(11.42		)	18.89			16.99
Net asset value, end of period		$59.34			$51.86			$48.59			$60.01			$41.12
Total Return^b	14.42		%	6.73		%	(19.03		)%	45.94		%	70.41		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,557			$5,535			$7,115			$24,849			$8,957
Ratios to average net assets:
Net investment income (loss)	(0.23		)%	(0.37		)%	(0.47		)%	(0.67		)%	(0.43		)%
Total expenses	1.62		%	1.60		%	1.61		%	1.64		%	1.63		%
Portfolio turnover rate	350		%	275		%	162		%	205		%	472		%

PROSPECTUS | 452

Financial Highlights (continued)

ENERGY SERVICES FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$48.37			$45.66			$56.81			$39.22			$23.19
Income (loss) from investment operations:
Net investment income (loss)^a	(0.50		)	(0.49		)	(0.54		)	(0.60		)	(0.44		)
Net gain (loss) on investments (realized and unrealized)	7.05			3.20			(10.61		)	18.19			16.47
Total from investment operations	6.55			2.71			(11.15		)	17.59			16.03
Net asset value, end of period		$54.92			$48.37			$45.66			$56.81			$39.22
Total Return^b	13.54		%	5.94		%	(19.63		)%	44.85		%	69.12		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,616			$8,654			$10,144			$15,276			$11,059
Ratios to average net assets:
Net investment income (loss)	(0.97		)%	(1.11		)%	(1.13		)%	(1.43		)%	(1.25		)%
Total expenses	2.37		%	2.35		%	2.36		%	2.39		%	2.38		%
Portfolio turnover rate	350		%	275		%	162		%	205		%	472		%


^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.

453 | PROSPECTUS

Financial Highlights

FINANCIAL SERVICES FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$86.48			$75.07			$77.87			$72.38			$42.80
Income (loss) from investment operations:
Net investment income (loss)^a	0.58			0.51			0.45			(0.01		)	0.30
Net gain (loss) on investments (realized and unrealized)	14.44			11.45			(3.22		)	6.45			29.90
Total from investment operations	15.02			11.96			(2.77		)	6.44			30.20
Less distributions from:
Net investment income	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Total distributions	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Net asset value, end of period		$100.94			$86.48			$75.07			$77.87			$72.38
Total Return^b	17.41		%	16.06		%	(3.57		)%	9.06		%	70.74		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,698			$1,826			$632			$1,782			$1,408
Ratios to average net assets:
Net investment income (loss)	0.62		%	0.66		%	0.64		%	(0.01		)%	0.50		%
Total expenses	1.62		%	1.61		%	1.61		%	1.64		%	1.63		%
Portfolio turnover rate	414		%	590		%	970		%	601		%	447		%

PROSPECTUS | 454

Financial Highlights (continued)

FINANCIAL SERVICES FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010^c
Per Share Data
Net asset value, beginning of period		$80.30			$70.26			$73.42			$68.79			$41.01
Income (loss) from investment operations:
Net investment income (loss)^a	(0.16		)	0.03			(0.12		)	(0.49		)	(0.24		)
Net gain (loss) on investments (realized and unrealized)	13.44			10.56			(3.01		)	6.07			28.64
Total from investment operations	13.28			10.59			(3.13		)	5.58			28.40
Less distributions from:
Net investment income	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Total distributions	(0.56		)	(0.55		)	(0.03		)	(0.95		)	(0.62		)
Net asset value, end of period		$93.02			$80.30			$70.26			$73.42			$68.79
Total Return^b	16.58		%	15.21		%	(4.27		)%	8.28		%	69.44		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,051			$1,440			$817			$1,114			$1,942
Ratios to average net assets:
Net investment income (loss)	(0.18		)%	0.04		%	(0.18		)%	(0.72		)%	(0.40		)%
Total expenses	2.37		%	2.36		%	2.36		%	2.39		%	2.38		%
Portfolio turnover rate	414		%	590		%	970		%	601		%	447		%


^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 period presented through April 20, 2009, have been restated to reflect a 1:10 reverse share split effective April 20, 2009.

455 | PROSPECTUS

Financial Highlights

HEALTH CARE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$21.15			$17.87			$16.30			$15.05			$10.69
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	0.04			(0.02		)	(0.02		)	(0.03		)
Net gain (loss) on investments (realized and unrealized)	6.61			3.29			1.59			1.27			4.40
Total from investment operations	6.52			3.33			1.57			1.25			4.37
Less distributions from:
Net investment income	(0.03		)	(0.05		)	—			—			(0.01		)
Net realized gains	(1.53		)	—			—			—			—
Total distributions	(1.56		)	(0.05		)	—			—			(0.01		)
Net asset value, end of period		$26.11			$21.15			$17.87			$16.30			$15.05
Total Return^b	31.36		%	18.65		%	9.63		%	8.31		%	40.88		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,909			$3,660			$2,964			$1,156			$6,204
Ratios to average net assets:
Net investment income (loss)	(0.37		)%	0.20		%	(0.13		)%	(0.14		)%	(0.25		)%
Total expenses	1.62		%	1.60		%	1.60		%	1.63		%	1.62		%
Portfolio turnover rate	277		%	266		%	582		%	619		%	241		%

PROSPECTUS | 456

Financial Highlights (continued)

HEALTH CARE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$19.81			$16.86			$15.50			$14.39			$10.30
Income (loss) from investment operations:
Net investment income (loss)^a	(0.26		)	(0.09		)	(0.14		)	(0.11		)	(0.11		)
Net gain (loss) on investments (realized and unrealized)	6.17			3.09			1.50			1.22			4.21
Total from investment operations	5.91			3.00			1.36			1.11			4.10
Less distributions from:
Net investment income	(0.03		)	(0.05		)	—			—			(0.01		)
Net realized gains	(1.53		)	—			—			—			—
Total distributions	(1.56		)	(0.05		)	—			—			(0.01		)
Net asset value, end of period		$24.16			$19.81			$16.86			$15.50			$14.39
Total Return^b	30.38		%	17.81		%	8.77		%	7.71		%	39.81		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,318			$4,589			$3,468			$3,870			$8,393
Ratios to average net assets:
Net investment income (loss)	(1.14		)%	(0.53		)%	(0.91		)%	(0.76		)%	(0.91		)%
Total expenses	2.37		%	2.35		%	2.36		%	2.38		%	2.38		%
Portfolio turnover rate	277		%	266		%	582		%	619		%	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.

457 | PROSPECTUS

Financial Highlights

INTERNET FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$52.85			$49.63			$50.13			$40.12			$25.62
Income (loss) from investment operations:
Net investment income (loss)^a	(0.79		)	(0.52		)	(0.64		)	(0.46		)	(0.50		)
Net gain (loss) on investments (realized and unrealized)	19.58			5.00			0.14			10.47			15.00
Total from investment operations	18.79			4.48			(0.50		)	10.01			14.50
Less distributions from:
Net realized gains	(0.32		)	(1.26		)	—			—			—
Total distributions	(0.32		)	(1.26		)	—			—			—
Net asset value, end of period		$71.32			$52.85			$49.63			$50.13			$40.12
Total Return^b	35.58		%	9.41		%	(1.00		)%	24.95		%	56.60		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$12,566			$1,192			$828			$1,101			$2,989
Ratios to average net assets:
Net investment income (loss)	(1.12		)%	(1.08		)%	(1.39		)%	(1.01		)%	(1.44		)%
Total expenses	1.62		%	1.60		%	1.61		%	1.64		%	1.63		%
Portfolio turnover rate	472		%	442		%	380		%	291		%	443		%

PROSPECTUS | 458

Financial Highlights (continued)

INTERNET FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$49.03			$46.50			$47.30			$38.17			$24.56
Income (loss) from investment operations:
Net investment income (loss)^a	(1.16		)	(0.85		)	(0.94		)	(0.83		)	(0.66		)
Net gain (loss) on investments (realized and unrealized)	18.09			4.64			0.14			9.96			14.27
Total from investment operations	16.93			3.79			(0.80		)	9.13			13.61
Less distributions from:
Net realized gains	(0.32		)	(1.26		)	—			—			—
Total distributions	(0.32		)	(1.26		)	—			—			—
Net asset value, end of period		$65.64			$49.03			$46.50			$47.30			$38.17
Total Return^b	34.56		%	8.55		%	(1.69		)%	23.92		%	55.42		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,655			$1,111			$643			$1,770			$1,057
Ratios to average net assets:
Net investment income (loss)	(1.85		)%	(1.91		)%	(2.17		)%	(1.92		)%	(2.00		)%
Total expenses	2.37		%	2.35		%	2.36		%	2.39		%	2.38		%
Portfolio turnover rate	472		%	442		%	380		%	291		%	443		%

^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.

459 | PROSPECTUS

Financial Highlights

LEISURE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$42.35			$34.91			$31.75			$26.13			$14.67
Income (loss) from investment operations:
Net investment income (loss)^a	0.04			0.29			0.07			(0.05		)	0.17
Net gain (loss) on investments (realized and unrealized)	10.34			7.18			3.09			5.67			11.29
Total from investment operations	10.38			7.47			3.16			5.62			11.46
Less distributions from:
Net investment income	(0.27		)	(0.03		)	—			—			—
Total distributions	(0.27		)	(0.03		)	—			—			—
Net asset value, end of period		$52.46			$42.35			$34.91			$31.75			$26.13
Total Return^b	24.53		%	21.42		%	9.95		%	21.51		%	78.12		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,778			$1,409			$448			$1,157			$489
Ratios to average net assets:
Net investment income (loss)	0.09		%	0.80		%	0.23		%	(0.18		)%	0.74		%
Total expenses	1.62		%	1.60		%	1.60		%	1.63		%	1.63		%
Portfolio turnover rate	265		%	517		%	797		%	963		%	943		%

PROSPECTUS | 460

Financial Highlights (continued)

LEISURE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$39.92			$33.16			$30.36			$25.19			$14.26
Income (loss) from investment operations:
Net investment income (loss)^a	(0.27		)	0.01			(0.15		)	(0.30		)	(0.22		)
Net gain (loss) on investments (realized and unrealized)	9.69			6.78			2.95			5.47			11.15
Total from investment operations	9.42			6.79			2.80			5.17			10.93
Less distributions from:
Net investment income	(0.27		)	(0.03		)	—			—			—
Total distributions	(0.27		)	(0.03		)	—			—			—
Net asset value, end of period		$49.07			$39.92			$33.16			$30.36			$25.19
Total Return^b	23.61		%	20.54		%	9.19		%	20.52		%	76.65		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,460			$928			$1,345			$828			$929
Ratios to average net assets:
Net investment income (loss)	(0.59		)%	0.03		%	(0.50		)%	(1.13		)%	(1.01		)%
Total expenses	2.37		%	2.35		%	2.35		%	2.39		%	2.38		%
Portfolio turnover rate	265		%	517		%	797		%	963		%	943		%

^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.

461 | PROSPECTUS

Financial Highlights

PRECIOUS METALS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$50.28			$64.21			$84.97			$60.63			$45.64
Income (loss) from investment operations:
Net investment income (loss)^a	0.16			0.21			(0.22		)	(0.45		)	(0.59		)
Net gain (loss) on investments (realized and unrealized)	(15.52		)	(11.84		)	(20.25		)	24.82			15.73
Total from investment operations	(15.36		)	(11.63		)	(20.47		)	24.37			15.14
Less distributions from:
Net investment income	(0.17		)	(0.10		)	(0.29		)	(0.03		)	—
Net realized gains	—			(2.20		)	—			—			(0.08		)
Return of capital	—			—			—			—			(0.07		)
Total distributions	(0.17		)	(2.30		)	(0.29		)	(0.03		)	(0.15		)
Net asset value, end of period		$34.75			$50.28			$64.21			$84.97			$60.63
Total Return^b	(30.52		)%	(18.80		)%	(24.13		)%	40.21		%	33.14		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,235			$5,988			$6,412			$14,919			$8,422
Ratios to average net assets:
Net investment income (loss)	0.45		%	0.35		%	(0.30		)%	(0.63		)%	(1.04		)%
Total expenses	1.52		%	1.50		%	1.51		%	1.53		%	1.52		%
Portfolio turnover rate	348		%	206		%	235		%	322		%	383		%

PROSPECTUS | 462

Financial Highlights (continued)

PRECIOUS METALS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$45.72			$59.02			$78.70			$56.58			$42.92
Income (loss) from investment operations:
Net investment income (loss)^a	(0.07		)	(0.23		)	(0.72		)	(0.94		)	(0.97		)
Net gain (loss) on investments (realized and unrealized)	(14.14		)	(10.77		)	(18.67		)	23.09			14.78
Total from investment operations	(14.21		)	(11.00		)	(19.39		)	22.15			13.81
Less distributions from:
Net investment income	(0.17		)	(0.10		)	(0.29		)	(0.03		)	—
Net realized gains	—			(2.20		)	—			—			(0.08		)
Return of capital	—			—			—			—			(0.07		)
Total distributions	(0.17		)	(2.30		)	(0.29		)	(0.03		)	(0.15		)
Net asset value, end of period		$31.34			$45.72			$59.02			$78.70			$56.58
Total Return^b	(31.05		)%	(19.39		)%	(24.68		)%	39.18		%	32.14		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,250			$18,608			$26,533			$39,650			$23,483
Ratios to average net assets:
Net investment income (loss)	(0.22		)%	(0.42		)%	(1.04		)%	(1.37		)%	(1.81		)%
Total expenses	2.27		%	2.25		%	2.26		%	2.28		%	2.28		%
Portfolio turnover rate	348		%	206		%	235		%	322		%	383		%

^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.

463 | PROSPECTUS

Financial Highlights

RETAILING FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$18.79			$16.77			$14.14			$12.31			$8.30
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	0.03			(0.03		)	0.18			(0.01		)
Net gain (loss) on investments (realized and unrealized)	3.78			1.99			2.67			1.68			4.02
Total from investment operations	3.69			2.02			2.64			1.86			4.01
Less distributions from:
Net investment income	—			—			(0.01		)	(0.03		)	—
Total distributions	—			—			(0.01		)	(0.03		)	—
Net asset value, end of period		$22.48			$18.79			$16.77			$14.14			$12.31
Total Return^b	19.64		%	12.05		%	18.71		%	15.09		%	48.31		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,049			$1,500			$5,697			$517			$395
Ratios to average net assets:
Net investment income (loss)	(0.42		%)	0.20		%	(0.18		)%	1.42		%	(0.12		)%
Total expenses	1.62		%	1.59		%	1.58		%	1.64		%	1.62		%
Portfolio turnover rate	671		%	472		%	822		%	1,062		%	1,049		%

PROSPECTUS | 464

Financial Highlights (continued)

RETAILING FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$17.40			$15.62			$13.27			$11.65			$7.92
Income (loss) from investment operations:
Net investment income (loss)^a	(0.23		)	(0.06		)	(0.13		)	(0.11		)	(0.10		)
Net gain (loss) on investments (realized and unrealized)	3.47			1.84			2.49			1.76			3.83
Total from investment operations	3.24			1.78			2.36			1.65			3.73
Less distributions from:
Net investment income	—			—			(0.01		)	(0.03		)	—
Total distributions	—			—			(0.01		)	(0.03		)	—
Net asset value, end of period		$20.64			$17.40			$15.62			$13.27			$11.65
Total Return^b	18.62		%	11.40		%	17.83		%	14.14		%	47.10		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,503			$1,831			$2,603			$2,705			$1,709
Ratios to average net assets:
Net investment income (loss)	(1.16		)%	(0.39		)%	(0.96		)%	(0.96		)%	(1.08		)%
Total expenses	2.37		%	2.35		%	2.35		%	2.39		%	2.38		%
Portfolio turnover rate	671		%	472		%	822		%	1,062		%	1,049		%


^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.

465 | PROSPECTUS

Financial Highlights

TECHNOLOGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$41.30			$40.76			$39.83			$34.47			$22.11
Income (loss) from investment operations:
Net investment income (loss)^a	(0.23		)	(0.09		)	(0.30		)	(0.27		)	(0.24		)
Net gain (loss) on investments (realized and unrealized)	11.72			0.63			1.23			5.63			12.60
Total from investment operations	11.49			0.54			0.93			5.36			12.36
Net asset value, end of period		$52.79			$41.30			$40.76			$39.83			$34.47
Total Return^b	27.79		%	1.32		%	2.33		%	15.58		%	55.90		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,873			$1,998			$7,367			$1,725			$3,936
Ratios to average net assets:
Net investment income (loss)	(0.47		)%	(0.27		)%	(0.76		)%	(0.73		)%	(0.78		)%
Total expenses	1.62		%	1.59		%	1.59		%	1.64		%	1.63		%
Portfolio turnover rate	321		%	324		%	487		%	393		%	335		%

PROSPECTUS | 466

Financial Highlights (continued)

TECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$38.84			$38.65			$38.07			$33.15			$21.42
Income (loss) from investment operations:
Net investment income (loss)^a	(0.50		)	(0.33		)	(0.51		)	(0.51		)	(0.42		)
Net gain (loss) on investments (realized and unrealized)	10.96			0.52			1.09			5.43			12.15
Total from investment operations	10.46			0.19			0.58			4.92			11.73
Net asset value, end of period		$49.30			$38.84			$38.65			$38.07			$33.15
Total Return^b	26.90		%	0.54		%	1.50		%	14.84		%	54.76		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,827			$1,715			$2,743			$2,618			$3,719
Ratios to average net assets:
Net investment income (loss)	(1.13		)%	(0.90		)%	(1.45		)%	(1.53		)%	(1.49		)%
Total expenses	2.37		%	2.35		%	2.36		%	2.39		%	2.38		%
Portfolio turnover rate	321		%	324		%	487		%	393		%	335		%


^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 February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

467 | PROSPECTUS

Financial Highlights

TELECOMMUNICATIONS FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$38.44			$39.27			$44.72			$39.21			$29.48
Income (loss) from investment operations:
Net investment income (loss)^a	0.72			0.72			0.54			0.42			0.51
Net gain (loss) on investments (realized and unrealized)	4.15			(0.65		)	(4.67		)	5.33			10.24
Total from investment operations	4.87			0.07			(4.13		)	5.75			10.75
Less distributions from:
Net investment income	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Total distributions	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Net asset value, end of period		$42.74			$38.44			$39.27			$44.72			$39.21
Total Return^b	12.80		%	0.30		%	(8.91		)%	14.75		%	36.57		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,631			$553			$1,566			$699			$1,093
Ratios to average net assets:
Net investment income (loss)	1.79		%	1.98		%	1.41		%	1.01		%	1.45		%
Total expenses	1.63		%	1.61		%	1.60		%	1.64		%	1.63		%
Portfolio turnover rate	1,271		%	1,550		%	793		%	1,008		%	867		%

PROSPECTUS | 468

Financial Highlights (continued)

TELECOMMUNICATIONS FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$36.00			$37.04			$42.57			$37.49			$28.44
Income (loss) from investment operations:
Net investment income (loss)^a	0.54			0.48			0.15			(0.03		)	0.30
Net gain (loss) on investments (realized and unrealized)	3.92			(0.62		)	(4.36		)	5.35			9.77
Total from investment operations	4.46			(0.14		)	(4.21		)	5.32			10.07
Less distributions from:
Net investment income	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Total distributions	(0.57		)	(0.90		)	(1.32		)	(0.24		)	(1.02		)
Net asset value, end of period		$39.89			$36.00			$37.04			$42.57			$37.49
Total Return^b	12.49		%	(0.24		)%	(9.52		)%	14.22		%	35.59		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$271			$784			$672			$2,896			$1,141
Ratios to average net assets:
Net investment income (loss)	1.42		%	1.41		%	0.39		%	(0.07		)%	0.86		%
Total expenses	2.38		%	2.36		%	2.36		%	2.39		%	2.39		%
Portfolio turnover rate	1,271		%	1,550		%	793		%	1,008		%	867		%


^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 February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

469 | PROSPECTUS

Financial Highlights

TRANSPORTATION FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$29.96			$25.25			$26.15			$22.37			$13.55
Income (loss) from investment operations:
Net investment income (loss)^a	(0.11		)	(0.01		)	(0.12		)	(0.10		)	(0.04		)
Net gain (loss) on investments (realized and unrealized)	11.76			4.72			(0.78		)	3.88			9.00
Total from investment operations	11.65			4.71			(0.90		)	3.78			8.96
Less distributions from:
Net investment income	—			—			—			—			(0.14		)
Total distributions	—			—			—			—			(0.14		)
Net asset value, end of period		$41.61			$29.96			$25.25			$26.15			$22.37
Total Return^b	38.89		%	18.70		%	(3.48		)%	16.90		%	66.22		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$12,938			$4,558			$1,600			$1,239			$1,842
Ratios to average net assets:
Net investment income (loss)	(0.28		)%	(0.05		)%	(0.51		)%	(0.42		)%	(0.22		)%
Total expenses	1.62		%	1.60		%	1.61		%	1.64		%	1.62		%
Portfolio turnover rate	593		%	737		%	1,082		%	1,217		%	1,073		%

PROSPECTUS | 470

Financial Highlights (continued)

TRANSPORTATION FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$28.67			$24.34			$25.38			$21.87			$13.40
Income (loss) from investment operations:
Net investment income (loss)^a	(0.37		)	(0.26		)	(0.29		)	(0.24		)	(0.24		)
Net gain (loss) on investments (realized and unrealized)	11.22			4.59			(0.75		)	3.75			8.85
Total from investment operations	10.85			4.33			(1.04		)	3.51			8.61
Less distributions from:
Net investment income	—			—			—			—			(0.14		)
Total distributions	—			—			—			—			(0.14		)
Net asset value, end of period		$39.52			$28.67			$24.34			$25.38			$21.87
Total Return^b	37.84		%	17.79		%	(4.10		)%	16.05		%	64.35		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,734			$2,727			$2,729			$2,069			$3,375
Ratios to average net assets:
Net investment income (loss)	(1.07		)%	(1.06		)%	(1.24		)%	(1.04		)%	(1.31		)%
Total expenses	2.37		%	2.35		%	2.35		%	2.39		%	2.38		%
Portfolio turnover rate	593		%	737		%	1,082		%	1,217		%	1,073		%


^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.

471 | PROSPECTUS

Financial Highlights

UTILITIES FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$30.95			$27.69			$25.75			$23.77			$19.80
Income (loss) from investment operations:
Net investment income (loss)^a	0.63			0.65			0.67			0.54			0.65
Net gain (loss) on investments (realized and unrealized)	1.90			3.73			1.67			3.06			4.54
Total from investment operations	2.53			4.38			2.34			3.60			5.19
Less distributions from:
Net investment income	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Total distributions	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Net asset value, end of period		$32.02			$30.95			$27.69			$25.75			$23.77
Total Return^b	8.64		%	16.46		%	9.16		%	15.70		%	26.24		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,417			$6,938			$7,912			$3,289			$1,721
Ratios to average net assets:
Net investment income (loss)	2.05		%	2.26		%	2.47		%	2.23		%	2.81		%
Total expenses	1.63		%	1.61		%	1.60		%	1.63		%	1.64		%
Portfolio turnover rate	508		%	534		%	549		%	800		%	758		%

PROSPECTUS | 472

Financial Highlights (continued)

UTILITIES FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$27.96			$25.31			$23.76			$22.21			$18.71
Income (loss) from investment operations:
Net investment income (loss)^a	0.34			0.42			0.42			0.39			0.39
Net gain (loss) on investments (realized and unrealized)	1.71			3.35			1.53			2.78			4.33
Total from investment operations	2.05			3.77			1.95			3.17			4.72
Less distributions from:
Net investment income	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Total distributions	(1.46		)	(1.12		)	(0.40		)	(1.62		)	(1.22		)
Net asset value, end of period		$28.55			$27.96			$25.31			$23.76			$22.21
Total Return^b	7.83		%	15.58		%	8.28		%	14.85		%	25.24		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,387			$7,001			$6,961			$4,751			$7,306
Ratios to average net assets:
Net investment income (loss)	1.22		%	1.62		%	1.70		%	1.72		%	1.77		%
Total expenses	2.38		%	2.36		%	2.35		%	2.38		%	2.39		%
Portfolio turnover rate	508		%	534		%	549		%	800		%	758		%


^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.

473 | PROSPECTUS

Financial Highlights

EUROPE 1.25X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$14.16			$12.57			$14.06			$14.18			$8.36
Income (loss) from investment operations:
Net investment income (loss)^a	0.16			(0.03		)	0.10			0.08			0.04
Net gain (loss) on investments (realized and unrealized)	3.08			1.65			(1.59		)	(0.20		)	5.78
Total from investment operations	3.24			1.62			(1.49		)	(0.12		)	5.82
Less distributions from:
Net investment income	—			(0.03		)	—			—			—
Total distributions	—			(0.03		)	—			—			—
Net asset value, end of period		$17.40			$14.16			$12.57			$14.06			$14.18
Total Return^b	22.88		%	12.92		%	(10.60		)%	(0.85		)%	69.62		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,551			$3,916			$694			$455			$463
Ratios to average net assets:
Net investment income (loss)	1.00		%	(0.23		)%	0.77		%	0.66		%	0.33		%
Total expenses	1.72		%	1.67		%	1.67		%	1.69		%	1.66		%
Portfolio turnover rate	654		%	903		%	318		%	515		%	1,353		%

PROSPECTUS | 474

Financial Highlights (continued)

EUROPE 1.25X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$12.89			$11.53			$12.97			$13.17			$7.83
Income (loss) from investment operations:
Net investment income (loss)^a	(0.07		)	(0.10		)	—^c			0.03			(0.04		)
Net gain (loss) on investments (realized and unrealized)	2.70			1.49			(1.44		)	(0.23		)	5.38
Total from investment operations	2.63			1.39			(1.44		)	(0.20		)	5.34
Less distributions from:
Net investment income	—			(0.03		)	—			—			—
Total distributions	—			(0.03		)	—			—			—
Net asset value, end of period		$15.52			$12.89			$11.53			$12.97			$13.17
Total Return^b	20.40		%	12.09		%	(11.10		)%	(1.52		)%	68.20		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$535			$402			$439			$638			$2,111
Ratios to average net assets:
Net investment income (loss)	(0.48		)%	(0.83		)%	0.03		%	0.22		%	(0.36		)%
Total expenses	2.47		%	2.42		%	2.43		%	2.43		%	2.42		%
Portfolio turnover rate	654		%	903		%	318		%	515		%	1,353		%


^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	Net investment income (loss) is less than $0.01 per share.

475 | PROSPECTUS

Financial Highlights

JAPAN 2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$17.39			$15.45			$14.95			$16.49			$9.01
Income (loss) from investment operations:
Net investment income (loss)^a	(0.31		)	(0.20		)	(0.22		)	(0.24		)	(0.19		)
Net gain (loss) on investments (realized and unrealized)	2.23			2.14			0.72			(1.30		)	7.67
Total from investment operations	1.92			1.94			0.50			(1.54		)	7.48
Net asset value, end of period		$19.31			$17.39			$15.45			$14.95			$16.49
Total Return^b	11.04		%	12.56		%	3.34		%	(9.34		)%	83.02		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$624			$2,025			$1,428			$5,931			$2,234
Ratios to average net assets:
Net investment income (loss)	(1.50		)%	(1.40		)%	(1.49		)%	(1.45		)%	(1.42		)%
Total expenses	1.52		%	1.51		%	1.51		%	1.55		%	1.53		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 476

Financial Highlights (continued)

JAPAN 2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$16.76			$14.99			$14.60			$16.23			$8.94
Income (loss) from investment operations:
Net investment income (loss)^a	(0.43		)	(0.29		)	(0.31		)	(0.31		)	(0.31		)
Net gain (loss) on investments (realized and unrealized)	2.16			2.06			0.70			(1.32		)	7.60
Total from investment operations	1.73			1.77			0.39			(1.63		)	7.29
Net asset value, end of period		$18.49			$16.76			$14.99			$14.60			$16.23
Total Return^b	10.32		%	11.81		%	2.67		%	(10.04		)%	81.54		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$104			$246			$140			$189			$432
Ratios to average net assets:
Net investment income (loss)	(2.25		)%	(2.15		)%	(2.23		)%	(2.18		)%	(2.20		)%
Total expenses	2.27		%	2.25		%	2.26		%	2.29		%	2.28		%
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.

477 | PROSPECTUS

Financial Highlights

EMERGING MARKETS 2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
A-Class	2014^f			2013^f			2012^f			2011^a,f
Per Share Data
Net asset value, beginning of period		$73.59			$87.40			$134.76			$125.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.54		)	(0.35		)	(—)^e			(0.65		)
Net gain (loss) on investments (realized and unrealized)	(6.78		)	(13.46		)	(41.76		)	10.41
Total from investment operations	(7.32		)	(13.81		)	(41.76		)	9.76
Less distributions from:
Net realized gains	—			—			(5.60		)	—
Total distributions	—			—			(5.60		)	—
Net asset value, end of period		$66.27			$73.59			$87.40			$134.76
Total Return^c	(9.96		)%	(15.79		)%	(30.00		)%	7.80		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$744			$106			$363			$992
Ratios to average net assets:
Net investment income (loss)	(0.82		)%	(0.51		)%	(0.01		)%	(1.42		)%
Total expenses	1.81		%	1.88		%	1.77		%	1.85		%
Net expenses^d	1.76		%	1.75		%	1.69		%	1.73		%
Portfolio turnover rate	1,412		%	730		%	883		%	58		%

PROSPECTUS | 478

Financial Highlights (continued)

EMERGING MARKETS 2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
C-Class	2014^f			2013^f			2012^f			2011^a,f
Per Share Data
Net asset value, beginning of period		$72.92			$87.31			$134.13			$125.00
Income (loss) from investment operations:
Net investment income (loss)^b	(1.04		)	(1.25		)	(0.90		)	(1.55		)
Net gain (loss) on investments (realized and unrealized)	(6.42		)	(13.14		)	(40.32		)	10.68
Total from investment operations	(7.46		)	(14.39		)	(41.22		)	9.13
Less distributions from:
Net realized gains	—			—			(5.60		)	—
Total distributions	—			—			(5.60		)	—
Net asset value, end of period		$65.46			$72.92			$87.31			$134.13
Total Return^c	(10.21		)%	(16.49		)%	(29.75		)%	7.32		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$409			$108			$62			$726
Ratios to average net assets:
Net investment income (loss)	(1.73		)%	(1.61		)%	(0.87		)%	(1.98		)%
Total expenses	2.66		%	2.59		%	2.54		%	2.60		%
Net expenses^d	2.61		%	2.46		%	2.46		%	2.49		%
Portfolio turnover rate	1,412		%	730		%	883		%	58		%


^a	Since commencement of operations: October 29, 2010. 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 and has not been annualized.


^d	Net expense information reflects the expense ratios after expense waivers.


^e	Net investment income (loss) is less than $0.01 per share.


^f	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.

479 | PROSPECTUS

Financial Highlights

INVERSE EMERGING MARKETS 2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
A-Class	2014			2013			2012			2011^a
Per Share Data
Net asset value, beginning of period		$19.23			$19.29			$21.15			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.35		)	(0.33		)	(0.39		)	(0.16		)
Net gain (loss) on investments (realized and unrealized)	(0.54		)	0.27			(1.47		)	(3.69		)
Total from investment operations	(0.89		)	(0.06		)	(1.86		)	(3.85		)
Net asset value, end of period		$18.34			$19.23			$19.29			$21.15
Total Return^c	(4.63		)%	(0.26		)%	(8.84		)%	(15.40		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,859			$258			$8			$34
Ratios to average net assets:
Net investment income (loss)	(1.74		)%	(1.60		)%	(1.66		)%	(1.61		)%
Total expenses	1.78		%	1.85		%	1.78		%	1.85		%
Net expenses^d	1.75		%	1.71		%	1.69		%	1.73		%
Portfolio turnover rate	—			—			—			—

PROSPECTUS | 480

Financial Highlights (continued)

INVERSE EMERGING MARKETS 2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
C-Class	2014			2013			2012			2011^a
Per Share Data
Net asset value, beginning of period		$20.07			$20.25			$21.33			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.52		)	(0.49		)	(0.55		)	(0.25		)
Net gain (loss) on investments (realized and unrealized)	(0.52		)	0.31			(0.53		)	(3.42		)
Total from investment operations	(1.04		)	(0.18		)	(1.08		)	(3.67		)
Net asset value, end of period		$19.03			$20.07			$20.25			$21.33
Total Return^c	(5.23		)%	(0.84		)%	(5.06)%^e			(14.68		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$262			$115			$1,261			$15
Ratios to average net assets:
Net investment income (loss)	(2.44		)%	(2.41		)%	(2.41		)%	(2.37		)%
Total expenses	2.48		%	2.65		%	2.53		%	2.57		%
Net expenses^d	2.46		%	2.51		%	2.44		%	2.46		%
Portfolio turnover rate	—			—			—			—


^a	Since commencement of operations: October 29, 2010. 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 and has not been annualized.


^d	Net expense information reflects the expense ratios after expense waivers.

Generally, the performance of the Fund’s C-Class shares will underperform the Fund’s H-Class shares and A-Class shares due to the C-Class shares’ higher expense ratio. However, the performance of the Fund’s C-Class shares is greater than that of the H-Class shares and A-Class shares due to the impact large redemptions of C-Class shares had on the expense accruals for C-Class shares. The effect of the expense accruals on the performance of the C-Class shares of the Fund was magnified by the small asset base of the C-Class shares.

481 | PROSPECTUS

Financial Highlights

STRENGTHENING DOLLAR 2x STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$42.75			$40.35			$40.39			$49.15			$58.93
Income (loss) from investment operations:
Net investment income (loss)^a	(0.69		)	(0.63		)	(0.66		)	(0.75		)	(0.75		)
Net gain (loss) on investments (realized and unrealized)	(3.70		)	3.03			0.62			(8.01		)	(9.03		)
Total from investment operations	(4.39		)	2.40			(0.04		)	(8.76		)	(9.78		)
Net asset value, end of period		$38.36			$42.75			$40.35			$40.39			$49.15
Total Return^b	(10.27		)%	5.95		%	(0.07		)%	(17.83		)%	(16.60		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,547			$10,427			$6,875			$6,115			$16,833
Ratios to average net assets:
Net investment income (loss)	(1.72		)%	(1.53		)%	(1.62		)%	(1.55		)%	(1.57		)%
Total expenses	1.74		%	1.66		%	1.68		%	1.71		%	1.67		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 482

Financial Highlights (continued)

STRENGTHENING DOLLAR 2x STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$40.15			$38.14			$38.48			$47.21			$57.02
Income (loss) from investment operations:
Net investment income (loss)^a	(0.94		)	(0.90		)	(0.90		)	(1.05		)	(1.08		)
Net gain (loss) on investments (realized and unrealized)	(3.47		)	2.91			0.56			(7.68		)	(8.73		)
Total from investment operations	(4.41		)	2.01			(0.34		)	(8.73		)	(9.81		)
Net asset value, end of period		$35.74			$40.15			$38.14			$38.48			$47.21
Total Return^b	(10.96		)%	5.27		%	(0.94		)%	(18.49		)%	(17.20		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,099			$3,530			$4,091			$4,028			$10,594
Ratios to average net assets:
Net investment income (loss)	(2.48		)%	(2.29		)%	(2.36		)%	(2.29		)%	(2.31		)%
Total expenses	2.50		%	2.42		%	2.44		%	2.46		%	2.42		%
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 periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

483 | PROSPECTUS

Financial Highlights

WEAKENING DOLLAR 2x STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$16.95			$18.95			$20.34			$17.98			$16.38
Income (loss) from investment operations:
Net investment income (loss)^a	(0.30		)	(0.28		)	(0.33		)	(0.28		)	(0.30		)
Net gain (loss) on investments (realized and unrealized)	1.21			(1.72		)	(1.06		)	2.64			1.90
Total from investment operations	0.91			(2.00		)	(1.39		)	2.36			1.60
Net asset value, end of period		$17.86			$16.95			$18.95			$20.34			$17.98
Total Return^b	5.37		%	(10.55		)%	(6.83		)%	13.13		%	9.77		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,129			$1,346			$2,881			$5,576			$6,753
Ratios to average net assets:
Net investment income (loss)	(1.73		)%	(1.53		)%	(1.62		)%	(1.54		)%	(1.57		)%
Total expenses	1.75		%	1.65		%	1.70		%	1.71		%	1.68		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 484

Financial Highlights (continued)

WEAKENING DOLLAR 2x STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$15.79			$17.79			$19.23			$17.12			$15.73
Income (loss) from investment operations:
Net investment income (loss)^a	(0.40		)	(0.38		)	(0.44		)	(0.39		)	(0.43		)
Net gain (loss) on investments (realized and unrealized)	1.12			(1.62		)	(1.00		)	2.50			1.82
Total from investment operations	0.72			(2.00		)	(1.44		)	2.11			1.39
Net asset value, end of period		$16.51			$15.79			$17.79			$19.23			$17.12
Total Return^b	4.56		%	(11.24		)%	(7.49		)%	12.32		%	8.84		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$821			$1,687			$2,826			$3,963			$5,314
Ratios to average net assets:
Net investment income (loss)	(2.49		)%	(2.27		)%	(2.36		)%	(2.29		)%	(2.32		)%
Total expenses	2.52		%	2.39		%	2.44		%	2.46		%	2.43		%
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.

485 | PROSPECTUS

Financial Highlights

REAL ESTATE FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$34.43			$30.27			$29.06			$24.24			$12.83
Income (loss) from investment operations:
Net investment income (loss)^a	0.65			0.58			0.45			0.27			0.44
Net gain (loss) on investments (realized and unrealized)	(0.14		)	4.18			1.07			5.17			11.11
Total from investment operations	0.51			4.76			1.52			5.44			11.55
Less distributions from:
Net investment income	(1.47		)	(0.60		)	(0.31		)	(0.62		)	(0.14		)
Total distributions	(1.47		)	(0.60		)	(0.31		)	(0.62		)	(0.14		)
Net asset value, end of period		$33.47			$34.43			$30.27			$29.06			$24.24
Total Return^b	1.86		%	16.03		%	5.42		%	22.72		%	90.16		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,124			$12,495			$2,364			$3,991			$4,303
Ratios to average net assets:
Net investment income (loss)	1.92		%	1.82		%	1.59		%	1.07		%	2.15		%
Total expenses	1.65		%	1.61		%	1.61		%	1.63		%	1.65		%
Portfolio turnover rate	788		%	699		%	974		%	485		%	1,520		%

PROSPECTUS | 486

Financial Highlights (continued)

REAL ESTATE FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$31.89			$28.29			$27.41			$23.11			$12.33
Income (loss) from investment operations:
Net investment income (loss)^a	0.29			0.27			0.22			0.10			0.40
Net gain (loss) on investments (realized and unrealized)	(0.07		)	3.93			0.97			4.82			10.52
Total from investment operations	0.22			4.20			1.19			4.92			10.92
Less distributions from:
Net investment income	(1.47		)	(0.60		)	(0.31		)	(0.62		)	(0.14		)
Total distributions	(1.47		)	(0.60		)	(0.31		)	(0.62		)	(0.14		)
Net asset value, end of period		$30.64			$31.89			$28.29			$27.41			$23.11
Total Return^b	1.09		%	15.12		%	4.57		%	21.58		%	88.70		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,497			$2,910			$1,798			$2,356			$2,143
Ratios to average net assets:
Net investment income (loss)	0.93		%	0.92		%	0.83		%	0.42		%	2.06		%
Total expenses	2.38		%	2.35		%	2.36		%	2.39		%	2.41		%
Portfolio turnover rate	788		%	699		%	974		%	485		%	1,520		%


^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.

487 | PROSPECTUS

Financial Highlights

GOVERNMENT LONG BOND 1.2X STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$48.73			$44.77			$34.34			$32.89			$41.25
Income (loss) from investment operations:
Net investment income (loss)^a	0.48			0.48			0.87			0.99			0.99
Net gain (loss) on investments (realized and unrealized)	(2.65		)	4.29			10.43			1.45			(8.36		)
Total from investment operations	(2.17		)	4.77			11.30			2.44			(7.37		)
Less distributions from:
Net investment income	(0.49		)	(0.57		)	(0.87		)	(0.99		)	(0.99		)
Net realized gains	—			(0.24		)	—			—			—
Total distributions	(0.49		)	(0.81		)	(0.87		)	(0.99		)	(0.99		)
Net asset value, end of period		$46.07			$48.73			$44.77			$34.34			$32.89
Total Return^b	(4.40		)%	10.62		%	33.00		%	7.35		%	(17.98		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,724			$15,476			$10,885			$2,753			$5,576
Ratios to average net assets:
Net investment income (loss)	1.04		%	0.94		%	2.02		%	2.75		%	2.84		%
Total expenses	1.22		%	1.20		%	1.20		%	1.23		%	1.24		%
Portfolio turnover rate	2,661		%	1,759		%	2,322		%	1,930		%	1,503		%

PROSPECTUS | 488

Financial Highlights (continued)

GOVERNMENT LONG BOND 1.2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$48.51			$44.63			$34.25			$32.82			$41.16
Income (loss) from investment operations:
Net investment income (loss)^a	0.12			0.15			0.57			0.72			0.75
Net gain (loss) on investments (realized and unrealized)	(2.71		)	4.21			10.35			1.43			(8.34		)
Total from investment operations	(2.59		)	4.36			10.92			2.15			(7.59		)
Less distributions from:
Net investment income	(0.13		)	(0.24		)	(0.54		)	(0.72		)	(0.75		)
Net realized gains	—			(0.24		)	—			—			—
Total distributions	(0.13		)	(0.48		)	(0.54		)	(0.72		)	(0.75		)
Net asset value, end of period		$45.79			$48.51			$44.63			$34.25			$32.82
Total Return^b	(5.33		)%	9.69		%	32.01		%	6.47		%	(18.56		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,198			$4,594			$4,451			$6,091			$12,695
Ratios to average net assets:
Net investment income (loss)	0.34		%	0.31		%	1.32		%	1.93		%	2.17		%
Total expenses	1.97		%	1.94		%	1.95		%	1.97		%	2.00		%
Portfolio turnover rate	2,661		%	1,759		%	2,322		%	1,930		%	1,503		%


^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 February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014.

489 | PROSPECTUS

Financial Highlights

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$42.77			$47.18			$64.00			$71.82			$65.49
Income (loss) from investment operations:
Net investment income (loss)^a	(1.73		)	(1.35		)	(2.25		)	(3.20		)	(1.75		)
Net gain (loss) on investments (realized and unrealized)	3.64			(3.06		)	(14.57		)	(4.62		)	8.08
Total from investment operations	1.91			(4.41		)	(16.82		)	(7.82		)	6.33
Net asset value, end of period		$44.68			$42.77			$47.18			$64.00			$71.82
Total Return^b	4.51		%	(9.43		)%	(26.25		)%	(10.86		)%	9.62		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$49,859			$32,842			$37,607			$73,475			$80,151
Ratios to average net assets:
Net investment income (loss)	(3.73		)%	(3.20		)%	(4.24		)%	(5.03		)%	(2.47		)%
Total expenses^d	3.78		%	3.37		%	4.38		%	5.31		%	2.77		%
Portfolio turnover rate	1,097		%	1,309		%	1,107		%	771		%	985		%

PROSPECTUS | 490

Financial Highlights (continued)

INVERSE GOVERNMENT LONG BOND STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014^c			2013^c			2012^c			2011^c			2010^c
Per Share Data
Net asset value, beginning of period		$38.92			$43.25			$59.09			$66.81			$61.39
Income (loss) from investment operations:
Net investment income (loss)^a	(1.86		)	(1.50		)	(2.40		)	(3.40		)	(2.15		)
Net gain (loss) on investments (realized and unrealized)	3.29			(2.83		)	(13.44		)	(4.32		)	7.57
Total from investment operations	1.43			(4.33		)	(15.84		)	(7.72		)	5.42
Net asset value, end of period		$40.35			$38.92			$43.25			$59.09			$66.81
Total Return^b	3.73		%	(10.06		)%	(26.82		)%	(11.53		)%	8.79		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$57,323			$55,404			$69,472			$114,470			$140,451
Ratios to average net assets:
Net investment income (loss)	(4.45		)%	(3.96		)%	(4.98		)%	(5.78		)%	(3.17		)%
Total expenses^d	4.49		%	4.13		%	5.12		%	6.06		%	3.47		%
Portfolio turnover rate	1,097		%	1,309		%	1,107		%	771		%	985		%


^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 February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.


^d	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratios for the years ended would be:



	03/31/14	03/28/13	03/31/12	03/31/11	03/31/10
A-Class	1.66%	1.64%	1.65%	1.67%	1.66%
C-Class	2.41%	2.39%	2.40%	2.42%	2.41%

491 | PROSPECTUS

Financial Highlights

HIGH YIELD STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$25.16			$22.93			$21.98			$20.42			$16.64
Income (loss) from investment operations:
Net investment income (loss)^a	(0.30		)	(0.22		)	(0.27		)	(0.30		)	(0.26		)
Net gain (loss) on investments (realized and unrealized)	2.13			3.13			1.77			3.37			5.39
Total from investment operations	1.83			2.91			1.50			3.07			5.13
Less distributions from:
Net investment income	(1.14		)	(0.43		)	(0.55		)	(1.51		)	(1.35		)
Net realized gains	(2.96		)	(0.25		)	—			—			—
Total distributions	(4.10		)	(0.68		)	(0.55		)	(1.51		)	(1.35		)
Net asset value, end of period		$22.89			$25.16			$22.93			$21.98			$20.42
Total Return^b	7.53		%	12.86		%	6.94		%	15.21		%	31.07		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$12,499			$10,777			$11,890			$14,561			$4,800
Ratios to average net assets:
Net investment income (loss)	(1.21		)%	(0.92		)%	(1.21		)%	(1.40		)%	(1.37		)%
Total expenses^c	1.53		%	1.50		%	1.49		%	1.54		%	1.54		%
Portfolio turnover rate	205		%	95		%	583		%	—			—

PROSPECTUS | 492

Financial Highlights (continued)

HIGH YIELD STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$23.83			$21.92			$21.19			$19.87			$16.33
Income (loss) from investment operations:
Net investment income (loss)^a	(0.44		)	(0.37		)	(0.45		)	(0.45		)	(0.40		)
Net gain (loss) on investments (realized and unrealized)	2.00			2.96			1.73			3.28			5.29
Total from investment operations	1.56			2.59			1.28			2.83			4.89
Less distributions from:
Net investment income	(1.14		)	(0.43		)	(0.55		)	(1.51		)	(1.35		)
Net realized gains	(2.96		)	(0.25		)	—			—			—
Total distributions	(4.10		)	(0.68		)	(0.55		)	(1.51		)	(1.35		)
Net asset value, end of period		$21.29			$23.83			$21.92			$21.19			$19.87
Total Return^b	6.74		%	11.98		%	6.16		%	14.40		%	30.17		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,100			$6,958			$7,343			$6,129			$3,351
Ratios to average net assets:
Net investment income (loss)	(1.89		)%	(1.62		)%	(2.10		)%	(2.13		)%	(2.13		)%
Total expenses^c	2.28		%	2.27		%	2.25		%	2.28		%	2.29		%
Portfolio turnover rate	205		%	95		%	583		%	—			—


^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.

493 | PROSPECTUS

Financial Highlights

INVERSE HIGH YIELD STRATEGY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$23.98			$28.15			$31.99			$38.51			$55.13
Income (loss) from investment operations:
Net investment income (loss)^a	(0.35		)	(0.37		)	(0.43		)	(0.47		)	(0.63		)
Net gain (loss) on investments (realized and unrealized)	(2.36		)	(3.80		)	(3.41		)	(6.05		)	(15.60		)
Total from investment operations	(2.71		)	(4.17		)	(3.84		)	(6.52		)	(16.23		)
Less distributions from:
Net realized gains	—			—			—			—			(0.39		)
Total distributions	—			—			—			—			(0.39		)
Net asset value, end of period		$21.27			$23.98			$28.15			$31.99			$38.51
Total Return^b	(11.30		)%	(14.81		)%	(11.98		)%	(16.96		)%	29.47		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,155			$157			$556			$1,512			$2,269
Ratios to average net assets:
Net investment income (loss)	(1.52		)%	(1.38		)%	(1.39		)%	(1.39		)%	(1.43		)%
Total expenses	1.54		%	1.49		%	1.51		%	1.53		%	1.54		%
Portfolio turnover rate	—			—			—			—			—

PROSPECTUS | 494

Financial Highlights (continued)

INVERSE HIGH YIELD STRATEGY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$22.98			$27.21			$31.12			$37.77			$54.49
Income (loss) from investment operations:
Net investment income (loss)^a	(0.50		)	(0.53		)	(0.55		)	(0.72		)	(0.95		)
Net gain (loss) on investments (realized and unrealized)	(2.25		)	(3.70		)	(3.36		)	(5.93		)	(15.38		)
Total from investment operations	(2.75		)	(4.23		)	(3.91		)	(6.65		)	(16.33		)
Less distributions from:
Net realized gains	—			—			—			—			(0.39		)
Total distributions	—			—			—			—			(0.39		)
Net asset value, end of period		$20.23			$22.98			$27.21			$31.12			$37.77
Total Return^b	(11.97		)%	(15.51		)%	(12.60		)%	(17.61		)%	(30.00		)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,561			$2,037			$693			$2,535			$2,055
Ratios to average net assets:
Net investment income (loss)	(2.28		)%	(2.13		)%	(1.87		)%	(2.13		)%	(2.18		)%
Total expenses	2.30		%	2.25		%	2.26		%	2.28		%	2.29		%
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.

495 | PROSPECTUS

Financial Highlights

EMERGING MARKETS BOND STRATEGY FUND

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



	Period Ended March 31,
A-Class	2014^a
Per Share Data
Net asset value, beginning of period		$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.21		)
Net gain (loss) on investments (realized and unrealized)	0.38
Total from investment operations	0.17
Net asset value, end of period		$25.17
Total Return^c	0.72		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$499
Ratios to average net assets:
Net investment income (loss)	(1.78		)%
Total expenses^d	1.83		%
Portfolio turnover rate	—

PROSPECTUS | 496

Financial Highlights (continued)

EMERGING MARKETS BOND STRATEGY FUND



	Period Ended March 31,
C-Class	2014^a
Per Share Data
Net asset value, beginning of period		$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.28		)
Net gain (loss) on investments (realized and unrealized)	0.37
Total from investment operations	0.09
Net asset value, end of period		$25.09
Total Return^c	0.40		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10
Ratios to average net assets:
Net investment income (loss)	(2.34		)%
Total expenses^d	2.39		%
Portfolio turnover rate	—


^a	Since commencement of operations: October 8, 2013. 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 and has not been annualized.


^d	Total expenses may include interest expense. Excluding interest expense, the operating expense ratios for the period presented would be:



	03/31/14
A-Class	1.58%
C-Class	2.32%

497 | PROSPECTUS

Financial Highlights

LONG SHORT EQUITY FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
A-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$13.48			$13.28			$14.28			$12.59			$8.62
Income (loss) from investment operations:
Net investment income (loss)^a	(0.13		)	(0.05		)	0.03			(0.04		)	(0.07		)
Net gain (loss) on investments (realized and unrealized)	1.72			0.30			(1.03		)	1.73			4.04
Total from investment operations	1.59			0.25			(1.00		)	1.69			3.97
Less distributions from:
Net investment income	—			(0.05		)	—			—			—
Total distributions	—			(0.05		)	—			—			—
Redemption fees collected	—			—			—			—^b			—^b
Net asset value, end of period		$15.07			$13.48			$13.28			$14.28			$12.59
Total Return^c	11.80		%	1.89		%	(7.00		%)	13.42		%	46.06		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,552			$13,106			$16,510			$25,447			$36,231
Ratios to average net assets:
Net investment income (loss)	(0.91		)%	(0.35		)%	0.21		%	(0.33		)%	(0.62		)%
Total expenses^e	2.34		%	1.92		%	1.66		%	1.71		%	1.68		%
Portfolio turnover rate	256		%	183		%	190		%	231		%	375		%

PROSPECTUS | 498

Financial Highlights (continued)

LONG SHORT EQUITY FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
C-Class	2014			2013			2012			2011			2010
Per Share Data
Net asset value, beginning of period		$12.40			$12.31			$13.33			$11.85			$8.17
Income (loss) from investment operations:
Net investment income (loss)^a	(0.24		)	(0.14		)	(0.07		)	(0.13		)	(0.14		)
Net gain (loss) on investments (realized and unrealized)	1.60			0.28			(0.95		)	1.61			3.82
Total from investment operations	1.36			0.14			(1.02		)	1.48			3.68
Less distributions from:
Net investment income	—			(0.05		)	—			—			—
Total distributions	—			(0.05		)	—			—			—
Redemption fees collected	—			—			—			—^b			—^b
Net asset value, end of period		$13.76			$12.40			$12.31			$13.33			$11.85
Total Return^c	10.97		%	1.14		%	(7.65		)%	12.49		%	45.04		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$22,354			$23,554			$32,503			$50,381			$64,918
Ratios to average net assets:
Net investment income (loss)	(1.79		)%	(1.12		)%	(0.54		)%	(1.08		)%	(1.37		)%
Total expenses^e	3.11		%	2.69		%	2.41		%	2.46		%	2.43		%
Portfolio turnover rate	256		%	183		%	190		%	231		%	375		%

499 | PROSPECTUS

Financial Highlights (continued)

LONG SHORT EQUITY FUND



	Year Ended March 31,			Year Ended March 28,			Period Ended March 31,
Institutional Class	2014			2013			2012^d
Per Share Data
Net asset value, beginning of period		$13.60			$13.33			$12.39
Income (loss) from investment operations:
Net investment income (loss)^a	(0.12		)	(0.02		)	0.06
Net gain (loss) on investments (realized and unrealized)	1.76			0.31			0.88
Total from investment operations	1.64			0.29			0.94
Less distributions from:
Net investment income	—			(0.02		)	—
Total distributions	—			(0.02		)	—
Net asset value, end of period		$15.24			$13.60			$13.33
Total Return^c	12.06		%	2.15		%	7.59		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$12			$11			$11
Ratios to average net assets:
Net investment income (loss)	(0.82		)%	(0.17		)%	1.29		%
Total expenses^e	2.11		%	1.72		%	1.36		%
Portfolio turnover rate	256		%	183		%	190		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Redemption fees collected are less than $0.01 per share.


^c	Total return does not reflect the impact of any applicable sales charges.


^d	Since commencement of operations: November 30, 2011. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.


^e	Excluding interest and dividend expense related to short sales, the operating ratios for the years or periods presented would be:



	3/31/2014		3/28/2013		3/31/2012		3/31/2011		3/31/2010
A-Class	1.68	%	1.65	%	1.66	%	1.69	%	1.68	%
C-Class	2.42	%	2.40	%	2.41	%	2.44	%	2.43	%
Institutional Class	1.42	%	1.41	%	N/A		N/A		N/A

PROSPECTUS | 500

Financial Highlights

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
A-Class	2014			2013			2012			2011^a
Per Share Data
Net asset value, beginning of period		$27.56			$25.37			$26.86			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.49		)	(0.21		)	(0.37		)	(0.33		)
Net gain (loss) on investments (realized and unrealized)	3.09			2.40			(0.36		)	4.27
Total from investment operations	2.60			2.19			(0.73		)	3.94
Less distributions from:
Net realized gains	(1.74		)	—			(0.76		)	(2.08		)
Total distributions	(1.74		)	—			(0.76		)	(2.08		)
Net asset value, end of period		$28.42			$27.56			$25.37			$26.86
Total Return	9.58		%	8.63		%	(2.60		)%	16.24		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,303			$2,080			$2,595			$11,591
Ratios to average net assets:
Net investment income (loss)	(1.73		)%	(0.80		)%	(1.43		)%	(1.65		)%
Total expenses^c	2.02		%	2.03		%	1.93		%	2.03		%
Net expenses^d	1.90		%	1.91		%	1.85		%	1.89		%
Portfolio turnover rate	161		%	228		%	513		%	—

501 | PROSPECTUS

Financial Highlights (continued)

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
C-Class	2014			2013			2012			2011^a
Per Share Data
Net asset value, beginning of period		$26.95			$24.99			$26.67			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.67		)	(0.43		)	(0.52		)	(0.48		)
Net gain (loss) on investments (realized and unrealized)	2.99			2.39			(0.40		)	4.23
Total from investment operations	2.32			1.96			(0.92		)	3.75
Less distributions from:
Net realized gains	(1.74		)	—			(0.76		)	(2.08		)
Total distributions	(1.74		)	—			(0.76		)	(2.08		)
Net asset value, end of period		$27.53			$26.95			$24.99			$26.67
Total Return	8.74		%	7.89		%	(3.38		)%	15.46		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,253			$1,038			$1,022			$1,363
Ratios to average net assets:
Net investment income (loss)	(2.45		)%	(1.67		)%	(2.04		)%	(2.42		)%
Total expenses^c	2.77		%	2.79		%	2.66		%	2.79		%
Net expenses^d	2.65		%	2.66		%	2.60		%	2.65		%
Portfolio turnover rate	161		%	228		%	513		%	—

PROSPECTUS | 502

Financial Highlights (continued)

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Period Ended March 31,
Institutional Class	2014			2013			2012			2011^a
Per Share Data
Net asset value, beginning of period		$27.76			$25.49			$26.91			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.42		)	(0.19		)	(0.23		)	(0.27		)
Net gain (loss) on investments (realized and unrealized)	3.11			2.46			(0.43		)	4.26
Total from investment operations	2.69			2.27			(0.66		)	3.99
Less distributions from:
Net realized gains	(1.74		)	—			(0.76		)	(2.08		)
Total distributions	(1.74		)	—			(0.76		)	(2.08		)
Net asset value, end of period		$28.71			$27.76			$25.49			$26.91
Total Return	9.84		%	8.91		%	(2.34		)%	16.45		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$975			$891			$329			$59
Ratios to average net assets:
Net investment income (loss)	(1.46		)%	(0.70		)%	(0.90		)%	(1.42		)%
Total expenses^c	1.77		%	1.80		%	1.61		%	1.79		%
Net expenses^d	1.65		%	1.67		%	1.58		%	1.65		%
Portfolio turnover rate	161		%	228		%	513		%	—


^a	Since commencement of operations: June 30, 2010. 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	Does not include expenses of the underlying funds in which the Fund invests.


^d	Net expense information reflects the expense ratios after expense waivers.

503 | PROSPECTUS

Financial Highlights

U.S. GOVERNMENT MONEY MARKET FUND

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



	Year Ended March 31,			Year Ended March 28,			Year Ended March 31,			Year Ended March 31,			Year Ended March 31,
Money Market Class^a	2014			2013			2012			2011			2010
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)	—^b			—^b			—^b			—^b			—^b
Net gain (loss) on investments (realized and unrealized)	—^b			—^b			—^b			—^b			—
Total from investment operations	—^b			—^b			—^b			—^b			—^b
Less distributions from:
Net investment income	(—)^b			(—)^b			(—)^b			(—)^b			(—)^b
Net realized gains	(—)^b			—			(—)^b			(—)^b			—
Total distributions	(—)^b			(—)^b			(—)^b			(—)^b			(—)^b
Net asset value, end of period		$1.00			$1.00			$1.00			$1.00			$1.00
Total Return	—		%	—		%	—		%	0.01		%	0.01		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$780,135			$848,370			$607,565			$833,899			$872,765
Ratios to average net assets:
Net investment income (loss)	—%^d			—%^d			—%^d			0.01		%	0.01		%
Total expenses	0.93		%	0.95		%	0.91		%	0.94		%	0.93		%
Net expenses^c	0.09		%	0.17		%	0.11		%	0.22		%	0.37		%
Portfolio turnover rate	—			—			—			—			—


^a	Effective June 15, 2012, the Fund’s Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares and Investor2 Class shares were converted into the newly created Money Market Class. The financial highlights for periods prior to that date reflect the performance of the former Investor Class.


^b	Less than $0.01 per share.


^c	Net expense information reflects the expense ratios after expense waivers.


^d	Less than 0.01%.

504 | PROSPECTUS

INDEX PUBLISHERS INFORMATION

Standard & Poor’s

Dow Jones STOXX

STOXX and its Licensors do not:


•	Sponsor, endorse, sell or promote the Europe 1.25x Strategy Fund.


•	Recommend that any person invest in the Europe 1.25x Strategy Fund or any other securities.


•	Have any responsibility or liability for or make any decisions about the timing, amount or pricing of Europe 1.25x Strategy Fund.


•	Have any responsibility or liability for the administration, management or marketing of the Europe 1.25x Strategy Fund.


•	Consider the needs of the Europe 1.25x Strategy Fund or the owners of the Europe 1.25x Strategy Fund in determining, composing or calculating the STOXX Europe 50 ^® Index or have any obligation to do so.

505 | PROSPECTUS


•	The results to be obtained by the Europe 1.25x Strategy Fund, the owner of the Europe 1.25x Strategy Fund or any other person in connection with the use of the STOXX Europe 50 ^® Index and the data included in the STOXX Europe 50 ^® Index;


•	The accuracy or completeness of the STOXX Europe 50 ^® Index and its data;


•	The merchantability and the fitness for a particular purpose or use of the STOXX Europe 50 ^® Index and its data;


•	STOXX and its Licensors will have no liability for any errors, omissions or interruptions in the STOXX Europe 50 ^® Index or its data;


•	Under no circumstances will STOXX or its Licensors be liable for any lost profits or indirect, punitive, special or consequential damages or losses, even if STOXX or its Licensors knows that they might occur.

The licensing agreement between the Licensee and STOXX is solely for their benefit and not for the benefit of the owners of the Europe 1.25x Strategy Fund or any other third parties.

NASDAQ OMX Group, Inc.

Nikkei Inc.


•	The advisability of investing in index funds;


•	The ability of any index to track stock market performance;


•	The accuracy and/or the completeness of the aforementioned index or any data included therein;


•	The results to be obtained by the Japan 2x Strategy Fund, the investors in the Japan 2x Strategy Fund, or any person or entity from the use of the index or data included therein; and


•	The merchantability or fitness for a particular purpose for use with respect to the index or any data included

PROSPECTUS | 506

therein.

Further, the Index Publisher does not:


•	Recommend that any person invest in the Japan 2x Strategy Fund or any other securities;


•	Have any responsibility or liability for or make any decisions about the timing, amount or pricing of the Japan 2x Strategy Fund;


•	Have any responsibility or liability for the administration, management or marketing of the Japan 2x Strategy Fund;


•	Consider the needs of the Japan 2x Strategy Fund or the investors in the Japan 2x Strategy Fund in determining, composing or calculating the index or has any obligation to do so;


•	Have any liability in connection with the Japan 2x Strategy Fund or for any errors, omissions or interruptions in connection with the index or the related data;


•	Have any liability for any lost profits or indirect punitive, special or consequential damages or losses, even if Nikkei Inc. knows that they might occur.

Frank Russell Company

Russell^® is a trademark of the Frank Russell Company.

ICE Futures U.S., Inc.

ICE Futures does not guarantee the accuracy and/or the completeness of the U.S. Dollar Index^® or any data included

507 | PROSPECTUS

therein. ICE Futures makes no warranty, express or implied, as to results to be obtained by Licensee, owners of the Products, or any other person or entity from the use of the U.S. Dollar Index^® or any data included therein in connection with the rights licensed hereunder, in connection with the purchase, sale or trading of any Product, or for any other use. ICE Futures makes no express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the U.S. Dollar Index^® or any data included therein. Without limiting any of the foregoing, in no event shall ICE Futures have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

More information about the Index Publishers is located in the SAI.

PROSPECTUS | 508

ADDITIONAL INFORMATION

Additional and more detailed information about the Funds is included in the SAI dated August 1, 2014. The SAI has been filed with the SEC and is incorporated by reference into this Prospectus and, therefore, legally forms a part of this Prospectus. The SEC maintains the EDGAR database on its website (“http://www.sec.gov”) that contains the SAI, material incorporated by reference, and other information regarding registrants that file electronically with the SEC. You also may review and copy documents at the SEC’s Public Reference Room in Washington, D.C. (for information on the operation of the Public Reference Room, call 202.551.8090). You may request documents from the SEC by mail, upon payment of a duplication fee, by writing to: U.S. Securities and Exchange Commission, Public Reference Section, Washington, D.C. 20549-1520, or by emailing the SEC at the following address: publicinfo@sec.gov.

The Trust’s U.S. Securities and Exchange Commission registration number is 811-07584.

509 | PROSPECTUS

805 King Farm Boulevard, Suite 600

Rockville, MD 20850

800.820.0888

guggenheiminvestments.com



Mutual Funds	\|	International Equity Funds	\|	8.1.2014

Rydex Funds Prospectus
Class H



Ticker Symbol	Fund Name
XXXXX	International 2x Strategy Fund
XXXXX	Inverse International 2x Strategy Fund
XXXXX	Inverse Pacific 2x Strategy Fund
XXXXX	Latin America 2x Strategy Fund
XXXXX	Inverse Latin America 2x Strategy Fund
XXXXX	Inverse Europe 2x Strategy Fund

THE FUNDS HAVE NOT YET COMMENCED OPERATIONS AND SHARES OF THE FUNDS ARE NOT CURRENTLY AVAILABLE FOR PURCHASE.

The Funds are very different from most mutual funds in that they seek to provide leveraged or leveraged inverse investment results on a daily basis. The Leveraged Inverse Funds pursue investment goals which are inverse to the performance of their respective benchmark, a result opposite of most other mutual funds. The pursuit of such leveraged and inverse investment goals has the following implications: • The Funds are riskier than alternatives that do not use leverage because the performance of an investment in a Fund is magnified. • The effect of leverage on a Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark over a period of time greater than one day. This means that the return of a Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from the return of the Fund’s benchmark stated in the Fund's investment objective for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of a Fund’s stated investment goal (e.g., 2x or -2x) and the cumulative performance of the Fund’s benchmark. In addition, as a result of compounding, a Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the Fund’s underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and fund expenses. • The Funds are not suitable for all investors and are designed to be utilized only by sophisticated 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. Investors who do not understand the Funds or do not intend to actively manage and monitor their investments should not buy shares of the Funds.

Each Leveraged Funds seeks daily exposure to its underlying index equal to 200% of its net assets. Each Leveraged Inverse Fund seeks daily exposure to its underlying index equal to -200% of its net assets. As a consequence, for each Leveraged Fund the risk of total loss of your investment exists in the event of a movement of the Leveraged Fund’s underlying index in excess of 50% in a direction adverse to the Leveraged Fund (meaning a decline in the value of the underlying index of a Leveraged Fund) and for each Leveraged Inverse Fund the risk of total loss exists in the event of a movement of the Leveraged Inverse Fund’s underlying index in excess of 50% in a direction adverse to the Leveraged Inverse Fund (meaning a gain in the value of the underlying index of a Leveraged Inverse Fund). In short, the risk of total loss of your investment exists.

There is no assurance that any Fund will achieve its objectives and an investment in a Fund could lose money. No single Fund is a complete investment program.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have not approved or disapproved these securities, or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.



XXX-1-XXXXxXXXX	guggenheiminvestments.com

TABLE OF CONTENTS

FUND SUMMARIES



International Equity Funds
International 2x Strategy Fund	2
Inverse International 2x Strategy Fund	9
Inverse Pacific 2x Strategy Fund	16
Latin America 2x Strategy Fund	23
Inverse Latin America 2x Strategy Fund	30
Inverse Europe 2x Strategy Fund	37
MORE INFORMATION ABOUT THE TRUST AND THE FUNDS	43
MANAGEMENT OF THE FUNDS	57
SHAREHOLDER INFORMATION	59
BUYING, SELLING AND EXCHANGING FUND SHARES	60
BUYING FUND SHARES	61
SELLING FUND SHARES	65
EXCHANGING FUND SHARES	67
ACCOUNT POLICIES	68
DISTRIBUTION AND SHAREHOLDER SERVICES	71
DIVIDENDS AND DISTRIBUTIONS	71
ADDITIONAL TAX INFORMATION	72
INDEX PUBLISHERS INFORMATION	74
ADDITIONAL INFORMATION	75

INTERNATIONAL 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The International 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

The Fund 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 fair value of the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%
Distribution (12b-1) Fees	0.25%
Other Expenses*	____%
Total Annual Fund Operating Expenses	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

EXAMPLE

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



1 Year	3 Years
$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

The Fund invests principally in securities of companies included in the underlying index and in derivative instruments which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its investment objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Fund may also invest in exchange-traded funds (“ETFs”) that provide exposure to one or more foreign countries and in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index. The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. As of [date] the MSCI EAFE Index consisted of the following 21 developed market country indices: [Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.] As of [date], the MSCI EAFE Index included companies with capitalizations ranging from $___ billion to $___ billion. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivative positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. To the extent the underlying index is concentrated in a particular industry, the Fund will necessarily be concentrated in that industry. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

CORRELATION AND COMPOUNDING RISK —A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

The underlying index’s annualized historical volatility rate for the five year period ended [DATE] is ____%. The underlying index’s highest one-year volatility rate during the five year period is ____%. The underlying index’s annualized performance for the five year period ended [DATE] is ____%.

COUNTERPARTY CREDIT RISK —The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

DERIVATIVES RISK —The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

FUTURES CONTRACTS RISK —Futures contracts are typically exchange traded contracts that call for the future delivery of an asset at a certain price and date, or cash settlement of the terms of the contract. Risks of futures contracts may be caused by an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid market. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Futures markets are highly volatile and the use of futures may increase the volatility of the Fund’s NAV. Futures are also subject to leverage risks and to liquidity risk.

OPTIONS RISK —Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PASSIVE INVESTMENT RISK — The Fund is not actively managed and the Advisor does not attempt to take defensive positions in declining markets. Therefore, the Fund may be subject to greater losses in a declining market than a fund that is actively managed.

associated with such transactions.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

A comparison of the Fund’s performance with that of a broad measure of market performance may give some indication of the risks of an investment in the Fund; however, the Fund has not yet commenced operations and, therefore, does not have any performance history. Of course, once the Fund has performance for a full calendar year, this past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future.

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

INVERSE INTERNATIONAL 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse International 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide daily leveraged investment results that correlate to the opposite of the performance of a specific benchmark on a daily basis, as result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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 inverse (opposite) of the fair value of the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%
Distribution (12b-1) Fees	0.25%
Other Expenses*	____%
Total Annual Fund Operating Expenses	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

EXAMPLE

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



1 Year	3 Years
$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of engaging in short sales of securities generally included in the underlying index and investing in leveraged derivatives instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps, short sales, and futures and options contracts enable the Fund to pursue its objective without selling short each of the securities included in the underlying index. The Fund may also invest in exchange-traded funds (“ETFs”) that provide exposure to emerging market countries and in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index. The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. As of [date] the MSCI EAFE Index consisted of the following 21 developed market country indices: [Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.] As of [date], the MSCI EAFE Index included companies with capitalizations ranging from $___ billion to $___ billion. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivative positions. . In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. To the extent the underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

ACTIVE TRADING RISK— The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

CORRELATION AND COMPOUNDING RISK— A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

COUNTERPARTY CREDIT RISK— The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

DERIVATIVES RISK —The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

OPTIONS RISK —Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

EARLY CLOSING RISK —The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK — The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

LIQUIDITY RISK— In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

PORTFOLIO TURNOVER RISK— Daily rebalancing of the Fund's holdings pursuant to its daily investment objective may lead to a greater number of portfolio transactions in the Fund than experienced by other mutual funds. Such frequent and active trading may lead to significantly higher transaction costs because of increased broker commissions associated with such transactions.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

INVERSE PACIFIC 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse Pacific 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide daily leveraged investment results that correlate to the opposite of the performance of a specific benchmark on a daily basis, as result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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 inverse (opposite) of the fair value of the MSCI Pacific Index^SM (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%
Distribution (12b-1) Fees	0.25%
Other Expenses*	____%
Total Annual Fund Operating Expenses	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

EXAMPLE

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



1 Year	3 Years
$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of engaging in short sales of securities generally included in the underlying index and investing in leveraged derivatives instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps, short sales, and futures and options contracts enable the Fund to pursue its objective without selling short each of the securities included in the underlying index. The Fund may also invest in exchange-traded funds (“ETFs”) that provide exposure to emerging market countries and in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index. The MSCI Pacific Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the Pacific region. As of [date], the MSCI Pacific Index consisted of the following [5] developed market countries: [Australia, Hong Kong, Japan, New Zealand, and Singapore]. As of [date], the MSCI Pacific Index^SM included companies with capitalizations ranging from $___ billion to $___ billion. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivative positions. . In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. To the extent the underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

ACTIVE TRADING RISK— The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

CORRELATION AND COMPOUNDING RISK— A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Compounding affects all investments, but has a more significant impact on a leveraged fund. In general, particularly

during periods of higher index volatility, compounding will cause longer term results to be more or less than the inverse of the return of the underlying index. This effect becomes more pronounced as volatility increases.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

COUNTERPARTY CREDIT RISK —The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

DERIVATIVES RISK —The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

OPTIONS RISK —Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

EARLY CLOSING RISK —The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on

that day and may cause the Fund to incur substantial trading losses.

EQUITY RISK —The Fund is subject to the risk that the value of the equity securities or equity-based derivatives in the Fund’s portfolio will decline due to volatility in the equity market caused by general market and economic conditions, perceptions regarding particular industries represented in the equity market, or factors relating to specific companies to which the Fund has investment exposure.

FOREIGN ISSUER EXPOSURE RISK— The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

GEOGRAPHIC CONCENTRATION IN THE PACIFIC REGION RISK – Because a significant portion of the assets of the Fund are invested in a specific geographical region, the value of its investments and the net asset value of the Fund could decline more dramatically as a result of adverse events affecting the Pacific region, which consists of Hong Kong, Japan, Singapore, Australia, and New Zealand. In addition, the Fund’s performance is expected to be closely tied to social, political, and economic conditions within Pacific and to be more volatile than the performance of geographically diversified funds.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that small-capitalization stocks may outperform other segments of the equity market or the equity market as a whole.

PERFORMANCE INFORMATION

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since

2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

LATIN AMERICA 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Latin America 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks daily leveraged investment results. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

The Fund 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 S&P Latin America 40 Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%
Distribution (12b-1) Fees	0.25%
Other Expenses*	____%
Total Annual Fund Operating Expenses	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

EXAMPLE

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



1 Year	3 Years
$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

The Fund invests principally in securities of companies included in the underlying index and in derivative instruments which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps and futures and options contracts, if used properly, may enable the Fund to meet its investment objective by increasing the Fund’s exposure to the securities included in the underlying index or to securities whose performance is highly correlated to that of the underlying index. The Fund may also invest in exchange-traded funds (“ETFs”) that provide exposure to one or more foreign countries and in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index. The S&P Latin America 40 Index represents the major economic sectors of Mexican and South American equity markets. It includes highly liquid securities from Mexico, Brazil, Argentina and Chile. The Index serves to cover the large-cap liquid constituents of each key country in Latin America. It is also the Latin America component of S&P Global 1200. As of [date], the S&P Latin America 40 Index included companies with capitalizations ranging from $___ billion to $___ billion. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its derivative positions. In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. To the extent the underlying index is concentrated in a particular industry, the Fund will necessarily be concentrated in that industry. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

ACTIVE TRADING RISK— The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

CORRELATION AND COMPOUNDING RISK— A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

COUNTERPARTY CREDIT RISK— The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

exposure to the euro. The price of the euro has fluctuated widely over the past several years, and volatility has increased in recent months, due, in part, to concern over the sovereign debt levels of certain European Union (EU) members and the potential effect of this debt on the EU members’ participation in the European Monetary Union and the value of the euro. These and other factors may adversely affect the long-term value of the euro in terms of purchasing power in the future. A decline in the price of the euro may adversely affect the Fund’s performance.

DERIVATIVES RISK —The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

OPTIONS RISK —Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

EARLY CLOSING RISK —The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

countries or markets with similar characteristics as determined by the Advisor.

FOREIGN ISSUER EXPOSURE RISK— The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

GEOGRAPHIC CONCENTRATION IN LATIN AMERICA RISK – Because a significant portion of the assets of the Fund are invested in a specific geographical region, the value of its investments and the net asset value of the Fund could decline more dramatically as a result of adverse events affecting Latin America. While the Fund’s underlying index is designed to include only blue chip stocks from the four countries’ markets, each country’s economy is considered to be an emerging market economy. High interest, inflation, and unemployment rates generally characterize each economy. Currency fluctuations or devaluations in any country can have a significant effect on investments in the Fund.

INVESTMENT IN INVESTMENT VEHICLES RISK— Investing in other investment vehicles, including, exchange-traded funds, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

LIQUIDITY RISK — In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

PORTFOLIO TURNOVER RISK— Daily rebalancing of the Fund's holdings pursuant to its daily investment objective may lead to a greater number of portfolio transactions in the Fund than experienced by other mutual funds. Such frequent and active trading may lead to significantly higher transaction costs because of increased broker commissions associated with such transactions.

SMALL-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

STATUS AS A REGULATED INVESTMENT COMPANY RISK —The Fund may realize gains from the sale or other disposition of foreign currencies and other income (including gains from options, futures or forward contracts) derived from investing in stock, securities, or foreign currencies. The Secretary of the Treasury is authorized to issue regulations that might cause the Fund, as a result of its realization of such foreign currency gains, to fail to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended. As of the date of this Prospectus, no regulations have been issued pursuant to this authorization, but such regulations may be issued in the future.

PERFORMANCE INFORMATION

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

INVERSE LATIN AMERICA 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse Latin America 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide daily leveraged investment results that correlate to the opposite of the performance of a specific benchmark on a daily basis, as result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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 inverse (opposite) of the fair value of the S&P Latin America 40 Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%
Distribution (12b-1) Fees	0.25%
Other Expenses*	____%
Total Annual Fund Operating Expenses	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

EXAMPLE

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



1 Year	3 Years
$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of engaging in short sales of securities generally included in the underlying index and investing in leveraged derivatives instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps, short sales, and futures and options contracts enable the Fund to pursue its objective without selling short each of the securities included in the underlying index. The Fund may also invest in exchange-traded funds (“ETFs”) that provide exposure to emerging market countries and in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index. The S&P Latin America 40 Index represents the major economic sectors of Mexican and South American equity markets. It includes highly liquid securities from Mexico, Brazil, Argentina and Chile. The Index serves to cover the large-cap liquid constituents of each key country in Latin America. It is also the Latin America component of S&P Global 1200. As of [date], the S&P Latin America 40 Index included companies with capitalizations ranging from $___ billion to $___ billion. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivative positions. . In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. To the extent the underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

ACTIVE TRADING RISK— The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

CORRELATION AND COMPOUNDING RISK— A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

COUNTERPARTY CREDIT RISK— The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

controls or other political developments in the U.S. or abroad. In particular, the Fund may have indirect and direct exposure to the euro. The price of the euro has fluctuated widely over the past several years, and volatility has increased in recent months, due, in part, to concern over the sovereign debt levels of certain European Union (EU) members and the potential effect of this debt on the EU members’ participation in the European Monetary Union and the value of the euro. These and other factors may adversely affect the long-term value of the euro in terms of purchasing power in the future. A decline in the price of the euro may adversely affect the Fund’s performance.

DERIVATIVES RISK— The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

OPTIONS RISK —Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

EARLY CLOSING RISK —The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

they are 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 the Advisor.

FOREIGN ISSUER EXPOSURE RISK— The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

INVESTMENT IN INVESTMENT VEHICLES RISK— Investing in other investment vehicles, including, exchange-traded funds, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

LIQUIDITY RISK— In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

risk with respect to such derivative contracts.

PORTFOLIO TURNOVER RISK— Daily rebalancing of the Fund's holdings pursuant to its daily investment objective may lead to a greater number of portfolio transactions in the Fund than experienced by other mutual funds. Such frequent and active trading may lead to significantly higher transaction costs because of increased broker commissions associated with such transactions.

SMALL-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

INVERSE EUROPE 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Inverse Europe 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks to provide daily leveraged investment results that correlate to the opposite of the performance of a specific benchmark on a daily basis, as result opposite of most mutual funds. As a result, the Fund may be riskier than alternatives that do not use leverage because the performance of an investment in the Fund is magnified.

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

The Fund 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 inverse (opposite) of the fair value of the Dow Jones STOXX 50 Index^SM (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class H shares of the Fund.



SHAREHOLDER FEES (fees paid directly from your investment)	None
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%
Distribution (12b-1) Fees	0.25%
Other Expenses*	____%
Total Annual Fund Operating Expenses	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

EXAMPLE

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



1 Year	3 Years
$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

The Fund employs as its investment strategy a program of engaging in short sales of securities generally included in the underlying index and investing in leveraged derivatives instruments, which primarily consist of equity index swaps, futures contracts, and options on securities, futures contracts, and stock indices. Equity index swaps, short sales, and futures and options contracts enable the Fund to pursue its objective without selling short each of the securities included in the underlying index. The Fund may also invest in exchange-traded funds (“ETFs”) that provide exposure to emerging market countries and in American Depositary Receipts (“ADRs”) to gain exposure to the underlying index. While the Fund anticipates investing in these instruments to seek to achieve its investment objective, the extent of the Fund’s investment in these instruments may vary from day to day depending on a number of different factors, including price, availability, and general market conditions. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite to the securities of companies included in the underlying index. The Dow Jones Stoxx 50 Index^SM is a capitalization-weighted index composed of 50 European blue chip stocks. Index members are chosen by Stoxx Ltd. from 16 countries under criteria designed to identify highly liquid companies that are leaders in their sectors. As of [date], the Dow Jones Stoxx 50 Index^SM included companies with a capitalization range of $___ billion to $___ billion. Certain of the Fund’s derivative investments may be traded in the over-the-counter (“OTC”) market. On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents to collateralize its short sales and derivative positions. . In an effort to ensure that the Fund is fully invested on a day-to-day basis, the Fund may conduct any necessary trading activity at or just prior to the close of the U.S. financial markets. To the extent the underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. The Fund is non-diversified and, therefore, may invest a greater percentage of its assets in a particular issuer in comparison to a diversified fund.

PRINCIPAL RISKS

ACTIVE TRADING RISK— The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

CORRELATION AND COMPOUNDING RISK— A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

COUNTERPARTY CREDIT RISK— The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

DERIVATIVES RISK —The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

OPTIONS RISK —Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

EARLY CLOSING RISK —The Fund is subject to the risk that unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day and may cause the Fund to incur substantial trading losses.

they are 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 the Advisor.

FOREIGN ISSUER EXPOSURE RISK— The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

GEOGRAPHIC CONCENTRATION IN EUROPE RISK – Because a significant portion of the assets of the Fund are invested in a specific geographical region, the value of its investments and the net asset value of the Fund could decline more dramatically as a result of adverse events affecting Europe. In addition, countries in Europe may be significantly affected by the tight fiscal and monetary controls of the European Economic and Monetary Union (EMU).

INVESTMENT IN INVESTMENT VEHICLES RISK— Investing in other investment vehicles, including, exchange-traded funds, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle, including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

LIQUIDITY RISK— In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. While the Fund intends to invest in liquid futures, options, forwards and swap contracts, under certain market conditions, such as when the market makes a “limit move,” it may be difficult or impossible for the Fund to liquidate such investments. In addition, the ability of the Fund to assign an accurate daily value to certain investments may be difficult, and the Advisor may be required to fair value the investments.

MID-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

NON-DIVERSIFICATION RISK — The 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 diversified fund.

PORTFOLIO TURNOVER RISK— Daily rebalancing of the Fund's holdings pursuant to its daily investment objective may lead to a greater number of portfolio transactions in the Fund than experienced by other mutual funds. Such frequent and active trading may lead to significantly higher transaction costs because of increased broker commissions associated with such transactions.

SMALL-CAPITALIZATION SECURITIES RISK — The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum, CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa, CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class H accounts held through a third party ( e.g., a brokerage account) are typically:

• $1,000 for retirement accounts

• $2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amounts for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

MORE INFORMATION ABOUT THE TRUST AND THE FUNDS

Rydex Series Funds (the “Trust”) is a Delaware statutory trust offering a number of professionally managed investment portfolios, or funds, that are grouped into several categories according to each fund’s investment strategy. This Prospectus describes Class H shares of the International 2x Strategy Fund, Inverse International 2x Strategy Fund, Inverse Pacific 2x Strategy Fund, Latin America 2x Strategy Fund, Inverse Latin America 2x Strategy Fund and Inverse Europe 2x Strategy Fund (each a “Fund” and together, the “Funds”).

INVESTMENT OBJECTIVES

The investment objective of each Fund is non-fundamental and may be changed without shareholder approval.

Each Fund may change its underlying index or benchmark without shareholder approval. The Advisor, however, will attempt to provide shareholders with 30 days’ prior notice of any such change.

If the International 2x Strategy Fund and Latin America 2x Strategy Fund meet their respective investment objectives, the value of the Fund’s shares will tend to increase by 200% of the fair value of the underlying index during times when the performance of the underlying index is increasing. When the fair value of the Fund’s underlying index decreases, the value of the Fund’s shares should also decrease by 200% of the fair value of the decrease in the underlying index (e.g., if the fair value of the underlying index goes down by 5%, the value of the Fund’s shares should go down by 10%). Due to the use of fair valuation, which is explained in more detail under “Calculating NAV,” the value of the Fund’s shares may increase by more or less than 200% of the reported value of the underlying index on any given day.

If the Inverse International 2x Strategy Fund, Inverse Pacific 2x Strategy Fund, Inverse Latin America 2x Strategy Fund, and Inverse Europe 2x Strategy Fund meet their respective investment objectives, the value of the Fund’s shares will tend to increase by 200% of the fair value of the underlying index during times when the performance of the underlying index is decreasing. When the fair value of the Fund’s underlying index increases, the value of the Fund’s shares should decrease by 200% of the fair value of the increase in the underlying index (e.g., if the fair value of the underlying index goes up by 5%, the value of the Fund’s shares should go down by 10%). Due to the use of fair valuation, which is explained in more detail under “Calculating NAV,” the value of the Fund’s shares may increase by more or less than 200% of the reported value of the underlying index on any given day.

INVESTMENT STRATEGIES

The Advisor develops and implements structured investment strategies designed to achieve each Fund’s investment objective. The Advisor places particular emphasis on controlling risk relative to each Fund’s benchmark in order to maintain consistency and predictability.

The Advisor does not engage in temporary defensive investing, keeping each Fund fully invested in all market environments.

Each Fund’s investment policy to invest at least 80% of its net assets in a particular type of investment or security is a non-fundamental policy that can be changed by the Fund upon 60 days’ prior notice to shareholders.

In managing the Funds, the Advisor uses a “passive” investment strategy to manage each Fund’s portfolio, meaning that the Advisor does not attempt to select securities based on their individual potential to perform better than the market. The Advisor’s primary objective for the Funds is to correlate as closely as possible with the performance of each Fund’s underlying index or other benchmark. The Advisor uses quantitative analysis techniques to structure each Fund to obtain the highest correlation to its particular benchmark. The Advisor monitors each Fund on an ongoing basis, and makes adjustments to its portfolio, as necessary, to minimize tracking error and to maximize liquidity.

The International 2x Strategy Fund and Latin America 2x Strategy Fund are invested to achieve returns that exceed the returns of the indices underlying their benchmarks. These leveraged returns are achieved not by borrowing, but by the use of futures contracts and options on securities, futures contracts, and stock indices, and other instruments that simulate leveraged returns without requiring a commitment of cash in excess of the Fund’s assets. For the Inverse International 2x Strategy Fund, Inverse Pacific 2x Strategy Fund, Inverse Latin America 2x Strategy Fund, and Inverse

Europe 2x Strategy Fund, the Advisor uses short selling techniques to produce returns that move inversely to the performance of their respective underlying indices.

IMPORTANT INFORMATION REGARDING FUNDS THAT SEEK LEVERAGED AND INVERSE INVESTMENT RESULTS

The Dow 2x Strategy Fund, NASDAQ-100 ^® 2x Strategy Fund, Russell 2000 ^® 2x Strategy Fund, and S&P 500 ^® 2x Strategy Fund (the “Leveraged Funds”) seek daily leveraged investment results. The Inverse Dow 2x Strategy Fund, Inverse NASDAQ-100 ^® 2x Strategy Fund, Inverse Russell 2000 ^® 2x Strategy Fund, and Inverse S&P 500 ^® 2x Strategy Fund (the “Leveraged Inverse Funds”) seek to provide leveraged investment results that match the opposite of the performance of a specific benchmark on a daily basis. The Leveraged Funds and the Leveraged Inverse Funds may be referred to collectively as the “Funds.”

As discussed in each Fund’s Summary section, the Funds’ performance is subject to the effects of compounding and leverage, which are discussed in more detail below.

UNDERSTANDING COMPOUNDING & THE EFFECT OF LEVERAGE

volatilities assumed in the graphs below. The average historical volatility for the five-year period ended June 30, 2014 of the other indices underlying the Funds’ benchmarks is as follows: Dow Jones Industrial Average ^SM _____%; NASDAQ-100 Index ^® ____%; and Russell 2000 ^® Index ____%. The hypothetical graphs are meant to demonstrate the effects of leverage only and are in no way indicative of the actual performance of any of the Funds.

MARKET VOLATILITY

Each Fund seeks to provide a return that is a multiple of the daily performance of its underlying index. No Fund attempts to, and no Fund should be expected to, provide returns that are a multiple of the return of the underlying index for periods other than a single day. Each Fund rebalances its portfolio 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. For instance, a hypothetical 2x daily leveraged fund would be expected to lose -3.9% (as shown in Table 1 below) if its benchmark provided no return over a one year period during which its benchmark experienced annualized volatility of 20%. If the benchmark’s annualized volatility were to rise to 40%, the hypothetical loss for a one year period for a 2x daily leveraged fund widens to approximately -14.8% while the loss for a 2x inverse fund rises to 38.0%. At higher ranges of volatility, there is a chance of a near complete loss of fund value even if the benchmark is flat. For instance, if annualized volatility of the benchmark is 90%, a 2x leveraged inverse fund targeted to the same benchmark would be expected to lose more than 90% of its value even if the cumulative benchmark return for the year was 0%. An index’s volatility rate is a statistical measure of the magnitude of fluctuations in the returns of an index.

Table 1



Benchmark Annualized Volatility Range	Hypothetical 2x Leveraged Fund Loss	Hypothetical 2x Inverse Fund Loss
10%	-1.0%	-2.9%
20%	-3.9%	-11.3%
30%	-8.6%	-23.6%
40%	-14.8%	-38.0%
50%	-22.2%	-52.7%
60%	-30.4%	-66.0%
70%	-39.1%	-77.1%
80%	-47.5%	-85.3%
90%	-56.2%	-91.3%
100%	-64.0%	-95.1%

Table 2 shows the range of volatility for the indices to which the Funds are benchmarked for the five year period ended [DATE]. In historical terms, volatility ranges during this period were extremely high. The indices to which the Funds are benchmarked have historical volatility rates over that period ranging from ____% to ____%. Since market volatility, like that experienced by the markets recently, has negative implications for funds that rebalance daily, investors should be sure to monitor and manage their investments in the Funds in volatile markets. The negative implications of volatility in Table 1 can be combined with the recent volatility ranges of various indices in Table 2 to give investors some sense of the risks of holding the Funds for long periods. These tables are intended to simply underscore the fact that the Funds are designed for 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. They are not intended to be used by, and are not appropriate for, investors who do not intend to actively monitor and manage their portfolios.

Table 2



Index	Volatility Average for the Five Year Period Ended [DATE]
Dow Jones Industrial Average^SM	_____%
S&P 500^® Index	_____%
Russell 2000^® Index	_____%
NASDAQ-100 Index^®	_____%

A PRECAUTIONARY NOTE TO INVESTORS REGARDING DRAMATIC INDEX MOVEMENT

Each Leveraged Fund seeks daily exposure to its underlying index equal to 200% of its net assets while each Leveraged Inverse Fund seeks daily exposure to its underlying index equal to -200% of its net assets. As a consequence, for each Leveraged Fund the risk of total loss of your investment exists in the event of a movement of the Leveraged Fund’s underlying index in excess of 50% in a direction adverse to the Leveraged Fund (meaning a decline in the value of the underlying index of a Leveraged Fund) and for each Leveraged Inverse Fund the risk of total loss exists in the event of a movement of the Leveraged Inverse Fund’s underlying index in excess of 50% in a direction adverse to the Leveraged Inverse Fund (meaning a gain in the value of the underlying index of a Leveraged Inverse Fund). In short, the risk of total loss of your investment exists.

THE PROJECTED RETURNS OF LEVERAGED FUNDS FOR SHARES HELD LONGER THAN A FULL TRADING DAY

The Funds seek daily leveraged investment results, which should not be equated with seeking a leveraged goal for longer than a day. For instance, if a Leveraged Fund’s underlying index gains 10% for a week, the Leveraged Fund’s shares should not be expected to provide a return of 20% for the week even if it meets its daily target throughout the week. This is true because of the fund expenses set forth in the prospectus, but also because the pursuit of daily goals may result in daily leveraged compounding, which means that the return of an index over a period of time greater than one day multiplied by a Leveraged Fund’s or Leveraged Inverse Fund’s daily target or inverse daily target (e.g., 200% or -200%) will not generally equal a Leveraged Fund’s or Leveraged Inverse Fund’s performance over that same period.

The following charts set out a range of hypothetical daily performances during a given 10 trading days of an index and demonstrate how changes in the index affect a Leveraged Fund’s and Leveraged Inverse Fund’s performance for a trading day and cumulatively up to, and including, the entire 10 trading day period. The charts are based on a hypothetical $100 investment in a Leveraged Fund and Leveraged Inverse Fund over a 10 trading day period and do not reflect expenses of any kind.

TABLE 1: NO CLEAR TREND IN THE MARKET



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	105	5.00%	5.00%	$110.00	10.00%	10.00%	$90.00	-10.00%	-10.00%
Day 2	110	4.76%	10.00%	$120.48	9.52%	20.48%	$81.43	-9.52%	-18.57%
Day 3	100	-9.09%	0.00%	$98.57	-18.18%	-1.43%	$96.23	18.18%	-3.77%
Day 4	90	-10.00%	-10.00%	$78.86	-20.00%	-21.14%	$115.48	20.00%	15.48%
Day 5	85	-5.56%	-15.00%	$70.10	-11.11%	-29.90%	$128.31	11.11%	28.31%
Day 6	100	17.65%	0.00%	$94.83	35.29%	-5.17%	$83.03	-35.29%	-16.97%
Day 7	95	-5.00%	-5.00%	$85.35	-10.00%	-14.65%	$91.33	10.00%	-8.67%
Day 8	100	5.26%	0.00%	$94.34	10.53%	-5.66%	$81.71	-10.53%	-18.29%
Day 9	105	5.00%	5.00%	$103.77	10.00%	3.77%	$73.54	-10.00%	-26.46%
Day 10	100	-4.76%	0.00%	$93.89	-9.52%	-6.11%	$80.55	9.52%	-19.45%

The cumulative performance of the index in Table 1 is 0% for 10 trading days. The hypothetical return of the Leveraged Fund for the 10 trading day period is -6.11%, while the hypothetical return of the Leveraged Inverse Fund is -19.45%. The volatility of the benchmark performance and lack of clear trend results in performance for each Leveraged Fund and Leveraged Inverse Fund for the period which bears little relationship to the performance of the Funds’ underlying index for the 10 trading day period.

TABLE 2: CLEAR TREND THAT MARKET RISES



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	102	2.00%	2.00%	$104.00	4.00%	4.00%	$96.00	-4.00%	-4.00%
Day 2	104	1.96%	4.00%	$108.08	3.92%	8.08%	$92.24	-3.92%	-7.76%
Day 3	106	1.92%	6.00%	$112.24	3.85%	12.24%	$88.69	-3.85%	-11.31%
Day 4	108	1.89%	8.00%	$116.47	3.77%	16.47%	$85.34	-3.77%	-14.66%
Day 5	110	1.85%	10.00%	$120.78	3.70%	20.78%	$82.18	-3.70%	-17.82%
Day 6	112	1.82%	12.00%	$125.18	3.64%	25.18%	$79.19	-3.64%	-20.81%
Day 7	114	1.79%	14.00%	$129.65	3.57%	29.65%	$76.36	-3.57%	-23.64%
Day 8	116	1.75%	16.00%	$134.20	3.51%	34.20%	73. 68	-3.51%	-26.32%
Day 9	118	1.72%	18.00%	$138.82	3.45%	38.82%	$71.14	-3.45%	-28.86%
Day 10	120	1.69%	20.00%	$143.53	3.39%	43.53%	$68.73	-3.39%	-31.27%

The cumulative performance of the index in Table 2 is 20% for 10 trading days. The hypothetical return of the Leveraged Fund for the 10 trading day period is 43.53%, while the hypothetical return of the Leveraged Inverse Fund is -31.27%. The hypothetical return of the Leveraged Fund is 218% of the index return for the 10 trading day period while the hypothetical return of the Leveraged Inverse Fund is -156% of the index return for the period. In this case, because of the positive index trend, the Leveraged Fund gain is greater than 200% of the index gain and the Leveraged Inverse Fund decline is less than -200% of the index gain for the 10 trading day period.

TABLE 3: CLEAR TREND THAT MARKET DECLINES



	Index			2x Daily Leveraged Fund			2x Leveraged Inverse Fund
	Value	Daily Performance	Cumulative Value	NAV	Daily Performance	Cumulative Performance	NAV	Daily Performance	Cumulative Performance
	100			$100.00			$100.00
Day 1	98	-2.00%	-2.00%	$96.00	-4.00%	-4.00%	$104.00	4.00%	4.00%
Day 2	96	-2.04%	-4.00%	$92.08	-4.08%	-7.92%	$108.24	4.08%	8.24%
Day 3	94	-2.08%	-6.00%	$88.24	-4.17%	-11.76%	$112.76	4.17%	12.76%
Day 4	92	-2.13%	-8.00%	$84.49	-4.26%	-15.51%	$117.55	4.26%	17.55%
Day 5	90	-2.17%	-10.00%	$80.82	-4.35%	-19.18%	$122.66	4.35%	22.66%
Day 6	88	-2.22%	-12.00%	$77.22	-4.44%	-22.78%	$128.12	4.44%	28.12%
Day 7	86	-2.27%	-14.00%	$73.71	-4.55%	-26.29%	$133.94	4.55%	33.94%
Day 8	84	-2.33%	-16.00%	$70.29	-4.65%	-29.71%	$140.17	4.65%	40.17%
Day 9	82	-2.38%	-18.00%	$66.94	-4.76%	-33.06%	$146.84	4.76%	46.84%
Day 10	80	-2.44%	-20.00%	$63.67	-4.88%	-36.33%	$154.01	4.88%	54.01%

The cumulative performance of the index in Table 3 is -20% for 10 trading days. The hypothetical return of the Leveraged Fund for the 10 trading day period is -36.33%, while the hypothetical return of the Leveraged Inverse Fund is 54.01%. The hypothetical return of the Leveraged Fund is 182% of the index return for the 10 trading day period, while the hypothetical return of the Leveraged Inverse Fund is -270% of the index return for the period. In this case, because of the negative index trend, the Leveraged Fund decline is less than 200% of the index decline and the Leveraged Inverse Fund gain is greater than 200% of the index decline for the 10 trading day period.

PRINCIPAL INVESTMENT RISKS

ACTIVE TRADING RISK— The Advisor expects a significant portion of the Fund’s assets to come from investors who take part in certain strategic and tactical asset allocation programs that involve frequent trading to take advantage of anticipated changes in market conditions. Frequent trading could increase the rate of the Fund’s portfolio turnover, which correspondingly may increase the transaction expenses borne by the Fund, including brokerage commissions or dealer mark-ups/markdowns and other transaction costs on the sale of securities and reinvestments in other securities. The trading costs associated with portfolio turnover may adversely affect the Fund’s performance. In addition, large movements of assets into and out of the Fund may have a negative impact on its ability to achieve its investment objective or its desired level of operating expenses. The risks associated with frequent trading activity and high portfolio turnover will have a negative impact on longer-term investments.

CAPITALIZATION SECURITIES RISK— The Fund’s investments may be composed primarily of, or have significant exposure to, securities in a particular capitalization range, e.g., large, mid or small-cap securities. As a result, the Fund may be subject to the risk that the predominate capitalization range represented in the Fund’s portfolio may underperform other segments of the equity market or the equity market as a whole. If the Fund has net short exposure to the components in its portfolio or underlying index or other benchmark it is subject to the risk that the predominate capitalization range represented in the Fund's portfolio or underlying index or benchmark may outperform other segments of the equity market or the equity market as a whole. In addition, in comparison to securities of companies with larger capitalizations, securities of small and medium-capitalization companies may experience more price volatility, greater spreads between their bid and ask prices, significantly lower trading volumes, and cyclical or static growth prospects. Small and medium-capitalization companies often have limited product lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies. These securities may or may not pay dividends.

Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. A number of factors may adversely affect the Fund’s correlation with its benchmark, including fees, expenses, transaction costs, costs and risks associated with the use of leveraged investment techniques, income items, accounting standards and disruptions or illiquidity in the markets for the securities or financial instruments in which the Fund invests. The Fund may not have investment exposure to all securities in its underlying index or its weighting of investment exposure to such securities or industries may be different from that of its underlying index. In addition, the Fund may invest in securities or financial instruments not included in its underlying index. The Fund may be subject to large movements of assets into and out of the Fund, potentially resulting in the Fund being over- or under-exposed to its benchmark. Because the Fund seeks to meet its investment objective on a daily basis, activities surrounding annual index reconstitutions and other index rebalancing or reconstitution events may hinder the Fund’s ability to meet its daily investment objective on that day.

The Fund is considered a “leveraged” fund because it seeks to match a multiple or a multiple of the inverse of the performance of the Fund’s underlying index on a daily basis. The Fund is subject to all of the correlation risks described above. In addition, there is a special form of correlation risk that derives from the Fund having a single day investment objective in combination with the use of leverage, which is that for periods greater than one day, the effect of compounding may cause the performance of the Fund to be either greater than or less than the performance of the Fund’s underlying index (or the inverse of the performance of the Fund’s underlying index) times the stated multiple in the Fund objective, before accounting for fees and fund expenses.

COUNTERPARTY CREDIT RISK — The Fund may invest in financial instruments involving counterparties for the purpose of attempting to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. Such financial instruments may include, among others, total return, index, and interest rate swap agreements. The Fund will use short-term counterparty agreements to exchange the returns (or differentials in rates of return) earned or realized in particular predetermined investments or instruments. The Fund will not enter into any agreement with a counterparty unless the Advisor believes that the other party to the transaction is creditworthy. The use of swap agreements and similar instruments involves risks that are different from those associated with ordinary portfolio securities transactions. For example, 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. If a counterparty defaults on its payment obligations to the Fund, this default will cause the value of your investment in the Fund to decrease. In addition, the Fund may enter into swap agreements with a limited number of counterparties, which may increase the Fund’s exposure to counterparty credit risk. The Advisor considers factors such as counterparty credit ratings and financial statements, among others, when determining whether a counterparty is creditworthy. The Advisor regularly monitors the creditworthiness of each counterparty that the Fund enters into a transaction with. Swap agreements also may be considered to be illiquid. Similarly, if the credit quality of an issuer or guarantor of a debt instrument improves, this change may adversely affect the value of the Fund’s investment.

DEPOSITARY RECEIPT RISK – The Fund may hold the securities of non-U.S. companies in the form of ADRs. ADRs are negotiable certificates issued by a U.S. financial institution that represent a specified number of shares in a foreign stock and trade on a U.S. national securities exchange, such as the NYSE. The Fund will primarily invest in sponsored ADRs, which are issued with the support of the issuer of the foreign stock underlying the ADRs and which carry all of the rights of common shares, including voting rights. The underlying securities of the ADRs in the Fund’s portfolio are usually denominated or quoted in currencies other than the U.S. dollar. As a result, changes in foreign currency exchange rates may affect the value of the Fund’s portfolio. Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S. dollars. In addition, because the underlying securities of ADRs trade on foreign exchanges at times when the U.S. markets are not open for trading, the value of the securities underlying the ADRs may change materially at times when the U.S. markets are not open for trading, regardless of whether there is an active U.S. market for shares of the Fund. Investments in the underlying foreign securities may involve risks not typically associated with investing in U.S. companies. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets can be extremely volatile due to increased risks of adverse issuer, political, regulatory,

market, or economic developments. 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. In addition, transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities.

DERIVATIVES RISK — The Fund may invest a percentage of its assets in derivatives, such as swaps, futures contacts and options contracts and other instruments described in the Fund’s principal investment strategies, to pursue its investment objective and to create economic leverage in the Fund, to enhance total return, to seek to hedge against fluctuations in securities prices, interest rates, currency rates, etc., to change the effective duration of the Fund’s portfolio, to manage certain investment risks, and/or as a substitute for the purchase or sale of securities or currencies. The use of such derivatives may expose the Fund to risks in addition to and greater than those associated with investing directly in the securities underlying those derivatives, including risks relating to leverage, imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Use of derivatives may also cause the Fund to be subject to additional regulations, which may generate additional Fund expenses. These practices also entail transactional expenses. Certain risks also are specific to the types of derivatives in which the Fund invests.

must register with the CFTC as a CPO subjecting the investment adviser and the fund to regulation by the CFTC. Under the amended rules, an investment adviser of a fund may claim an exclusion from registration as a CPO only if the fund it advises uses futures contracts, options on such futures, commodity options, and certain swaps solely for “bona fide hedging purposes,” or limits its use of such instruments for non-bona fide hedging purposes to certain de minimis amounts and complies with certain marketing restrictions.

The Advisor has claimed an exclusion from the definition of CPO pursuant to CFTC Regulation 4.5 with respect to the Funds. Accordingly, neither the Funds nor the Advisor (with respect to the Funds) is subject to registration as a CPO under the CEA or regulation by the CFTC. To remain eligible for the exclusion, each of the Funds will be limited in its ability to use financial instruments subject to regulation by the CFTC. In the event that a Fund’s investments in such financial instruments are not within the thresholds set forth in the exclusion, the Advisor may be required to register as a CPO under the CEA with respect to that Fund. The Advisor’s eligibility to claim the exclusion with respect to a Fund will be based upon, among other things, the level and scope of the Fund’s investment in financial instruments subject to regulation by the CFTC, the purposes of such investments and the manner in which the Fund holds out its use of commodity interests. Each eligible Fund’s ability to invest in such financial instruments is limited by the Advisor’s intention to operate the Fund in a manner that would permit the Advisor to continue to claim the exclusion pursuant to CFTC Regulation 4.5, which may adversely affect the Fund’s total return. In the event the Advisor becomes unable to rely on the exclusion and is required to register with the CFTC as a CPO with respect to a Fund, the Fund’s expenses may increase, adversely affecting that Fund’s total return.

The SEC is reviewing its current guidance on the use of derivatives by registered investment companies, such as the Funds, and may issue new guidance. It is not clear whether or when such new guidance will be published or what the content of such guidance may be. The regulation of commodity transactions in the United States is a rapidly changing area of law and is subject to ongoing modification by government, self-regulatory and judicial action. The effect of any future regulatory change on the Funds is impossible to predict, but could be substantial and adverse to the Funds.

CREDIT DEFAULT SWAP RISK — A credit default swap agreement is an agreement between two parties: a buyer of credit protection and a seller of credit protection. The Fund may be either the buyer of credit protection against a designated event of default, restructuring or other credit related event (each a “Credit Event”) or the seller of credit protection in a credit default swap. The buyer in a credit default swap agreement is obligated to pay the seller a periodic stream of payments over the term of the swap agreement. If no Credit Event occurs, the seller of credit protection will have received a fixed rate of income throughout the term of the swap agreement. If a Credit Event occurs, the seller of credit protection must pay the buyer of credit protection the full notional value of the reference obligation either through physical settlement or cash settlement. If no Credit Event occurs, the buyer of credit protection will have made a series of periodic payments through

the term of the swap agreement. However, if a Credit Event occurs, the buyer of credit protection will receive the full notional value of the reference obligation either through physical settlement or cash settlement from the seller of credit protection. A credit default swap may involve greater risks than if the Fund invested directly in the underlying reference obligations. For example, a credit default swap may increase the Fund’s credit risk because it has exposure to both the issuer of the underlying reference obligation and the counterparty to the credit default swap. In addition, credit default swap agreements may be difficult to value depending on whether an active market exists for the credit default swaps in which the Fund invests.

EARLY CLOSING RISK—The normal close of trading of securities listed on NASDAQ and the NYSE is 4:00 p.m., Eastern Time. Unanticipated early closings of securities exchanges and other financial markets may result in the Fund’s inability to buy or sell securities or other financial instruments on that day. If an exchange or market closes early on a day when the Fund needs to execute a high volume of trades late in a trading day, the Fund might incur substantial trading losses.

FOREIGN ISSUER EXPOSURE RISK— The Fund may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and ETFs, that 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 not typically associated with investing in U.S. issuers. The value of financial instruments denominated in foreign currencies, and of distributions from such financial instruments, 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 financial instruments 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 Fund.

GEOGRAPHIC CONCENTRATION RISK – Because a significant portion of the assets of the Fund are invested in a specific geographical region, the value of its investments and the NAV of the Fund could decline more dramatically as a result of adverse issuer, political, regulatory, market or economic developments affecting those regions. These risks may be heightened with respect to emerging market countries, which can be subject to greater social, economic, regulatory and political uncertainties and can be extremely volatile. The geographic concentration risks applicable to each Fund are set forth below.

GEOGRAPHIC CONCENTRATION IN THE PACIFIC – The Fund’s investments are concentrated in the Pacific region, which consists of Hong Kong, Japan, Singapore, Australia, and New Zealand. The Fund’s performance is expected to be closely tied to social, political, and economic conditions within Pacific and to be more volatile than the performance of geographically diversified funds.

GEOGRAPHIC CONCENTRATION IN LATIN AMERICA – While the Fund’s Underlying Index is designed to include only blue chip stocks from the four countries’ markets, each country’s economy is considered to be an emerging market economy. High interest, inflation, and unemployment rates generally characterize each economy. Currency fluctuations or devaluations in any country can have a significant affect on investments in the Fund.

GEOGRAPHIC CONCENTRATION IN EUROPE – Countries in Europe may be significantly affected by the tight fiscal and monetary controls of the European Economic and Monetary Union (EMU).

LEVERAGING RISK – The Fund achieves leveraged exposure to its underlying index through the use of derivative instruments. The more the Fund invests in derivative instruments that give rise to leverage, the more this leverage will magnify any losses on those investments. Leverage will cause the value of the Fund’s shares to be more volatile than if the Fund did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s portfolio securities or other investments. The Fund will engage in transactions and purchase instruments that give rise to forms of leverage. Such transactions and instruments may include, among others, the use of reverse repurchase agreements and other borrowings, the investment of collateral from loans of portfolio securities, the use of when issued, delayed-delivery or forward commitment transactions or short sales. The use of leverage also may cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations or to meet segregation requirements. Certain types of leveraging transactions, such as short sales that are not “against the box,” could theoretically be subject to unlimited losses in cases where the Fund, for any reason, is unable to close out the transaction. In addition, to the extent the Fund borrows money, interest costs on such borrowed money may not be recovered by any appreciation of the securities purchased with the borrowed funds and could exceed the Fund’s investment income, resulting in greater losses. The value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its underlying index due to the fact that the Fund’s investment strategies involve the use of leverage. Leverage will also have the effect of magnifying tracking error.

LIQUIDITY RISK— In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. To the extent that there is not an established retail market for instruments in which the Fund may invest, trading in such instruments may be relatively inactive. In addition, during periods of reduced market liquidity or in the absence of readily available market quotations for particular investments in the Fund’s portfolio, the ability of the Fund to assign an accurate daily value to these investments may be difficult and the Advisor may be required to fair value the investments. For additional information about fair valuation, see “Calculating Net Asset Value.”

MARKET RISK — Most securities fluctuate in price, and equity prices tend to fluctuate more dramatically over the shorter term than do the prices of other asset classes. These movements may result from factors affecting individual companies, or from broader influences like changes in interest rates, market conditions, investor confidence or changes in economic, political or financial market conditions. Volatility of financial markets can expose the Fund to greater market risk, possibly resulting in greater liquidity risk. Moreover, changing economic, political or financial market conditions in one country or geographic region could adversely affect the market value of the securities held by the Fund in a different country or geographic region due to increasingly interconnected global economies and financial markets. These market conditions also may lead to increased regulation of the Fund and the instruments in which the Fund may invest, which may, in turn, affect the Fund’s ability to pursue its investment objective and the Fund’s performance.

OTC TRADING RISK – Certain of the derivatives in which the Fund invests may be traded (and privately negotiated) in the OTC market. While the OTC derivatives market is the primary trading venue for many derivatives, it is largely unregulated and lacks transparency with respect to the terms of OTC transactions. OTC derivatives are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to the Fund. In addition, such derivative instruments are often highly customized and tailored to meet the needs of the counterparties. If a derivative transaction is particularly large or if the relevant market is illiquid, it may not be possible to initiate a transaction or liquidate a position at an advantageous time or price. As a result and similar to other privately negotiated contracts, the Fund is subject to counterparty credit risk with respect to such derivative contracts.

PASSIVE INVESTMENT RISK—The Fund is not actively managed and may be affected by a general decline in market segments, or rise in market segments for the Inverse International 2x Strategy Fund, Inverse Pacific 2x Strategy Fund,

Inverse Latin America 2x Strategy Fund and Inverse Europe 2x Strategy Fund, relating to its underlying index. The Fund invests in securities included in, or representative of, its underlying index regardless of their investment merits. The Advisor does not attempt to take defensive positions in declining or rising markets, as applicable. As a result, the Fund may be subject to greater losses in a declining market (or rising market for the Inverse International 2x Strategy Fund, Inverse Pacific 2x Strategy Fund, Inverse Latin America 2x Strategy Fund and Inverse Europe 2x Strategy Fund) than a fund that does take defensive positions.

PORTFOLIO TURNOVER RISK— The daily rebalancing of the Funds’ holdings pursuant to their daily investment objectives may lead to a greater number of portfolio transactions in the Funds than experienced by other mutual funds. Such frequent and active trading may lead to significantly higher transaction costs for the Funds because of increased broker commissions associated with such transactions. Each Fund calculates portfolio turnover without including the short term cash instruments or derivative transactions that comprise the majority of certain of the Funds’ trading. As such, if a Fund’s extensive use of derivative instruments were reflected, the calculated portfolio turnover rate would be significantly higher. Portfolio turnover may cause a Fund’s performance to be less than you expect.

SHORT SALES RISK—Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. The price at such time may be higher or lower than the price at which the security was sold by the Fund. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. The Fund also is required to segregate other assets on its books to cover its obligation to return the security to the lender which means that those other assets may not be available to meet the Fund’s needs for immediate cash or other liquidity. The Fund’s investment performance also may suffer if the Fund is required to close out a short position earlier than it had intended. This would occur if the securities lender required the Fund to deliver the securities the Fund borrowed at the commencement of the short sale and the Fund was unable to borrow the securities from another securities lender or otherwise obtain the security by other means. In addition, the Fund may be subject to expenses related to short sales that are not typically associated with investing in securities directly, such as costs of borrowing and margin account maintenance costs associated with the Fund’s open short positions. These expenses negatively impact the performance of the Fund. For example, when the Fund short sells an interest-bearing security, such as a bond, it is obligated to pay the interest on the security it has sold. This cost is partially offset by the interest earned by the Fund on the investment of the cash generated by the short sale. When the Fund sells short an equity security that pays a dividend, the Fund must pay out the dividend rate of the equity security to the lender and records this as an expense of the Fund and reflects the expense in its financial statements. However, a dividend paid on a security sold short generally has the effect of reducing the market value of the shorted security and thus, increases the Fund’s unrealized gain or reduces the Fund’s unrealized loss on its short sale transaction. To the extent that the interest rate and/or dividend that the Fund is obligated to pay is greater than the interest earned by the Fund on investments, the performance of the Fund will be negatively impacted. These types of short sales expenses are sometimes referred to as the “negative cost of carry,” and will tend to cause the Fund to lose money on a short sale even in instances where the price of the underlying security sold short does not change over the duration of the short sale.

STATUS AS A REGULATED INVESTMENT COMPANY RISK— The Fund may realize gains from the sale or other disposition of foreign currencies and other income (including but not limited to gains from options, futures or forward contracts) derived from investing in stock, securities, or foreign currencies. The Secretary of the Treasury is authorized to issue regulations that might cause the Fund, as a result of its realization of such foreign currency gains, to fail to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). As of the date of this Prospectus, no regulations have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. Please see the SAI under “Special Considerations Applicable to the Funds” for additional discussion of this issue.

A Fund's status as a regulated investment company under the Internal Revenue Code has no bearing on the Fund's status as an investment company under the 1940 Act.

TEMPORARY DEFENSIVE INVESTMENT RISK — The Fund may be affected by a general decline in market specific market segments or the market as a whole. The Fund invests in securities included in a specific market segment, such as the commodity and financial futures markets, in an effort to achieve its investment objective and regardless of their investment merits. The Advisor does not attempt to take defensive positions in declining markets. As a result, the Fund may be subject to greater losses in a declining market than a fund that does take defensive positions.

TRACKING ERROR RISK — The Advisor may not be able to cause the Fund’s performance to match that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of its underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect. In addition, because the Fund is tracking the performance of its benchmark on a daily basis, mathematical compounding may prevent the Fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Tracking error may cause the Fund’s performance to be less than you expect.

PORTFOLIO HOLDINGS

A description of the Funds’ policies and procedures with respect to the disclosure of Fund portfolio securities is available in the SAI.

MANAGEMENT OF THE FUNDS

INVESTMENT ADVISOR

The Advisor, Security Investors, LLC, is located at 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850, and serves as investment adviser of the Funds. The Advisor is a registered investment adviser and is also registered with the CFTC as a commodity pool operator. The Advisor has served as the investment adviser of each Fund since its inception.

The Advisor makes investment decisions for the assets of the Funds and continuously reviews, supervises, and administers each Fund’s investment program. The Board of Trustees of the Trust supervises the Advisor and establishes policies that the Advisor must follow in its day-to-day management activities. Pursuant to an investment advisory agreement between the Trust and the Advisor, the Funds will pay the Advisor a fee at an annualized rate based on the average daily net assets of each Fund, as set forth below:



FUND	ADVISORY FEE
International 2x Strategy Fund	____%
Inverse International 2x Strategy Fund	____%
Inverse Pacific 2x Strategy Fund	____%
Latin America 2x Strategy Fund	____%
Inverse Latin America 2x Strategy Fund	____%
Inverse Europe 2x Strategy Fund	____%

A discussion regarding the basis for the Board’s approval of the Funds’ investment advisory agreement will be available in the Funds’ next scheduled Annual Report or Semi-Annual Report following the Funds’ commencement of operations.

For each Fund, the Advisor may hire one or more sub-advisers to oversee the day-to-day activities of the Funds. The Advisor and the Funds rely on an exemptive order obtained from the SEC to be able to function as a multi-manager structure. The order allows the Advisor to hire, replace or terminate unaffiliated sub-advisers without the approval of shareholders. The order also allows the Advisor to revise a sub-advisory agreement with an unaffiliated sub-adviser with the approval of the Funds’ Board of Trustees, but without shareholder approval. However, any increase in the aggregate advisory fee paid by a Fund remains subject to shareholder approval. If a new unaffiliated sub-adviser is hired, shareholders will receive information about the new sub-adviser within 90 days of the change. The order allows the Funds to operate more efficiently and with greater flexibility. In the event the Funds use a sub-advisor, the Advisor would provide the following oversight and evaluation services to the Funds:


•	performing initial due diligence on prospective sub-advisers for the Funds;


•	monitoring the performance of the sub-advisers;


•	communicating performance expectations to the sub-advisers; and


•	ultimately recommending to the Board whether a sub-adviser’s contract should be renewed, modified or terminated.

To the extent sub-advisers provide sub-advisory services to the Funds, their activities with respect to the Funds are subject to oversight by the Advisor. The Advisor has ultimate responsibility for the investment performance of the Funds due to its responsibility to oversee each sub-adviser and recommend their hiring, termination and replacement. The Advisor is not required to disclose fees paid to any sub-adviser hired pursuant to the order.

PORTFOLIO MANAGEMENT

Michael P. Byrum, CFA, Senior Vice President –Mr. Byrum has ultimate responsibility for the management of the Funds. In addition to generally overseeing all aspects of the management of each series of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust and Rydex ETF Trust, Mr. Byrum reviews the activities of Messrs. Dellapa and Harder. He has been associated with the Advisor since it was founded in 1993. During this time, he has played a key role in the development of the firm’s investment strategies and product offerings. As Portfolio Manager, Mr. Byrum was instrumental in the launch of the NASDAQ-100^®, Precious Metals, Government Long Bond 1.2x Strategy, Inverse Government Long Bond Strategy, Inverse S&P 500^® Strategy and Inverse NASDAQ-100^® Strategy Funds, and helped to create the Sector Funds. He was named Vice President of Portfolio for the Advisor in 1998, and Executive Vice President in 2000. Prior to joining the Advisor, Mr. Byrum worked for Money Management Associates, the investment adviser for Rushmore Funds, Inc. He holds a degree in finance from Miami University of Ohio and is a member of the CFA Institute and the Washington Society of Investment Analysts.

Ryan A. Harder, CFA, Portfolio Manager – Mr. Harder is involved in the management of each series of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust, but focuses particularly on the management of the Domestic Equity, International Equity, Fixed Income, and Alternative Funds. Mr. Harder joined the Advisor in 2004 as an Assistant Portfolio Manager, was promoted to Portfolio Manager in 2005 and has served in his current capacity since 2008. He was instrumental in the launch of the Multi-Hedge Strategies, High Yield Strategy and Inverse High Yield Strategy Funds. Prior to joining the Advisor, Mr. Harder served in various capacities with WestLB Asset Management, including as an Assistant Portfolio Manager, and worked in risk management at CIBC World Markets. He holds a B.A. in Economics from Brock University in Ontario, Canada and a Master of Science in International Securities, Investment and Banking from the ICMA Centre at the University of Reading in the U.K.

SHAREHOLDER INFORMATION

CALCULATING NET ASSET VALUE

The price per share (the offering price) of each Fund will be the NAV next determined after your purchase order is received by the Trust. You also may redeem all or any portion of your Fund shares at the next determined NAV after receipt of the redemption request.

Each Fund calculates its NAV by:


•	Taking the current market value of its total assets


•	Subtracting any liabilities


•	Dividing that amount by the total number of shares owned by shareholders

Each Fund calculates its NAV once each Business Day (as defined below) as of the regularly scheduled close of normal trading on the NYSE (normally, 4:00 p.m., Eastern Time. The NYSE is open Monday through Friday, except in observation of the following holidays: New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. If the NYSE closes early - such as on days in advance of holidays generally observed by the NYSE - a Fund will calculate its NAV as of the earlier closing time. These dates are listed in the SAI. For more information, please call 800.820.0888 or visit the Guggenheim Investments website - www.guggenheiminvestments.com.

The Advisor generally values the assets of the Funds at fair value using procedures approved by the Board of Trustees because of the time difference between the close of the relevant foreign exchanges and the time the Funds price their shares at the close of the NYSE. As such, the value assigned to the International Equity Funds’ securities may not be the quoted or published prices of those securities on their primary markets or exchanges.

may trade in their primary markets on weekends or other days when the Funds do not price their shares.

BUYING, SELLING AND EXCHANGING FUND SHARES

Class H shares are offered directly through the Funds’ transfer agent, Rydex Fund Services, LLC, and also through authorized securities brokers and other financial intermediaries.

OPENING YOUR ACCOUNT

If you open your account through a broker or other financial intermediary, your financial intermediary will ordinarily assist you in completing the necessary application to open your account.

TIPS TO SUCCESSFULLY COMPLETE YOUR ACCOUNT APPLICATION


•	You must provide each account holder’s social security number or tax ID number and date of birth on the application to avoid a delay in processing.


•	Attach a copy of the trust document when establishing a trust account.

•


•	You must provide a street address (Guggenheim Investments does not accept P.O. Box only addresses). If any joint owner has a different address than the account registration, please indicate what it is on the application.


•	Be sure to sign the application .


•	If you open an account directly with Guggenheim Investments you will receive a confirmation statement by mail confirming your initial purchase. Review this confirmation carefully to ensure that all of the information is correct. Notify us promptly of any errors.


•	Any application that is sent to the transfer agent does not constitute a purchase order until the transfer agent processes the application and receives correct payment by check, wire transfer or ACH.

TRANSACTION INFORMATION

and Bond Market closings at www.guggenheiminvestments.com.

TRANSACTION CUT-OFF TIMES



METHOD	FUND	CUT-OFF TIME
By Mail	All Funds	Market Close
By Phone	Latin America 2x Strategy Fund Inverse Latin America 2x Strategy Fund	3:30 P.M., Eastern Time
By Phone	International 2x Strategy Fund Inverse International 2x Strategy Fund Inverse Pacific 2x Strategy Fund Inverse Europe 2x Strategy Fund	3:45 P.M., Eastern Time
By Internet	Latin America 2x Strategy Fund Inverse Latin America 2x Strategy Fund	3:45 P.M., Eastern Time
By Internet	International 2x Strategy Fund Inverse International 2x Strategy Fund Inverse Pacific 2x Strategy Fund Inverse Europe 2x Strategy Fund	3:50 P.M., Eastern Time
By Financial Intermediary	All Funds	Market Close*


*	Each financial intermediary may have its own rules about share transactions, and may have earlier cut-off times for processing your transaction order.

TRANSACTIONS THROUGH YOUR FINANCIAL INTERMEDIARY

BUYING FUND SHARES

Each Fund offers its shares continuously and investors may submit purchase orders to buy shares on any Business Day. However, Guggenheim Investments reserves the right to reject or refuse, in whole or in part, any purchase order for Fund shares within three business days of Guggenheim Investments receiving the purchase order. Purchase orders are subject to the Funds’ transaction cut-off times and will be processed at the NAV next determined after your purchase order is received in good order. For information regarding the minimum initial investment amount applicable to purchases of Class H shares of the Funds, please see the Funds’ summary sections earlier in this Prospectus. Directors and officers of the Funds and other mutual funds managed by the Advisor or one or more of its affiliates, and directors, officers and employees of Guggenheim Partners, LLC and its affiliates are eligible to purchase Class H shares of the Funds without meeting the minimum initial investment amount for accounts held directly at Guggenheim Investments.

For additional discussion of the average cost method, see “Redemption Procedures.”

PURCHASE PROCEDURES

Retirement contributions will be considered as current year contributions unless otherwise instructed in writing at the time of the contribution.

You may buy shares and send your purchase proceeds by any of the following methods:



	Initial Purchase	Subsequent Purchases
BY CHECK (MAIL) IRA and other retirement accounts require additional paperwork. Call Guggenheim Investments Client Services to request an IRA kit or New Account application.	Complete the account application that corresponds to the type of account you are opening. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Complete the Guggenheim Investments investment slip included with your quarterly statement or send written purchase instructions that include: • Your name • Your shareholder account number • The Fund(s) you want to purchase.
	Make your check payable to Guggenheim Investments.
	Your check must be drawn on a U.S. bank and payable in U.S. dollars.



Include the name of the Fund(s) you want to purchase on your check. If you do not specify the Fund(s) you want to purchase, your investment generally will be credited to shares of the U.S. Government Money Market Fund, which are offered in a separate prospectus.
Mail your application and check to:	Mail your written purchase instructions and check to:
Mailing Addresses:
Standard Delivery	Overnight Delivery
Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
	Initial Purchase	Subsequent Purchases
BY WIRE Guggenheim Investments Client Services Phone number: 800.820.0888 or 301.296.5100	Complete and submit the account application that corresponds to the type of account you are opening. Contact Guggenheim Investments Client Services at 800.820.0888 to obtain your new account number. Use the Wire Instructions below to send your wire. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Be sure to designate your wire instructions to the Fund(s) you want to purchase.
	To obtain “same-day credit” (to get that Business Day’s NAV) for your purchase order, you should call Guggenheim Investments Client Services and provide the following information prior to the transaction cut-off time for the Fund(s) you are purchasing: • Account Number • Fund Name • Amount of Wire • Fed Wire Reference Number (upon request) You will receive a confirmation number to verify that your purchase order has been accepted. If you do not notify Guggenheim Investments Client Services of the incoming wire, your purchase order may not be processed until the Business Day following the receipt of the wire. Wire Instructions: U.S. Bank Cincinnati, OH Routing Number: 0420-00013 For Account of: Guggenheim Investments Account Number: 48038-9030 [Your Name] [Your shareholder account number] [Your fund designation] If you do not specify the Fund(s) you want to purchase, your investment generally will be credited to shares of the U.S. Government Money Market Fund, which are offered in a separate prospectus.



BY ACH (FAX/MAIL) Guggenheim Investments Client Services Fax number: 301.296.5103	Initial Purchase	Subsequent Purchases
	Submit a new account application. Be sure to complete the “Electronic Investing via ACH” section. If you are establishing an Individual, Joint, or UGMA/UTMA account, you may fax the application to Guggenheim Investments. All other applications should be mailed. • Make sure to designate the Fund(s) you want to purchase. • Make sure your investment meets the account minimum.	Subsequent purchases made via ACH must be a minimum of $20. A maximum of $50,000 is allowed to be purchased via ACH per day. To make a subsequent purchase send written purchase instructions that include: • Your name • Your shareholder account number • The Fund(s) you want to purchase • ACH bank information (if not on record).
	Mailing Addresses:
	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn:Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
BY ACH (PHONE) Guggenheim Investments Client Services Phone number: 800.820.0888 or 301.296.5100	Purchase payments may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instruction on file, you may submit your purchase request by contacting Guggenheim Investments Client Services at 800.820.0888.
BY ACH (INTERNET)	Purchase payments may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instructions on file, log-in to your account at www.TradeRydex.com and click on “Electronic Investing.” If you currently do not have ACH instructions on file, download the Bank Information and Alternate Payee form from the www.guggenheiminvestments.com website, and follow the instructions for adding bank instructions.

CANCELLED PURCHASE ORDERS

Guggenheim Investments will ordinarily cancel your purchase order under the following circumstances:

• if your bank does not honor your check for any reason

• if the transfer agent (Rydex Fund Services, LLC) does not receive your wire transfer

• if the transfer agent (Rydex Fund Services, LLC) does not receive your ACH transfer

• if your bank does not honor your ACH transfer

SELLING FUND SHARES

REDEMPTION PROCEDURES



MAIL	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
FAX	301.296.5103 If you send your redemption order by fax, you must call Guggenheim Investments Client Services at 800.820.0888 or 301.296.5100 to verify that your fax was received and when it will be processed.
TELEPHONE	800.820.0888 or 301.296.5100 (not available for retirement accounts)
BY ACH	Redemption proceeds may be sent via ACH only if you have existing ACH instructions on file. If you have existing ACH instructions on file, you may submit your redemption request via mail or telephone using the mailing addresses and telephone numbers provided above. If you currently do not have ACH instructions on file, download the Bank Information and Alternate Payee form from the www.guggenheiminvestments.com website, and follow the instructions for adding bank instructions. A maximum of $50,000 is allowed to be redeemed via ACH per day.

Whether you transmit your redemption order by mail, fax or telephone, you must include the following information in your redemption order:


•	your name


•	your shareholder account number


•	Fund name(s)


•	dollar amount or number of shares you would like to sell


•	whether you want your sale proceeds sent to you by check, wire or ACH (a new alternate payee or new wire instructions may require a Medallion signature guarantee)


•	signature of account owner(s) (not required for telephone redemptions)

You may only place a redemption order if you are the registered owner of the account or the registered owner has

given Guggenheim Investments written authorization to allow you to make redemptions from the account. You will receive a confirmation number for your redemption. Please retain it for your records.

DISTRIBUTIONS FROM QUALIFIED RETIREMENT ACCOUNTS

Distributions from 403(b) accounts may require employer or plan administrator approval.

RECEIVING YOUR REDEMPTION PROCEEDS

All redemptions will be mailed to your address of record, sent electronically via ACH, or wired to your bank account of record. You may request overnight mail service for an additional fee. If redemption proceeds are transmitted by ACH or wire and the payee instructions are not valid, the proceeds may be re-invested into shares of the Rydex Series Funds U.S. Government Money Market Fund as of the date of the redemption (shares of the Rydex Series Funds U.S. Government Money Market Fund are offered in a separate prospectus). If you are setting up new alternate payee instructions (check) or new bank instructions (ACH or wire) the request must be in writing, include a Medallion signature guarantee, and may not be faxed. You may not send redemption proceeds to an address of record that was changed within the last 10 business days unless your request is Medallion signature guaranteed. For certain exceptions (e.g., accounts managed by financial professionals and requests to transfer between accounts), you may not be required to provide a Medallion signature guarantee. Please contact Guggenheim Investments Client Services at 800.820.0888 if you have any questions about your redemption request.

MEDALLION SIGNATURE GUARANTEES

UNCASHED CHECK POLICY

For dividend and capital gain checks, the proceeds will be reinvested into the appropriate share class of the Fund from which such distribution was paid, or if the Fund position has subsequently been redeemed in full, the distribution will be reinvested into shares of the Rydex Series Funds U.S. Government Money Market Fund (shares of the Rydex Series Funds U.S. Government Money Market Fund are offered in a separate prospectus). The account also will have

the distribution payout option adjusted so that all future distributions are reinvested into the appropriate share class of the Fund from which the distribution would have been paid.

For partial redemption checks, the proceeds will be deposited into shares of the Rydex Series Funds U.S. Government Money Market Fund (as noted above, shares of the U.S. Government Money Market Fund are offered in a separate prospectus).

Any full redemption check (one that brings your account balance to $0.00) that has remained outstanding for a period of 90 days from the issuance date will be cancelled and re-issued one time.

Any redemption check from a retirement account (IRA, Roth, SEP, for example) that has remained outstanding for a period of 90 days from the issuance date will be cancelled and re-issued one time.

For checks returned in the mail, the Funds will attempt to contact the client. If no contact is made, the check will be processed according to the procedures mentioned above.

LOW BALANCE ACCOUNTS

EXCHANGING FUND SHARES

An exchange is when you sell shares of one fund and use the proceeds from that sale to purchase shares of another fund. Investors may make exchanges on any Business Day of Class H shares of any Rydex Series Fund or Rydex Dynamic Fund for Advisor shares, Investor shares, or Class H shares of any other Rydex Series Fund or Rydex Dynamic Fund, as applicable, on the basis of the respective NAVs of the shares involved. Investors also may make exchanges on any Business Day of Advisor shares, Investor shares or Class H shares of any Rydex Series Fund or Rydex Dynamic Fund for shares of the U.S. Government Money Market Fund.

While the Funds offered in this prospectus allow unlimited exchange privileges, certain funds in the Guggenheim Investments family of funds do not allow unlimited trading. If you are contemplating an exchange for shares of any fund not offered in this Prospectus, you should obtain and review that fund’s current prospectus before making the exchange. You can obtain a prospectus for any fund not offered in this Prospectus by calling 800.820.0888 or 301.296.5100 or visiting the Guggenheim Investments website at www.guggenheiminvestments.com.

The exchange privilege may be modified or discontinued at any time.

EXCHANGE PROCEDURES

You will ordinarily submit your transaction order through your financial intermediary or other securities dealers through which you opened your shareholder account. If you opened your account directly with the Funds you may send exchange requests to Guggenheim Investments by:



MAIL	Standard Delivery	Overnight Delivery
	Guggenheim Investments Attn: Ops. Dept. P.O. Box 758567 Topeka, KS 66675-8567	Guggenheim Investments Mail Zone 567 One Security Benefit Place Topeka, KS 66636
FAX	301.296.5103 If you send your exchange request by fax, you must call Guggenheim Investments Client Services at 800.820.0888 to verify that your fax was received and when it will be processed.
TELEPHONE	800.820.0888 or 301.296.5100
INTERNET	Follow the directions on the Guggenheim Investments website - Visit www.TradeRydex.com.

Whether you transmit your exchange request by mail, fax, telephone or internet, you must include the following information in your exchange request:


•	your name


•	your shareholder account number


•	Fund name(s) you are exchanging out of (selling) and Fund name(s) you are exchanging into (buying)


•	dollar amount, number of shares or percentage of Fund position involved in the exchange


•	signature of account owner(s) (not required for telephone or internet exchanges)

DOLLAR-COST AVERAGING

ACCOUNT POLICIES

SHAREHOLDER IDENTIFICATION AND VERIFICATION

The Funds also may place limits on account transactions while they are in the process of attempting to verify your identity. Additionally, if the Funds are unable to verify your identity after your account is established, the Funds may be required to redeem your shares and close your account. If your account is closed for this reason, your shares will be redeemed at the NAV next calculated after your account is closed, and you will bear any risk of loss.

Guggenheim Investments provides accounts for U.S. citizens and resident aliens. We will not open a new account for any non-resident aliens (natural person or entity). If you are unsure of your status please consult your tax adviser. Non-resident aliens may hold shares of the Funds through a financial intermediary, subject to that financial intermediary’s requirements.

CHANGES TO YOUR ACCOUNT

TRANSACTIONS OVER TELEPHONE OR INTERNET

STATEMENTS & CONFIRMATIONS

eDELIVERY SERVICES

GUGGENHEIM INVESTMENTS EXPRESS LINE – 1.800.717.7776

SERVICE AND OTHER FEES

Guggenheim Investments may charge the following administrative fees on accounts held directly through the Funds’ transfer agent for services associated with the following:


•	$15 for wire transfers of redemption proceeds under $5,000


•	$50 on checks returned for insufficient funds


•	$25 to stop payment of a redemption check within 10 Business Days of the settlement date


•	$15 for standard overnight packages (fee may be higher for special delivery options)


•	$25 for bounced draft checks or ACH transactions


•	$15 per year for low balance accounts

•

Guggenheim Investments reserves the right to change any of these fees or add additional service fees at any time.

RETIREMENT ACCOUNT FEES

For additional information on fees for employee accounts please refer to the SAI.

FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES

Because 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 transaction fees, the Funds’ Board of Trustees has not adopted policies and procedures designed to prevent market timing or to monitor for frequent purchases and redemptions of Fund shares. A significant portion of the assets of the Funds come from investors who take part in certain strategic and tactical asset allocation programs. The Funds anticipate that investors who take part in these programs may frequently redeem or exchange shares of the Funds, which may cause the Funds to experience high portfolio turnover. Higher portfolio turnover may result in the Funds paying higher levels of transaction costs and generating greater tax liabilities for shareholders. In addition, large movements of assets into and out of the Funds may negatively impact the Funds’ ability to achieve their respective investment objectives.

RIGHTS RESERVED BY THE FUNDS

The Funds reserve the right to close your account in cases of suspected fraudulent or illegal activity in accordance

with applicable law. This action may be taken when, in the sole discretion of Fund management, it is deemed to be in the best interest of the Funds or in cases where the Funds are requested or compelled to do so by applicable law. If your account is closed at the request of governmental or law enforcement authority or pursuant to applicable law, you may not receive proceeds of the redemption if the Funds are required to withhold such proceeds.

DISTRIBUTION AND SHAREHOLDER SERVICES

COMPENSATION TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

DIVIDENDS AND DISTRIBUTIONS

TIMING OF PAYMENTS

Income dividends, if any, are paid at least annually by the Funds. If you own Fund shares on a Fund’s record date, you will be entitled to receive the dividend. The Funds may declare and pay dividends on the same date. Each Fund makes distributions of capital gains, if any, at least annually. Each Fund, however, may declare a special capital gains distribution if the Board of Trustees believes that such a distribution would be in the best interest of the shareholders of the Fund.

DIVIDEND PAYMENT OPTIONS

ADDITIONAL TAX INFORMATION

TAX STATUS OF EACH FUND

TAX STATUS OF DISTRIBUTIONS


•	Each Fund will, at least annually, distribute substantially all of its net investment income and net capital gains.


•	The income dividends you receive from the Funds will be taxed as either ordinary income or qualified dividend income.

•

For non-corporate shareholders, dividends that are reported as qualified dividend income, if any, are generally taxable at reduced maximum rates to the extent that the applicable Fund receives qualified dividend income and subject to certain limitations. The Funds’ investment strategies may significantly limit their ability to distribute dividends eligible for treatment as qualified dividend income.

•


•	Dividends and distributions are generally taxable to you whether you receive them in cash or in additional shares.


•	Corporate shareholders may be entitled to a dividends-received deduction for any portion of dividends they receive that are attributable to dividends received by a Fund from U.S. corporations, subject to certain limitations. The Funds’ investment strategies may significantly limit their ability to distribute dividends eligible for the dividends-received deduction.


•	Distributions paid in January but declared by the Funds in October, November or December of the previous year may be taxable to you in the previous year.


•	Shortly after the close of each calendar year, the Funds will inform you of the amount of your ordinary income dividends, qualified dividend income, and net capital gain distributions received from the Funds.


•	If you hold your shares in a tax-qualified retirement account, you generally will not be subject to federal taxation on Fund distributions until you begin receiving distributions from your retirement account. You should consult your tax adviser regarding the tax rules that apply to your retirement account.

TAX STATUS OF SHARE TRANSACTIONS

MEDICARE CONTRIBUTION TAX

STATE TAX CONSIDERATIONS

COST BASIS

The Funds (or their administrative agents) are required to report to the Internal Revenue Service and furnish to Fund shareholders cost basis and holding period information upon a redemption of “covered shares” (those generally purchased on or after January 1, 2012). The Funds will permit Fund shareholders to elect from among several Internal Revenue Service accepted cost basis methods, including average cost, FIFO, LIFO and HIFO. In the absence of an election, the Funds will use a default cost basis method which is the average cost method. The cost basis method elected by a Fund shareholder (or the cost basis method applied by default) for each sale of Fund shares may not be changed after the close of business on the trade date of each such sale of Fund shares. In the case of trades placed during the morning trading cycle (where applicable), cost basis method changes may be accepted until 12:00 p.m., Eastern Time on trade date. Fund shareholders should consult with their tax advisers prior to making redemptions to determine the best Internal Revenue Service accepted cost basis method for their tax situation and to obtain more information about the cost basis reporting rules.

INDEX PUBLISHERS INFORMATION

[TO BE PROVIDED BY AMENDMENT]

ADDITIONAL INFORMATION

The Trust’s U.S. Securities and Exchange Commission registration number is 811-07584.

805 King Farm Boulevard, Suite 600

Rockville, MD 20850

800.820.0888

guggenheiminvestments.com



Mutual Funds	\|	International Equity Funds	\|	8.1.2014

Rydex Funds Prospectus
Class A and Class C



Ticker Symbol		Fund Name
Class A	Class C
XXXXX	XXXXX	International 2x Strategy Fund
XXXXX	XXXXX	Inverse International 2x Strategy Fund
XXXXX	XXXXX	Inverse Pacific 2x Strategy Fund
XXXXX	XXXXX	Latin America 2x Strategy Fund
XXXXX	XXXXX	Inverse Latin America 2x Strategy Fund
XXXXX	XXXXX	Inverse Europe 2x Strategy Fund

THE FUNDS HAVE NOT YET COMMENCED OPERATIONS AND SHARES OF THE FUNDS ARE NOT CURRENTLY AVAILABLE FOR PURCHASE.

There is no assurance that any Fund will achieve its objectives and an investment in a Fund could lose money. No single Fund is a complete investment program.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have not approved or disapproved these securities, or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal

offense.



XXX-1-XXXXxXXXX	guggenheiminvestments.com

TABLE OF CONTENTS

FUND SUMMARIES



International Equity Funds
International 2x Strategy Fund	1
Inverse International 2x Strategy Fund	8
Inverse Pacific 2x Strategy Fund	15
Latin America 2x Strategy Fund	22
Inverse Latin America 2x Strategy Fund	29
Inverse Europe 2x Strategy Fund	37
MORE INFORMATION ABOUT THE TRUST AND THE FUNDS	45
MANAGEMENT OF THE FUNDS	59
SHAREHOLDER INFORMATION	61
BUYING, SELLING AND EXCHANGING FUND SHARES	62
SALES CHARGES	63
Class A Shares	64
Class C Shares	66
BUYING FUND SHARES	67
SELLING FUND SHARES	71
EXCHANGING FUND SHARES	73
ACCOUNT POLICIES	75
DISTRIBUTION AND SHAREHOLDER SERVICES	77
DIVIDENDS AND DISTRIBUTIONS	78
ADDITIONAL TAX INFORMATION	78
INDEX PUBLISHERS INFORMATION	81
ADDITIONAL INFORMATION	82

INTERNATIONAL 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not match the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., 2x) and the cumulative performance of the underlying index (as defined below).

INVESTMENT OBJECTIVE

The Fund 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 fair value of the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class A shares or Class C shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in certain funds in the Guggenheim Investments family of funds. More information about these and other discounts is available from your financial professional and under the “Sales Charges” section on page ___ of this Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page ___ of the Fund’s Statement of Additional Information (the “SAI”).



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%	____%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses*	____%	____%
Total Annual Fund Operating Expenses	____%	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

b EXAMPLE

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



	1 Year	3 Years
Class A	$____	$____
Class C	$____	$____

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



	1 Year	3 Years
Class C	$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-84%	-85%	-88%	-91%	-94%
-50%	-100%	-75%	-77%	-81%	-86%	-91%
-40%	-80%	-65%	-66%	-72%	-80%	-87%
-30%	-60%	-52%	-54%	-62%	-72%	-82%
-20%	-40%	-37%	-41%	-49%	-64%	-78%
-10%	-20%	-20%	-24%	-37%	-55%	-71%
0%	0%	-1%	-5%	-22%	-43%	-65%
10%	20%	19%	14%	-5%	-31%	-58%
20%	40%	42%	36%	11%	-15%	-47%
30%	60%	67%	59%	32%	-3%	-38%
40%	80%	93%	84%	52%	11%	-28%
50%	100%	122%	111%	76%	28%	-20%
60%	120%	154%	140%	100%	44%	-10%

COUNTERPARTY CREDIT RISK—The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

DERIVATIVES RISK—The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage , imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

OPTIONS RISK —Options or options on futures contracts give the holder of the option the right to buy (or to sell) a position in a security or in a contract to the writer of the option, at a certain price. They are subject to correlation risk because there may be an imperfect correlation between the options and the securities markets that cause a given transaction to fail to achieve its objectives. The successful use of options depends on the Advisor’s ability to correctly predict future price fluctuations and the degree of correlation between the options and securities markets. Exchanges can limit the number of positions that can be held or controlled by the Fund or the Advisor, thus limiting the ability to implement the Fund’s strategies. Options are also particularly subject to leverage risk and can be subject to liquidity risk.

FOREIGN ISSUER EXPOSURE RISK—The Fund may invest in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. The Fund’s investments in foreign securities and foreign issuers are subject to additional risks in comparison to U.S. securities and U.S. issuers, including currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

INVESTMENT IN INVESTMENT VEHICLES RISK — Investing in other investment vehicles, including, exchange-traded funds, closed-end funds, affiliated short-term fixed-income funds and other mutual funds, subjects the Fund to those risks affecting the investment vehicle , including the possibility that the value of the underlying securities held by the investment vehicle could decrease. Moreover, the Fund and its shareholders will incur its pro rata share of the expenses of the underlying investment vehicles’ expenses.

MID-CAPITALIZATION SECURITIES RISK—The Fund is subject to the risk that medium-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

SMALL-CAPITALIZATION SECURITIES RISK— The Fund is subject to the risk that small-capitalization stocks may underperform other segments of the equity market or the equity market as a whole.

STATUS AS A REGULATED INVESTMENT COMPANY RISK —The Fund may realize gains from the sale or other disposition of foreign currencies and other income (including gains from options, futures or forward contracts) derived from investing in stock, securities, or foreign currencies. The Secretary of the Treasury is authorized to issue regulations that might cause the Fund, as a result of its realization of such foreign currency gains, to fail to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended. As of the date of this Prospectus, no regulations have been issued pursuant to this authorization, but such regulations may be issued in the future.

TRACKING ERROR RISK —The Advisor may not be able to cause the Fund’s performance to correlate to that of the Fund’s benchmark, either on a daily or aggregate basis. Factors such as Fund expenses, imperfect correlation between the Fund’s investments and those of the underlying index, rounding of share prices, changes to the composition of the underlying index, regulatory policies, high portfolio turnover rate, and the use of leverage all contribute to tracking error. Tracking error may cause the Fund’s performance to be less than you expect.

PERFORMANCE INFORMATION

MANAGEMENT

INVESTMENT ADVISOR

Security Investors, LLC, which operates under the name Guggenheim Investments, serves as the investment adviser of the Fund.

PORTFOLIO MANAGERS


•	Michael P. Byrum , CFA, Senior Vice President. Mr. Byrum has been associated with the Advisor since 1993.


•	Michael J. Dellapa , CFA, CAIA, Portfolio Manager. Mr. Dellapa has been associated with the Advisor since 2000.


•	Ryan A. Harder, CFA, Portfolio Manager. Mr. Harder has been associated with the Advisor since 2004.

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and account balance requirements for Class A or Class C accounts held through a third party ( e.g. , a brokerage account) are typically:


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

Direct accounts managed by financial professionals are not subject to minimum initial investment and minimum account balance requirements.

There are no minimum amount requirements for subsequent investments in the Fund except for subsequent investments made via Automated Clearing House (“ACH”).

The Fund reserves the right to modify its minimum account balance requirements at any time, with or without prior notice to you.

TAX INFORMATION

Fund distributions are generally taxable as ordinary income or capital gains (or a combination of both), unless your investment is in an IRA or other tax-advantaged retirement account.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

INVERSE INTERNATIONAL 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The effect of leverage on the Fund will generally cause the Fund’s performance to not correlate to the performance of the Fund’s benchmark (as described below) over a period of time greater than one day. This means that the return of the Fund for a period of longer than a single trading day will be the result of each day’s compounded returns over the period, which will very likely differ from twice the inverse return of the Fund’s underlying index (as defined below) for that period. As a consequence, especially in periods of market volatility, the path or trend of the benchmark during the longer period may be at least as important to the Fund’s cumulative return for the longer period as the cumulative return of the benchmark for the relevant longer period. Further, the return for investors who invest for a period longer than a single trading day will not be the product of the return of the Fund’s stated investment goal (e.g., -2x) and the cumulative performance of the underlying index (as defined below).

The Fund is not suitable for all investors. The Fund 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. Investors who do not meet these criteria should not buy shares of the Fund. An investment in the Fund is not a complete investment program.

INVESTMENT OBJECTIVE

FEES AND EXPENSES OF THE FUND

This table describes the fees and expenses that you may pay if you buy and hold Class A shares or Class C shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in certain funds in the Guggenheim Investments family of funds. More information about these and other discounts is available from your financial professional and under the “Sales Charges” section on page ___ of this Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page ___ of the Fund’s Statement of Additional Information (the “SAI”).



	Class A	Class C
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price)	4.75%	None
Maximum Deferred Sales Charge (Load) (as a percentage of initial purchase price or current market value, whichever is less)	None	1.00%
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	____%	____%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses*	____%	____%
Total Annual Fund Operating Expenses	____%	____%


*	Because the Fund is new, “Other Expenses” are based on estimated amounts for the current fiscal year.

EXAMPLE

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



	1 Year	3 Years
Class A	$____	$____
Class C	$____	$____

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



	1 Year	3 Years
Class C	$____	$____

PORTFOLIO TURNOVER

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the Example, affect the Fund’s performance. The Fund’s portfolio turnover rate is calculated without regard to cash instruments or derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher. The Fund is new, and therefore, does not have a historical portfolio turnover rate.

PRINCIPAL INVESTMENT STRATEGIES

PRINCIPAL RISKS

ACTIVE TRADING RISK— The Fund may be used as a tool for certain investors that employ trading strategies involving frequent trading. Such trading strategies may lead to increased portfolio turnover in the Fund, higher transaction costs, and the possibility of increased short-term capital gains (which will be taxable to shareholders as ordinary income when distributed to them) and/or long-term capital gains. Large movements of assets into and out of the Fund due to active or frequent trading also may adversely affect the Fund's ability to achieve its investment objective.

CORRELATION AND COMPOUNDING RISK—A number of factors may affect the Fund’s ability to achieve a high degree of correlation with its benchmark, and there can be no guarantee that the Fund will achieve a high degree of correlation. Failure to achieve a high degree of correlation may prevent the Fund from achieving its investment objective. The Fund does not attempt to, and should not be expected to, provide returns which are a multiple of the returns of the underlying index for periods other than a single day. The risk of the Fund not achieving its daily investment objective will be more acute when the underlying index has an extreme one-day movement approaching 50%. In addition, as a result of compounding, because the Fund has a single day investment objective, the Fund’s performance for periods greater than one day is likely to be either greater than or less than the inverse of the performance of the underlying index times the stated multiple in the Fund’s investment objective, before accounting for fees and Fund expenses.

Fund performance for periods greater than one day can be estimated given any set of assumptions for the following factors: (a) underlying index performance; (b) underlying index volatility; (c) financing rates associated with leverage; (d) other Fund expenses; (e) dividends paid by companies in the underlying index; and (f) period of time. The table below illustrates the impact of two principal factors – volatility and index performance – on Fund performance. The table shows estimated Fund returns for a number of combinations of performance and volatility over a one-year period. Performance shown in the table assumes: (a) no dividends paid by the companies included in the underlying index; (b) no Fund expenses; and (c) a cost of leverage of zero percent. If Fund expenses were included, the Fund’s performance would be lower than shown.



Index Performance		Annualized Volatility
1x	-2x	10%	25%	50%	75%	100%
-60%	120%	506%	404%	199%	13%	-69%
-50%	100%	286%	229%	91%	-27%	-82%
-40%	80%	171%	128%	33%	-49%	-86%
-30%	60%	99%	70%	-1%	-62%	-90%
-20%	40%	52%	31%	-27%	-70%	-93%
-10%	20%	20%	3%	-42%	-77%	-94%
0%	0%	-3%	-18%	-52%	-81%	-96%
10%	-20%	-19%	-31%	-61%	-84%	-96%
20%	-40%	-32%	-43%	-67%	-87%	-97%
30%	-60%	-42%	-51%	-72%	-89%	-97%
40%	-80%	-50%	-58%	-75%	-91%	-97%
50%	-100%	-57%	-63%	-79%	-92%	-98%
60%	-120%	-62%	-68%	-82%	-93%	-98%

annualized performance for the five year period ended [DATE] is ____%.

COUNTERPARTY CREDIT RISK—The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund’s use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, the Fund is exposed to the risk that the counterparty may be unwilling or unable to make timely payments to meet its contractual obligations or may fail to return holdings that are subject to the agreement with the counterparty. If the counterparty becomes bankrupt or defaults on its payment obligations to the Fund, the Fund may not receive the full amount that it is entitled to receive. If this occurs, the value of your shares in the Fund will decrease.

DERIVATIVES RISK—The Fund’s investments in derivatives may pose risks in addition to and greater than those associated with investing directly in securities or other investments, including risks relating to leverage , imperfect correlations with underlying investments or the Fund’s other portfolio holdings, high price volatility, lack of availability, counterparty credit, liquidity, valuation and legal restrictions. Their use is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Advisor is incorrect about its expectations of market conditions, the use of derivatives could also result in a loss, which in some cases may be unlimited. Certain risks also are specific to the derivatives in which the Fund invests.

SWAP AGREEMENTS RISK —Swap agreements are contracts among the Fund and a counterparty to exchange the return of the pre-determined underlying investment (such as the rate of return of the underlying index). Swap agreements may be negotiated bilaterally and traded OTC between two parties or, in some instances, must be transacted through a futures commission merchant and cleared through a clearinghouse that serves as a central counterparty. Risks associated with the use of swap agreements are different from those associated with ordinary portfolio securities transactions, due in part to the fact they could be considered illiquid and many swaps trade on the OTC market. Swaps are particularly subject to counterparty credit, correlation, valuation, liquidity and leveraging risks. Certain standardized swaps are subject to mandatory central clearing. Central clearing is expected to reduce counterparty credit risk and increase liquidity, but central clearing does not make swap transactions risk-free.

Futures markets are highly volatile and the use of futures may increase the volatility of the Fund’s NAV. Futures are also subject to leverage risks and to liquidity risk.