RSF 8/2016 497C Combined Document

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497 1 rsf82016497cdoc.htm 497 RSF 8/2016 497C Combined Document



Mutual Funds	\|	\|	8.1.2016

Rydex Funds Prospectus
Class A, Class C and Institutional



Ticker Symbol		Fund Name
Rydex Domestic Equity - Broad Market Funds
Class A	Class C
RYANX	RYNCX	Nova Fund*
RYSOX	RYSYX	S&P 500^® Fund
RYARX	RYUCX	Inverse S&P 500^® Strategy Fund*
RMQAX	RMQCX	Monthly Rebalance NASDAQ-100^® 2x 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*
RYDAX	RYDKX	Dow Jones Industrial Average^® Fund
Rydex Domestic Equity - Style Box Funds
Class A	Class C
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
Class A	Class C
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
Rydex Sector Funds (continued)
Class A	Class C
RYRTX	RYRCX		Retailing Fund
RYTHX	RYCHX		Technology Fund
RYTLX	RYCSX		Telecommunications Fund
RYTSX	RYCNX		Transportation Fund
RYUTX	RYCUX		Utilities Fund
Rydex International Equity Funds
Class A	Class C
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
Class A	Class C
RYSDX	RYSJX		Strengthening Dollar 2x Strategy Fund*
RYWDX	RYWJX		Weakening Dollar 2x Strategy Fund*
RYREX	RYCRX		Real Estate Fund
Rydex Fixed Income Funds
Class A	Class C
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
RYDOX	RYDQX	RYDTX	Guggenheim Event Driven and Distressed Strategies Fund
Rydex Money Market Fund
Money Market Class
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.



SERACI-1-0816x0817	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 and the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund seeks to provide such investment results on a calendar month basis. The Inverse Funds pursue investment goals which are inverse to the performance of their respective underlying index and the Leveraged Inverse Funds pursue investment goals which are inverse to 200% of the performance of their respective underlying index, a result opposite of most other mutual funds. The pursuit of such leveraged and inverse investment goals has the following implications: • The Leveraged Funds and Leveraged Inverse Funds are riskier than alternatives that do not use leverage because the performance of an investment in a Leveraged Fund 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 or full calendar month, as applicable. This means that the return of a Fund for a period of longer than a single trading day or full calendar month, as applicable, will be the result of each day’s or month's compounded returns over the period, which will very 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 or different than a full calendar month (whether for a period shorter or longer than a full calendar month), as applicable, 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. For the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, which seeks to provide investment results on a calendar month basis, an investor who purchases shares on a day other than the last business day of a calendar month will generally receive more, or less, than the exposure to the underlying index from that point until the end of the calendar month. In addition, for Funds that seek to provide investment results on a daily basis, 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 Fund (except for the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund and 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 Monthly Rebalance NASDAQ-100^® 2x Strategy Fund does not seek to provide investment results on a daily basis or for periods different than a full calendar month that match the performance of its benchmark, but rather seeks to provide investment results that match the performance of its benchmark on a full calendar month basis. The Fund seeks exposure to its underlying index equal to 200% of its net assets. As a consequence, the risk of total loss of your investment exists in the event of a decline in the value of the Fund’s underlying index in excess of 50%. In short, the risk of total loss of your investment exists.

The Europe 1.25x Strategy Fund and the Japan 2x Strategy Fund 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 Funds 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 the Europe 1.25x Strategy Fund and Japan 2x Strategy 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 the 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)
Rydex Domestic Equity Funds—Broad Market Funds
Nova Fund	1
S&P 500^® Fund	11
Inverse S&P 500^® Strategy Fund	19
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	29
NASDAQ-100^® Fund	40
Inverse NASDAQ-100^® Strategy Fund	49
Mid-Cap 1.5x Strategy Fund	59
Inverse Mid-Cap Strategy Fund	69
Russell 2000^® 1.5x Strategy Fund	79
Russell 2000^® Fund	89
Inverse Russell 2000^® Strategy Fund	97
Dow Jones Industrial Average^® Fund	107
Rydex Domestic Equity Funds—Style Box Funds
S&P 500^® Pure Growth Fund	114
S&P 500^® Pure Value Fund	121
S&P MidCap 400^® Pure Growth Fund	128
S&P MidCap 400^® Pure Value Fund	135
S&P SmallCap 600^® Pure Growth Fund	142
S&P SmallCap 600^® Pure Value Fund	149

Rydex Sector Funds
Banking Fund	156
Basic Materials Fund	162
Biotechnology Fund	168
Consumer Products Fund	174
Electronics Fund	180
Energy Fund	186
Energy Services Fund	192
Financial Services Fund	198
Health Care Fund	204
Internet Fund	210
Leisure Fund	216
Precious Metals Fund	222
Retailing Fund	228
Technology Fund	234
Telecommunications Fund	240

i | PROSPECTUS



Transportation Fund	246
Utilities Fund	252
Rydex International Equity Funds
Europe 1.25x Strategy Fund	258
Japan 2x Strategy Fund	269
Emerging Markets 2x Strategy Fund	280
Inverse Emerging Markets 2x Strategy Fund	290

Rydex Specialty Funds
Strengthening Dollar 2x Strategy Fund	301
Weakening Dollar 2x Strategy Fund	310
Real Estate Fund	319

Rydex Fixed Income Funds
Government Long Bond 1.2x Strategy Fund	325
Inverse Government Long Bond Strategy Fund	334
High Yield Strategy Fund	343
Inverse High Yield Strategy Fund	351
Emerging Markets Bond Strategy Fund	360

Guggenheim Alternative Funds
Long Short Equity Fund	368
Event Driven and Distressed Strategies Fund	377

Rydex Money Market Fund
U.S. Government Money Market Fund	387
MORE INFORMATION ABOUT THE TRUST AND THE FUNDS	391
COMPARABLE INDEX INFORMATION	426
MANAGEMENT OF THE FUNDS	426
SHAREHOLDER INFORMATION	430
BUYING, SELLING AND EXCHANGING FUND SHARES	431
SALES CHARGES	436
CLASS A SHARES	436
CLASS C SHARES	438
BUYING FUND SHARES	439
SELLING FUND SHARES	443
EXCHANGING FUND SHARES	445
ACCOUNT POLICIES	447
DISTRIBUTION AND SHAREHOLDER SERVICES	450
DIVIDENDS AND DISTRIBUTIONS	451
ADDITIONAL TAX INFORMATION	451
FINANCIAL HIGHLIGHTS	454
INDEX PUBLISHERS INFORMATION	556
ADDITIONAL INFORMATION	561

PROSPECTUS | ii

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 150% 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 (i.e., 1.5x) and the cumulative performance of the benchmark.

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 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 436 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 81 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	0.51%	0.51%
Total Annual Fund Operating Expenses	1.51%	2.26%

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.

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
Class A	$621	$930	$1,260	$2,191
Class C	$329	$706	$1,210	$2,595

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



	1 Year	3 Years	5 Years	10 Years
Class C	$229	$706	$1,210	$2,595

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 619% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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.

PROSPECTUS | 2

industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), energy, financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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.

The Fund may invest a portion of its assets, and at times, 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 various purposes, including for liquidity management purposes (e.g., to increase yield on liquid investments used to collateralize derivatives positions) or when such investment companies present a more cost-effective investment option than direct investments in the underlying securities. 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.

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 the principal risks described below.

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

3 | PROSPECTUS

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.



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, 2016 is 12.10%. The underlying index’s highest one-year volatility rate during the five year period is 18.18%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is 12.10%.

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.

PROSPECTUS | 4

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, 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 net asset value ("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

5 | PROSPECTUS

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. Securities with greater interest rate sensitivity and longer maturities generally are subject to greater fluctuations in value. The Fund may invest in variable and floating rate securities. Although these instruments are generally less sensitive to interest rate changes than fixed rate instruments, the value of floating rate and variable securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. 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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

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.

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. Larger, more established companies may be unable to respond quickly to new competitive challenges such as changes in technology and may not be able to attain the high growth rate of smaller companies, especially during extended periods of economic expansion.

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 AND VALUATION RISK—In certain circumstances, it may be difficult for the Fund to purchase and sell a particular investment within a reasonable time at a fair price, or the price at which it has been valued by the Advisor for purposes of the Fund's NAV, causing the Fund to be less liquid. While the Fund intends to invest in liquid securities and financial instruments, under certain market conditions, such as when trading in a particular investment has been halted temporarily by an exchange because the maximum price change of that investment has been realized, 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 issuer's securities could cause greater fluctuations in the value of Fund shares than would occur in a diversified fund.

PROSPECTUS | 6

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 derivatives 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 AND EXTENSION RISK—Prepayment risk is the risk that the principal on mortgage-backed securities, other asset-backed securities or any debt security with an embedded call option may be prepaid at any time, which could reduce the security’s yield and market value. In the case of prepayment risk, if the investment is converted, prepaid or redeemed before maturity, the portfolio manager may not be able to invest the proceeds in other investments providing as high a level of income, resulting in a reduced yield to the Fund. The rate of prepayments tends to increase as interest rates fall, which could cause the average maturity of the portfolio to shorten. Conversely, extension risk is the risk that an unexpected rise in interest rates will extend the life of a mortgage- or asset-backed security beyond the prepayment time. If the Fund’s investments are locked in at a lower interest rate for a longer period of time, the portfolio manager may be unable to capitalize on securities with higher interest rates or wider spreads.

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—The Fund is subject to the following Sector Risks:

Communications Sector Risk. The Fund's investments are exposed to issuers conducting business in the communications 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 communications sector. The prices of the securities of communications companies are closely tied to government regulation and market competition.

Consumer (Cyclical and Non-Cyclical) Sector Risk. The Fund's investments are exposed to issuers conducting business in the consumer cyclical and consumer non-cyclical sectors. 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 consumer sector. The prices of the securities of consumer companies have historically been closely tied to the performance of the overall economy, and are also affected by consumer confidence, attitudes and spending. Companies engaged in the consumer cyclical sector rely heavily on business cycles and economic conditions and may be adversely affected and lose value more quickly in periods of economic downturns than companies engaged in the consumer non-cyclical sector.

Energy Sector Risk. The Fund's investments are exposed to issuers conducting business 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 sector. The performance of energy companies is closely tied to the price and supply of energy resources and international political events.

7 | PROSPECTUS

financial sector. Financial companies are subject to extensive government regulation, which may limit the 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.

Industrial Sector Risk. The Fund's investments are exposed to issuers conducting business in the industrial 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 industrial sector. The prices of the securities of industrial companies may fluctuate due to the level and volatility of commodity prices, the exchange value of the dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

Technology Sector Risk. 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 the technology sector. The prices of the securities of technology companies are closely tied to market competition, increased sensitivity to short product cycles and aggressive pricing, and problems with bringing products to market.

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.

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 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.

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.

U.S. GOVERNMENT SECURITIES RISK—U.S. government securities may or may not be backed by the full faith and credit of the U.S. government. The value of U.S. government securities will fluctuate and such securities are subject to the risks associated with fixed-income and debt securities, particularly interest rate and credit risk.

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, 2016 through June 30, 2016 is 3.61%.

PROSPECTUS | 8



Highest Quarter Return		Lowest Quarter Return
Q2 2009	23.61%	Q4 2008	-34.90	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)

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.



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-5.36%	15.16%	6.23%
Return After Taxes on Distributions	-5.42%	15.13%	5.83%
Return After Taxes on Distributions and Sale of Fund Shares	-3.04%	12.22%	4.80%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-2.38%	15.43%	5.96%
Return After Taxes on Distributions	-2.44%	15.39%	5.55%
Return After Taxes on Distributions and Sale of Fund Shares	-1.35%	12.45%	4.57%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

9 | 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.


•	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 minimum 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.

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”). 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 thereof), unless your investment is in an IRA or other tax-advantaged retirement account. Investments through a tax-advantaged retirement account 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 | 10

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



	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	0.55%	0.56%
Total Annual Fund Operating Expenses	1.55%	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	$625	$941	$1,280	$2,233
Class C	$334	$721	$1,235	$2,646

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



	1 Year	3 Years	5 Years	10 Years
Class C	$234	$721	$1,235	$2,646

11 | 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 181% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 $2.9 billion to $523.7 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold short-term U.S. government securities or cash equivalents. 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

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 the principal risks described below.

PROSPECTUS | 12

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.

13 | PROSPECTUS

perceptions regarding particular industries represented in the equity market, or factors relating to specific companies to which the Fund has investment exposure.

PROSPECTUS | 14

SECTOR RISK—The Fund is subject to the following Sector Risks:

Financial Sector Risk. The Fund's investments are exposed to issuers conducting business in the financial 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 financial sector. Financial companies are subject to extensive government regulation, which may limit the 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.

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 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.

15 | 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, 2016 through June 30, 2016 is 2.55%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	15.41%	Q4 2008	-22.84	%

PROSPECTUS | 16

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	-4.94%	9.65%	5.28%
Return After Taxes on Distributions	-5.91%	9.32%	5.00%
Return After Taxes on Distributions and Sale of Fund Shares	-2.18%	7.59%	4.12%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.35%



Class C	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	-1.89%	9.87%	4.99%
Return After Taxes on Distributions	-2.98%	9.50%	4.70%
Return After Taxes on Distributions and Sale of Fund Shares	-0.38%	7.77%	3.89%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	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.


•	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 minimum 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

17 | 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 | 18

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 inverse of the performance of a specific underlying index 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 (i.e., -1x) and the cumulative performance of the benchmark.

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



	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	0.51%	0.51%
Acquired Fund Fees and Expenses	0.01%	0.01%
Total Annual Fund Operating Expenses*	1.67%	2.42%

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.

19 | 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	$755	$1,291	$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	$755	$1,291	$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 63% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 derivatives 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.

PROSPECTUS | 20

industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

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.

21 | PROSPECTUS

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.



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 | 22

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.

23 | 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. Larger, more established companies may be unable to respond quickly to new competitive challenges such as changes in technology and may not be able to attain the high growth rate of smaller companies, especially during extended periods of economic expansion.

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.

PROSPECTUS | 24

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

SECTOR RISK—The Fund is subject to the following Sector Risks:

25 | PROSPECTUS

increased sensitivity to short product cycles and aggressive pricing, and problems with bringing products to market.

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.

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 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.

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, 2016 through June 30, 2016 is -5.45%.

PROSPECTUS | 26



Highest Quarter Return		Lowest Quarter Return
Q4 2008	16.04%	Q2 2009	-15.73	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-9.11%	-15.21%	-10.02%
Return After Taxes on Distributions	-9.11%	-15.21%	-10.31%
Return After Taxes on Distributions and Sale of Fund Shares	-5.16%	-10.58%	-6.55%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-6.19%	-15.02%	-10.26%
Return After Taxes on Distributions	-6.19%	-15.02%	-10.56%
Return After Taxes on Distributions and Sale of Fund Shares	-3.51%	-10.45%	-6.66%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

27 | 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.


•	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 minimum 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

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. Investments through a tax-advantaged retirement account may be subject to taxation upon withdrawal.

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 28

MONTHLY REBALANCE NASDAQ-100^® 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

The Monthly Rebalance NASDAQ-100^® 2x Strategy Fund (the “Fund”) is very different from most other mutual funds in that it seeks calendar month 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 longer than a full calendar month. This means that the return of the Fund for a period longer than a full calendar month will be the result of each calendar month's compounded return 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 different than a full calendar month (whether for a period shorter than or longer than a full calendar month) will not be the product of the return of the Fund’s stated investment goal (i.e., 2x) and the cumulative performance of the benchmark for the full calendar month.

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 monthly 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 calendar month basis. The Fund’s current benchmark is 200% of the performance of the NASDAQ-100 Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time different than a full calendar month.

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 436 of this Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 81 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	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.55%	0.61%
Total Annual Fund Operating Expenses	1.70%	2.51%
Fee Waiver and/or Expense Reimbursement*	-0.33%	-0.34%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement	1.37%	2.17%

29 | PROSPECTUS

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 and Class C 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 1.35% and 2.10%, respectively, of the Fund’s Class A shares and Class C 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 1.35% and 2.10%, 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. 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	$608	$955	$1,325	$2,362
Class C	$320	$749	$1,305	$2,820

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



	1 Year	3 Years	5 Years	10 Years
Class C	$220	$749	$1,305	$2,820

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 551% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 included in the underlying index or common stock with the same characteristics as those included in the Fund's benchmark 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 providing exposure in the same proportion that those securities are represented in the Fund's benchmark. The Fund may also purchase options contracts designed to protect the value of the Fund's portfolio or particular instruments held by the Fund in the event of an extreme intra-month movement in the value of the underlying index. The Fund is not obligated to engage in such protective investment measures nor is there any guarantee that such measures will be successful in protecting the value of the Fund. Such protective measures may also adversely affect the Fund's ability to realize extreme gains in the value of the Fund's 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 derivatives investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded

30 | PROSPECTUS

derivative instruments. The Fund also may invest in American Depositary Receipts (“ADRs”) to gain exposure to international companies included in the Fund's benchmark. 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 securities and financial instruments with economic characteristics that should perform similarly to the securities of companies in the Fund's benchmark.

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 $153.8 million to $523.7 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the computer, internet, semi-conductors, and software industries or groups of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. Depending on the effect on the Fund's portfolio of the underlying index's movements during any calendar month it may be necessary for the Advisor to rebalance the Fund's portfolio on the last trading day of each calendar month. Generally, the Fund's portfolio would be rebalanced at the end of a given month to increase the portfolio's exposure in response to that calendar month's gains or to reduce the portfolio's exposure in response to that calendar month's losses. 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

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 the principal risks described below.

31 | 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 on a calendar month basis, including costs associated with the use of leveraged investment techniques, 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 full calendar month. The risk of the Fund not achieving its calendar month investment objective will be more acute when the underlying index has an extreme intra-month movement approaching -50%. The Fund rebalances its portfolio on a calendar month basis, increasing exposure in response to that calendar month's gains and vice versa. This means that for a period longer than a calendar month, the pursuit of the Fund's investment objective may result in calendar month leveraged compounding. As a result, the Fund’s performance for periods different than a full calendar month 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 Fund fees and expenses.

Fund performance for periods different than a full calendar month 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 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.

32 | PROSPECTUS



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-85%	-86%	-89%	-93%	-97%
-50%	-100%	-76%	-78%	-82%	-88%	-94%
-40%	-80%	-65%	-67%	-73%	-82%	-90%
-30%	-60%	-52%	-54%	-62%	-74%	-86%
-20%	-40%	-37%	-40%	-50%	-65%	-80%
-10%	-20%	-20%	-24%	-36%	-54%	-74%
0%	0%	-1%	-5%	-20%	-42%	-66%
10%	20%	20%	15%	-3%	-29%	-58%
20%	40%	42%	36%	16%	-14%	-48%
30%	60%	67%	60%	36%	1%	-37%
40%	80%	93%	85%	57%	19%	-28%
50%	100%	120%	111%	81%	36%	-15%
60%	120%	149%	140%	105%	56%	-2%

The underlying index’s annualized historical volatility rate for the five year period ended June 30, 2016 is 14.34%. The underlying index’s highest one-year volatility rate during the five year period is 19.49%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is 15.16%.

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.

33 | PROSPECTUS

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 net asset value ("NAV"). Futures are also subject to leverage risks and 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, 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.

34 | PROSPECTUS

pressures, aggressive pricing, technological developments, changing domestic demand, and the ability to attract and retain skilled employees. Furthermore, the market for products produced by computer and software companies is characterized by rapidly changing technology, rapid product obsolescence, and cyclical market patterns, all of which may affect the success of computer and software companies. The prices of the securities of companies in the internet industry may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. The prices of the securities of companies in the semi-conductors industry may fluctuate widely due to rapid changes in product cycles, rapid product obsolescence, and competition both domestically and internationally, including competition from foreign competitors with lower production costs. Companies in the semiconductor industry rely heavily on technology, especially those of smaller, less-seasoned companies, and tend to be more volatile than the overall market. Legislative or regulatory changes and increased government supervision may also affect companies in the computer, internet, semi-conductors, and software industries.

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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

35 | PROSPECTUS

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. Further, purchasing shares intra-calendar month may result in greater than 200% exposure to the performance of the underlying index if the underlying index declines between the end of the last calendar month and the time the investor purchased Fund shares. Leverage also will have the effect of magnifying tracking error.

PASSIVE INVESTMENT RISK—The Fund is not actively managed and except in response to extreme intra-month movements in the Fund's underlying index, 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—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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

36 | PROSPECTUS

market as a whole due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the communications sector. The prices of the securities of communications companies are closely tied to government regulation and market competition.

TEMPORARY DEFENSIVE INVESTMENT RISK—The Advisor generally 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.

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 calendar month 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 C shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -7.99%.

37 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Since Inception (11/28/2014)
Return Before Taxes	14.39%	8.15%
Return After Taxes on Distributions	14.39%	8.15%
Return After Taxes on Distributions and Sale of Fund Shares	8.14%	6.21%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	6.60%



Class C	Past 1 Year	Since Inception (11/28/2014)
Return Before Taxes	17.96%	12.04%
Return After Taxes on Distributions	17.96%	12.04%
Return After Taxes on Distributions and Sale of Fund Shares	10.16%	9.19%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	6.60%

38 | 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.


•	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 minimum 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

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

39 | 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-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	0.51%	0.51%
Total Annual Fund Operating Expenses	1.51%	2.26%

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	$621	$930	$1,260	$2,191
Class C	$329	$706	$1,210	$2,595

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



	1 Year	3 Years	5 Years	10 Years
Class C	$229	$706	$1,210	$2,595

PORTFOLIO TURNOVER

PROSPECTUS | 40

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 228% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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 $153.8 million to $523.7 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the internet industry or group of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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.

41 | 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 the principal risks described below.

PROSPECTUS | 42

43 | PROSPECTUS

pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. Legislative or regulatory changes and increased government supervision may also affect companies in the internet industry.

PROSPECTUS | 44

SECTOR RISK—The Fund is subject to the following Sector Risks:

45 | PROSPECTUS

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.

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, 2016 through June 30, 2016 is -4.23%.



Highest Quarter Return		Lowest Quarter Return
Q1 2012	20.53%	Q4 2008	-24.39	%

PROSPECTUS | 46

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	3.15%	14.28%	9.72%
Return After Taxes on Distributions	2.21%	13.39%	9.29%
Return After Taxes on Distributions and Sale of Fund Shares	1.79%	11.21%	7.88%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	17.09%	11.82%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	6.51%	14.55%	9.46%
Return After Taxes on Distributions	5.43%	13.59%	9.00%
Return After Taxes on Distributions and Sale of Fund Shares	3.70%	11.42%	7.65%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	17.09%	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.


•	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 minimum 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

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

47 | PROSPECTUS

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 | 48

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 inverse of the performance of a specific underlying index 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



	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	0.54%	0.54%
Total Annual Fund Operating Expenses	1.69%	2.44%

49 | 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	$639	$982	$1,349	$2,378
Class C	$347	$761	$1,301	$2,776

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



	1 Year	3 Years	5 Years	10 Years
Class C	$247	$761	$1,301	$2,776

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 1,674% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 derivatives 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 | 50

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 $153.8 million to $523.7 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the internet industry or group of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

51 | PROSPECTUS

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.



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 | 52

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.

53 | PROSPECTUS

PROSPECTUS | 54

for purposes of the Fund's NAV, causing the Fund to be less liquid. While the Fund intends to invest in liquid securities and financial instruments, under certain market conditions, such as when trading in a particular investment has been halted temporarily by an exchange because the maximum price change of that investment has been realized, 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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

55 | PROSPECTUS

adverse market conditions and/or increased competition affecting the consumer sector. The prices of the securities of consumer companies have historically been closely tied to the performance of the overall economy, and are also affected by consumer confidence, attitudes and spending. Companies engaged in the consumer cyclical sector rely heavily on business cycles and economic conditions and may be adversely affected and lose value more quickly in periods of economic downturns than companies engaged in the consumer non-cyclical sector.

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 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.

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, 2016 through June 30, 2016 is 0.59%.

PROSPECTUS | 56



Highest Quarter Return		Lowest Quarter Return
Q4 2008	18.42%	Q1 2012	-18.29	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-15.17%	-18.57%	-14.17%
Return After Taxes on Distributions	-15.17%	-18.57%	-14.40%
Return After Taxes on Distributions and Sale of Fund Shares	-8.58%	-12.57%	-8.53%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	17.09%	11.82%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-13.59%	-18.61%	-14.50%
Return After Taxes on Distributions	-13.59%	-18.61%	-14.74%
Return After Taxes on Distributions and Sale of Fund Shares	-7.69%	-12.59%	-8.65%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	17.09%	11.82%

57 | 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.


•	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 minimum 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

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 | 58

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 150% 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 (i.e., 1.5x) and the cumulative performance of the benchmark.

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 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 436 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 81of 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	0.90%	0.90%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.50%	0.50%
Total Annual Fund Operating Expenses	1.65%	2.40%

59 | 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	$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

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 1,506% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Fund's benchmark. The Advisor attempts 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 derivatives 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 Fund's benchmark.

PROSPECTUS | 60

7% of the U.S. equities market and generally represents mid-capitalization companies with capitalizations ranging from $930.2 million to $9.8 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

61 | PROSPECTUS

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	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, 2016 is 14.39%. The underlying index’s highest one-year volatility rate during the five year period is 22.82%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is 10.55%.

PROSPECTUS | 62

63 | PROSPECTUS

perceived adverse economic and competitive industry conditions. This exposure may be obtained through investments in other investment companies.

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. Securities of medium-capitalization companies may experience more price volatility, greater spreads between their bid and ask prices, lower trading volumes, and cyclical or static growth prospects. 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.

PROSPECTUS | 64

SECTOR RISK—The Fund is subject to the following Sector Risks:

65 | PROSPECTUS

environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

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 C shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 9.94%.

PROSPECTUS | 66



Highest Quarter Return		Lowest Quarter Return
Q3 2009	29.99%	Q4 2008	-39.16	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-10.13%	11.54%	6.42%
Return After Taxes on Distributions	-10.38%	11.45%	6.07%
Return After Taxes on Distributions and Sale of Fund Shares	-5.73%	9.17%	5.06%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	-2.18%	10.68%	8.18%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-7.30%	11.80%	6.15%
Return After Taxes on Distributions	-7.58%	11.70%	5.78%
Return After Taxes on Distributions and Sale of Fund Shares	-4.12%	9.39%	4.84%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	-2.18%	10.68%	8.18%

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.


•	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 minimum 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

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

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 inverse of the performance of a specific underlying index 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



	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	0.50%	0.51%
Total Annual Fund Operating Expenses	1.65%	2.41%

69 | 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	$635	$971	$1,329	$2,337
Class C	$344	$751	$1,285	$2,746

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



	1 Year	3 Years	5 Years	10 Years
Class C	$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 199% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 $930.2 million to $9.8 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that

PROSPECTUS | 70

industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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.

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 the principal risks described below.

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.

71 | 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 | 72

73 | PROSPECTUS

generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Securities with greater interest rate sensitivity and longer maturities generally are subject to greater fluctuations in value. The Fund may invest in variable and floating rate securities. Although these instruments are generally less sensitive to interest rate changes than fixed rate instruments, the value of floating rate and variable securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. 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. Securities of medium-capitalization companies may experience more price volatility, greater spreads between their bid and ask prices, lower trading volumes, and cyclical or static growth prospects. 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.

PROSPECTUS | 74

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

SECTOR RISK—The Fund is subject to the following Sector Risks:

75 | PROSPECTUS

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.

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 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.

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, 2016 through June 30, 2016 is -9.54%.

PROSPECTUS | 76



Highest Quarter Return		Lowest Quarter Return
Q3 2011	18.95%	Q2 2009	-18.69	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-5.73%	-14.56%	-11.71%
Return After Taxes on Distributions	-5.73%	-14.56%	-12.01%
Return After Taxes on Distributions and Sale of Fund Shares	-3.24%	-10.17%	-7.41%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	-2.18%	10.68%	8.18%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-2.76%	-14.40%	-11.96%
Return After Taxes on Distributions	-2.76%	-14.40%	-12.27%
Return After Taxes on Distributions and Sale of Fund Shares	-1.56%	-10.07%	-7.52%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	-2.18%	10.68%	8.18%

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.


•	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 minimum 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

77 | 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 | 78

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



	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	0.55%	0.55%
Total Annual Fund Operating Expenses	1.70%	2.45%

79 | 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	$640	$985	$1,354	$2,388
Class C	$348	$764	$1,306	$2,786

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



	1 Year	3 Years	5 Years	10 Years
Class C	$248	$764	$1,306	$2,786

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 971% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Fund's benchmark. The Advisor attempts 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 derivatives 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 Fund's benchmark.

PROSPECTUS | 80

$23.4 million to $4.1 billion as of June 30, 2016. 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

81 | 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, 2016 is 16.58%. The underlying index’s highest one-year volatility rate during the five year period is 25.10%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is 8.35%.

PROSPECTUS | 82

83 | PROSPECTUS

perceived adverse economic and competitive industry conditions. This exposure may be obtained through investments in other investment companies.

PROSPECTUS | 84

SECTOR RISK—The Fund is subject to the following Sector Risks:

85 | PROSPECTUS

environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

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. Small-capitalization companies may be more vulnerable than larger, more established organizations to adverse business or economic developments. Securities of small-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices, significantly lower trading volumes, and cyclical or static growth prospects. Small-capitalization companies often have limited product lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies.

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, 2016 through June 30, 2016 is 1.20%.

PROSPECTUS | 86



Highest Quarter Return		Lowest Quarter Return
Q2 2009	31.43%	Q4 2008	-40.51	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-13.16%	9.15%	4.78%
Return After Taxes on Distributions	-15.93%	8.43%	4.36%
Return After Taxes on Distributions and Sale of Fund Shares	-7.39%	6.92%	3.66%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	12.37%	8.52%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-10.38%	9.40%	4.49%
Return After Taxes on Distributions	-13.61%	8.58%	4.03%
Return After Taxes on Distributions and Sale of Fund Shares	-5.80%	7.07%	3.41%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	12.37%	8.52%

87 | 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.


•	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 minimum 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

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 | 88

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



	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	0.59%	0.60%
Total Annual Fund Operating Expenses	1.59%	2.35%

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	$629	$953	$1,299	$2,274
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

89 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 442% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 $23.4 million to $4.1 billion as of June 30, 2016. 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

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 the principal risks described below.

PROSPECTUS | 90

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.

91 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 92

value more quickly in periods of economic downturns than companies engaged in the consumer non-cyclical sector.

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 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.

93 | 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, 2016 through June 30, 2016 is 0.92%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	20.43%	Q4 2008	-27.03	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	-10.60%	6.49%	4.10%
Return After Taxes on Distributions	-11.59%	5.55%	3.58%
Return After Taxes on Distributions and Sale of Fund Shares	-5.99%	4.67%	3.01%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	12.37%	8.43%

PROSPECTUS | 94



Class C	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	-7.73%	6.66%	3.80%
Return After Taxes on Distributions	-8.84%	5.65%	3.24%
Return After Taxes on Distributions and Sale of Fund Shares	-4.36%	4.78%	2.75%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	12.37%	8.43%

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 minimum 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

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

95 | PROSPECTUS

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 96

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 inverse of the performance of a specific underlying index 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



	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	0.55%	0.55%
Total Annual Fund Operating Expenses	1.70%	2.45%

97 | 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	$640	$985	$1,354	$2,388
Class C	$348	$764	$1,306	$2,786

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



	1 Year	3 Years	5 Years	10 Years
Class C	$248	$764	$1,306	$2,786

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 584% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 98

be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

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.

99 | 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 | 100

101 | PROSPECTUS

PROSPECTUS | 102

prepaid or redeemed before maturity, the portfolio manager may not be able to invest the proceeds in other investments providing as high a level of income, resulting in a reduced yield to the Fund. The rate of prepayments tends to increase as interest rates fall, which could cause the average maturity of the portfolio to shorten. Conversely, extension risk is the risk that an unexpected rise in interest rates will extend the life of a mortgage- or asset-backed security beyond the prepayment time. If the Fund’s investments are locked in at a lower interest rate for a longer period of time, the portfolio manager may be unable to capitalize on securities with higher interest rates or wider spreads.

SECTOR RISK—The Fund is subject to the following Sector Risks:

103 | PROSPECTUS

Securities of small-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices, significantly lower trading volumes, and cyclical or static growth prospects. Small-capitalization companies often have limited product lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies.

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 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.

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, 2016 through June 30, 2016 is -5.01%.

PROSPECTUS | 104



Highest Quarter Return		Lowest Quarter Return
Q3 2011	21.00%	Q2 2009	-20.54	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-4.62%	-14.68%	-12.65%
Return After Taxes on Distributions	-4.62%	-14.68%	-12.94%
Return After Taxes on Distributions and Sale of Fund Shares	-2.61%	-10.24%	-7.85%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	-12.37%	8.52%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-1.63%	-14.47%	-12.87%
Return After Taxes on Distributions	-1.63%	-14.47%	-13.16%
Return After Taxes on Distributions and Sale of Fund Shares	-0.92%	-10.11%	-7.94%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	-12.37%	8.52%

105 | 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.


•	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 minimum 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

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 | 106

DOW JONES INDUSTRIAL AVERAGE^® FUND

INVESTMENT OBJECTIVE

The Dow Jones Industrial Average^® 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 Dow Jones Industrial 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 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 436 of this Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 81 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	0.55%	0.55%
Total Annual Fund Operating Expenses	1.55%	2.30%

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	$625	$941	$1,280	$2,233
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

107 | PROSPECTUS

was 98% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 substantially all of the securities in 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 derivatives 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 Dow Jones Industrial Average^® is a price-weighted index of 30 “blue chip” U.S. stocks, which generally represent large-capitalization companies with a capitalization range of $18.8 billion to $237.9 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

108 | PROSPECTUS

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.

109 | PROSPECTUS

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 net asset value ("NAV"). Futures are also subject to leverage risks and to liquidity risk.

110 | PROSPECTUS

not be able to attain the high growth rate of smaller companies, especially during extended periods of economic expansion.

SECTOR RISK—The Fund is subject to the following Sector Risks:

111 | PROSPECTUS

securities of consumer companies have historically been closely tied to the performance of the overall economy, and are also affected by consumer confidence, attitudes and spending. Companies engaged in the consumer cyclical sector rely heavily on business cycles and economic conditions and may be adversely affected and lose value more quickly in periods of economic downturns than companies engaged in the consumer non-cyclical sector.

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 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.

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 guggenheiminvestments.com or by calling Guggenheim Client Services at 800.820.0888.

112 | 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.


•	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 minimum 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

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

113 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.50%	2.25%

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	$620	$927	$1,255	$2,180
Class C	$328	$703	$1,205	$2,585

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



	1 Year	3 Years	5 Years	10 Years
Class C	$228	$703	$1,205	$2,585

PORTFOLIO TURNOVER

PROSPECTUS | 114

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 290% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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, 2016, the S&P 500 Pure Growth Index included companies with capitalizations ranging from $5.7 billion to $523.7 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

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

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 the principal risks described below.

115 | PROSPECTUS

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.

PROSPECTUS | 116

companies may be unable to respond quickly to new competitive challenges such as changes in technology and may not be able to attain the high growth rate of smaller companies, especially during extended periods of economic expansion.

SECTOR RISK—The Fund is subject to the following Sector Risks:

117 | PROSPECTUS

of commodity prices, the exchange value of the dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

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 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.

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, 2016 through June 30, 2016 is -0.48%.

PROSPECTUS | 118



Highest Quarter Return		Lowest Quarter Return
Q2 2009	21.41%	Q4 2008	-24.56	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-3.84%	11.44%	7.82%
Return After Taxes on Distributions	-4.43%	11.00%	7.56%
Return After Taxes on Distributions and Sale of Fund Shares	-1.67%	8.98%	6.28%
S&P 500 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	2.73%	14.45%	10.21%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.76%	11.69%	7.53%
Return After Taxes on Distributions	-1.44%	11.21%	7.25%
Return After Taxes on Distributions and Sale of Fund Shares	0.14%	9.18%	6.02%
S&P 500 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	2.73%	14.45%	10.21%

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.


•	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 minimum 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

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

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.50%	2.25%

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	$620	$927	$1,255	$2,180
Class C	$328	$703	$1,205	$2,585

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



	1 Year	3 Years	5 Years	10 Years
Class C	$228	$703	$1,205	$2,585

PORTFOLIO TURNOVER

121 | 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 365% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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, 2016, the S&P 500 Pure Value Index included companies with capitalizations ranging from $2.9 billion to $357.0 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), energy, financial, and utilities sectors.

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 the principal risks described below.

PROSPECTUS | 122

123 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

Utilities Sector Risk. 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 the utilities sector. The prices of the securities of utilities companies are closely tied to government regulation and market competition.

PROSPECTUS | 124

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 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.

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, 2016 through June 30, 2016 is 3.57%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	43.92%	Q4 2008	-31.55	%

125 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-13.85%	10.35%	5.02%
Return After Taxes on Distributions	-15.25%	9.36%	2.82%
Return After Taxes on Distributions and Sale of Fund Shares	-7.80%	7.79%	2.85%
S&P 500 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-8.14%	13.81%	8.19%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-11.09%	10.61%	4.77%
Return After Taxes on Distributions	-12.72%	9.50%	2.47%
Return After Taxes on Distributions and Sale of Fund Shares	-6.24%	7.96%	2.63%
S&P 500 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-8.14%	13.81%	8.19%

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 minimum 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

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

PROSPECTUS | 126

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

127 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.50%	2.25%

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	$620	$927	$1,255	$2,180
Class C	$328	$703	$1,205	$2,585

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



	1 Year	3 Years	5 Years	10 Years
Class C	$228	$703	$1,205	$2,585

PORTFOLIO TURNOVER

PROSPECTUS | 128

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 143% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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, 2016, the S&P MidCap 400 Pure Growth Index included companies with capitalizations ranging from $1.2 billion to $8.6 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), financial, and technology sectors.

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 the principal risks described below.

129 | PROSPECTUS

PROSPECTUS | 130

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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

131 | PROSPECTUS

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 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.

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, 2016 through June 30, 2016 is -2.72%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	26.03%	Q4 2008	-25.54	%

PROSPECTUS | 132

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-3.38%	8.19%	8.15%
Return After Taxes on Distributions	-4.50%	6.67%	6.96%
Return After Taxes on Distributions and Sale of Fund Shares	-0.95%	6.09%	6.22%
S&P MidCap 400 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	2.91%	10.53%	10.38%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.30%	8.42%	7.87%
Return After Taxes on Distributions	-1.60%	6.76%	6.60%
Return After Taxes on Distributions and Sale of Fund Shares	0.95%	6.26%	5.97%
S&P MidCap 400 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	2.91%	10.53%	10.38%

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 minimum 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

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

133 | PROSPECTUS

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 | 134

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.50%	2.25%

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	$620	$927	$1,255	$2,180
Class C	$328	$703	$1,205	$2,585

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



	1 Year	3 Years	5 Years	10 Years
Class C	$228	$703	$1,205	$2,585

PORTFOLIO TURNOVER

135 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 493% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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, 2016, the S&P MidCap 400 Pure Value Index included companies with capitalizations ranging from $1.1 billion to $8.5 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the basic materials, consumer (cyclical and non-cyclical), energy, financial, and industrial sectors.

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 the principal risks described below.

PROSPECTUS | 136

137 | PROSPECTUS

capitalization companies may experience more price volatility, greater spreads between their bid and ask prices, lower trading volumes, and cyclical or static growth prospects. 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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

Basic Materials Sector Risk. 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 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.

PROSPECTUS | 138

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 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.

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, 2016 through June 30, 2016 is 7.18%.

139 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	37.65%	Q4 2008	-34.76	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-16.35%	5.29%	3.70%
Return After Taxes on Distributions	-16.44%	5.22%	3.23%
Return After Taxes on Distributions and Sale of Fund Shares	-9.25%	4.09%	2.71%
S&P MidCap 400 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-10.51%	8.93%	7.15%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-13.71%	5.51%	3.38%
Return After Taxes on Distributions	-13.82%	5.42%	2.89%
Return After Taxes on Distributions and Sale of Fund Shares	-7.76%	4.26%	2.45%
S&P MidCap 400 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-10.51%	8.93%	7.15%

PROSPECTUS | 140

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 minimum 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

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

141 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.50%	2.25%

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	$620	$927	$1,255	$2,180
Class C	$328	$703	$1,205	$2,585

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



	1 Year	3 Years	5 Years	10 Years
Class C	$228	$703	$1,205	$2,585

PORTFOLIO TURNOVER

PROSPECTUS | 142

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 309% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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, 2016, the S&P SmallCap 600 Pure Growth Index included companies with capitalizations ranging from $142.0 million to $4.9 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), energy, industrial, and technology sectors.

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 the principal risks described below.

143 | PROSPECTUS

PROSPECTUS | 144

SECTOR RISK—The Fund is subject to the following Sector Risks:

145 | PROSPECTUS

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 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.

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, 2016 through June 30, 2016 is 1.02%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	28.25%	Q4 2008	-26.43	%

PROSPECTUS | 146

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-5.25%	8.86%	6.10%
Return After Taxes on Distributions	-5.25%	8.86%	5.97%
Return After Taxes on Distributions and Sale of Fund Shares	-2.97%	7.01%	4.85%
S&P SmallCap 600 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	1.21%	11.98%	8.81%



Class C Shares	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-2.25%	9.09%	5.82%
Return After Taxes on Distributions	-2.25%	9.09%	5.69%
Return After Taxes on Distributions and Sale of Fund Shares	-1.28%	7.20%	4.62%
S&P SmallCap 600 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	1.21%	11.98%	8.81%

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 minimum 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

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

147 | PROSPECTUS

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 | 148

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.50%	2.25%

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	$620	$927	$1,255	$2,180
Class C	$328	$703	$1,205	$2,585

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



	1 Year	3 Years	5 Years	10 Years
Class C	$228	$703	$1,205	$2,585

PORTFOLIO TURNOVER

149 | PROSPECTUS

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 417% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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, 2016, the S&P SmallCap 600 Pure Value Index included companies with capitalizations ranging from $55.0 million to $3.0 billion. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), energy, and industrial sectors.

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 the principal risks described below.

PROSPECTUS | 150

151 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 152

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 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.

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, 2016 through June 30, 2016 is 2.73%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	68.58%	Q4 2008	-37.72	%

153 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-17.68%	4.55%	2.33%
Return After Taxes on Distributions	-17.68%	4.55%	0.49%
Return After Taxes on Distributions and Sale of Fund Shares	-10.01%	3.54%	0.93%
S&P SmallCap 600 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-12.25%	8.18%	6.07%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-15.09%	4.75%	2.02%
Return After Taxes on Distributions	-15.09%	4.75%	0.07%
Return After Taxes on Distributions and Sale of Fund Shares	-8.54%	3.70%	0.67%
S&P SmallCap 600 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-12.25%	8.18%	6.07%

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.


•	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 minimum 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

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

PROSPECTUS | 154

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

155 | PROSPECTUS

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



	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	0.49%	0.50%
Total Annual Fund Operating Expenses	1.59%	2.35%

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	$629	$953	$1,299	$2,274
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1255	$2686

PORTFOLIO TURNOVER

PROSPECTUS | 156

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 514% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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 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

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 the principal risks described below.

157 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the banking industry or group of industries. As a result, 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. Government regulations may limit both the amounts and types of loans and financial commitments companies in the banking industry can make, the interest rates and fees they can charge, and the amount of capital they must maintain, all of which may affect profitability. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of banking companies. In addition, the prices of the securities of companies in the banking industry 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. Legislative or regulatory changes and increased government supervision may also affect companies in the banking industry.

PROSPECTUS | 158

lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies.

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is -6.75%.

159 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2009	19.74%	Q1 2009	-32.41	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-9.61%	3.44%	-4.92%
Return After Taxes on Distributions	-9.81%	3.20%	-5.37%
Return After Taxes on Distributions and Sale of Fund Shares	-5.44%	2.55%	-3.69%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-6.75%	3.67%	-5.10%
Return After Taxes on Distributions	-6.97%	3.41%	-5.58%
Return After Taxes on Distributions and Sale of Fund Shares	-3.82%	2.73%	-3.81%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 160

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 minimum 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

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

161 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 162

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 471% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

163 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the chemicals industry and mining industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or group of industries than a fund that does not concentrate its investments. The prices of securities of companies in the chemicals industry may fluctuate widely due to intense competition, product obsolescence, and raw materials prices. In addition, chemicals companies may be subject to risks associated with the production, handling, and disposal of hazardous chemicals. The prices of the securities of companies in the mining industry may fluctuate widely due to events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and taxes. Investments in companies in the mining industry may be speculative and may be subject to greater price volatility than investments in other types of companies. Legislative or regulatory changes and increased government supervision may also affect companies in the chemicals and mining industries.

PROSPECTUS | 164

SECTOR RISK—The Fund is subject to the following Sector Risks:

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, 2016 through June 30, 2016 is 20.44%.

165 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2009	19.99%	Q3 2008	-30.08	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-21.32%	-6.21%	2.50%
Return After Taxes on Distributions	-22.07%	-6.53%	2.20%
Return After Taxes on Distributions and Sale of Fund Shares	-12.06%	-4.70%	1.83%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-18.83%	-6.00%	2.23%
Return After Taxes on Distributions	-19.68%	-6.35%	1.91%
Return After Taxes on Distributions and Sale of Fund Shares	-10.64%	-4.56%	1.60%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 166

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 minimum 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

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

167 | PROSPECTUS

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



	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	0.47%	0.48%
Total Annual Fund Operating Expenses	1.57%	2.33%

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	$336	$727	$1,245	$2,666

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



	1 Year	3 Years	5 Years	10 Years
Class C	$236	$727	$1,245	$2,666

PORTFOLIO TURNOVER

PROSPECTUS | 168

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 83% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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 (“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

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 the principal risks described below.

169 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the biotechnology industry and pharmaceuticals industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The prices of the securities of companies in the biotechnology industry 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. The prices of the securities of companies in the pharmaceuticals industry may fluctuate widely, particularly when products are up for regulatory approval or under regulatory scrutiny. The prices of securities of pharmaceutical companies may also be affected by effects from world events and economic conditions, including economic and political risks of countries where the companies are located or do business. Legislative or regulatory changes and increased government supervision may also affect companies in the biotechnology and pharmaceuticals industries.

PROSPECTUS | 170

lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies.

SECTOR RISK—The Fund is subject to the following Sector Risk:

Consumer (Non-Cyclical) Sector Risk. The Fund's investments are exposed to issuers conducting business in the consumer non-cyclical 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 consumer sector. The prices of the securities of consumer companies have historically been closely tied to the performance of the overall economy, and are also affected by consumer confidence, attitudes and spending.

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, 2016 through June 30, 2016 is -22.12%.

171 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2012	21.43%	Q3 2015	-19.59	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	3.36%	26.29%	14.40%
Return After Taxes on Distributions	2.66%	25.71%	14.14%
Return After Taxes on Distributions and Sale of Fund Shares	1.90%	21.55%	12.07%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	6.70%	26.55%	14.12%
Return After Taxes on Distributions	5.92%	25.92%	13.83%
Return After Taxes on Distributions and Sale of Fund Shares	3.79%	21.76%	11.80%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 172

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 minimum 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

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

173 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1255	$2686

PORTFOLIO TURNOVER

PROSPECTUS | 174

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 104% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

175 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the food industry and beverage industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The food and beverage industries are highly competitive and can be significantly affected by demographic and product trends, competitive pricing, food fads, marketing campaigns, environmental factors, consumer preferences, nutritional and health concerns, federal, state and local food inspection and processing controls, consumer product liability claims, possible product tampering and the availability and expense of liability insurance. Legislative or regulatory changes and increased government supervision may also affect companies in the food and beverage industries.

PROSPECTUS | 176

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 11.16%.

177 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2013	15.10%	Q1 2008	-14.56	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	1.23%	12.79%	9.78%
Return After Taxes on Distributions	0.23%	11.73%	8.51%
Return After Taxes on Distributions and Sale of Fund Shares	0.67%	9.70%	7.34%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	4.49%	13.04%	9.48%
Return After Taxes on Distributions	3.33%	11.88%	8.13%
Return After Taxes on Distributions and Sale of Fund Shares	2.52%	9.86%	7.05%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 178

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 minimum 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

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

179 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 180

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 769% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

181 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the semi-conductors industry or group of industries. As a result, 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. The prices of the securities of companies in the semi-conductors industry may fluctuate widely due to rapid changes in product cycles, rapid product obsolescence, and competition both domestically and internationally, including competition from foreign competitors with lower production costs. Companies in the semiconductors industry rely heavily on technology, especially those of smaller, less-seasoned companies, and tend to be more volatile than the overall market. Legislative or regulatory changes and increased government supervision may also affect companies in the semi-conductors industry.

PROSPECTUS | 182

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 0.14%.

183 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2009	22.86%	Q4 2008	-29.06	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-2.55%	6.01%	2.48%
Return After Taxes on Distributions	-2.63%	5.99%	2.47%
Return After Taxes on Distributions and Sale of Fund Shares	-1.45%	4.69%	1.93%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.55%	6.22%	2.25%
Return After Taxes on Distributions	0.47%	6.19%	2.23%
Return After Taxes on Distributions and Sale of Fund Shares	0.31%	4.86%	1.74%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 184

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 minimum 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

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

185 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 186

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 595% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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 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

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 the principal risks described below.

187 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the oil and gas industry or group of industries. As a result, 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. The prices of the securities of companies in the oil and gas industry may fluctuate widely due to supply and demand for a specific product or service, the price of oil and gas, exploration and production spending, world events, and economic conditions. Natural disasters and changes in exchange rates and interest rates may also affect companies in the oil and gas industry. In addition, the policies of the Organization of Petroleum Exporting Countries ("OPEC"), changes in relationships among OPEC members and between OPEC and oil-importing nations, the regulatory environment, taxation policies, and the economies of the key energy-consuming countries may also affect the prices of the securities in the oil and gas industry. Legislative or regulatory changes and increased government supervision may also affect companies in the oil and gas industry.

PROSPECTUS | 188

lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies.

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 14.33%.

189 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2008	27.24%	Q3 2008	-34.08	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-33.55%	-8.43%	-1.52%
Return After Taxes on Distributions	-33.89%	-8.70%	-1.81%
Return After Taxes on Distributions and Sale of Fund Shares	-18.84%	-6.18%	-1.06%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-31.56%	-8.24%	-1.78%
Return After Taxes on Distributions	-31.95%	-8.53%	-2.09%
Return After Taxes on Distributions and Sale of Fund Shares	-17.69%	-6.05%	-1.23%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 190

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 minimum 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

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

191 | PROSPECTUS

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



	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	0.49%	0.50%
Total Annual Fund Operating Expenses	1.59%	2.35%

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	$629	$953	$1,299	$2,274
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 192

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 1,241% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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 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

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 the principal risks described below.

193 | PROSPECTUS

result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the oil and gas industry and oil and gas services industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The prices of the securities of companies in the oil and gas and oil and gas services industries may fluctuate widely due to supply and demand for a specific product or service, the price of oil and gas, exploration and production spending, world events, and economic conditions. Natural disasters and changes in exchange rates and interest rates may also affect companies in the oil and gas and oil and gas services industries. In addition, the policies of the Organization of Petroleum Exporting Countries ("OPEC"), changes in relationships among OPEC members and between OPEC and oil-importing nations, the regulatory environment, taxation policies, and the economies of the key energy-consuming countries may also affect the prices of the securities in the oil and gas and oil and gas services industries. For the oil and gas services industry, companies are at risk of civil liability from accidents resulting in injury, loss of life or property, pollution or other environmental damage claims and risk of loss from terrorism and natural disasters. Disruptions in oil and gas services or shifts in fuel consumption may significantly impact companies in the oil and gas services industry. Legislative or regulatory changes and increased government supervision may also affect companies in the oil and gas and oil and gas services industries.

PROSPECTUS | 194

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 6.66%.

195 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	31.35%	Q4 2008	-47.28	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-35.17%	-12.43%	-3.76%
Return After Taxes on Distributions	-35.48%	-12.52%	-3.80%
Return After Taxes on Distributions and Sale of Fund Shares	-19.88%	-8.85%	-2.75%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-33.11%	-12.24%	-4.01%
Return After Taxes on Distributions	-33.47%	-12.34%	-4.06%
Return After Taxes on Distributions and Sale of Fund Shares	-18.72%	-8.72%	-2.93%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 196

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 minimum 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

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

197 | PROSPECTUS

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	0.50%	0.50%
Acquired Fund Fees and Expenses	0.04%	0.04%
Total Annual Fund Operating Expenses*	1.64%	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	$634	$968	$1,324	$2,326
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

PROSPECTUS | 198

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 268% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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

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 the principal risks described below.

199 | PROSPECTUS

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.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the banking industry, insurance industry, and real estate investment trusts (REITs) industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. Companies in the banking industry may be affected by government regulations that may limit both the amounts and types of loans and financial commitments companies in the banking industry can make, the interest rates and fees they can charge, and the amount of capital they must maintain, all of which may affect profitability. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of banking companies. In addition, the prices of the securities of companies in the banking industry 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. The prices of the securities of companies in the insurance industry, and the overall profitability of such companies, may fluctuate widely due to a number of factors including interest rate movements, the imposition of premium rate caps, and competition and pressure to compete globally. In addition, certain types of insurance companies may also be affected by weather catastrophes and other disasters and mortality rates. Companies in the REITs industry are subject to the risks associated with direct ownership of real estate. Market conditions or events affecting the overall real estate and REIT markets, such as declining property values or rising interest rates, could have a negative impact on the real estate market and the value of REITs in general. Further, REITs are dependent upon specialized management skills and may have their investments in relatively few properties, or

PROSPECTUS | 200

in a small geographic area or a single property type. Legislative or regulatory changes and increased government supervision may also affect companies in the banking, insurance and REITs industries.

SECTOR RISK—The Fund is subject to the following Sector Risk:

PERFORMANCE INFORMATION

201 | 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 C shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -0.28%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	25.84%	Q4 2008	-31.93	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-8.53%	6.44%	-0.94%
Return After Taxes on Distributions	-8.82%	6.24%	-1.32%
Return After Taxes on Distributions and Sale of Fund Shares	-4.77%	4.96%	-0.88%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-5.65%	6.70%	-1.18%
Return After Taxes on Distributions	-5.98%	6.48%	-1.58%
Return After Taxes on Distributions and Sale of Fund Shares	-3.13%	5.16%	-1.06%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 202

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 minimum 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

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

203 | PROSPECTUS

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	0.49%	0.50%
Total Annual Fund Operating Expenses	1.59%	2.35%

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	$629	$953	$1,299	$2,274
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 204

249% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

205 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the health care products industry and pharmaceuticals industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The prices of securities of companies in the health care products industry may fluctuate widely due to government regulation and approval of health care 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. The prices of the securities of companies in the pharmaceuticals industry may fluctuate widely, particularly when products are up for regulatory approval or under regulatory scrutiny. The prices of securities of pharmaceutical companies may also be affected by effects from world events and economic conditions and market, economic and political risks of countries where the companies are located or do business. Legislative or regulatory changes and increased government supervision may also affect companies in the health care products and pharmaceuticals industries.

PROSPECTUS | 206

lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies.

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is -6.83%.

207 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2013	13.92%	Q4 2008	-15.88	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-1.07%	16.47%	9.00%
Return After Taxes on Distributions	-3.48%	15.46%	8.53%
Return After Taxes on Distributions and Sale of Fund Shares	-0.24%	13.01%	7.24%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	2.18%	16.74%	8.73%
Return After Taxes on Distributions	-0.58%	15.64%	8.21%
Return After Taxes on Distributions and Sale of Fund Shares	1.65%	13.22%	6.99%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 208

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 minimum 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

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

209 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 210

520% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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 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

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 the principal risks described below.

211 | PROSPECTUS

result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the internet industry or group of industries. As a result, 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. The prices of the securities of companies in the internet industry may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. Legislative or regulatory changes and increased government supervision may also affect companies in the internet industry.

PROSPECTUS | 212

SECTOR RISK—The Fund is subject to the following Sector Risks:

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, 2016 through June 30, 2016 is -5.40%.

213 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2010	23.01%	Q4 2008	-23.42	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	3.30%	10.79%	8.22%
Return After Taxes on Distributions	3.14%	10.39%	7.94%
Return After Taxes on Distributions and Sale of Fund Shares	1.90%	8.45%	6.59%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	6.65%	11.04%	7.94%
Return After Taxes on Distributions	6.47%	10.60%	7.64%
Return After Taxes on Distributions and Sale of Fund Shares	3.80%	8.64%	6.34%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 214

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 minimum 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

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

215 | PROSPECTUS

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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 216

339% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

217 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the media industry or group of industries. As a result, 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. The prices of the securities of companies in the media industry may fluctuate widely due to unpredictable earnings, rapid obsolescence of products and services, changing consumer tastes, intense competition, and dependency on patent protection. Legislative or regulatory changes and increased government supervision may also affect companies in the media industry.

PROSPECTUS | 218

SECTOR RISK—The Fund is subject to the following Sector Risks:

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, 2016 through June 30, 2016 is 2.87%.

219 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	24.19%	Q4 2008	-29.92	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-4.29%	12.62%	6.80%
Return After Taxes on Distributions	-4.56%	12.37%	6.69%
Return After Taxes on Distributions and Sale of Fund Shares	-2.39%	10.04%	5.48%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-1.23%	12.90%	6.52%
Return After Taxes on Distributions	-1.54%	12.63%	6.39%
Return After Taxes on Distributions and Sale of Fund Shares	-0.65%	10.27%	5.23%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 220

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 minimum 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

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

221 | 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



	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	0.50%	0.50%
Acquired Fund Fees and Expenses	0.02%	0.02%
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

PROSPECTUS | 222

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 797% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

223 | PROSPECTUS

result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the mining industry or group of industries. As a result, 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. The prices of the securities of companies in the mining industry may fluctuate widely due to events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and taxes. Investments in companies in the mining industry may be speculative and may be subject to greater price volatility than investments in other types of companies. Legislative or regulatory changes and increased government supervision may also affect companies in the mining industry.

PROSPECTUS | 224

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 109.92%.

225 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2009	22.69%	Q3 2008	-34.02	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-34.07%	-26.81%	-8.85%
Return After Taxes on Distributions	-34.25%	-27.16%	-9.08%
Return After Taxes on Distributions and Sale of Fund Shares	-19.29%	-16.68%	-5.87%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-31.87%	-26.62%	-9.09%
Return After Taxes on Distributions	-32.08%	-27.01%	-9.34%
Return After Taxes on Distributions and Sale of Fund Shares	-18.04%	-16.58%	-5.99%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 226

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 minimum 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

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

227 | PROSPECTUS

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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 228

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 238% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

229 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the retail industry or group of industries. As a result, 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. The prices of the securities of companies in the retail industry may fluctuate widely due to consumer spending, which is affected by general economic conditions and consumer confidence levels. The retail industry is highly competitive, and a company’s success is often tied to its ability to anticipate and react to changing consumer tastes. Many retail companies are thinly capitalized, and are dependent upon a relatively few number of business days to achieve their overall results. Legislative or regulatory changes and increased government supervision may also affect companies in the retail industry.

PROSPECTUS | 230

SECTOR RISK—The Fund is subject to the following Sector Risks:

Consumer (Cyclical) Sector Risk. The Fund's investments are exposed to issuers conducting business in the consumer cyclical 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 consumer sector. The prices of the securities of consumer companies have historically been closely tied to the performance of the overall economy, and are also affected by consumer confidence, attitudes and spending. Companies engaged in the consumer cyclical sector rely heavily on business cycles and economic conditions and may be adversely affected and lose value more quickly in periods of economic downturns than companies engaged in the consumer non-cyclical sector.

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, 2016 through June 30, 2016 is -2.79%.

231 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2009	16.22%	Q4 2008	-24.27	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-6.03%	11.51%	6.72%
Return After Taxes on Distributions	-6.07%	11.49%	6.71%
Return After Taxes on Distributions and Sale of Fund Shares	-3.41%	9.17%	5.43%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-3.06%	11.75%	6.43%
Return After Taxes on Distributions	-3.10%	11.73%	6.41%
Return After Taxes on Distributions and Sale of Fund Shares	-1.73%	9.38%	5.18%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 232

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 minimum 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

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

233 | 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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 234

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 388% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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 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

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 the principal risks described below.

235 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the software industry or group of industries. As a result, 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. The prices of the securities of companies in the software industry may fluctuate widely due to competitive pressures, aggressive pricing, technological developments, changing domestic demand, and the ability to attract and retain skilled employees. In addition, the market for products produced by software companies is characterized by rapidly changing technology, rapid product obsolescence, and cyclical market patterns, all of which may affect the success of software companies. Legislative or regulatory changes and increased government supervision may also affect companies in the software industry.

PROSPECTUS | 236

SECTOR RISK—The Fund is subject to the following Sector Risks:

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, 2016 through June 30, 2016 is -1.36%.

237 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	18.91%	Q4 2008	-27.13	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-3.81%	7.59%	4.98%
Return After Taxes on Distributions	-3.81%	7.59%	4.98%
Return After Taxes on Distributions and Sale of Fund Shares	-2.16%	5.97%	3.97%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.73%	7.82%	4.74%
Return After Taxes on Distributions	-0.73%	7.82%	4.74%
Return After Taxes on Distributions and Sale of Fund Shares	-0.42%	6.16%	3.78%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 238

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 minimum 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

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

239 | PROSPECTUS

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



	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	0.49%	0.50%
Total Annual Fund Operating Expenses	1.59%	2.35%

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	$629	$953	$1,299	$2,274
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 240

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 660% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

241 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the telecommunications industry or group of industries. As a result, 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. The prices of the securities of companies in the telecommunications industry 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 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. Legislative or regulatory changes and increased government supervision may also affect companies in the telecommunications industry.

PROSPECTUS | 242

SECTOR RISK—The Fund is subject to the following Sector Risks:

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, 2016 through June 30, 2016 is 7.18%.

243 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	18.46%	Q4 2008	-21.05	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-11.70%	-1.05%	-0.09%
Return After Taxes on Distributions	-13.10%	-2.16%	-0.90%
Return After Taxes on Distributions and Sale of Fund Shares	-6.61%	-1.25%	-0.40%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-8.82%	-0.71%	-0.23%
Return After Taxes on Distributions	-10.41%	-1.90%	-1.09%
Return After Taxes on Distributions and Sale of Fund Shares	-4.98%	-1.02%	-0.52%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 244

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 minimum 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

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

245 | 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



	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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 246

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 219% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

247 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the transportation industry or group of industries. As a result, 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. The prices of the securities of companies in the transportation industry 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. Legislative or regulatory changes and increased government supervision may also affect companies in the transportation industry.

PROSPECTUS | 248

SECTOR RISK—The Fund is subject to the following Sector Risks:

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, 2016 through June 30, 2016 is -5.49%.

249 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2009	18.44%	Q3 2011	-24.54	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-18.14%	9.50%	5.04%
Return After Taxes on Distributions	-18.31%	9.46%	4.99%
Return After Taxes on Distributions and Sale of Fund Shares	-10.26%	7.51%	4.00%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-15.54%	9.76%	4.75%
Return After Taxes on Distributions	-15.73%	9.71%	4.70%
Return After Taxes on Distributions and Sale of Fund Shares	-8.79%	7.72%	3.76%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 250

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 minimum 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

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

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	0.50%	0.50%
Total Annual Fund Operating Expenses	1.60%	2.35%

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	$630	$956	$1,304	$2,285
Class C	$338	$733	$1,255	$2,686

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



	1 Year	3 Years	5 Years	10 Years
Class C	$238	$733	$1,255	$2,686

PORTFOLIO TURNOVER

PROSPECTUS | 252

Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 475% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

253 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the electric industry or group of industries. As a result, 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. The prices of securities of companies in the electric industry may fluctuate significantly due to supply and demand, governmental regulation and environmental issues, economic conditions generally affecting electric supply and utilities companies, competitive pressures due to deregulation in the electric and utilities industries, increased sensitivity to the cost of energy production; and environmental factors such as conservation of natural resources or pollution control. Legislative or regulatory changes and increased government supervision may also affect companies in the utilities industry.

PROSPECTUS | 254

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 22.93%.

255 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2013	13.11%	Q3 2008	-17.62	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-11.80%	7.96%	5.63%
Return After Taxes on Distributions	-12.47%	6.89%	4.53%
Return After Taxes on Distributions and Sale of Fund Shares	-6.69%	5.75%	3.96%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-9.04%	8.20%	5.34%
Return After Taxes on Distributions	-9.84%	7.01%	4.15%
Return After Taxes on Distributions and Sale of Fund Shares	-5.13%	5.89%	3.69%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

PROSPECTUS | 256

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 minimum 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

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

257 | 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 125% 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 (i.e., 1.25x) and the cumulative performance of the benchmark.

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



	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 | 258

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	$755	$1,291	$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	$755	$1,291	$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 920% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Fund's benchmark. The Advisor attempts to consistently apply leverage to increase the Fund’s exposure to 125% of the underlying index. The Fund also has 125% exposure to the foreign currencies in which the securities included in the underlying index are denominated. If the U.S. dollar rises in value against a foreign currency, a security denominated in that currency will be worth less in U.S. dollars and if the U.S. dollar decreases in value against a foreign currency, a security denominated in that currency will be worth more in U.S. dollars. 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 derivatives 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 Fund's benchmark. 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 Fund's benchmark.

259 | PROSPECTUS

with limits on leverage and asset segregation requirements imposed by the Investment Company Act of 1940 or to meet redemption requests.

The STOXX Europe 50^® Index is a capitalization-weighted index composed of 50 European blue chip stocks consisting of capitalizations ranging from $34.8 billion to $523.7 billion as of June 30, 2016. 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (non-cyclical), energy, and financial sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the pharmaceuticals industry or group of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

PROSPECTUS | 260

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 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 net asset values ("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.



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, 2016 is 16.31%. The underlying index’s highest one-year volatility rate during the five year period is 25.49%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is -0.03%.

261 | PROSPECTUS

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.

PROSPECTUS | 262

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.

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 to decreasing imports or exports, changes in governmental regulations on trade, changes in the exchange rate of the euro and recessions in EU economies.

263 | PROSPECTUS

sensitive to interest rate changes than fixed rate instruments, the value of floating rate and variable securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. 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.

PROSPECTUS | 264

SECTOR RISK—The Fund is subject to the following Sector Risks:

265 | 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, 2016 through June 30, 2016 is -6.61%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	34.44%	Q4 2008	-33.50	%

PROSPECTUS | 266

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-11.06%	0.66%	-2.66%
Return After Taxes on Distributions	-11.38%	0.54%	-2.85%
Return After Taxes on Distributions and Sale of Fund Shares	-6.25%	0.45%	-1.98%
STOXX Europe 50^® Index (reflects no deduction for fees, expenses or taxes)	-4.40%	2.83%	1.75%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-8.09%	0.71%	-3.00%
Return After Taxes on Distributions	-8.46%	0.58%	-3.20%
Return After Taxes on Distributions and Sale of Fund Shares	-4.57%	0.49%	-2.22%
STOXX Europe 50^® Index (reflects no deduction for fees, expenses or taxes)	-4.40%	2.83%	1.75%

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.


•	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 minimum 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

267 | 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 | 268

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 (i.e., 2x) and the cumulative performance of the benchmark.

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



	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	0.51%	0.49%
Acquired Fund Fees and Expenses	0.01%	0.01%
Total Annual Fund Operating Expenses*	1.52%	2.25%

269 | 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	$328	$703	$1,205	$2,585

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



	1 Year	3 Years	5 Years	10 Years
Class C	$228	$703	$1,205	$2,585

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 543% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Fund's benchmark. The Advisor attempts to consistently apply leverage to increase the Fund's exposure to 200% of the underlying index. The Fund also has 200% exposure to the Japanese yen. If the U.S. dollar rises in value against the Japanese yen, a security denominated in Japanese yen will be worth less in U.S. dollars, and if the U.S. dollar decreases in value against the Japanese yen, a security denominated in Japanese yen will be worth more in U.S. dollars. 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 derivatives 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 Fund's benchmark. 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 Fund's benchmark.

PROSPECTUS | 270

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, 2016, the Nikkei 225 Stock Average included companies with small, medium and large capitalizations ranging from $309.2 million to $149.6 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the basic materials, communications, consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

271 | 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 and the times at which the Fund and the underlying index calculate their respective net asset values ("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	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, 2016 is 13.86%. The underlying index’s highest one-year volatility rate during the five year period is 17.83%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is 6.51%.

PROSPECTUS | 272

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.

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. The Fund also may incur transaction costs in connection with conversions between various currencies.

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.

273 | PROSPECTUS

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.

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.

PROSPECTUS | 274

not be able to attain the high growth rate of smaller companies, especially during extended periods of economic expansion.

275 | PROSPECTUS

period of time, the portfolio manager may be unable to capitalize on securities with higher interest rates or wider spreads.

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 276

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; however, the figures in the bar chart do not reflect sales charges. If the figures in the bar chart reflected sales charges, 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, 2016 through June 30, 2016 is -5.33%.

277 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2009	44.18%	Q1 2009	-33.18	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (2/22/2008)
Return Before Taxes	9.06%	3.69%	-2.34%
Return After Taxes on Distributions	9.06%	3.69%	-2.34%
Return After Taxes on Distributions and Sale of Fund Shares	5.13%	2.86%	-1.75%
Nikkei 225 Stock Average (reflects no deduction for fees, expenses or taxes)	8.03%	4.75%	2.87%



Class C	Past 1 Year	Past 5 Years	Since Inception (2/22/2008)
Return Before Taxes	12.65%	3.99%	-2.39%
Return After Taxes on Distributions	12.65%	3.99%	-2.40%
Return After Taxes on Distributions and Sale of Fund Shares	7.16%	3.10%	-1.79%
Nikkei 225 Stock Average (reflects no deduction for fees, expenses or taxes)	8.03%	4.75%	2.87%

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.


•	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 minimum 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

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

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 (i.e., 2x) and the cumulative performance of the benchmark.

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



	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%	0.56%
Total Annual Fund Operating Expenses	1.75%	2.46%

PROSPECTUS | 280

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	$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 2,874% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

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 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 Fund's benchmark. While the Fund may write (sell) and purchase swaps, it expects primarily to purchase swaps. The Advisor attempts to consistently apply leverage to increase the Fund's exposure to 200% of the underlying index. As a result, the Fund’s use of derivatives and the leveraged investment exposure created by such use is expected to be significant. Certain of the Fund’s derivatives investments may be traded in the over-the-counter (“OTC”) market. The Fund also may invest in exchange-traded funds (“ETFs”) that provide exposure to emerging market countries and in American Depositary Receipts (“ADRs”) to gain exposure to the Fund's benchmark. 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 Fund's benchmark.

281 | PROSPECTUS

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 $3.8 billion to $237.1 billion as of June 30, 2016. 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the basic materials, communications, consumer (non-cyclical), energy, financial, and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are expected to be concentrated in one or more of the banking, internet, oil and gas, semi-conductors, and telecommunications industries or groups of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

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.

PROSPECTUS | 282



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, 2016 is 20.25%. The underlying index’s highest one-year volatility rate during the five year period is 28.59%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is -5.12%.

283 | PROSPECTUS

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.

PROSPECTUS | 284

the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. Companies in the banking industry are subject to government regulations that may limit both the amounts and types of loans and financial commitments banking companies can make, the interest rates and fees they can charge, and the amount of capital they must maintain, all of which may affect profitability. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of banking companies. In addition, the prices of the securities of companies in the banking industry 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. The prices of securities of companies in the internet industry may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. The prices of securities of companies in the oil and gas industry may fluctuate widely due to supply and demand for a specific product or service, the price of oil and gas, exploration and production spending, world events, and economic conditions. Natural disasters and changes in exchange rates and interest rates may also affect companies in the oil and gas industry. In addition, the policies of the Organization of Petroleum Exporting Countries ("OPEC"), changes in relationships among OPEC members and between OPEC and oil-importing nations, the regulatory environment, taxation policies, and the economies of the key energy-consuming countries may also affect the prices of securities in the oil and gas industry. The prices of securities of companies in the semi-conductors industry may fluctuate widely due to rapid changes in product cycles, rapid product obsolescence, and competition both domestically and internationally, including competition from foreign competitors with lower production costs. Companies in the semiconductor industry rely heavily on technology, especially those of smaller, less-seasoned companies, and tend to be more volatile than the overall market. The prices of the securities of companies in the telecommunications industry 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 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. In addition, legislative or regulatory changes and increased government supervision may also affect companies in each of the banking, internet, oil and gas, semi-conductors, and telecommunications industries.

285 | 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 underlying index. Leverage also will have the effect of magnifying tracking error.

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 286

PERFORMANCE INFORMATION

287 | 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 C shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 10.89%.



Highest Quarter Return		Lowest Quarter Return
Q1 2012	19.10%	Q3 2011	-43.35	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (10/29/2010)
Return Before Taxes	-38.34%	-20.75%	-18.87%
Return After Taxes on Distributions	-38.74%	-21.26%	-19.38%
Return After Taxes on Distributions and Sale of Fund Shares	-21.69%	-13.82%	-12.70%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-16.06%	-6.99%	-5.87%



Class C	Past 1 Year	Past 5 Years	Since Inception (10/29/2010)
Return Before Taxes	-36.42%	-20.36%	-18.50%
Return After Taxes on Distributions	-36.84%	-20.88%	-19.01%
Return After Taxes on Distributions and Sale of Fund Shares	-20.60%	-13.60%	-12.48%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-16.06%	-6.99%	-5.87%

PROSPECTUS | 288

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 minimum 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

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

289 | 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 twice the inverse of the performance of a specific underlying index 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 (i.e., -2x) and the cumulative performance of the benchmark.

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	0.60%	0.60%
Total Annual Fund Operating Expenses	1.75%	2.50%

PROSPECTUS | 290

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	$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 and most 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 leveraged 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 sell swaps. The Advisor attempts to consistently apply leverage to increase the Fund's exposure to -200% of the underlying index. 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 leveraged exposure to the underlying index. The Fund also may invest in exchange-traded funds (“ETFs”) that provide exposure to emerging market countries and in American Depositary Receipts (“ADRs”) to gain exposure to the Fund's benchmark. 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 derivatives investments may be traded in the over-the-counter (“OTC”) market. 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.

291 | PROSPECTUS

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 $3.8 billion to $237.1 billion as of June 30, 2016. 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the basic materials, communications, consumer (non-cyclical), energy, financial, and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are expected to be concentrated in one or more of the banking, internet, oil and gas, semi-conductors, and telecommunications industries or groups of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

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.

PROSPECTUS | 292



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%

293 | 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.

PROSPECTUS | 294

295 | PROSPECTUS

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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 296

297 | 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, 2016 through June 30, 2016 is -22.25%.



Highest Quarter Return		Lowest Quarter Return
Q3 2011	47.21%	Q4 2011	-20.41	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (10/29/2010)
Return Before Taxes	15.69%	-2.62%	-4.74%
Return After Taxes on Distributions	15.69%	-2.62%	-4.74%
Return After Taxes on Distributions and Sale of Fund Shares	8.88%	-1.97%	-3.52%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-16.06%	-6.99%	-5.87%

PROSPECTUS | 298



Class C	Past 1 Year	Past 5 Years	Since Inception (10/29/2010)
Return Before Taxes	19.38%	-1.25%	-3.45%
Return After Taxes on Distributions	19.38%	-1.25%	-3.45%
Return After Taxes on Distributions and Sale of Fund Shares	10.97%	-0.94%	-2.58%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-16.06%	-6.99%	-5.87%

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 minimum 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

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

299 | PROSPECTUS

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 300

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 (i.e., 2x) and the cumulative performance of the benchmark.

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



	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	0.54%	0.55%
Acquired Fund Fees and Expenses	0.02%	0.02%
Total Annual Fund Operating Expenses*	1.71%	2.47%


*	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

301 | PROSPECTUS

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.

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	$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 376% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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. The Advisor attempts to consistently apply leverage to increase the Fund's exposure to 200% of the underlying index. 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 Fund's 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 derivatives investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

PROSPECTUS | 302

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

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 the principal risks described below.

303 | 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, 2016 is 7.26%. The underlying index’s highest one-year volatility rate during the five year period is 9.66%. The underlying index’s annualized performance for the five year period ended June 30, 2016 is 5.22%.

PROSPECTUS | 304

305 | PROSPECTUS

PROSPECTUS | 306

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, 2016 through June 30, 2016 is -6.55%.

307 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2008	17.02%	Q3 2010	-17.79	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	8.61%	3.13%	-2.16%
Return After Taxes on Distributions	7.60%	2.94%	-2.90%
Return After Taxes on Distributions and Sale of Fund Shares	5.74%	2.43%	-1.60%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	9.26%	4.53%	0.79%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	12.18%	3.37%	-2.38%
Return After Taxes on Distributions	11.04%	3.16%	-3.14%
Return After Taxes on Distributions and Sale of Fund Shares	7.87%	2.61%	-1.73%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	9.26%	4.53%	0.79%

PROSPECTUS | 308

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 minimum 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

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

309 | PROSPECTUS

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 twice the inverse of the performance of a specific underlying index 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 (i.e., -2x) and the cumulative performance of the benchmark.

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



	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	0.55%	0.55%
Acquired Fund Fees and Expenses	0.02%	0.02%
Total Annual Fund Operating Expenses*	1.72%	2.47%

PROSPECTUS | 310

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 699% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Advisor attempts to consistently apply leverage to increase the Fund's exposure to -200% of the underlying index. 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 derivatives investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

311 | PROSPECTUS

Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

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 | 312



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%

313 | PROSPECTUS

PROSPECTUS | 314

315 | 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.

PROSPECTUS | 316

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, 2016 through June 30, 2016 is 4.16%.



Highest Quarter Return		Lowest Quarter Return
Q3 2010	18.89%	Q3 2008	-16.09	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-21.21%	-10.09%	-2.94%
Return After Taxes on Distributions	-21.21%	-10.09%	-4.11%
Return After Taxes on Distributions and Sale of Fund Shares	-12.00%	-7.27%	-2.17%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	9.26%	4.53%	0.79%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-18.62%	-9.88%	-3.20%
Return After Taxes on Distributions	-18.62%	-9.88%	-4.39%
Return After Taxes on Distributions and Sale of Fund Shares	-10.54%	-7.13%	-2.30%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	9.26%	4.53%	0.79%

317 | 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.


•	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 minimum 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

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 | 318

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



	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%	0.51%
Total Annual Fund Operating Expenses	1.62%	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	$632	$962	$1,314	$2,306
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

PORTFOLIO TURNOVER

319 | PROSPECTUS

880% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 may 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.

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

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 the principal risks described below.

PROSPECTUS | 320

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. As of the date of this Prospectus, the Fund's assets are concentrated in the REITs industry or group of industries. As a result, 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. See “Real Estate Investment Trust (REIT) Risk” below for a description of the risks associated with the Fund’s investments in the REIT industry.

321 | PROSPECTUS

REAL ESTATE INVESTMENT TRUST (REIT) RISK—REITs are securities that invest substantially all of their assets in real estate, trade like stocks and may qualify for special tax considerations. Investments in REITs subject the Fund to risks associated with the direct ownership of real estate. Market conditions or events affecting the overall real estate and REIT markets, such as declining property values or rising interest rates, could have a negative impact on the real estate market and the value of REITs in general. REITs may be affected by changes in the value of the underlying property owned by the trusts, economic downturns in the real estate sector which may have a material effect on the real estate in which the REITs invest and their underlying portfolio securities. Further, REITs are dependent upon specialized management skills and may have their investments in relatively few properties, or in a small geographic area or a single property type. Failure of a company to qualify as a REIT under federal tax law may have adverse consequences to the Fund. In addition, REITs have their own expenses, and the Fund will bear a proportionate share of those expenses.

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 11.47%.

PROSPECTUS | 322



Highest Quarter Return		Lowest Quarter Return
Q3 2009	29.27%	Q4 2008	-38.41	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-7.59%	6.68%	2.61%
Return After Taxes on Distributions	-8.09%	5.82%	1.84%
Return After Taxes on Distributions and Sale of Fund Shares	-4.31%	4.81%	1.65%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-4.72%	6.89%	2.31%
Return After Taxes on Distributions	-5.29%	5.96%	1.49%
Return After Taxes on Distributions and Sale of Fund Shares	-2.68%	4.95%	1.39%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

323 | 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.


•	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 minimum 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

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 | 324

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 120% of 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 (i.e., 1.2x) and the cumulative performance of the benchmark.

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 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 436 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 81 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	0.50%	0.50%
Distribution and/or Shareholder Service (12b-1) Fees	0.25%	1.00%
Other Expenses	0.45%	0.45%
Total Annual Fund Operating Expenses	1.20%	1.95%

325 | 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 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
Class A	$591	$838	$1,103	$1,860
Class C	$298	$612	$1,052	$2,275

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



	1 Year	3 Years	5 Years	10 Years
Class C	$198	$612	$1,052	$2,275

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 2,699% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 the Fund's benchmark or to securities whose performance is highly correlated to the Fund's benchmark. The Advisor attempts to consistently apply leverage to increase the Fund's exposure to 120% of the Fund's 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 derivatives 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.

PROSPECTUS | 326

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

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 the principal risks described below.

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.

327 | PROSPECTUS

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.



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, 2016 is 11.89%. The Long Treasury Bond's highest one-year volatility rate during the five year period is 16.40%. The Long Treasury Bond's annualized performance for the five year period ended June 30, 2016 is 10.31%.

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 | 328

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.

329 | PROSPECTUS

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.

PROSPECTUS | 330

tends to increase as interest rates fall, which could cause the average maturity of the portfolio to shorten. Conversely, extension risk is the risk that an unexpected rise in interest rates will extend the life of a mortgage- or asset-backed security beyond the prepayment time. If the Fund’s investments are locked in at a lower interest rate for a longer period of time, the portfolio manager may be unable to capitalize on securities with higher interest rates or wider spreads.

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, 2016 through June 30, 2016 is 20.74%.

331 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q4 2008	41.17%	Q1 2009	-16.35	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-9.27%	9.02%	6.36%
Return After Taxes on Distributions	-9.96%	8.34%	5.46%
Return After Taxes on Distributions and Sale of Fund Shares	-5.24%	6.81%	4.65%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.74%	6.73%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-6.42%	9.18%	6.02%
Return After Taxes on Distributions	-6.83%	8.83%	5.41%
Return After Taxes on Distributions and Sale of Fund Shares	-3.63%	7.11%	4.53%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.74%	6.73%

PROSPECTUS | 332

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 minimum 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

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

333 | 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 inverse 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 (i.e., -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



	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	2.60%	2.60%
Short Sales Dividend and Interest Expense	2.10%	2.10%
Remaining Other Expenses	0.50%	0.50%
Acquired Fund Fees and Expenses	0.01%	0.01%
Total Annual Fund Operating Expenses*	3.76%	4.51%

PROSPECTUS | 334

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	$835	$1,570	$2,322	$4,286
Class C	$552	$1,363	$2,283	$4,622

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



	1 Year	3 Years	5 Years	10 Years
Class C	$452	$1,363	$2,283	$4,622

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 838% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 derivatives 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.

335 | PROSPECTUS

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

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.

PROSPECTUS | 336

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.



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%

337 | PROSPECTUS

PROSPECTUS | 338

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.

339 | PROSPECTUS

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

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, 2016 through June 30, 2016 is -16.20%.

PROSPECTUS | 340



Highest Quarter Return		Lowest Quarter Return
Q2 2009	12.70%	Q4 2008	-26.25	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-5.46%	-11.35%	-8.51%
Return After Taxes on Distributions	-5.46%	-11.35%	-8.74%
Return After Taxes on Distributions and Sale of Fund Shares	-3.09%	-8.11%	-5.73%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.74%	6.73%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-2.47%	-11.15%	-8.75%
Return After Taxes on Distributions	-2.47%	-11.15%	-8.98%
Return After Taxes on Distributions and Sale of Fund Shares	-1.40%	-7.97%	-5.86%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.74%	6.73%

341 | 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.


•	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 minimum 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

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 | 342

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	0.49%	0.49%
Acquired Fund Fees and Expenses	0.05%	0.05%
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

343 | 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 521% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 fixed rate, non-investment grade debt through the use of credit default swaps, high yield securities, futures, total return swaps on exchange-traded funds (“ETFs”), and other financial instruments with economic characteristics comparable to those 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 investment objective.

The Fund will primarily invest in credit default swaps,swaps on ETFs, and bond futures 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. 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, but may also buy credit protection from time to time in order to maintain the appropriate level of exposure to the high yield bond market, such as during times of heavy redemption activity. The Fund's investments in bond futures are expected to provide exposure to interest rate risk comparable to that experienced in the high yield bond market, and will complement the Fund's swaps investments exposure to produce investment exposure that in the aggregate is similar to that of the high yield bond market.

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, consisting of 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 derivatives 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.

PROSPECTUS | 344

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 the principal risks described below.

345 | PROSPECTUS

will decline in value relative to the currency being hedged. The Fund also may incur transaction costs in connection with conversions between various currencies.

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.

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 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.

PROSPECTUS | 346

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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

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, the perceived poor management performance, financial leverage or reduced demand of an issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities, held by the Fund, 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.

347 | 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, 2016 through June 30, 2016 is 6.89%.

PROSPECTUS | 348



Highest Quarter Return		Lowest Quarter Return
Q3 2009	9.31%	Q1 2009	-13.23	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-4.79%	4.96%	5.16%
Return After Taxes on Distributions	-6.35%	2.85%	2.60%
Return After Taxes on Distributions and Sale of Fund Shares	-2.70%	2.93%	2.86%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	-4.47%	5.04%	6.27%



Class C	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-1.98%	5.17%	4.94%
Return After Taxes on Distributions	-3.75%	2.91%	2.28%
Return After Taxes on Distributions and Sale of Fund Shares	-1.10%	3.04%	2.67%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	-4.47%	5.04%	6.27%

349 | 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.


•	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 minimum 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

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 | 350

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 inverse 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 (i.e., -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



	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	0.50%	0.50%
Acquired Fund Fees and Expenses	0.02%	0.02%
Total Annual Fund Operating Expenses*	1.52%	2.27%

351 | 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 1,722% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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, total return swaps on exchange-traded funds (“ETFs”), and other financial instruments with economic characteristics opposite to those 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, swaps on ETFs, and bond futures 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. The Fund will normally be a buyer of credit protection as it seeks to gain inverse exposure to the high yield bond market, but may also buy credit protection from time to time in order to maintain the appropriate level of exposure to the high yield bond market, such as during times of heavy redemption activity. The Fund will invest in bond futures to obtain exposure to interest rate risk comparable to that experienced in the high yield bond market, and will complement the Fund's swap investments exposure to produce inverse investment exposure to the high yield bond market.

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, consisting of 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 derivatives investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

PROSPECTUS | 352

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.

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 the principal risks described below.

353 | PROSPECTUS

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.

PROSPECTUS | 354

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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

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, the perceived poor management performance, financial leverage or reduced demand of an issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities, held by the Fund, of an issuer or guarantor of a debt instrument may cause the value of your investment in the Fund to decrease.

355 | PROSPECTUS

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.

PROSPECTUS | 356

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, 2016 through June 30, 2016 is -8.80%.



Highest Quarter Return		Lowest Quarter Return
Q1 2009	10.17%	Q3 2009	-11.04	%

357 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-9.15%	-11.18%	-10.68%
Return After Taxes on Distributions	-9.15%	-11.18%	-10.80%
Return After Taxes on Distributions and Sale of Fund Shares	-5.18%	-8.00%	-7.14%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	-4.47%	5.04%	6.27%



Class C	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-5.88%	-10.85%	-10.75%
Return After Taxes on Distributions	-5.88%	-10.85%	-10.87%
Return After Taxes on Distributions and Sale of Fund Shares	-3.33%	-7.78%	-7.17%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	-4.47%	5.04%	6.27%

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 minimum 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 | 358

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

359 | PROSPECTUS

EMERGING MARKETS BOND STRATEGY FUND

INVESTMENT OBJECTIVE

The Emerging Markets Bond Strategy Fund (the “Fund”) seeks to provide investment results that correlate, before fees and expenses, to the performance of the emerging markets bond market as defined by the Advisor.

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	0.58%	0.57%
Acquired Fund Fees and Expenses	0.18%	0.18%
Total Annual Fund Operating Expenses*	1.76%	2.50%

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.



	1 Year	3 Years	5 Years	10 Years
Class A	$645	$1,003	$1,384	$2,450
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

PROSPECTUS | 360

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 21,555% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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.

The Fund will invest primarily in emerging markets credit default swaps, swaps on exchange-traded funds ("ETFs"), U.S. Treasury futures, and bonds. By investing in a combination of emerging markets credit default swaps, swaps on ETFs, 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.

As part of its primary strategy, the Fund also expects to invest in swaps that provide total return exposure to one or more ETFs, and may invest in other investment companies, consisting of ETFs, mutual funds, unit investment trusts, and closed-end investment companies, and 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 derivatives 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

361 | PROSPECTUS

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

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 the principal risks described below.

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 | 362

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.

363 | 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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

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.

PROSPECTUS | 364

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.

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.

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.

365 | 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, 2016 through June 30, 2016 is 11.47%.



Highest Quarter Return		Lowest Quarter Return
Q2 2014	5.78%	Q3 2014	-7.72	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Since Inception (10/8/2013)
Return Before Taxes	-7.51%	-5.25%
Return After Taxes on Distributions	-13.57%	-10.73%
Return After Taxes on Distributions and Sale of Fund Shares	-4.22%	-6.31%
BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index (reflects no deduction for fees, expenses or taxes)	0.64%	3.68%



Class C	Past 1 Year	Since Inception (10/8/2013)
Return Before Taxes	-4.46%	-3.96%
Return After Taxes on Distributions	-10.90%	-9.60%
Return After Taxes on Distributions and Sale of Fund Shares	-2.49%	-5.41%
BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index (reflects no deduction for fees, expenses or taxes)	0.64%	3.68%

PROSPECTUS | 366

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 minimum 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

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

367 | PROSPECTUS

LONG SHORT EQUITY 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 436 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 81 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	1.38%	1.34%	1.37%
Short Sales Dividend and Interest Expense	0.87%	0.83%	0.86%
Remaining Other Expenses	0.51%	0.51%	0.51%
Total Annual Fund Operating Expenses	2.53%	3.24%	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	$719	$1,225	$1,757	$3,204
Class C	$427	$998	$1,693	$3,540
Institutional	$230	$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	$327	$998	$1,693	$3,540

PROSPECTUS | 368

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 224% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 industries or styles 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, futures and options contracts enable the Fund to pursue its investment objective without investing directly in the securities of companies included in the different industries or styles to which the Fund is seeking exposure. The Fund may invest in derivatives to hedge or gain leveraged exposure to a particular industry, style or company depending on market conditions.

Certain of the Fund’s derivatives 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.

369 | PROSPECTUS

investments in the underlying securities. 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.

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 the principal risks described below.

PROSPECTUS | 370

result in a loss, which in some cases may be unlimited. Certain risks are specific to the derivatives in which the Fund invests.

371 | 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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

PROSPECTUS | 372

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.

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.

373 | PROSPECTUS

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; however, the figures in the bar chart do not reflect sales charges. If the figures in the bar chart reflected sales charges, 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, 2016 through June 30, 2016 is -1.54%.



Highest Quarter Return		Lowest Quarter Return
Q3 2009	15.68%	Q4 2008	-21.85	%

PROSPECTUS | 374

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-3.66%	2.55%	2.61%
Return After Taxes on Distributions	-3.66%	2.53%	2.40%
Return After Taxes on Distributions and Sale of Fund Shares	-2.07%	1.96%	2.04%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	-2.33%	-1.36%	-0.34%
Russell 3000^® Index (reflects no deduction for fees, expenses or taxes)	0.48%	12.18%	7.35%



Class C	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.58%	2.79%	2.37%
Return After Taxes on Distributions	-0.58%	2.76%	2.14%
Return After Taxes on Distributions and Sale of Fund Shares	-0.33%	2.14%	1.85%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	-2.33%	-1.36%	-0.34%
Russell 3000^® Index (reflects no deduction for fees, expenses or taxes)	0.48%	12.18%	7.35%



Institutional	Past 1 Year	Since Inception (11/30/2011)
Return Before Taxes	1.45%	6.59%
Return After Taxes on Distributions	1.45%	6.58%
Return After Taxes on Distributions and Sale of Fund Shares	0.82%	5.13%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	-2.33%	3.35%
Russell 3000^® Index (reflects no deduction for fees, expenses or taxes)	0.48%	15.05%

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.

375 | PROSPECTUS

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 minimum 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

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

PROSPECTUS | 376

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 436 of the Prospectus and in the “Sales Charges, Reductions, and Waivers” section beginning on page 81 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	0.85%	0.85%	0.85%
Acquired Fund Fees and Expenses	0.13%	0.13%	0.13%
Total Annual Fund Operating Expenses*	2.13%	2.88%	1.88%
Fee Waiver and/or Expense Reimbursement**	-0.10%	-0.10%	-0.10%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement*	2.03%	2.78%	1.78%

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 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.

377 | PROSPECTUS

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
Class A	$671	$1,101	$1,556	$2,813
Class C	$381	$882	$1,510	$3,197
Institutional	$181	$581	$1,007	$2,193

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



	1 Year	3 Years	5 Years	10 Years
Class C	$281	$882	$1,510	$3,197

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 32% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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

PROSPECTUS | 378

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.

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 the principal risks described below.

379 | PROSPECTUS

PROSPECTUS | 380

markets are highly volatile and the use of futures may increase the volatility of the Fund’s net asset value ("NAV"). Futures are also subject to leverage risks and to liquidity risk.

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.

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.

381 | 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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

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.

PROSPECTUS | 382

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.

PERFORMANCE INFORMATION

383 | 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 C shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 4.68%.



Highest Quarter Return		Lowest Quarter Return
Q4 2011	7.74%	Q3 2011	-11.12	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class A	Past 1 Year	Past 5 Years	Since Inception (6/30/2010)
Return Before Taxes	-7.67%	1.34%	3.29%
Return After Taxes on Distributions	-8.26%	0.18%	1.72%
Return After Taxes on Distributions and Sale of Fund Shares	-4.34%	0.59%	1.95%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	15.67%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	-6.95%	2.72%	4.57%

PROSPECTUS | 384



Class C	Past 1 Year	Past 5 Years	Since Inception (6/30/2010)
Return Before Taxes	-4.77%	1.56%	3.41%
Return After Taxes on Distributions	-5.41%	0.37%	1.80%
Return After Taxes on Distributions and Sale of Fund Shares	-2.70%	0.76%	2.04%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	15.67%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	-6.95%	2.72%	4.57%



Institutional	Past 1 Year	Past 5 Years	Since Inception (6/30/2010)
Return Before Taxes	-2.83%	2.59%	4.47%
Return After Taxes on Distributions	-3.45%	1.43%	2.89%
Return After Taxes on Distributions and Sale of Fund Shares	-1.60%	1.55%	2.87%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	15.67%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	-6.95%	2.72%	4.57%

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.


•	Larry Shank, CFA, CAIA, Portfolio Manager. Mr. Shank has been associated with the Advisor since 2001.

PURCHASE AND SALE OF FUND SHARES


•	$1,000 for retirement accounts


•	$2,500 for all other accounts

385 | PROSPECTUS

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 | 386

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 (12b-1) Fees	0.00	%
Other Expenses	0.41	%
Total Annual Fund Operating Expenses	0.91	%


*	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.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated. 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
$93	$290	$504	$1,120

PRINCIPAL INVESTMENT STRATEGIES

The Fund intends to operate as a “government money market fund” as defined by Rule 2a-7 under the Investment Company Act of 1940 (the “1940 Act”) and seeks to maintain a stable net asset value ("NAV") of $1.00 per share. As such, the Fund invests at least 99.5% of its total assets in government securities as defined by the 1940 Act, including those with floating or variable rates of interest, cash, and repurchase agreements collateralized fully by U.S. government securities. The Fund will comply with all applicable requirements of Rule 2a-7, including certain liquidity, maturity and diversification requirements. The Fund invests only in U.S. dollar-denominated securities and seeks to invest in securities that present minimal credit risk. Under normal circumstances, the Fund also will invest at least 80% of its net assets, plus any borrowings for investment purposes, in government securities and/or repurchase agreements that are collateralized by government securities.

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. Securities issued or guaranteed by the U.S. Treasury and certain U.S. government agencies or instrumentalities such as the Government National Mortgage Association (Ginnie Mae), are supported by the full faith and credit of the U.S. government. Securities issued or guaranteed by other U.S. government agencies or instrumentalities, such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Farm Credit Bank (FFCB), and the Federal Home Loan Bank (FHLB) are not

387 | PROSPECTUS

guaranteed by the U.S. Treasury or supported by the full faith and credit of the U.S. government. However, they are authorized to borrow from the U.S. Treasury to meet their obligations.

“Government money market funds” are not required to impose liquidity fees and/or temporary redemption gates, but the Fund’s Board of Trustees may elect to impose such features in the future.

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 the principal risks described below.

FLOATING AND VARIABLE RATE SECURITIES RISK—Floating and variable rate securities provide for a periodic adjustment in the interest rate paid on the securities. The rate adjustment intervals may be regular and range from daily up to annually, or may be based on an event, such as a change in the prime rate. Floating and variable rate securities may be subject to greater liquidity risk than other debt securities, meaning that there may be limitations on the Fund’s ability to sell the securities at any given time. Such securities also may lose value.

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. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Advisor, which is the Fund’s sponsor, and its affiliates have no legal obligation to provide financial support to the Fund, and you should not expect that the Advisor or its affiliates will provide financial support to the Fund at any time. In the event any money market fund fails to maintain a stable NAV, other money market funds, including the Fund, could face a universal risk of increased redemption pressures, potentially jeopardizing the stability of their NAVs.

PROSPECTUS | 388

PERFORMANCE INFORMATION

The following bar chart shows the performance of the shares of the Fund from year to year. Effective May 1, 2016, the Fund operates as a "government money market fund" as that term is defined in newly adopted amendments to Rule 2a-7 and as such is required to invest 99.5% of its total assets in government securities, cash or repurchase agreements that are collateralized fully by government securities or cash. While the Fund primarily invested in government securities prior to May 1, 2016, it was not subject to this investment requirement. As a result, the performance information presented below may have been different if the current investment strategy had been in effect during the period prior to the Fund's conversion to a government money market fund. In addition, 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, 2016 through June 30, 2016 is 0.00%.



Highest Quarter Return		Lowest Quarter Return
Q4 2006	1.10%	Q1 2010	0.00	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.00%	0.00%	0.99%

YIELD

Call 800.820.0888 for the U.S. Government Money Market Fund’s current yield.

389 | 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.


•	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.

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 | 390

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”), which are grouped into the categories listed below.

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 Long Short Equity Fund and Event Driven Distressed Strategies Fund, 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 the Long Short Equity Fund and Event Driven and Distressed Strategies Fund must adhere to the limits set forth in Section 12(d)(1) of the 1940 Act when investing in these Funds.

DOMESTIC EQUITY FUNDS

Nova Fund, S&P 500 Fund, Inverse S&P 500 Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x 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, Dow Jones Industrial Average^® 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.

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.

391 | PROSPECTUS

Monthly Rebalance NASDAQ-100^® 2x Strategy Fund. If the Fund meets its investment objective, the value of the Fund’s shares will tend to increase on a calendar month 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% that calendar month). When the value of the Fund’s underlying index declines, the value of the Fund’s shares should decrease on a calendar month 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% that calendar month).

Emerging Markets 2x Strategy Fund and Strengthening Dollar 2x Strategy Fund. If each 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 each 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 each 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 each 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, Dow Jones Industrial Average^® 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 each 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 | 392

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).

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 debt securities and money 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.

The Alternative Funds, High Yield Strategy Fund, Inverse High Yield Strategy Fund and Emerging Markets Bond Strategy Fund 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. 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.

393 | PROSPECTUS

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 securities 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.

Monthly Rebalance NASDAQ-100^® 2x Strategy Fund. As used in this Prospectus, the term "calendar month" or "monthly" refers to the period from the close of the markets on the last business day of a given calendar month until the close of the markets on the last business day of the subsequent calendar month. The Advisor uses quantitative analysis techniques to structure the Fund to obtain the highest correlation to its benchmark. While the Advisor generally does not engage in temporary defensive investing, the Advisor may invest in certain instruments designed to protect the value of the Fund in the event of an extreme intra-month movement in the value of the underlying index. The Advisor monitors the Fund on an ongoing basis, and makes adjustments to its portfolio on the last trading day of each calendar month, as necessary, to minimize tracking error and to maximize liquidity.

The Advisor pursues the Fund's investment objective by regularly utilizing leveraged instruments, such as futures contracts and options on securities, futures contracts, and securities indices.

The Fund may be appropriate for investors who believe that over the long-term, the value of the underlying index will increase, and that by investing with the objective of doubling the index’s return they will achieve superior results over time. Investors should understand that since the Fund seeks to double, before fees and expenses, the calendar month performance of the underlying index, it should experience twice the volatility of a conventional index fund. This increases an investor's potential risk of loss.

The Fund also may be appropriate for investors who use an investment strategy that relies on frequent buying, selling, or exchanging among stock mutual funds, since the Fund does not limit how often an investor may exchange among funds. In addition, the Fund does not impose any transaction fees when investors exchange shares.

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 sector and industry-level classifications used by widely recognized industry classification system providers such as Bloomberg Industry Classification System, Global Industry Classification Standard (GICS) and Barclays Global Classification Scheme. 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.

PROSPECTUS | 394

management purposes. 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. 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.

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 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. 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, South Africa, United Arab Emirates, Qatar, and Greece. High-income OECD members currently are Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, 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.

395 | PROSPECTUS

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 Monthly Rebalance NASDAQ-100^® 2x Strategy Fund seeks leveraged investment results on a calendar month basis (the "Monthly Leveraged Fund"). 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, Monthly Leveraged Fund, Leveraged Funds, Leveraged Inverse Funds, Daily Inverse Funds and the Inverse Fund are 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

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 that rebalances on a daily or monthly basis 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 or different than a full calendar month, as applicable. 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

PROSPECTUS | 396

investment objective of exactly twice (200%) the daily index returns and exactly twice (200%) the calendar month 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, 2016 of the S&P 500^® Index is 12.10%. 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 annualized historical volatility for the five-year period ended June 30, 2016 of the other indices underlying the Funds’ benchmarks is as follows: BNY Mellon Emerging Markets 50 ADR Index 20.25%; NASDAQ-100 Index^® 14.34%; Nikkei 225 Stock Average 13.86%; Russell 2000^® Index 16.58%; S&P MidCap 400^® Index 14.39%; STOXX Europe 50^® Index 16.31%; and U.S. Dollar Index^® 7.26%. 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.

Twice (200%) Daily Index Returns

397 | PROSPECTUS

PROSPECTUS | 398

Twice (200%) Calendar Month Index Returns

399 | PROSPECTUS

Intra-Month Investment Volatility. The effect of leverage on a fund that rebalances on a calendar month basis 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 longer than a full calendar month. The fund’s performance will also not match or correlate to the performance of the fund’s benchmark over a period of time shorter than a full calendar month if the fund is purchased on a day other than the last business day of the previous calendar month. As a result, an investor who purchases shares of the Fund on a day other than the last business day of the previous calendar month will generally receive more, or less, than 200% exposure to the Fund’s underlying index, depending on the performance of the underlying index for the remainder of that calendar month. If the underlying index moves in a positive direction, an investor in the Fund would receive exposure to the underlying index less than 200%. Conversely, if the underlying index moves in a negative direction, an investor in the Fund would receive exposure to the underlying index greater than 200%. Calendar month rebalancing may compromise the Fund’s performance if the underlying index experiences significant volatility during a month. The table below demonstrates how intra-month movements in the underlying index would affect the underlying index exposure of an investor who purchases shares of the Fund on a day other than the last business day of a calendar month.



Intra-month Change in Index Level Since Previous Month End
	-40%	-35%	-30%	-25%	-20%	-15%	-10%	-5%	0%	5%	10%	15%	20%	25%	30%	35%	40%
Leverage	600%	433%	350%	300%	267%	243%	225%	211%	200%	191%	183%	177%	171%	167%	163%	159%	156%

MARKET VOLATILITY.

Each Daily Leveraged Fund, Monthly Leveraged Fund and Leveraged Inverse Fund seeks to provide a return that is a multiple of the daily or monthly performance of its underlying index. No Daily Leveraged Fund, Monthly Leveraged Fund or Leveraged Inverse Fund attempts to, and no Daily Leveraged Fund, Monthly 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 or full calendar month, as applicable. 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. The Monthly Leveraged Fund rebalances its portfolio on a calendar monthly basis, increasing exposure in response to that month’s gains or reducing exposure in response to that month’s losses.

PROSPECTUS | 400

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%

Monthly rebalancing will impair the Monthly Leveraged Fund’s performance if the benchmark experiences volatility. For instance, a hypothetical 2x monthly leveraged fund would be expected to lose -3.5% (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 monthly leveraged fund widens to approximately -13.5%. At higher ranges of volatility, there is a chance of a near complete loss of fund value even if the benchmark is flat. An index’s volatility rate is a statistical measure of the magnitude of fluctuations in the returns of an index.

Table 2



Benchmark Annualized Volatility Range	Hypothetical Monthly 2x Leveraged Fund Loss
10%	-0.9%
20%	-3.5%
30%	-7.6%
40%	-13.5%
50%	-20.2%
60%	-28.7%
70%	-37.0%
80%	-47.0%
90%	-56.9%
100%	-66.2%

Table 1 and Table 2 show 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%.

401 | PROSPECTUS

Table 3 shows the range of annualized volatility for the indices to which the Daily Leveraged Funds, Monthly Leveraged Fund and Leveraged Inverse Funds are benchmarked for the five year period ended June 30, 2016. 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 7.26% to 20.25%. Since market volatility has negative implications for funds that rebalance daily and monthly, investors should be sure to monitor and manage their investments in the Daily Leveraged Funds, Monthly Leveraged Fund and Leveraged Inverse Funds in volatile markets. The negative implications of volatility in Table 1 and Table 2 can be combined with the recent volatility ranges of various indices in Table 3 to give investors some sense of the risks of holding the Daily Leveraged Funds, Monthly Leveraged Fund and Leveraged Inverse Funds for long periods. These tables are intended to simply underscore the fact that the Daily Leveraged Funds, Monthly Leveraged Fund 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 3



Index	Annualized Volatility for the Five Year Period Ended June 30, 2016
BNY Mellon Emerging Markets 50 ADR Index	20.25%
NASDAQ-100 Index^®	14.34%
Nikkei 225 Stock Average	13.86%
Russell 2000^® Index	16.58%
S&P 500^® Index	12.10%
S&P MidCap 400^® Index	14.39%
STOXX Europe 50^® Index	16.31%
U.S. Dollar Index^®	7.26%

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. The Monthly Leveraged Fund seeks calendar monthly leveraged exposure to its underlying index equal to 200% of its net assets. As a consequence, for each Daily Leveraged Fund and the Monthly Leveraged Fund, the risk of total loss of your investment exists in the event of a decline in the value of the underlying index of a Daily Leveraged Fund or the Monthly Leveraged Fund and for each Leveraged Inverse Fund the risk of total loss exists in the event of 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.

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.

PROSPECTUS | 402

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.

403 | PROSPECTUS

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.

THE PROJECTED RETURNS OF MONTHLY LEVERAGED FUNDS FOR SHARES HELD LONGER THAN A FULL TRADING MONTH

The Monthly Leveraged Fund seeks calendar monthly leveraged investment results, which should not be equated with seeking a leveraged goal for a period different than a full calendar month. For instance, if the Monthly Leveraged Fund’s underlying index gains 10% for a quarter, the Monthly Leveraged Fund’s shares should not be expected to provide a return of 20% for the quarter even if it meets its target each calendar month. This is true because of the Fund expenses set forth in the prospectus, but also because the pursuit of monthly goals may result in monthly leveraged compounding, which means that the return of the underlying index over a period of time different than a calendar month multiplied by the Monthly Leveraged Fund’s monthly target (e.g., 200%) will not generally equal the Monthly Leveraged Fund’s performance over that same period.

The following charts set out a range of hypothetical monthly performances during a given ten-month trading period of an index and demonstrate how changes in the index affect a 2x monthly leveraged fund's performance for a trading month and cumulatively up to, and including, the entire ten-month trading period. The charts are based on a hypothetical $100 investment in the fund over a ten-month trading period and do not reflect expenses of any kind. If they did, the performance shown would be lower.

PROSPECTUS | 404

TABLE 1: NO CLEAR TREND IN THE MARKET



	Index			2x Monthly Leveraged Fund
	Value	Monthly Performance	Cumulative Value	NAV	Monthly Performance	Cumulative Performance
	100			$100.00
Month 1	105	5.00%	5.00%	$110.00	10.00%	10.00%
Month 2	110	4.76%	10.00%	$120.48	9.52%	20.48%
Month 3	100	-9.09%	0.00%	$98.57	-18.18%	-1.43%
Month 4	90	-10.00%	-10.00%	$78.86	-20.00%	-21.14%
Month 5	85	-5.56%	-15.00%	$70.10	-11.11%	-29.90%
Month 6	100	17.65%	0.00%	$94.83	35.29%	-5.17%
Month 7	95	-5.00%	-5.00%	$85.35	-10.00%	-14.65%
Month 8	100	5.26%	0.00%	$94.34	10.53%	-5.66%
Month 9	105	5.00%	5.00%	$103.77	10.00%	3.77%
Month 10	100	-4.76%	0.00%	$93.89	-9.52%	-6.11%

The cumulative performance of the index in Table 1 is 0% for the ten-month trading period. The hypothetical return of the fund for the ten-month trading period is -6.11%. The volatility of the index performance and lack of clear trend results in performance for the fund for the period which bears little relationship to the performance of the fund’s index for the ten-month trading period.

TABLE 2: CLEAR TREND THAT MARKET RISES



	Index			2x Monthly Leveraged Fund
	Value	Monthly Performance	Cumulative Value	NAV	Monthly Performance	Cumulative Performance
	100			$100.00
Month 1	102	2.00%	2.00%	$104.00	4.00%	4.00%
Month 2	104	1.96%	4.00%	$108.08	3.92%	8.08%
Month 3	106	1.92%	6.00%	$112.24	3.85%	12.24%
Month 4	108	1.89%	8.00%	$116.47	3.77%	16.47%
Month 5	110	1.85%	10.00%	$120.78	3.70%	20.78%
Month 6	112	1.82%	12.00%	$125.18	3.64%	25.18%
Month 7	114	1.79%	14.00%	$129.65	3.57%	29.65%
Month 8	116	1.75%	16.00%	$134.20	3.51%	34.20%
Month 9	118	1.72%	18.00%	$138.82	3.45%	38.82%
Month 10	120	1.69%	20.00%	$143.53	3.39%	43.53%

The cumulative performance of the index in Table 2 is 20% for the ten-month trading period. The hypothetical return of the fund for the ten-month trading period is 43.53%. The hypothetical return of the fund is 218% of the index return for the ten-month trading period. In this case, because of the positive index trend, the fund gain is greater than 200% of the index gain for the ten-month trading period.

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TABLE 3: CLEAR TREND THAT MARKET DECLINES



	Index			2x Monthly Leveraged Fund
	Value	Monthly Performance	Cumulative Value	NAV	Monthly Performance	Cumulative Performance
	100			$100.00
Month 1	98	-2.00%	-2.00%	$96.00	-4.00%	-4.00%
Month 2	96	-2.04%	-4.00%	$92.08	-4.08%	-7.92%
Month 3	94	-2.08%	-6.00%	$88.24	-4.17%	-11.76%
Month 4	92	-2.13%	-8.00%	$84.49	-4.26%	-15.51%
Month 5	90	-2.17%	-10.00%	$80.82	-4.35%	-19.18%
Month 6	88	-2.22%	-12.00%	$77.22	-4.44%	-22.78%
Month 7	86	-2.27%	-14.00%	$73.71	-4.55%	-26.29%
Month 8	84	-2.33%	-16.00%	$70.29	-4.65%	-29.71%
Month 9	82	-2.38%	-18.00%	$66.94	-4.76%	-33.06%
Month 10	80	-2.44%	-20.00%	$63.67	-4.88%	-36.33%

The cumulative performance of the index in Table 3 is -20% for the ten-month trading period. The hypothetical return of the fund for the ten-month trading period is -36.33%. The hypothetical return of the fund is 182% of the index return for the ten-month trading period. In this case, because of the negative index trend, the fund decline is less than 200% of the index decline for the ten-month trading 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 each 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.

PROSPECTUS | 406

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.

407 | PROSPECTUS

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 or calendar month 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 or calendar month leveraged investment objective in any given month, as applicable.

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 Monthly Rebalance NASDAQ-100^® 2x Strategy Fund is considered a “leveraged” fund because it seeks to match a multiple of the performance of the Fund’s underlying index on a calendar month 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. For the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, there is a special form of correlation risk that derives from the Fund having a calendar month investment objective in combination with the use of leverage, which is that for periods longer than a full calendar month, 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 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 may 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 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, the default will likely cause the value of your investment in the Fund to decrease. The Fund may experience significant delays in obtaining any recovery in a bankruptcy or other reorganization proceeding and the Fund may obtain only limited recovery or may obtain no recovery in such circumstances. The Fund seeks to mitigate risks by generally requiring that the counterparties for the Fund agree to post collateral for the benefit of the Fund, marked to market daily, in an amount approximately equal to the amount the counterparty owes the Fund, subject to certain minimum thresholds. To the extent any such collateral is insufficient or there are delays in accessing the collateral, the Fund will be exposed to the risks described above. The Fund also generally structures agreements with counterparties to permit either party to terminate the contract without penalty prior to the termination date.

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 Fund, however, will not enter into any agreement with a counterparty unless the Advisor believes that such counterparty is creditworthy. 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 with which the Fund transacts. The counterparties with which the Fund transacts generally are major, global financial institutions. 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

PROSPECTUS | 408

economic sector. Listed futures contracts can be traded on futures exchanges without material counterparty credit. Listed futures contracts can be traded on futures exchanges without material counterparty credit.

Although the counterparty to a centrally cleared swap agreement and/or exchange-traded futures contract is often backed by a futures commission merchant (“FCM”) or clearing organization that is further backed by a group of financial institutions, there may be instances in which the FCM or the clearing organization could fail to perform its obligations, causing significant losses to the Fund. For example, the Fund could lose margin payments it has deposited with a clearing organization as well as any gains owed but not paid to the Fund, if the clearing organization becomes insolvent or otherwise fails to perform its obligations. Under current CFTC regulations, a FCM maintains customers’ assets in a bulk segregated account. If a FCM fails to do so, or is unable to satisfy a substantial deficit in a customer account, its other customers may be subject to risk of loss of their funds in the event of that FCM’s bankruptcy. In that event, in the case of futures and options on futures, the FCM’s customers are entitled to recover, even in respect of property specifically traceable to them, only a proportional share of all property available for distribution to all of that FCM’s customers. Certain swap agreements also may be considered to be illiquid.

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.

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, which would cause a decline in the U.S. value of the holdings of the Fund. Similarly, the Strengthening Dollar 2x Strategy Fund’s exposure to the U.S. Dollar Index^® subjects

409 | PROSPECTUS

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 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 securities underlying ADRs trade on foreign exchanges at times when the U.S. markets are not open for trading, the value of those securities 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.

PROSPECTUS | 410

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 or are physically deliverable but are not held during the delivery period, 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 of credit protection, 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 of credit protection, 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) if physical settlement is required. 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 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 following Funds: the S&P 500^®Fund, Russell 2000^® Fund, NASDAQ-100^® Fund, Dow Jones Industrial Average^® 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, each Sector Fund, the Real Estate Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, and Long Short Equity Fund. Accordingly, neither the Fund nor the Advisor (with respect to the Fund) is subject to registration as a CPO under the CEA or regulation by the CFTC. To remain eligible for the exclusion, the Fund will be limited in its ability to use financial instruments subject to regulation by the CFTC. In the event that the 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 the Fund. The Advisor’s eligibility to claim the exclusion with respect to the 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

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the Fund holds out its use of commodity interests. The 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 the Fund, the Fund’s expenses may increase, adversely affecting the Fund’s total return.

The Advisor is not eligible to claim the exclusion from registration with respect to the following Funds: the Nova Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, 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. As a result, the Advisor has registered with the CFTC as a commodity pool operator with respect to these Funds, which are considered commodity pools under the CEA. On August 13, 2013, the CFTC issued the final harmonization rule release specifying the disclosure, reporting and recordkeeping requirements that 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.

The SEC is reviewing its current guidance on the use of derivatives by registered investment companies, such as the Fund, 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, though the SEC recently proposed a new rule related to certain aspects of derivatives use. As of the date of this Prospectus, whether and when this proposed rule will be adopted and its potential effects on the Fund are unclear. The regulation of commodity and derivatives 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 Fund is impossible to predict, but could be substantial and adverse to the Fund.

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 of credit protection in a credit default swap agreement is obligated to pay the seller a periodic

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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.

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). A put option is "covered" if the Fund segregates cash in an amount equal to or greater than the Fund's obligation under the contract (i.e., the strike price less the premium received from selling the option or the settlement amount). As a seller of covered call options or covered put 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.

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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 generally 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. Emerging markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and perform differently from the U.S. market. Emerging markets are often dependent upon commodity prices and international trade, and 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. For example, investments in emerging markets are subject to a greater risk of loss due to expropriation, nationalization, confiscation of assets and other property. In addition, the risks associated with investing in a narrowly defined geographic area are generally more pronounced with respect to investments in emerging market countries. The Fund also may be subject to this risk with respect to its investments in other securities or financial instruments whose returns are related to the returns of emerging market securities.

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 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.

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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.

FLOATING AND VARIABLE RATE SECURITIES RISK—Floating rate and variable securities provide for adjustment in the interest rate paid on the obligations. The terms of such obligations typically provide that interest rates are adjusted based upon an interest or market rate adjustment as provided in the respective obligations. The adjustment intervals may be regular, and range from daily up to annually, or may be event-based, such as based on a change in the prime rate. Floating rate obligations typically have an interest rate which changes whenever there is a change in the external interest or market rate, while variable rate obligations typically provide for a specified periodic adjustment in the interest rate. Because of the interest rate adjustment feature, floating rate and variable securities provide a fund with a certain degree of protection against rises in interest rates, although the fund will participate in any declines in interest rates as well. Generally, changes in interest rates will have a smaller effect on the market value of floating rate and variable securities than on the market value of comparable fixed-income obligations. Thus, investing in floating rate and variable securities generally allows less opportunity for capital appreciation and depreciation than investing in comparable fixed-income securities.

Certain of these obligations carry a demand feature that gives a fund the right to tender them back to a specified party, usually the issuer or a remarketing agent, prior to maturity. A fund’s investments in variable and floating rate securities must comply with conditions established by the SEC under which they may be considered to have remaining maturities of 13 months or less. The Fund will purchase variable and floating rate securities that have remaining maturities of more than 13 months only if the securities are subject to a demand feature exercisable within 13 months or less and otherwise consistent with the Fund’s investment objective and policies. Generally, a fund may exercise demand features (1) upon a default under the terms of the underlying security, (2) to maintain its portfolio in accordance with its investment objective and policies or applicable legal or regulatory requirements or (3) as needed to provide liquidity to a fund in order to meet redemption requests.

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 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.

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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. In addition, the United Kingdom recently voted via referendum to exit the EU. The precise details and the resulting impact of the United Kingdom’s vote to leave the EU, commonly referred to as “Brexit,” are not yet known. The effect on the United Kingdom’s economy will likely depend on the nature of trade relations with the EU following its exit, which is a matter to be negotiated. The decision may cause increased volatility which may be sustained for some period of time and have a significant adverse impact on world financial markets, other international trade agreements, and the United Kingdom and European economies, as well as the broader global economy for some time. These uncertainties have contributed to increased volatility in various currencies.

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.

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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. To the extent that the Fund's investments are concentrated in issuers conducting business in the same industry or group of related industries, the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting that industry.

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.

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assets of the Fund will determine whether the Fund is under- or over-exposed to the underlying index and how much exposure an investor who purchases after the first trading day of a calendar month is able to obtain through an investment in the Fund. As an example (using simplified numbers), if the Fund had $100 in net assets at the market close on the last trading day of the calendar month, it would seek $200 of exposure to the next calendar month’s underlying index performance. If the underlying index rose by 1% by mid-calendar month, the exposure of the Fund will have risen by 1% to $202 and the net assets will have risen by that $2 gain to $102. With net assets of $102 and exposure of $202, a purchaser at that point would be receiving 198% exposure of her investment instead of 200%. Only on the lat trading day of a calendar month, could an investor receive 200% exposure to the underlying index.

INVESTMENT IN INVESTMENT VEHICLES RISK—The Fund may purchase shares of investment companies, such as ETFs, mutual funds, unit investment trusts, and closed-end funds, 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. 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 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.

CLOSED-END FUND RISK—The Fund may invest in shares of closed-end funds in pursuit of its investment objective. Unlike conventional mutual funds which continually offer new shares for sale to the investing public, closed-end funds are exchange-traded and issue only a limited number of shares of stock. As such, closed-end funds may trade at a discount to their NAV. In addition, closed-end funds may trade infrequently, with small volume, which may make it difficult for the Fund to buy and sell shares. Also, the market price of closed-end funds tends to rise more in response to buying demand and fall more in response to selling pressure than is the case with larger capitalization companies. Closed-end funds also may employ leverage to a greater extent than mutual funds.

EXCHANGE-TRADED FUND (ETF) RISK—The Fund may invest in shares of ETFs in pursuit of its investment objective. 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.

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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 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 STYLE RISK—The Advisor’s judgments about the attractiveness, value and potential appreciation of a particular market segment may prove to be incorrect and may underperform other market segments. In addition, the Fund may allocate its assets so as to underemphasize or overemphasize investments under the wrong market conditions, in which case the Fund’s values may be adversely affected.

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 derivatives 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.

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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, Monthly Rebalance NASDAQ-100^® 2x Strategy 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, Monthly Rebalance NASDAQ-100^® 2x Strategy 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 AND VALUATION RISK—In certain circumstances, it may be difficult for the Fund to purchase and sell a particular security or derivative instrument 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.

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 issuer's securities could cause greater fluctuations in the value of Fund shares than would occur in a diversified fund.

PROSPECTUS | 420

meet the needs of the counterparties. If a derivatives 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 derivatives 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 derivatives 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 AND EXTENSION RISK—The issuers of securities held by the Fund or investment companies in which the Fund 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.

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.

REAL ESTATE INVESTMENT TRUST (REIT) RISK—REITs are securities that invest substantially all of their assets in real estate, trade like stocks and may qualify for special tax considerations. Investments in REITs subject the Fund to risks associated with the direct ownership of real estate. These risks include, among others, fluctuations in the value of underlying properties; defaults by borrowers or tenants; market saturation; changes in general and local economic conditions; decreases in market rates for rents; changes in the availability, cost and terms of mortgage funds; increased competition, property taxes, capital expenditures, or operating expenses; and other occurrences, including the impact of changes in environmental laws, that may affect the real estate industry. In addition, REITs are subject to certain requirements under the federal tax law. A REIT that fails to comply with all those requirements may be subject to federal income taxation, or the federal tax requirement that a REIT distribute substantially all of its net income to its shareholders may result in a REIT’s having insufficient capital for future expenditures. The value of a REIT can depend on the structure of and cash flow generated by the REIT. Also, like mutual funds, REITs have expenses, including advisory and administration fees, that their shareholders pay. As a result, an investor will absorb duplicate levels of fees when the Fund invests in REITs. The failure of a company to qualify as a REIT could have adverse consequences for the Fund, including significantly reducing return to the Fund on its investment in such a company.

421 | PROSPECTUS

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 Funds are subject to the following Sector Risks, as applicable:

BASIC MATERIALS SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the basic materials sector that the 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 basic materials sector ("Basic Materials Companies"), 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.

COMMUNICATIONS SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the communications sector that the 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 communications sector ("Communications Companies"), the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the communications sector. The prices of the securities of Communications 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 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 Communications Companies in their primary markets.

CONSUMER (CYCLICAL AND NON-CYCLICAL) SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the consumer sector that the 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 sector ("Consumer Companies"), the Fund is subject to legislative or regulatory changes, government regulations, adverse market conditions and/or increased competition affecting the consumer sector. The prices of the securities of Consumer Companies may fluctuate widely in response to such events. The performance of Consumer Companies has historically been closely tied to the performance of the overall economy, and is also affected by interest rates, competition, consumer confidence and relative levels of disposable household income and seasonal consumer spending. In addition, Consumer Companies classified as "cyclical", such as companies engaged in the automotive, retail and housing industries, may be adversely affected and lose value more quickly in periods of economic downturns than Consumer Companies classified as "non-cyclical", such as companies engaged in the food, power, water and gas industries. The products offered by Consumer Companies engaged in the consumer cyclical sector may be viewed as luxury items during times of economic downturn while the products offered by Consumer Companies engaged in the consumer non-cyclical sector are often viewed as necessities.

ENERGY SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the energy sector, energy services, and energy sector commodities that the Fund purchases will underperform the market as a whole either by declining in value or failing to perform as well. To the extent that the Fund’s investments are exposed to issuers conducting business in the energy and energy services sectors ("Energy Companies"), the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the energy and energy services sectors. The prices of the securities of Energy 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. The prices of the securities of Energy Companies may also fluctuate widely due to changes in value and dividend yield, which depend largely on the price and supply of energy resources, international political events relating to oil producing countries, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies.

PROSPECTUS | 422

FINANCIAL SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the financial sector that the 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 financial sector ("Financial Services Companies"), the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the financial sector. Financial 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 Companies to incur large losses. Numerous Financial 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 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.

INDUSTRIAL SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the industrial sector that the 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 industrial sector ("Industrial Companies"), the Fund is subject to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the industrial sector. The prices of the securities of Industrial Companies may fluctuate widely in response to such events. The prices of the securities of Industrial Companies may also fluctuate due to the level and volatility of commodity prices, the exchange value of the dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices. Further, the prices of securities of Industrial Companies, specifically transportation companies, may fluctuate widely due to their cyclical nature, occasional sharp price movements that may result from changes in the economy, fuel prices, labor agreement, 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.

TECHNOLOGY SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the technology sector that the 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 technology sector ("Technology Companies"), 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.

UTILITIES SECTOR RISK—The risk that the securities of, or financial instruments tied to the performance of, issuers in the utilities sector that the 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 ("Utilities Companies"), 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.

423 | PROSPECTUS

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 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.

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.

PROSPECTUS | 424

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 each of 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, Dow Jones Industrial Average^® 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 and the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund is tracking the performance of its benchmark on a calendar month 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 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^®, 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.

U.S. GOVERNMENT SECURITIES RISK—Different types of U.S. government securities have different relative levels of credit risk depending on the nature of the particular government support for that security. U.S. government securities may be supported by: (i) the full faith and credit of the United States government; (ii) the ability of the issuer to borrow from the U.S. Treasury; (iii) the credit of the issuing agency, instrumentality or government-sponsored entity; (iv) pools of assets (e.g., mortgage-backed securities); or (v) the United States in some other way. The U.S. government and its agencies and instrumentalities do not guarantee the market value of their securities, which may fluctuate in value and are subject to investment risks, and certain U.S. government securities may not be backed by the full faith and credit of the United States government. The value of U.S. government obligations may be adversely affected by changes in interest rates. It is possible that the issuers of some U.S. government securities will not have the funds to timely meet their payment obligations in the future and there is a risk of default. For certain agency issued securities, there is no guarantee the U.S. government will support the agency if it is unable to meet its obligations.

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

425 | PROSPECTUS

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.

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, each Fund paid the Advisor a fee at an annualized rate for the fiscal year ended March 31, 2016, based on the average daily net assets of the Fund, as set forth below:

PROSPECTUS | 426



Fund	Advisory Fee
Nova Fund	0.75	%
S&P 500^® Fund	0.75	%
Inverse S&P 500^® Strategy Fund	0.90	%
Monthly Rebalance NASDAQ-100^® 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	%
Dow Jones Industrial Average^® Fund	0.75	%
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 Monthly Rebalance NASDAQ-100^® 2x Strategy Fund's and Event Driven and Distressed Strategies Fund’s average daily net assets as follows:

427 | PROSPECTUS



	Expense Cap
Fund	Class A	Class C	Institutional
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	1.35%	2.10%	N/A
Event Driven and Distressed Strategies Fund	1.90%	2.65%	1.65%

The above contractual fee waiver will be honored by the Advisor through July 31, 2017. 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.

A discussion regarding the basis for the Board’s approval of the Funds' investment advisory agreement in May 2015 is currently available in the Funds' September 2015 Semi-Annual Reports to Shareholders, which cover the period April 1, 2015 to September 30, 2015. A discussion regarding the basis for the Board’s approval of the Funds' investment advisory agreement in May 2016 will be available in the Funds' September 2016 Semi-Annual Reports to Shareholders, which cover the period April 1, 2016 to September 30, 2016.

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.

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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 and Ryan Harder are jointly and primarily responsible for the day-to-day management of each Fund, with the exception of the Event Driven and Distressed Strategies Fund. On a day-to-day basis, Messrs. Byrum, Harder and Larry Shank are jointly and primarily responsible for the day-to-day management of the Event Driven and Distressed Strategies Fund. 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. Harder and Shank. 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.

Larry Shank, CFA, CAIA, Portfolio Manager—Mr. Shank joined the Advisor in 2001. As a Portfolio Manager, he is responsible for researching, developing, and managing alternative investments for use in the Event Driven and Distressed Strategies Fund and Multi-Hedge Strategies Fund. Prior to his current position, he was a research analyst responsible for performing quantitative research on multiple asset classes. Mr. Shank graduated summa cum laude with a B.S. in finance from the Massachusetts College of Liberal Arts. He also holds an MBA from the Tepper School of Business – Carnegie Mellon University and an M.S. in mathematics and statistics from Georgetown University. He has earned the right to use the Chartered Financial Analyst® and Chartered Alternative Investment Analyst designations. He is a member of the CFA Society of Washington, DC. Mr. Shank also holds FINRA series 7 and 55 licenses.

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.

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SHAREHOLDER INFORMATION

CALCULATING NET ASSET VALUE

The price at which you buy, sell and exchange shares is the net asset value per share, which also is 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

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 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.

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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 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;

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•	Investors who invest the minimum initial investment amount of $2 million directly with the Funds’ transfer agent, Rydex Fund Services, LLC;


•	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, minimum 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, minimum account balance, and investor eligibility requirements for purchases of Institutional shares may be amended from time to time.

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.

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 charge such clients an ongoing fee for advisory, investment, consulting or similar services. 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.

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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.

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, 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 transaction 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.

433 | PROSPECTUS



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.

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

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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

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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;

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•	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; and


•	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.

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 a 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);


•	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; and


•	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.

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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.

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.”

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. The refund of a canceled purchase will be mailed to you after the 10-day hold has expired for purchases made by ACH and check.

Guggenheim Investments does not accept purchase orders from non-resident U.S. citizens or non-resident aliens.

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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.

CANCELED 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 canceled 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 canceled order.

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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 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)

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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.

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

PROSPECTUS | 444

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 canceled 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 canceled 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 Class A shares, Class C shares or Institutional Class shares of any Rydex Series Fund or Rydex Dynamic Fund for Class A shares, Class C shares or Institutional Class shares of any other fund within the Guggenheim Investments family of funds (collectively, the "Guggenheim 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 Class shares of any Rydex Series Fund or Rydex Dynamic Fund for shares of the U.S. Government Money Market Fund.

The Guggenheim Funds currently include 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 (collectively, the “Rydex 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 Guggenheim 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.

445 | 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 Fund will be subject to the purchaser eligibility requirements of the applicable share class of that Guggenheim Fund, which may include initial investment amount and account balance requirements, as disclosed in that Guggenheim Fund's prospectus.

While many of the Rydex Series Funds offer unlimited exchange privileges with no minimum holding periods or transaction fees, certain Guggenheim Funds do not allow unlimited trading. If you are contemplating an exchange for shares of a Guggenheim Fund not offered in this Prospectus, you should obtain and review that Guggenheim Fund’s current prospectus before making the exchange. You can obtain a prospectus for any Guggenheim Fund by calling 800.820.0888 or 301.296.5100 or visiting the Guggenheim Investments website at www.guggenheiminvestments.com.

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 Guggenheim 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 Guggenheim Fund you are exchanging out of or the Guggenheim 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


•	Fund name(s) you are exchanging out of (selling) and Fund name(s) you are exchanging into (buying)

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•	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.

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 Funds are 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.

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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.

STATEMENTS & CONFIRMATIONS

You will receive a confirmation for every trade you initiate. You will also receive a statement each quarter, and your monthly statement will be posted online, within Secure Account Access. You may choose to receive your trade confirmations and quarterly statements by mail or electronically (see “eDelivery Services” below).

Please review your trade confirmations and statements carefully. It is important that you contact Guggenheim Investments immediately with any questions you may have about any transaction reflected on any confirmation or statement. Guggenheim Investments will consider the transactions properly processed if not promptly reported. If there are any discrepancies, call Client Services at 800.820.0888.

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/edelivery. The Funds reserve the right to discontinue your eDelivery service if two (2) or more e-mail notices are returned as undeliverable.

HOUSEHOLDING

Householding is an option that may be available to certain Fund investors. Householding is a method of delivery, based on the preference of the individual investor, in which a single copy of certain shareholder documents can be delivered to investors who share the same address, even if their accounts are registered under different names. Please contact your broker-dealer or other financial intermediary if you are interested in enrolling in householding and receiving a single copy of prospectuses and other shareholder documents, or if you are currently enrolled in householding and wish to change your householding status.

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

PROSPECTUS | 448


•	$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.

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.

449 | PROSPECTUS

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

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

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.

PROSPECTUS | 450

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 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. “Qualified dividend income” generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. 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.

451 | PROSPECTUS

•

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.

•

You should note that if you purchase shares just before a distribution, the purchase price would reflect the amount of the upcoming distribution. In this case, you would be taxed on the entire amount of the distribution received, even though, as an economic matter, the distribution simply constitutes a return of your investment. This is known as “buying a dividend” and should be avoided by taxable investors.


•	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.


•	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.

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.

PROSPECTUS | 452

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). 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.

NON-U.S. INVESTORS

Foreign shareholders (i.e., non-resident alien individuals and foreign corporations, partnerships, trusts and estates)are generally subject to U.S. withholding tax at the rate of 30% (or a lower tax treaty rate) on distributions derived from net investment income. A Fund may, under certain circumstances, report all or a portion of a dividend as an “interest-related dividend” or a “short-term capital gain dividend,” which would generally be exempt from this 30% U.S. withholding tax, provided certain other requirements are met. Distributions to foreign shareholders of long-term capital gains and any gains from the sale or other disposition of shares of the Funds generally are not subject to U.S. taxation, unless the recipient is an individual who either (1) meets the definition of “resident alien” under the Internal Revenue Code or (2) is physically present in the U.S. for 183 days or more per year. Different tax consequences may result if the foreign shareholder is engaged in a trade or business within the United States. In addition, the tax consequences to a foreign shareholder entitled to claim the benefits of a tax treaty may be different than those described above.

453 | PROSPECTUS

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand each Fund’s financial performance for the past five years (or, if shorter, the period of operations of that Fund’s Class A shares, Class C shares or Institutional Class 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 derived from financial statements that have been audited by Ernst & Young LLP, the Funds' independent registered public accounting firm, whose report, along with the Funds' financial statements and related notes, are included in the Funds' 2016 Annual Reports. The 2016 Annual Reports are available upon request and is incorporated by reference in the SAI.

PROSPECTUS | 454

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$46.40			$39.67			$30.23			$25.38			$23.32
Income (loss) from investment operations:
Net investment income (loss)^a	(0.05		)	0.02			0.05			(0.01		)	0.01
Net gain (loss) on investments (realized and unrealized)	(0.21		)	6.76			9.39			4.89			2.05
Total from investment operations	(0.26		)	6.78			9.44			4.88			2.06
Less distributions from:
Net investment income	(0.06		)	(0.05		)	—			(0.03		)	—
Total distributions	(0.06		)	(0.05		)	—			(0.03		)	—
Net asset value, end of period		$46.08			$46.40			$39.67			$30.23			$25.38
Total Return^b	(0.56		%)	17.09		%	31.23		%	19.28		%	8.79		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,626			$3,930			$1,237			$1,189			$1,472
Ratios to average net assets:
Net investment income (loss)	(0.11		%)	0.05		%	0.14		%	(0.04		%)	0.06		%
Total expenses^c	1.51		%	1.52		%	1.53		%	1.50		%	1.51		%
Portfolio turnover rate	619		%	403		%	259		%	137		%	116		%

455 | PROSPECTUS

Financial Highlights (continued)

NOVA FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$42.50			$36.62			$28.11			$23.77			$22.01
Income (loss) from investment operations:
Net investment income (loss)^a	(0.34		)	(0.28		)	(0.20		)	(0.19		)	(0.13		)
Net gain (loss) on investments (realized and unrealized)	(0.24		)	6.21			8.71			4.56			1.89
Total from investment operations	(0.58		)	5.93			8.51			4.37			1.76
Less distributions from:
Net investment income	(0.06		)	(0.05		)	—			(0.03		)	—
Total distributions	(0.06		)	(0.05		)	—			(0.03		)	—
Net asset value, end of period		$41.86			$42.50			$36.62			$28.11			$23.77
Total Return^b	(1.36		%)	16.19		%	30.27		%	18.39		%	8.00		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,090			$11,993			$10,394			$8,705			$8,829
Ratios to average net assets:
Net investment income (loss)	(0.83		%)	(0.70		%)	(0.62		%)	(0.79		%)	(0.62		%)
Total expenses^c	2.26		%	2.27		%	2.28		%	2.25		%	2.26		%
Portfolio turnover rate	619		%	403		%	259		%	137		%	116		%


^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 | 456

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$41.40			$37.78			$31.55			$28.20			$26.41
Income (loss) from investment operations:
Net investment income (loss)^a	0.03			0.04			0.07			0.06			0.01
Net gain (loss) on investments (realized and unrealized)	—			4.08			6.20			3.36			1.78
Total from investment operations	0.03			4.12			6.27			3.42			1.79
Less distributions from:
Net investment income	(0.01		)	(0.02		)	(0.04		)	(0.07		)	—
Net realized gains	(1.57		)	(0.48		)	—			—			—
Total distributions	(1.58		)	(0.50		)	(0.04		)	(0.07		)	—
Net asset value, end of period		$39.85			$41.40			$37.78			$31.55			$28.20
Total Return^b	0.08		%	10.90		%	19.87		%	12.16		%	6.78		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$39,793			$28,022			$28,028			$12,014			$13,413
Ratios to average net assets:
Net investment income (loss)	0.02		%	0.11		%	0.19		%	0.22		%	0.05		%
Total expenses	1.55		%	1.59		%	1.57		%	1.50		%	1.51		%
Portfolio turnover rate	181		%	256		%	157		%	76		%	196		%

457 | PROSPECTUS

Financial Highlights (continued)

S&P 500^® FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$38.58			$35.51			$29.87			$26.91			$25.41
Income (loss) from investment operations:
Net investment income (loss)^a	(0.26		)	(0.23		)	(0.19		)	(0.14		)	(0.20		)
Net gain (loss) on investments (realized and unrealized)	—			3.80			5.87			3.17			1.70
Total from investment operations	(0.26		)	3.57			5.68			3.03			1.50
Less distributions from:
Net investment income	(0.01		)	(0.02		)	(0.04		)	(0.07		)	—
Net realized gains	(1.57		)	(0.48		)	—			—			—
Total distributions	(1.58		)	(0.50		)	(0.04		)	(0.07		)	—
Net asset value, end of period		$36.74			$38.58			$35.51			$29.87			$26.91
Total Return^b	(0.67		%)	10.04		%	19.01		%	11.29		%	5.90		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$15,667			$20,977			$16,182			$10,231			$10,110
Ratios to average net assets:
Net investment income (loss)	(0.70		%)	(0.62		%)	(0.59		%)	(0.52		%)	(0.80		%)
Total expenses	2.31		%	2.34		%	2.32		%	2.28		%	2.26		%
Portfolio turnover rate	181		%	256		%	157		%	76		%	196		%


^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 | 458

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$13.59			$15.71			$19.69			$23.10			$26.82
Income (loss) from investment operations:
Net investment income (loss)^a	(0.16		)	(0.19		)	(0.28		)	(0.34		)	(0.42		)
Net gain (loss) on investments (realized and unrealized)	(0.56		)	(1.93		)	(3.70		)	(3.07		)	(3.30		)
Total from investment operations	(0.72		)	(2.12		)	(3.98		)	(3.41		)	(3.72		)
Net asset value, end of period		$12.87			$13.59			$15.71			$19.69			$23.10
Total Return^b	(5.30		%)	(13.49		%)	(20.21		%)	(14.76		%)	(13.87		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,256			$4,758			$5,468			$5,912			$7,915
Ratios to average net assets:
Net investment income (loss)	(1.18		%)	(1.32		%)	(1.58		%)	(1.52		%)	(1.56		%)
Total expenses^c	1.66		%	1.66		%	1.68		%	1.65		%	1.66		%
Portfolio turnover rate	63		%	103		%	—			—			—

459 | PROSPECTUS

Financial Highlights (continued)

INVERSE S&P 500^® STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$12.56			$14.62			$18.46			$21.83			$25.53
Income (loss) from investment operations:
Net investment income (loss)^a	(0.24		)	(0.28		)	(0.38		)	(0.48		)	(0.59		)
Net gain (loss) on investments (realized and unrealized)	(0.52		)	(1.78		)	(3.46		)	(2.89		)	(3.11		)
Total from investment operations	(0.76		)	(2.06		)	(3.84		)	(3.37		)	(3.70		)
Net asset value, end of period		$11.80			$12.56			$14.62			$18.46			$21.83
Total Return^b	(6.05		%)	(14.09		%)	(20.80		%)	(15.44		%)	(14.49		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,244			$5,121			$6,177			$7,041			$7,870
Ratios to average net assets:
Net investment income (loss)	(1.93		%)	(2.07		%)	(2.34		%)	(2.27		%)	(2.31		%)
Total expenses^c	2.41		%	2.41		%	2.42		%	2.40		%	2.42		%
Portfolio turnover rate	63		%	103		%	—			—			—


^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 | 460

Financial Highlights

MONTHLY REBALACE NASDAQ-100^® 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,			Period Ended March 31,
Class A	2016			2015^a
Per Share Data
Net asset value, beginning of period		$51.68			$50.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.27		)	(0.07		)
Net gain (loss) on investments (realized and unrealized)	3.04			1.75
Total from investment operations	2.77			1.68
Net asset value, end of period		$54.45			$51.68
Total Return^e	5.38		%	3.36		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$246			$465
Ratios to average net assets:
Net investment income (loss)	(0.48		%)	(0.39		%)
Total expenses^c	1.70		%	1.63		%
Net expenses^d,f	1.37		%	1.35		%
Portfolio turnover rate	551		%	84		%

461 | PROSPECTUS

Financial Highlights (continued)

MONTHLY REBALACE NASDAQ-100^® 2X STRATEGY FUND



	Year Ended March 31,			Period Ended March 31,
Class C	2016			2015^a
Per Share Data
Net asset value, beginning of period		$51.55			$50.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.56		)	(0.19		)
Net gain (loss) on investments (realized and unrealized)	2.81			1.74
Total from investment operations	2.25			1.55
Net asset value, end of period		$53.80			$51.55
Total Return^e	4.40		%	3.10		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$23			$14
Ratios to average net assets:
Net investment income (loss)	(1.04		%)	(1.13		%)
Total expenses^c	2.51		%	2.43		%
Net expenses^d,f	2.17		%	2.13		%
Portfolio turnover rate	551		%	84		%


^a	Since commencement of operations: November 28, 2014. 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.


^e	Total return does not reflect the impact of any applicable sales charges and has not been annualized.


^f	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the operating expense ratios for the periods ended would be:



	3/31/2016	3/31/2015
Class A	1.35%	1.35%
Class C	2.10%	2.10%

462 | 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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$23.78			$20.10			$17.42			$17.03			$14.52
Income (loss) from investment operations:
Net investment income (loss)^a	(0.10		)	(0.06		)	(0.03		)	(0.02		)	(0.09		)
Net gain (loss) on investments (realized and unrealized)	0.90			4.12			4.74			0.41			2.60
Total from investment operations	0.80			4.06			4.71			0.39			2.51
Less distributions from:
Net realized gains	(0.54		)	(0.38		)	(2.03		)	—			—
Total distributions	(0.54		)	(0.38		)	(2.03		)	—			—
Net asset value, end of period		$24.04			$23.78			$20.10			$17.42			$17.03
Total Return^b	3.26		%	20.24		%	27.42		%	2.29		%	17.29		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$60,499			$70,821			$21,751			$23,656			$14,553
Ratios to average net assets:
Net investment income (loss)	(0.42		%)	(0.29		%)	(0.14		%)	(0.09		%)	(0.61		%)
Total expenses^c	1.51		%	1.50		%	1.54		%	1.52		%	1.53		%
Portfolio turnover rate	228		%	267		%	141		%	94		%	94		%

463 | PROSPECTUS

Financial Highlights (continued)

NASDAQ-100^® FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$21.60			$18.42			$16.22			$15.97			$13.72
Income (loss) from investment operations:
Net investment income (loss)^a	(0.26		)	(0.21		)	(0.16		)	(0.13		)	(0.19		)
Net gain (loss) on investments (realized and unrealized)	0.82			3.77			4.39			0.38			2.44
Total from investment operations	0.56			3.56			4.23			0.25			2.25
Less distributions from:
Net realized gains	(0.54		)	(0.38		)	(2.03		)	—			—
Total distributions	(0.54		)	(0.38		)	(2.03		)	—			—
Net asset value, end of period		$21.62			$21.60			$18.42			$16.22			$15.97
Total Return^b	2.48		%	19.37		%	26.46		%	1.57		%	16.40		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$38,900			$32,324			$19,175			$13,015			$15,177
Ratios to average net assets:
Net investment income (loss)	(1.19		%)	(1.05		%)	(0.89		%)	(0.84		%)	(1.35		%)
Total expenses^c	2.26		%	2.25		%	2.29		%	2.26		%	2.27		%
Portfolio turnover rate	228		%	267		%	141		%	94		%	94		%


^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 | 464

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$25.44			$32.00			$42.61			$45.77			$58.30
Income (loss) from investment operations:
Net investment income (loss)^a	(0.33		)	(0.37		)	(0.60		)	(0.70		)	(0.90		)
Net gain (loss) on investments (realized and unrealized)	(1.61		)	(6.19		)	(10.01		)	(2.46		)	(11.63		)
Total from investment operations	(1.94		)	(6.56		)	(10.61		)	(3.16		)	(12.53		)
Net asset value, end of period		$23.50			$25.44			$32.00			$42.61			$45.77
Total Return^b	(7.63		%)	(20.50		%)	(24.88		%)	(6.89		%)	(21.53		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$54,948			$570			$372			$183			$474
Ratios to average net assets:
Net investment income (loss)	(1.36		%)	(1.35		%)	(1.69		%)	(1.56		%)	(1.62		%)
Total expenses^c	1.69		%	1.71		%	1.71		%	1.68		%	1.69		%
Portfolio turnover rate	1,674		%	149		%	—			—			—

465 | PROSPECTUS

Financial Highlights (continued)

INVERSE NASDAQ-100^® STRATEGY FUND



	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	March 31,			March 31,			March 31,			March 28,			March 31,
Class C	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$22.58			$28.63			$38.42			$41.58			$53.34
Income (loss) from investment operations:
Net investment income (loss)^a	(0.45		)	(0.53		)	(0.80		)	(0.95		)	(1.20		)
Net gain (loss) on investments (realized and unrealized)	(1.68		)	(5.52		)	(8.99		)	(2.21		)	(10.56		)
Total from investment operations	(2.13		)	(6.05		)	(9.79		)	(3.16		)	(11.76		)
Net asset value, end of period		$20.45			$22.58			$28.63			$38.42			$41.58
Total Return^b	(9.43		%)	(21.13		%)	(25.44		%)	(7.58		%)	(22.12		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,457			$998			$561			$678			$752
Ratios to average net assets:
Net investment income (loss)	(2.09		%)	(2.12		%)	(2.44		%)	(2.32		%)	(2.37		%)
Total expenses^c	2.44		%	2.46		%	2.46		%	2.44		%	2.45		%
Portfolio turnover rate	1,674		%	149		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 466

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$67.32			$58.48			$45.07			$36.23			$37.14
Income (loss) from investment operations:
Net investment income (loss)^a	(0.47		)	(0.41		)	(0.35		)	(0.16		)	(0.23		)
Net gain (loss) on investments (realized and unrealized)	(4.81		)	9.45			13.76			9.00			(0.68		)
Total from investment operations	(5.28		)	9.04			13.41			8.84			(0.91		)
Less distributions from:
Net realized gains	(0.40		)	(0.20		)	—			—			—
Total distributions	(0.40		)	(0.20		)	—			—			—
Net asset value, end of period		$61.64			$67.32			$58.48			$45.07			$36.23
Total Return^b	(7.86		%)	15.50		%	29.75		%	24.40		%	(2.45		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,879			$5,330			$2,632			$2,199			$1,997
Ratios to average net assets:
Net investment income (loss)	(0.75		%)	(0.66		%)	(0.68		%)	(0.43		%)	(0.68		%)
Total expenses^c	1.65		%	1.64		%	1.67		%	1.66		%	1.66		%
Portfolio turnover rate	1,506		%	598		%	563		%	447		%	141		%

467 | PROSPECTUS

Financial Highlights (continued)

MID-CAP 1.5X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$60.27			$52.77			$40.97			$33.18			$34.26
Income (loss) from investment operations:
Net investment income (loss)^a	(0.78		)	(0.76		)	(0.64		)	(0.41		)	(0.43		)
Net gain (loss) on investments (realized and unrealized)	(4.36		)	8.46			12.44			8.20			(0.65		)
Total from investment operations	(5.14		)	7.70			11.80			7.79			(1.08		)
Less distributions from:
Net realized gains	(0.40		)	(0.20		)	—			—			—
Total distributions	(0.40		)	(0.20		)	—			—			—
Net asset value, end of period		$54.73			$60.27			$52.77			$40.97			$33.18
Total Return^b	(8.55		%)	14.63		%	28.80		%	23.48		%	(3.15		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,794			$4,615			$4,549			$5,107			$4,815
Ratios to average net assets:
Net investment income (loss)	(1.41		%)	(1.39		%)	(1.40		%)	(1.23		%)	(1.42		%)
Total expenses^c	2.40		%	2.40		%	2.42		%	2.40		%	2.41		%
Portfolio turnover rate	1,506		%	598		%	563		%	447		%	141		%


^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 | 468

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$30.76			$35.55			$44.64			$54.64			$61.14
Income (loss) from investment operations:
Net investment income (loss)^a	(0.38		)	(0.48		)	(0.64		)	(0.84		)	(1.02		)
Net gain (loss) on investments (realized and unrealized)	0.32			(4.31		)	(8.45		)	(9.16		)	(5.48		)
Total from investment operations	(0.06		)	(4.79		)	(9.09		)	(10.00		)	(6.50		)
Net asset value, end of period		$30.70			$30.76			$35.55			$44.64			$54.64
Total Return^b	(0.16		%)	(13.47		%)	(20.36		%)	(18.29		%)	(10.65		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$111			$47			$93			$26			$115
Ratios to average net assets:
Net investment income (loss)	(1.18		%)	(1.40		%)	(1.65		%)	(1.52		%)	(1.63		%)
Total expenses^c	1.65		%	1.66		%	1.67		%	1.64		%	1.66		%
Portfolio turnover rate	199		%	38		%	—			—			—

469 | PROSPECTUS

Financial Highlights (continued)

INVERSE MID-CAP STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$28.16			$32.78			$41.49			$51.18			$57.72
Income (loss) from investment operations:
Net investment income (loss)^a	(0.59		)	(0.67		)	(0.90		)	(1.14		)	(1.44		)
Net gain (loss) on investments (realized and unrealized)	0.32			(3.95		)	(7.81		)	(8.55		)	(5.10		)
Total from investment operations	(0.27		)	(4.62		)	(8.71		)	(9.69		)	(6.54		)
Net asset value, end of period		$27.89			$28.16			$32.78			$41.49			$51.18
Total Return^b	(0.96		%)	(14.09		%)	(20.99		%)	(18.93		%)	(11.33		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$273			$89			$131			$216			$121
Ratios to average net assets:
Net investment income (loss)	(2.00		%)	(2.13		%)	(2.40		%)	(2.29		%)	(2.39		%)
Total expenses^c	2.41		%	2.41		%	2.42		%	2.40		%	2.42		%
Portfolio turnover rate	199		%	38		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 470

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$58.05			$53.23			$39.32			$32.20			$34.37
Income (loss) from investment operations:
Net investment income (loss)^a	(0.43		)	(0.39		)	(0.37		)	(0.16		)	(0.39		)
Net gain (loss) on investments (realized and unrealized)	(9.03		)	5.41			14.28			7.28			(1.78		)
Total from investment operations	(9.46		)	5.02			13.91			7.12			(2.17		)
Less distributions from:
Net realized gains	(3.81		)	(0.20		)	—			—			—
Total distributions	(3.81		)	(0.20		)	—			—			—
Net asset value, end of period		$44.78			$58.05			$53.23			$39.32			$32.20
Total Return^b	(16.75		%)	9.48		%	35.38		%	22.11		%	(6.31		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$497			$627			$614			$392			$1,355
Ratios to average net assets:
Net investment income (loss)	(0.85		%)	(0.74		%)	(0.78		%)	(0.51		%)	(1.24		%)
Total expenses^c	1.70		%	1.70		%	1.72		%	1.71		%	1.73		%
Portfolio turnover rate	971		%	830		%	472		%	527		%	177		%

471 | PROSPECTUS

Financial Highlights (continued)

RUSSELL 2000^® 1.5X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$52.01			$48.08			$35.78			$29.52			$31.75
Income (loss) from investment operations:
Net investment income (loss)^a	(0.73		)	(0.70		)	(0.65		)	(0.34		)	(0.54		)
Net gain (loss) on investments (realized and unrealized)	(8.03		)	4.83			12.95			6.60			(1.69		)
Total from investment operations	(8.76		)	4.13			12.30			6.26			(2.23		)
Less distributions from:
Net realized gains	(3.81		)	(0.20		)	—			—			—
Total distributions	(3.81		)	(0.20		)	—			—			—
Net asset value, end of period		$39.44			$52.01			$48.08			$35.78			$29.52
Total Return^b	(17.36		%)	8.64		%	34.38		%	21.21		%	(7.02		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,322			$1,800			$1,864			$1,685			$1,839
Ratios to average net assets:
Net investment income (loss)	(1.62		%)	(1.49		%)	(1.55		%)	(1.15		%)	(1.99		%)
Total expenses^c	2.45		%	2.45		%	2.47		%	2.46		%	2.49		%
Portfolio turnover rate	971		%	830		%	472		%	527		%	177		%

^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 | 472

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$38.88			$37.80			$32.26			$28.20			$28.54
Income (loss) from investment operations:
Net investment income (loss)^a	(0.29		)	(0.25		)	(0.27		)	(0.13		)	(0.23		)
Net gain (loss) on investments (realized and unrealized)	(4.12		)	2.61			7.54			4.19			(0.11		)
Total from investment operations	(4.41		)	2.36			7.27			4.06			(0.34		)
Less distributions from:
Net realized gains	(0.91		)	(1.28		)	(1.73		)	—			—
Total distributions	(0.91		)	(1.28		)	(1.73		)	—			—
Net asset value, end of period		$33.56			$38.88			$37.80			$32.26			$28.20
Total Return^b	(11.43		%)	6.42		%	22.87		%	14.40		%	(1.19		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,993			$13,920			$3,219			$3,723			$670
Ratios to average net assets:
Net investment income (loss)	(0.83		%)	(0.67		%)	(0.77		%)	(0.44		%)	(0.89		%)
Total expenses	1.59		%	1.57		%	1.60		%	1.55		%	1.58		%
Portfolio turnover rate	442		%	947		%	267		%	160		%	121		%

473 | PROSPECTUS

Financial Highlights (continued)

RUSSELL 2000^® FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$36.00			$35.36			$30.54			$26.90			$27.46
Income (loss) from investment operations:
Net investment income (loss)^a	(0.51		)	(0.60		)	(0.48		)	(0.31		)	(0.46		)
Net gain (loss) on investments (realized and unrealized)	(3.80		)	2.52			7.03			3.95			(0.10		)
Total from investment operations	(4.31		)	1.92			6.55			3.64			(0.56		)
Less distributions from:
Net realized gains	(0.91		)	(1.28		)	(1.73		)	—			—
Total distributions	(0.91		)	(1.28		)	(1.73		)	—			—
Net asset value, end of period		$30.78			$36.00			$35.36			$30.54			$26.90
Total Return^b	(12.07		%)	5.61		%	21.78		%	13.53		%	(2.40		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,760			$4,259			$3,245			$2,599			$6,285
Ratios to average net assets:
Net investment income (loss)	(1.56		%)	(1.77		%)	(1.47		%)	(1.19		%)	(1.83		%)
Total expenses	2.35		%	2.57		%	2.37		%	2.31		%	2.34		%
Portfolio turnover rate	442		%	947		%	267		%	160		%	121		%


^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 | 474

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$29.22			$33.01			$43.21			$52.38			$59.31
Income (loss) from investment operations:
Net investment income (loss)^a	(0.39		)	(0.46		)	(0.61		)	(0.81		)	(1.02		)
Net gain (loss) on investments (realized and unrealized)	1.93			(3.33		)	(9.59		)	(8.36		)	(5.91		)
Total from investment operations	1.54			(3.79		)	(10.20		)	(9.17		)	(6.93		)
Net asset value, end of period		$30.76			$29.22			$33.01			$43.21			$52.38
Total Return^b	5.27		%	(11.48		%)	(23.59		%)	(17.53		%)	(11.68		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,795			$894			$7,302			$635			$612
Ratios to average net assets:
Net investment income (loss)	(1.23		%)	(1.40		%)	(1.69		%)	(1.60		%)	(1.66		%)
Total expenses^c	1.70		%	1.71		%	1.72		%	1.72		%	1.75		%
Portfolio turnover rate	584		%	189		%	—			—			—

475 | PROSPECTUS

Financial Highlights (continued)

INVERSE RUSSELL 2000^® STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$26.86			$30.59			$40.30			$49.22			$56.14
Income (loss) from investment operations:
Net investment income (loss)^a	(0.58		)	(0.63		)	(0.83		)	(1.14		)	(1.41		)
Net gain (loss) on investments (realized and unrealized)	1.79			(3.10		)	(8.88		)	(7.78		)	(5.51		)
Total from investment operations	1.21			(3.73		)	(9.71		)	(8.92		)	(6.92		)
Net asset value, end of period		$28.07			$26.86			$30.59			$40.30			$49.22
Total Return^b	4.50		%	(12.19		%)	(24.08		%)	(18.16		%)	(12.29		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,729			$1,680			$568			$409			$837
Ratios to average net assets:
Net investment income (loss)	(2.08		%)	(2.13		%)	(2.45		%)	(2.35		%)	(2.43		%)
Total expenses^c	2.45		%	2.45		%	2.47		%	2.47		%	2.51		%
Portfolio turnover rate	584		%	189		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 476

Financial Highlights

DOW JONES INDUSTRIAL AVERAGE^® 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,
Class A	2016^a
Per Share Data
Net asset value, beginning of period		$50.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.03		)
Net gain (loss) on investments (realized and unrealized)	(0.37		)
Total from investment operations	(0.40		)
Net asset value, end of period		$49.60
Total Return^d	(0.80		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$44,351
Ratios to average net assets:
Net investment income (loss)	(0.21		%)
Total expenses^c	1.55		%
Portfolio turnover rate	98		%

477 | PROSPECTUS

Financial Highlights (continued)

DOW JONES INDUSTRIAL AVERAGE^® FUND



	Period Ended March 31,
Class C	2016^a
Per Share Data
Net asset value, beginning of period		$50.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.70		)
Net gain (loss) on investments (realized and unrealized)	(0.46		)
Total from investment operations	(0.53		)
Net asset value, end of period		$49.47
Total Return^d	(1.06		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$732
Ratios to average net assets:
Net investment income (loss)	(0.43		%)
Total expenses^c	2.30		%
Portfolio turnover rate	98		%


^a	Since commencement of operations: December 1, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.


^b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Total return does not reflect the impact of any applicable sales charges.

478 | 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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$55.85			$50.81			$38.86			$34.54			$33.15
Income (loss) from investment operations:
Net investment income (loss)^a	(0.22		)	(0.33		)	(0.23		)	(0.13		)	(0.20		)
Net gain (loss) on investments
(realized and unrealized)	(2.47		)	6.86			12.18			4.45			1.82
Total from investment operations	(2.69		)	6.53			11.95			4.32			1.62
Less distributions from:
Net realized gains	(1.42		)	(1.49		)	—			—			(0.23		)
Total distributions	(1.42		)	(1.49		)	—			—			(0.23		)
Net asset value, end of period		$51.74			$55.85			$50.81			$38.86			$34.54
Total Return^b	(4.90		%)	12.98		%	30.75		%	12.51		%	4.96		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$24,037			$25,768			$19,978			$15,001			$2,846
Ratios to average net assets:
Net investment income (loss)	(0.41		%)	(0.62		%)	(0.51		%)	(0.38		%)	(0.62		%)
Total expenses	1.50		%	1.50		%	1.52		%	1.51		%	1.52		%
Portfolio turnover rate	290		%	274		%	594		%	421		%	586		%

479 | PROSPECTUS

Financial Highlights (continued)

S&P 500^® PURE GROWTH FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$51.23			$47.07			$36.27			$32.48			$31.42
Income (loss) from investment operations:
Net investment income (loss)^a	(0.57		)	(0.67		)	(0.52		)	(0.38		)	(0.41		)
Net gain (loss) on investments (realized and unrealized)	(2.25		)	6.32			11.32			4.17			1.70
Total from investment operations	(2.82		)	5.65			10.80			3.79			1.29
Less distributions from:
Net realized gains	(1.42		)	(1.49		)	—			—			(0.23		)
Total distributions	(1.42		)	(1.49		)	—			—			(0.23		)
Net asset value, end of period		$46.99			$51.23			$47.07			$36.27			$32.48
Total Return^b	(5.61		%)	12.13		%	29.78		%	11.70		%	4.15		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$17,546			$22,701			$17,042			$8,692			$11,623
Ratios to average net assets:
Net investment income (loss)	(1.16		%)	(1.37		%)	(1.24		%)	(1.19		%)	(1.35		%)
Total expenses	2.25		%	2.25		%	2.27		%	2.25		%	2.26		%
Portfolio turnover rate	290		%	274		%	594		%	421		%	586		%


^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 | 480

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$145.09			$141.39			$111.68			$93.49			$90.21
Income (loss) from investment operations:
Net investment income (loss)^a	1.46			1.14			0.61			0.58			0.30
Net gain (loss) on investments (realized and unrealized)	(9.28		)	6.83			35.01			17.75			2.98
Total from investment operations	(7.82		)	7.97			35.62			18.33			3.28
Less distributions from:
Net investment income	(1.96		)	(0.14		)	(0.23		)	(0.14		)	—
Net realized gains	(3.25		)	(4.13		)	(5.68		)	—			—
Total distributions	(5.21		)	(4.27		)	(5.91		)	(0.14		)	—
Net asset value, end of period		$132.06			$145.09			$141.39			$111.68			$93.49
Total Return^b	(5.44		%)	5.60		%	32.21		%	19.63		%	3.64		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,135			$16,222			$4,435			$1,303			$1,846
Ratios to average net assets:
Net investment income (loss)	1.08		%	0.78		%	0.47		%	0.61		%	0.34		%
Total expenses	1.50		%	1.51		%	1.52		%	1.51		%	1.51		%
Portfolio turnover rate	365		%	295		%	410		%	669		%	762		%

481 | PROSPECTUS

Financial Highlights (continued)

S&P 500^® PURE VALUE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$130.15			$128.19			$102.46			$86.42			$83.99
Income (loss) from investment operations:
Net investment income (loss)^a	0.34			0.04			(0.30		)	(0.19		)	(0.36		)
Net gain (loss) on investments (realized and unrealized)	(8.26		)	6.19			31.94			16.37			2.79
Total from investment operations	(7.92		)	6.23			31.64			16.18			2.43
Less distributions from:
Net investment income	(1.96		)	(0.14		)	(0.23		)	(0.14		)	—
Net realized gains	(3.25		)	(4.13		)	(5.68		)	—			—
Total distributions	(5.21		)	(4.27		)	(5.91		)	(0.14		)	—
Net asset value, end of period		$117.02			$130.15			$128.19			$102.46			$86.42
Total Return^b	(6.15		%)	4.81		%	31.21		%	18.76		%	2.88		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,550			$6,390			$5,090			$3,430			$2,128
Ratios to average net assets:
Net investment income (loss)	0.28		%	0.03		%	(0.26		%)	(0.22		%)	(0.45		%)
Total expenses	2.25		%	2.25		%	2.27		%	2.26		%	2.27		%
Portfolio turnover rate	365		%	295		%	410		%	669		%	762		%


^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 | 482

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$53.86			$58.66			$49.76			$44.11			$42.76
Income (loss) from investment operations:
Net investment income (loss)^a	(0.36		)	(0.29		)	(0.22		)	(0.19		)	(0.45		)
Net gain (loss) on investments (realized and unrealized)	(4.48		)	3.88			11.05			5.84			1.80
Total from investment operations	(4.84		)	3.59			10.83			5.65			1.35
Less distributions from:
Net realized gains	(2.51		)	(8.39		)	(1.93		)	—			—
Total distributions	(2.51		)	(8.39		)	(1.93		)	—			—
Net asset value, end of period		$46.51			$53.86			$58.66			$49.76			$44.11
Total Return^b	(9.23		%)	7.18		%	21.90		%	12.81		%	3.16		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$29,017			$40,648			$59,293			$45,638			$36,052
Ratios to average net assets:
Net investment income (loss)	(0.71		%)	(0.53		%)	(0.40		%)	(0.43		%)	(1.09		%)
Total expenses	1.50		%	1.51		%	1.52		%	1.50		%	1.50		%
Portfolio turnover rate	143		%	134		%	131		%	188		%	226		%

483 | PROSPECTUS

Financial Highlights

S&P MIDCAP 400^® PURE GROWTH FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$48.60			$54.13			$46.39			$41.43			$40.47
Income (loss) from investment operations:
Net investment income (loss)^a	(0.66		)	(0.64		)	(0.58		)	(0.49		)	(0.71		)
Net gain (loss) on investments (realized and unrealized)	(4.02		)	3.50			10.25			5.45			1.67
Total from investment operations	(4.68		)	2.86			9.67			4.96			0.96
Less distributions from:
Net realized gains	(2.51		)	(8.39		)	(1.93		)	—			—
Total distributions	(2.51		)	(8.39		)	(1.93		)	—			—
Net asset value, end of period		$41.41			$48.60			$54.13			$46.39			$41.43
Total Return^b	(9.92		%)	6.39		%	20.98		%	12.00		%	2.35		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$20,279			$26,689			$28,567			$18,837			$16,228
Ratios to average net assets:
Net investment income (loss)	(1.46		%)	(1.26		%)	(1.15		%)	(1.19		%)	(1.83		%)
Total expenses	2.25		%	2.26		%	2.27		%	2.25		%	2.25		%
Portfolio turnover rate	143		%	134		%	131		%	188		%	226		%


^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 | 484

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$45.68			$43.04			$36.18			$30.88			$31.43
Income (loss) from investment operations:
Net investment income (loss)^a	0.16			0.11			(0.03		)	0.07			0.06
Net gain (loss) on investments
(realized and unrealized)	(3.30		)	2.58			7.08			5.23			(0.61		)
Total from investment operations	(3.14		)	2.69			7.05			5.30			(0.55		)
Less distributions from:
Net investment income	(0.11		)	(0.05		)	(0.19		)	—			—
Total distributions	(0.11		)	(0.05		)	(0.19		)	—			—
Net asset value, end of period		$42.43			$45.68			$43.04			$36.18			$30.88
Total Return^b	(6.88		%)	6.25		%	19.49		%	17.16		%	(1.75		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,775			$1,904			$2,357			$1,571			$6,817
Ratios to average net assets:
Net investment income (loss)	0.39		%	0.26		%	(0.06		%)	0.23		%	0.22		%
Total expenses	1.50		%	1.51		%	1.52		%	1.51		%	1.49		%
Portfolio turnover rate	493		%	638		%	506		%	757		%	619		%

485 | PROSPECTUS

Financial Highlights (continued)

S&P MIDCAP 400^® PURE VALUE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$41.59			$39.48			$33.46			$28.78			$29.53
Income (loss) from investment operations:
Net investment income (loss)^a	(0.12		)	(0.18		)	(0.25		)	(0.13		)	(0.16		)
Net gain (loss) on investments
(realized and unrealized)	(3.03		)	2.34			6.46			4.81			(0.59		)
Total from investment operations	(3.15		)	2.16			6.21			4.68			(0.75		)
Less distributions from:
Net investment income	(0.11		)	(0.05		)	(0.19		)	—			—
Total distributions	(0.11		)	(0.05		)	(0.19		)	—			—
Net asset value, end of period		$38.33			$41.59			$39.48			$33.46			$28.78
Total Return^b	(7.58		%)	5.47		%	18.57		%	16.26		%	(2.54		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,165			$3,033			$2,207			$3,413			$2,194
Ratios to average net assets:
Net investment income (loss)	(0.30		%)	(0.44		%)	(0.71		%)	(0.45		%)	(0.60		%)
Total expenses	2.25		%	2.26		%	2.28		%	2.26		%	2.26		%
Portfolio turnover rate	493		%	638		%	506		%	757		%	619		%


^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 | 486

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$58.90			$52.99			$41.94			$37.97			$36.06
Income (loss) from investment operations:
Net investment income (loss)^a	(0.20		)	(0.46		)	(0.31		)	(0.12		)	(0.35		)
Net gain (loss) on investments (realized and unrealized)	(6.42		)	6.37			11.36			4.09			2.26
Total from investment operations	(6.62		)	5.91			11.05			3.97			1.91
Net asset value, end of period		$52.28			$58.90			$52.99			$41.94			$37.97
Total Return^b	(11.24		%)	11.15		%	26.35		%	10.46		%	5.30		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,451			$2,825			$7,265			$995			$1,018
Ratios to average net assets:
Net investment income (loss)	(0.36		%)	(0.88		%)	(0.60		%)	(0.31		%)	(1.00		%)
Total expenses	1.50		%	1.51		%	1.53		%	1.51		%	1.52		%
Portfolio turnover rate	309		%	380		%	677		%	645		%	500		%

487 | PROSPECTUS

Financial Highlights (continued)

S&P SMALLCAP 600^® PURE GROWTH FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$54.28			$49.21			$39.24			$35.79			$34.25
Income (loss) from investment operations:
Net investment income (loss)^a	(0.62		)	(0.74		)	(0.66		)	(0.42		)	(0.57		)
Net gain (loss) on investments (realized and unrealized)	(5.84		)	5.81			10.63			3.87			2.11
Total from investment operations	(6.46		)	5.07			9.97			3.45			1.54
Net asset value, end of period		$47.82			$54.28			$49.21			$39.24			$35.79
Total Return^b	(11.90		%)	10.30		%	25.41		%	9.64		%	4.50		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,542			$5,436			$4,268			$3,122			$2,568
Ratios to average net assets:
Net investment income (loss)	(1.19		%)	(1.50		%)	(1.46		%)	(1.17		%)	(1.71		%)
Total expenses	2.25		%	2.25		%	2.28		%	2.26		%	2.26		%
Portfolio turnover rate	309		%	380		%	677		%	645		%	500		%


^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 | 488

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$25.81			$25.66			$19.55			$17.07			$17.42
Income (loss) from investment operations:
Net investment income (loss)^a	(0.10		)	(0.03		)	(0.09		)	(0.01		)	(0.12		)
Net gain (loss) on investments (realized and unrealized)	(2.55		)	0.18			6.20			2.49			(0.23		)
Total from investment operations	(2.65		)	0.15			6.11			2.48			(0.35		)
Net asset value, end of period		$23.16			$25.81			$25.66			$19.55			$17.07
Total Return^b	(10.27		%)	0.58		%	31.25		%	14.53		%	(2.01		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,113			$1,592			$1,016			$1,551			$961
Ratios to average net assets:
Net investment income (loss)	(0.42		%)	(0.10		%)	(0.39		%)	(0.08		%)	(0.71		%)
Total expenses	1.50		%	1.50		%	1.52		%	1.51		%	1.53		%
Portfolio turnover rate	417		%	579		%	658		%	655		%	744		%

489 | PROSPECTUS

Financial Highlights (continued)

S&P SMALLCAP 600^® PURE VALUE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$22.78			$22.81			$17.51			$15.40			$15.85
Income (loss) from investment operations:
Net investment income (loss)^a	(0.24		)	(0.19		)	(0.22		)	(0.13		)	(0.20		)
Net gain (loss) on investments (realized and unrealized)	(2.26		)	0.16			5.52			2.24			(0.25		)
Total from investment operations	(2.50		)	(0.03		)	5.30			2.11			(0.45		)
Net asset value, end of period		$20.28			$22.78			$22.81			$17.51			$15.40
Total Return^b	(10.97		%)	(0.13		%)	30.27		%	13.70		%	(2.84		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,847			$3,082			$4,514			$3,932			$1,955
Ratios to average net assets:
Net investment income (loss)	(1.17		%)	(0.84		%)	(1.10		%)	(0.84		%)	(1.39		%)
Total expenses	2.25		%	2.25		%	2.27		%	2.26		%	2.26		%
Portfolio turnover rate	417		%	579		%	658		%	655		%	744		%


^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 | 490

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$57.76			$58.75			$48.74			$43.45			$46.38
Income (loss) from investment operations:
Net investment income (loss)^a	0.40			0.26			0.39			0.36			0.30
Net gain (loss) on investments (realized and unrealized)	(6.32		)	(0.83		)	10.23			5.08			(3.18		)
Total from investment operations	(5.92		)	(0.57		)	10.62			5.44			(2.88		)
Less distributions from:
Net investment income	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Total distributions	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Net asset value, end of period		$51.55			$57.76			$58.75			$48.74			$43.45
Total Return^b	(10.31		%)	(0.98		%)	21.84		%	12.60		%	(6.19		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$876			$1,054			$8,305			$2,103			$3,088
Ratios to average net assets:
Net investment income (loss)	0.69		%	0.45		%	0.71		%	0.88		%	0.73		%
Total expenses	1.59		%	1.60		%	1.62		%	1.59		%	1.61		%
Portfolio turnover rate	514		%	583		%	481		%	382		%	544		%

491 | PROSPECTUS

Financial Highlights (continued)

BANKING FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$53.44			$54.69			$45.74			$41.09			$44.20
Income (loss) from investment operations:
Net investment income (loss)^a	0.03			(0.14		)	(0.05		)	0.01			(0.01		)
Net gain (loss) on investments (realized and unrealized)	(5.86		)	(0.79		)	9.61			4.79			(3.05		)
Total from investment operations	(5.83		)	(0.93		)	9.56			4.80			(3.06		)
Less distributions from:
Net investment income	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Total distributions	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Net asset value, end of period		$47.22			$53.34			$54.69			$45.74			$41.09
Total Return^b	(10.99		%)	(1.71		%)	20.95		%	11.74		%	(6.88		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,188			$3,131			$4,307			$4,036			$3,841
Ratios to average net assets:
Net investment income (loss)	0.05		%	(0.26		%)	(0.10		%)	0.02		%	(0.03		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.35		%
Portfolio turnover rate	514		%	583		%	481		%	382		%	544		%


^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 | 492

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$47.54			$49.93			$47.60			$47.58			$53.99
Income (loss) from investment operations:
Net investment income (loss)^a	0.10			0.13			0.22			0.32			(0.01		)
Net gain (loss) on investments (realized and unrealized)	(4.12		)	(2.14		)	2.42			(0.13		)	(6.40		)
Total from investment operations	(4.02		)	(2.01		)	2.64			0.19			(6.41		)
Less distributions from:
Net investment income	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Total distributions	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Net asset value, end of period		$42.65			$47.54			$49.93			$47.60			$47.58
Total Return^b	(8.29		%)	(4.05		%)	5.58		%	0.41		%	(11.87		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,152			$6,194			$13,347			$11,104			$9,410
Ratios to average net assets:
Net investment income (loss)	0.24		%	0.27		%	0.47		%	0.69		%	(0.03		%)
Total expenses	1.60		%	1.60		%	1.63		%	1.61		%	1.61		%
Portfolio turnover rate	471		%	358		%	349		%	251		%	217		%

493 | PROSPECTUS

Financial Highlights (continued)

BASIC MATERIALS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$43.36			$45.91			$44.12			$44.45			$50.80
Income (loss) from investment operations:
Net investment income (loss)^a	(0.17		)	(0.23		)	(0.15		)	(0.03		)	(0.33		)
Net gain (loss) on investments (realized and unrealized)	(3.80		)	(1.94		)	2.25			(0.13		)	(6.02		)
Total from investment operations	(3.97		)	(2.17		)	2.10			(0.16		)	(6.35		)
Less distributions from:
Net investment income	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Total distributions	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Net asset value, end of period		$38.52			$43.36			$45.91			$44.12			$44.45
Total Return^b	(8.98		%)	(4.76		%)	4.80		%	(0.35		%)	(12.50		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,430			$3,133			$5,150			$6,666			$8,317
Ratios to average net assets:
Net investment income (loss)	(0.43		%)	(0.49		%)	(0.34		%)	(0.07		%)	(0.73		%)
Total expenses	2.35		%	2.35		%	2.38		%	2.36		%	2.36		%
Portfolio turnover rate	471		%	358		%	349		%	251		%	217		%


^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 | 494

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$87.63			$64.41			$46.18			$34.88			$27.64
Income (loss) from investment operations:
Net investment income (loss)^a	(0.91		)	(0.44		)	(0.62		)	(0.48		)	(0.37		)
Net gain (loss) on investments (realized and unrealized)	(21.75		)	26.82			18.85			11.78			7.61
Total from investment operations	(22.66		)	26.38			18.23			11.30			7.24
Less distributions from:
Net realized gains	(1.28		)	(3.16		)	—			—			—
Total distributions	(1.28		)	(3.16		)	—			—			—
Net asset value, end of period		$63.69			$87.63			$64.41			$46.18			$34.88
Total Return^b	(26.17		%)	41.83		%	39.48		%	32.40		%	26.19		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$48,672			$89,260			$51,270			$26,391			$4,741
Ratios to average net assets:
Net investment income (loss)	(1.09		%)	(0.59		%)	(1.07		%)	(1.21		%)	(1.30		%)
Total expenses	1.57		%	1.58		%	1.61		%	1.61		%	1.61		%
Portfolio turnover rate	83		%	107		%	119		%	197		%	333		%

495 | PROSPECTUS

Financial Highlights (continued)

BIOTECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$80.88			$60.10			$43.41			$33.04			$26.38
Income (loss) from investment operations:
Net investment income (loss)^a	(1.40		)	(0.92		)	(0.99		)	(0.73		)	(0.58		)
Net gain (loss) on investments (realized and unrealized)	(19.93		)	24.86			17.68			11.10			7.24
Total from investment operations	(21.33		)	23.94			16.69			10.37			6.66
Less distributions from:
Net realized gains	(1.28		)	(3.16		)	—			—			—
Total distributions	(1.28		)	(3.16		)	—			—			—
Net asset value, end of period		$58.27			$80.88			$60.10			$43.41			$33.04
Total Return^b	(26.72		%)	40.75		%	38.45		%	31.39		%	25.25		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$26,185			$41,424			$27,170			$13,677			$6,969
Ratios to average net assets:
Net investment income (loss)	(1.84		%)	(1.34		%)	(1.82		%)	(1.96		%)	(2.06		%)
Total expenses	2.33		%	2.33		%	2.36		%	2.36		%	2.36		%
Portfolio turnover rate	83		%	107		%	119		%	197		%	333		%


^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 | 496

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$54.66			$48.79			$45.00			$37.93			$34.49
Income (loss) from investment operations:
Net investment income (loss)^a	0.45			0.48			0.33			0.44			0.40
Net gain (loss) on investments (realized and unrealized)	4.56			6.07			5.44			6.74			4.53
Total from investment operations	5.01			6.55			5.77			7.18			4.93
Less distributions from:
Net investment income	(0.49		)	(0.24		)	(0.46		)	(0.11		)	(0.57		)
Net realized gains	(0.75		)	(0.44		)	(1.52		)	—			(0.92		)
Total distributions	(1.24		)	(0.68		)	(1.98		)	(0.11		)	(1.49		)
Net asset value, end of period		$58.43			$54.66			$48.79			$45.00			$37.93
Total Return^b	9.38		%	13.47		%	12.95		%	18.98		%	14.80		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$53,560			$32,762			$25,538			$21,604			$21,021
Ratios to average net assets:
Net investment income (loss)	0.82		%	0.92		%	0.70		%	1.12		%	1.11		%
Total expenses	1.60		%	1.60		%	1.62		%	1.60		%	1.60		%
Portfolio turnover rate	104		%	87		%	112		%	230		%	402		%

497 | PROSPECTUS

Financial Highlights (continued)

CONSUMER PRODUCTS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$49.18			$44.29			$41.32			$35.11			$32.28
Income (loss) from investment operations:
Net investment income (loss)^a	0.03			0.09			(0.01		)	0.13			0.12
Net gain (loss) on investments (realized and unrealized)	4.07			5.48			4.96			6.19			4.20
Total from investment operations	4.10			5.57			4.95			6.32			4.32
Less distributions from:
Net investment income	(0.49		)	(0.24		)	(0.46		)	(0.11		)	(0.57		)
Net realized gains	(0.75		)	(0.44		)	(1.52		)	—			(0.92		)
Total distributions	(1.24		)	(0.68		)	(1.98		)	(0.11		)	(1.49		)
Net asset value, end of period		$52.04			$49.18			$44.29			$41.32			$35.11
Total Return^b	8.57		%	12.62		%	12.11		%	18.06		%	13.91		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$23,799			$17,717			$14,125			$11,699			$9,712
Ratios to average net assets:
Net investment income (loss)	0.05		%	0.20		%	(0.02		%)	0.37		%	0.36		%
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.35		%
Portfolio turnover rate	104		%	87		%	112		%	230		%	402		%


^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 | 498

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$78.62			$65.87			$49.29			$52.23			$57.59
Income (loss) from investment operations:
Net investment income (loss)^a	(0.20		)	(0.17		)	(0.33		)	0.24			(0.19		)
Net gain (loss) on investments (realized and unrealized)	(2.04		)	12.92			16.95			(3.18		)	(5.17		)
Total from investment operations	(2.24		)	12.75			16.62			(2.94		)	(5.36		)
Less distributions from:
Net investment income	(0.13		)	—			(0.04		)	—			—
Total distributions	(0.13		)	—			(0.04		)	—			—
Net asset value, end of period		$76.25			$78.62			$65.87			$49.29			$52.23
Total Return^b	(2.84		%)	19.36		%	33.72		%	(5.63		%)	(9.31		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,762			$1,680			$5,329			$299			$659
Ratios to average net assets:
Net investment income (loss)	(0.26		%)	(0.24		%)	(0.59		%)	0.51		%	(0.36		%)
Total expenses	1.60		%	1.61		%	1.62		%	1.60		%	1.62		%
Portfolio turnover rate	769		%	562		%	1,436		%	1,640		%	1,329		%

499 | PROSPECTUS

Financial Highlights (continued)

ELECTRONICS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$72.76			$61.40			$46.32			$49.50			$55.03
Income (loss) from investment operations:
Net investment income (loss)^a	(0.63		)	(0.35		)	(0.54		)	(0.18		)	(0.70		)
Net gain (loss) on investments (realized and unrealized)	(1.98		)	11.71			15.66			(3.00		)	(4.83		)
Total from investment operations	(2.61		)	11.36			15.12			(3.18		)	(5.53		)
Less distributions from:
Net investment income	(0.13		)	—			(0.04		)	—			—
Total distributions	(0.13		)	—			(0.04		)	—			—
Net asset value, end of period		$70.02			$72.76			$61.40			$46.32			$49.50
Total Return^b	(3.58		%)	18.50		%	32.65		%	(6.44		%)	(10.01		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$719			$1,280			$1,043			$667			$263
Ratios to average net assets:
Net investment income (loss)	(0.91		%)	(0.55		%)	(1.03		%)	(0.41		%)	(1.42		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.36		%
Portfolio turnover rate	769		%	562		%	1,436		%	1,640		%	1,329		%


^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 | 500

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$21.94			$28.07			$24.76			$23.38			$27.40
Income (loss) from investment operations:
Net investment income (loss)^a	0.19			0.12			0.08			0.08			(0.01		)
Net gain (loss) on investments (realized and unrealized)	(6.18		)	(6.14		)	3.23			1.77			(4.01		)
Total from investment operations	(5.99		)	(6.02		)	3.31			1.85			(4.02		)
Less distributions from:
Net investment income	(0.13		)	(0.11		)	—			(0.07		)	—
Net realized gains	(0.15		)	—			—			—			—
Return of capital	—			—			—			(0.40		)	—
Total distributions	(0.28		)	(0.11		)	—			(0.47		)	—
Net asset value, end of period		$15.67			$21.94			$28.07			$24.76			$23.38
Total Return^b	(27.46		%)	(21.49		%)	13.37		%	8.20		%	(14.67		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,274			$4,671			$6,624			$5,586			$5,622
Ratios to average net assets:
Net investment income (loss)	1.02		%	0.43		%	0.30		%	0.38		%	(0.05		%)
Total expenses	1.60		%	1.60		%	1.62		%	1.60		%	1.61		%
Portfolio turnover rate	595		%	463		%	231		%	248		%	288		%

501 | PROSPECTUS

Financial Highlights (continued)

ENERGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$19.98			$25.80			$22.93			$21.85			$25.78
Income (loss) from investment operations:
Net investment income (loss)^a	0.02			(0.05		)	(0.12		)	(0.09		)	(0.19		)
Net gain (loss) on investments (realized and unrealized)	(5.58		)	(5.66		)	2.99			1.64			(3.74		)
Total from investment operations	(5.56		)	(5.71		)	2.87			1.55			(3.93		)
Less distributions from:
Net investment income	(0.13		)	(0.11		)	—			(0.07		)	—
Net realized gains	(0.15		)	—			—			—			—
Return of capital	—			—			—			(0.40		)	—
Total distributions	(0.28		)	(0.11		)	—			(0.47		)	—
Net asset value, end of period		$14.14			$19.98			$25.80			$22.93			$21.85
Total Return^b	(28.01		%)	(22.18		%)	12.52		%	7.40		%	(15.24		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,198			$6,754			$8,357			$9,693			$13,153
Ratios to average net assets:
Net investment income (loss)	0.15		%	(0.20		%)	(0.52		%)	(0.45		%)	(0.84		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.36		%
Portfolio turnover rate	595		%	463		%	231		%	248		%	288		%


^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 | 502

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$37.72			$59.34			$51.86			$48.59			$60.01
Income (loss) from investment operations:
Net investment income (loss)^a	0.24			0.25			(0.13		)	(0.17		)	(0.25		)
Net gain (loss) on investments (realized and unrealized)	(10.36		)	(22.27		)	7.61			3.44			(11.17		)
Total from investment operations	(10.12		)	(22.02		)	7.48			3.27			(11.42		)
Less distributions from:
Net investment income	(0.34		)	—			—			—			—
Total distributions	(0.34		)	—			—			—			—
Net asset value, end of period		$26.86			$37.32			$59.34			$51.86			$48.59
Total Return^b	(27.22		%)	(37.11		%)	14.42		%	6.73		%	(19.03		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,849			$3,545			$7,557			$5,535			$7,115
Ratios to average net assets:
Net investment income (loss)	0.73		%	0.47		%	(0.23		%)	(0.37		%)	(0.47		%)
Total expenses	1.59		%	1.60		%	1.62		%	1.60		%	1.61		%
Portfolio turnover rate	1,241		%	494		%	350		%	275		%	162		%

503 | PROSPECTUS

Financial Highlights (continued)

ENERGY SERVICES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$34.28			$54.92			$48.37			$45.66			$56.81
Income (loss) from investment operations:
Net investment income (loss)^a	(0.05		)	(0.12		)	(0.50		)	(0.49		)	(0.54		)
Net gain (loss) on investments (realized and unrealized)	(9.43		)	(20.52		)	7.05			3.20			(10.61		)
Total from investment operations	(9.48		)	(20.64		)	6.55			2.71			(11.15		)
Less distributions from:
Net investment income	(0.34		)	—			—			—			—
Total distributions	(0.34		)	—			—			—			—
Net asset value, end of period		$24.46			$34.28			$54.92			$48.37			$45.66
Total Return^b	(27.76		%)	(37.58		%)	13.54		%	5.94		%	(19.63		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,544			$3,889			$8,616			$8,654			$10,144
Ratios to average net assets:
Net investment income (loss)	(0.16		%)	(0.24		%)	(0.97		%)	(1.11		%)	(1.13		%)
Total expenses	2.35		%	2.36		%	2.37		%	2.35		%	2.36		%
Portfolio turnover rate	1,241		%	494		%	350		%	275		%	162		%


^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 | 504

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$109.65			$100.94			$86.48			$75.07			$77.87
Income (loss) from investment operations:
Net investment income (loss)^a	0.92			0.43			0.58			0.51			0.45
Net gain (loss) on investments (realized and unrealized)	(7.66		)	8.54			14.44			11.45			(3.22		)
Total from investment operations	(6.74		)	8.97			15.02			11.96			(2.77		)
Less distributions from:
Net investment income	(0.60		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net realized gains	(0.31		)	—			—			—			—
Total distributions	(0.91		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net asset value, end of period		$102.00			$109.65			$100.94			$86.48			$75.07
Total Return^b	(6.17		%)	8.89		%	17.41		%	16.06		%	(3.57		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,039			$2,734			$7,698			$1,826			$632
Ratios to average net assets:
Net investment income (loss)	0.87		%	0.41		%	0.62		%	0.66		%	0.64		%
Total expenses	1.60		%	1.59		%	1.62		%	1.61		%	1.61		%
Portfolio turnover rate	268		%	326		%	414		%	590		%	970		%

505 | PROSPECTUS

Financial Highlights (continued)

FINANCIAL SERVICES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$100.28			$93.02			$80.30			$70.26			$73.42
Income (loss) from investment operations:
Net investment income (loss)^a	0.21			(0.22		)	(0.16		)	0.03			(0.12		)
Net gain (loss) on investments (realized and unrealized)	(7.09		)	7.74			13.44			10.56			(3.01		)
Total from investment operations	(6.88		)	7.52			13.28			10.59			(3.13		)
Less distributions from:
Net investment income	(0.60		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net realized gains	(0.31		)	—			—			—			—
Total distributions	(0.91		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net asset value, end of period		$92.49			$100.28			$93.02			$80.30			$70.26
Total Return^b	(6.89		%)	8.08		%	16.58		%	15.21		%	(4.27		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,065			$1,255			$1,051			$1,440			$817
Ratios to average net assets:
Net investment income (loss)	0.22		%	(0.23		%)	(0.18		%)	0.04		%	(0.18		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.36		%	2.36		%
Portfolio turnover rate	268		%	326		%	414		%	590		%	970		%


^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 | 506

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$33.60			$26.11			$21.15			$17.87			$16.30
Income (loss) from investment operations:
Net investment income (loss)^a	(0.13		)	(0.14		)	(0.09		)	0.04			(0.02		)
Net gain (loss) on investments (realized and unrealized)	(4.76		)	7.99			6.61			3.29			1.59
Total from investment operations	(4.89		)	7.85			6.52			3.33			1.57
Less distributions from:
Net investment income	—			—			(0.03		)	(0.05		)	—
Net realized gains	(2.03		)	(0.36		)	(1.53		)	—			—
Total distributions	(2.03		)	(0.36		)	(1.56		)	(0.05		)	—
Net asset value, end of period		$26.68			$33.60			$26.11			$21.15			$17.87
Total Return^b	(15.04		%)	30.21		%	31.36		%	18.65		%	9.63		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,410			$28,704			$7,909			$3,660			$2,964
Ratios to average net assets:
Net investment income (loss)	(0.42		%)	(0.47		%)	(0.37		%)	0.20		%	(0.13		%)
Total expenses	1.59		%	1.59		%	1.62		%	1.60		%	1.60		%
Portfolio turnover rate	249		%	176		%	277		%	266		%	582		%

507 | PROSPECTUS

Financial Highlights (continued)

HEALTH CARE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$30.82			$24.16			$19.81			$16.86			$15.50
Income (loss) from investment operations:
Net investment income (loss)^a	(0.33		)	(0.33		)	(0.26		)	(0.09		)	(0.14		)
Net gain (loss) on investments (realized and unrealized)	(4.33		)	7.35			6.17			3.09			1.50
Total from investment operations	(4.66		)	7.02			5.91			3.00			1.36
Less distributions from:
Net investment income	—			—			(0.03		)	(0.05		)	—
Net realized gains	(2.03		)	(0.36		)	(1.53		)	—			—
Total distributions	(2.03		)	(0.36		)	(1.56		)	(0.05		)	—
Net asset value, end of period		$24.13			$30.82			$24.16			$19.81			$16.86
Total Return^b	(15.67		%)	29.21		%	30.38		%	17.81		%	8.77		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,284			$11,551			$7,318			$4,589			$3,468
Ratios to average net assets:
Net investment income (loss)	(1.17		%)	(1.24		%)	(1.14		%)	(0.53		%)	(0.91		%)
Total expenses	2.35		%	2.34		%	2.37		%	2.35		%	2.36		%
Portfolio turnover rate	249		%	176		%	277		%	266		%	582		%


^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 | 508

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$73.71			$71.32			$52.85			$49.63			$50.13
Income (loss) from investment operations:
Net investment income (loss)^a	(0.69		)	(0.61		)	(0.79		)	(0.52		)	(0.64		)
Net gain (loss) on investments (realized and unrealized)	0.85			4.96			19.58			5.00			0.14
Total from investment operations	0.16			4.35			18.79			4.48			(0.50		)
Less distributions from:
Net realized gains	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Total distributions	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Net asset value, end of period		$73.54			$73.71			$71.32			$52.85			$49.63
Total Return^b	0.20		%	6.12		%	35.58		%	9.41		%	(1.00		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,803			$2,022			$12,566			$1,192			$828
Ratios to average net assets:
Net investment income (loss)	(0.92		%)	(0.86		%)	(1.12		%)	(1.08		%)	(1.39		%)
Total expenses	1.60		%	1.61		%	1.62		%	1.60		%	1.61		%
Portfolio turnover rate	520		%	495		%	472		%	442		%	380		%

509 | PROSPECTUS

Financial Highlights (continued)

INTERNET FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$67.17			$65.64			$49.03			$46.50			$47.30
Income (loss) from investment operations:
Net investment income (loss)^a	(1.03		)	(1.11		)	(1.16		)	(0.85		)	(0.94		)
Net gain (loss) on investments (realized and unrealized)	0.68			4.60			18.09			4.64			0.14
Total from investment operations	(0.35		)	3.49			16.93			3.79			(0.80		)
Less distributions from:
Net realized gains	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Total distributions	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Net asset value, end of period		$66.49			$67.17			$65.64			$49.03			$46.50
Total Return^b	(0.54		%)	5.34		%	34.56		%	8.55		%	(1.69		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,798			$2,436			$4,655			$1,111			$643
Ratios to average net assets:
Net investment income (loss)	(1.53		%)	(1.68		%)	(1.85		%)	(1.91		%)	(2.17		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.36		%
Portfolio turnover rate	520		%	495		%	472		%	442		%	380		%

^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 | 510

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$56.88			$52.46			$42.35			$34.91			$31.75
Income (loss) from investment operations:
Net investment income (loss)^a	0.08			0.38			0.04			0.29			0.07
Net gain (loss) on investments (realized and unrealized)	0.74			5.26			10.34			7.18			3.09
Total from investment operations	0.82			5.64			10.38			7.47			3.16
Less distributions from:
Net investment income	(0.32		)	(0.12		)	(0.27		)	(0.03		)	—
Net realized gains	(0.11		)	(1.10		)	—			—			—
Total distributions	(0.43		)	(1.22		)	(0.27		)	(0.03		)	—
Net asset value, end of period		$57.27			$56.88			$52.46			$42.35			$34.91
Total Return^b	1.45		%	10.86		%	24.53		%	21.42		%	9.95		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,990			$10,703			$1,778			$1,409			$448
Ratios to average net assets:
Net investment income (loss)	0.15		%	0.69		%	0.09		%	0.80		%	0.23		%
Total expenses	1.60		%	1.58		%	1.62		%	1.60		%	1.60		%
Portfolio turnover rate	339		%	343		%	265		%	517		%	797		%

511 | PROSPECTUS

Financial Highlights (continued)

LEISURE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$52.72			$49.07			$39.92			$33.16			$30.36
Income (loss) from investment operations:
Net investment income (loss)^a	(0.28		)	(0.19		)	(0.27		)	0.01			(0.15		)
Net gain (loss) on investments (realized and unrealized)	0.64			5.06			9.69			6.78			2.95
Total from investment operations	0.36			4.87			9.42			6.79			2.80
Less distributions from:
Net investment income	(0.32		)	(0.12		)	(0.27		)	(0.03		)	—
Net realized gains	(0.11		)	(1.10		)	—			—			—
Total distributions	(0.43		)	(1.22		)	(0.27		)	(0.03		)	—
Net asset value, end of period		$52.65			$52.72			$49.07			$39.92			$33.16
Total Return^b	0.69		%	10.04		%	23.61		%	20.54		%	9.19		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,353			$1,590			$1,460			$928			$1,345
Ratios to average net assets:
Net investment income (loss)	(0.54		%)	(0.37		%)	(0.59		%)	0.03		%	(0.50		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.35		%
Portfolio turnover rate	339		%	343		%	265		%	517		%	797		%

^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 | 512

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$24.28			$34.75			$50.28			$64.21			$84.97
Income (loss) from investment operations:
Net investment income (loss)^a	(0.12		)	(0.10		)	0.16			0.21			(0.22		)
Net gain (loss) on investments (realized and unrealized)	2.34			(9.57		)	(15.52		)	(11.84		)	(20.25		)
Total from investment operations	2.22			(9.67		)	(15.36		)	(11.63		)	(20.47		)
Less distributions from:
Net investment income	(0.11		)	(0.80		)	(0.17		)	(0.10		)	(0.29		)
Net realized gains	—			—			—			(2.20		)	—
Total distributions	(0.11		)	(0.80		)	(0.17		)	(2.30		)	(0.29		)
Net asset value, end of period		$26.39			$24.28			$34.75			$50.28			$64.21
Total Return^b	9.38		%	(28.13		%)	(30.52		%)	(18.80		%)	(24.13		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,711			$4,928			$5,235			$5,988			$6,412
Ratios to average net assets:
Net investment income (loss)	(0.54		%)	(0.29		%)	0.45		%	0.35		%	(0.30		%)
Total expenses^c	1.50		%	1.50		%	1.52		%	1.50		%	1.51		%
Portfolio turnover rate	797		%	371		%	348		%	206		%	235		%

513 | PROSPECTUS

Financial Highlights (continued)

PRECIOUS METALS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$21.67			$31.34			$45.72			$59.02			$78.70
Income (loss) from investment operations:
Net investment income (loss)^a	(0.26		)	(0.29		)	(0.07		)	(0.23		)	(0.72		)
Net gain (loss) on investments (realized and unrealized)	2.08			(8.58		)	(14.14		)	(10.77		)	(18.67		)
Total from investment operations	1.82			(8.87		)	(14.21		)	(11.00		)	(19.39		)
Less distributions from:
Net investment income	(0.11		)	(0.80		)	(0.17		)	(0.10		)	(0.29		)
Net realized gains	—			—			—			(2.20		)	—
Total distributions	(0.11		)	(0.80		)	(0.17		)	(2.30		)	(0.29		)
Net asset value, end of period		$23.38			$21.67			$31.34			$45.72			$59.02
Total Return^b	8.66		%	(28.64		%)	(31.05		%)	(19.39		%)	(24.68		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,825			$5,590			$9,250			$18,608			$26,533
Ratios to average net assets:
Net investment income (loss)	(1.34		%)	(0.99		%)	(0.22		%)	(0.42		%)	(1.04		%)
Total expenses^c	2.25		%	2.25		%	2.27		%	2.25		%	2.26		%
Portfolio turnover rate	797		%	371		%	348		%	206		%	235		%

^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 | 514

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$26.85			$22.48			$18.79			$16.77			$14.14
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	0.06			(0.09		)	0.03			(0.03		)
Net gain (loss) on investments (realized and unrealized)	(1.05		)	4.31			3.78			1.99			2.67
Total from investment operations	(1.14		)	4.37			3.69			2.02			2.64
Less distributions from:
Net investment income	(0.02		)	—			—			—			(0.01		)
Total distributions	(0.02		)	—			—			—			(0.01		)
Net asset value, end of period		$25.69			$26.85			$22.48			$18.79			$16.77
Total Return^b	(4.24		%)	19.44		%	19.64		%	12.05		%	18.71		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,313			$19,502			$2,049			$1,500			$5,697
Ratios to average net assets:
Net investment income (loss)	(0.36		%)	0.25		%	(0.42		%)	0.20		%	(0.18		%)
Total expenses	1.60		%	1.58		%	1.62		%	1.59		%	1.58		%
Portfolio turnover rate	238		%	395		%	671		%	472		%	822		%

515 | PROSPECTUS

Financial Highlights (continued)

RETAILING FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$24.46			$20.64			$17.40			$15.62			$13.27
Income (loss) from investment operations:
Net investment income (loss)^a	(0.24		)	(0.19		)	(0.23		)	(0.06		)	(0.13		)
Net gain (loss) on investments (realized and unrealized)	(0.97		)	4.01			3.47			1.84			2.49
Total from investment operations	(1.21		)	3.82			3.24			1.78			2.36
Less distributions from:
Net investment income	(0.02		)	—			—			—			(0.01		)
Total distributions	(0.02		)	—			—			—			(0.01		)
Net asset value, end of period		$23.23			$24.46			$20.64			$17.40			$15.62
Total Return^b	(4.94		%)	18.51		%	18.62		%	11.40		%	17.83		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,532			$3,455			$2,503			$1,831			$2,603
Ratios to average net assets:
Net investment income (loss)	(1.04		%)	(0.88		%)	(1.16		%)	(0.39		%)	(0.96		%)
Total expenses	2.35		%	2.34		%	2.37		%	2.35		%	2.35		%
Portfolio turnover rate	238		%	395		%	671		%	472		%	822		%


^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 | 516

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$57.69			$52.79			$41.30			$40.76			$39.83
Income (loss) from investment operations:
Net investment income (loss)^a	(0.14		)	(0.21		)	(0.23		)	(0.09		)	(0.30		)
Net gain (loss) on investments (realized and unrealized)	(0.67		)	5.11			11.72			0.63			1.23
Total from investment operations	(0.81		)	4.90			11.49			0.54			0.93
Net asset value, end of period		$56.88			$57.69			$52.79			$41.30			$40.76
Total Return^b	(1.40		%)	9.28		%	27.79		%	1.32		%	2.33		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,327			$9,960			$5,873			$1,998			$7,367
Ratios to average net assets:
Net investment income (loss)	(0.25		%)	(0.39		%)	(0.47		%)	(0.27		%)	(0.76		%)
Total expenses	1.60		%	1.59		%	1.62		%	1.59		%	1.59		%
Portfolio turnover rate	388		%	280		%	321		%	324		%	487		%

517 | PROSPECTUS

Financial Highlights (continued)

TECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$53.50			$49.30			$38.84			$38.65			$38.07
Income (loss) from investment operations:
Net investment income (loss)^a	(0.59		)	(0.58		)	(0.50		)	(0.33		)	(0.51		)
Net gain (loss) on investments (realized and unrealized)	(0.54		)	4.78			10.96			0.52			1.09
Total from investment operations	(1.13		)	4.20			10.46			0.19			0.58
Net asset value, end of period		$52.37			$53.50			$49.30			$38.84			$38.65
Total Return^b	(2.11		%)	8.52		%	26.90		%	0.54		%	1.50		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,234			$2,910			$2,827			$1,715			$2,743
Ratios to average net assets:
Net investment income (loss)	(1.12		%)	(1.13		%)	(1.13		%)	(0.90		%)	(1.45		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.36		%
Portfolio turnover rate	388		%	280		%	321		%	324		%	487		%


^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 | 518

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$42.63			$42.74			$38.44			$39.27			$44.72
Income (loss) from investment operations:
Net investment income (loss)^a	0.58			0.58			0.72			0.72			0.54
Net gain (loss) on investments (realized and unrealized)	(1.88		)	0.61			4.15			(0.65		)	(4.67		)
Total from investment operations	(1.30		)	1.19			4.87			0.07			(4.13		)
Less distributions from:
Net investment income	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Total distributions	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Net asset value, end of period		$39.88			$42.63			$42.74			$38.44			$39.27
Total Return^b	(2.90		%)	2.75		%	12.80		%	0.30		%	(8.91		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,544			$454			$2,631			$553			$1,566
Ratios to average net assets:
Net investment income (loss)	1.41		%	1.35		%	1.79		%	1.98		%	1.41		%
Total expenses	1.59		%	1.60		%	1.63		%	1.61		%	1.60		%
Portfolio turnover rate	660		%	804		%	1,271		%	1,550		%	793		%

519 | PROSPECTUS

Financial Highlights (continued)

TELECOMMUNICATIONS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$39.35			$39.89			$36.00			$37.04			$42.57
Income (loss) from investment operations:
Net investment income (loss)^a	(0.01		)	0.06			0.54			0.48			0.15
Net gain (loss) on investments (realized and unrealized)	(1.46		)	0.70			3.92			(0.62		)	(4.36		)
Total from investment operations	(1.47		)	0.76			4.46			(0.14		)	(4.21		)
Less distributions from:
Net investment income	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Total distributions	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Net asset value, end of period		$36.43			$39.35			$39.89			$36.00			$37.04
Total Return^b	(3.59		%)	1.86		%	12.49		%	(0.24		%)	(9.52		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$248			$499			$271			$784			$672
Ratios to average net assets:
Net investment income (loss)	(0.03		%)	0.14		%	1.42		%	1.41		%	0.39		%
Total expenses	2.35		%	2.35		%	2.38		%	2.36		%	2.36		%
Portfolio turnover rate	660		%	804		%	1,271		%	1,550		%	793		%


^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 | 520

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$48.41			$41.61			$29.96			$25.25			$26.15
Income (loss) from investment operations:
Net investment income (loss)^a	0.04			0.05			(0.11		)	(0.01		)	(0.12		)
Net gain (loss) on investments (realized and unrealized)	(5.37		)	6.75			11.76			4.72			(0.78		)
Total from investment operations	(5.33		)	6.80			11.65			4.71			(0.90		)
Less distributions from:
Net investment income	(0.21		)	—			—			—			—
Total distributions	(0.21		)	—			—			—			—
Net asset value, end of period		$42.87			$48.41			$41.61			$29.96			$25.25
Total Return^b	(11.01		%)	16.34		%	38.89		%	18.70		%	(3.48		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,340			$15,359			$12,938			$4,558			$1,600
Ratios to average net assets:
Net investment income (loss)	0.08		%	0.12		%	(0.28		%)	(0.05		%)	(0.51		%)
Total expenses	1.60		%	1.60		%	1.62		%	1.60		%	1.61		%
Portfolio turnover rate	219		%	247		%	593		%	737		%	1,082		%

521 | PROSPECTUS

Financial Highlights (continued)

TRANSPORTATION FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$45.63			$39.52			$28.67			$24.34			$25.38
Income (loss) from investment operations:
Net investment income (loss)^a	(0.24		)	(0.27		)	(0.37		)	(0.26		)	(0.29		)
Net gain (loss) on investments (realized and unrealized)	(5.09		)	6.38			11.22			4.59			(0.75		)
Total from investment operations	(5.33		)	6.11			10.85			4.33			(1.04		)
Less distributions from:
Net investment income	(0.21		)	—			—			—			—
Total distributions	(0.21		)	—			—			—			—
Net asset value, end of period		$40.09			$45.63			$39.52			$28.67			$24.34
Total Return^b	(11.69		%)	15.46		%	37.84		%	17.79		%	(4.10		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,977			$6,405			$3,734			$2,727			$2,729
Ratios to average net assets:
Net investment income (loss)	(0.57		%)	(0.62		%)	(1.07		%)	(1.06		%)	(1.24		%)
Total expenses	2.35		%	2.35		%	2.37		%	2.35		%	2.35		%
Portfolio turnover rate	219		%	247		%	593		%	737		%	1,082		%


^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 | 522

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$34.70			$32.02			$30.95			$27.69			$25.75
Income (loss) from investment operations:
Net investment income (loss)^a	0.63			0.66			0.63			0.65			0.67
Net gain (loss) on investments (realized and unrealized)	2.87			2.15			1.90			3.73			1.67
Total from investment operations	3.50			2.81			2.53			4.38			2.34
Less distributions from:
Net investment income	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Total distributions	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Net asset value, end of period		$37.63			$34.70			$32.02			$30.95			$27.69
Total Return^b	10.38		%	8.78		%	8.64		%	16.46		%	9.16		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$22,448			$9,782			$11,417			$6,938			$7,912
Ratios to average net assets:
Net investment income (loss)	1.85		%	1.93		%	2.05		%	2.26		%	2.47		%
Total expenses	1.60		%	1.60		%	1.63		%	1.61		%	1.60		%
Portfolio turnover rate	475		%	384		%	508		%	534		%	549		%

523 | PROSPECTUS

Financial Highlights (continued)

UTILITIES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$30.70			$28.55			$27.96			$25.31			$23.76
Income (loss) from investment operations:
Net investment income (loss)^a	0.28			0.36			0.34			0.42			0.42
Net gain (loss) on investments (realized and unrealized)	2.55			1.92			1.71			3.35			1.53
Total from investment operations	2.83			2.28			2.05			3.77			1.95
Less distributions from:
Net investment income	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Total distributions	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Net asset value, end of period		$32.96			$30.70			$28.55			$27.96			$25.31
Total Return^b	9.55		%	7.99		%	7.83		%	15.58		%	8.28		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,439			$8,417			$8,387			$7,001			$6,961
Ratios to average net assets:
Net investment income (loss)	0.94		%	1.18		%	1.22		%	1.62		%	1.70		%
Total expenses	2.35		%	2.35		%	2.38		%	2.36		%	2.35		%
Portfolio turnover rate	475		%	384		%	508		%	534		%	549		%


^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 | 524

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$15.55			$17.40			$14.16			$12.57			$14.06
Income (loss) from investment operations:
Net investment income (loss)^a	(0.01		)	0.05			0.16			(0.03		)	0.10
Net gain (loss) on investments (realized and unrealized)	(2.40		)	(1.85		)	3.08			1.65			(1.59		)
Total from investment operations	(2.41		)	(1.80		)	3.24			1.62			(1.49		)
Less distributions from:
Net investment income	(0.12		)	(0.05		)	—			(0.03		)	—
Total distributions	(0.12		)	(0.05		)	—			(0.03		)	—
Net asset value, end of period		$13.02			$15.55			$17.40			$14.16			$12.57
Total Return^b	(15.58		%)	(10.33		%)	22.88		%	12.92		%	(10.60		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$859			$1,165			$2,551			$3,916			$694
Ratios to average net assets:
Net investment income (loss)	(0.08		%)	0.33		%	1.00		%	(0.23		%)	0.77		%
Total expenses^c	1.67		%	1.72		%	1.72		%	1.67		%	1.67		%
Portfolio turnover rate	920		%	608		%	654		%	903		%	318		%

525 | PROSPECTUS

Financial Highlights (continued)

EUROPE 1.25X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$13.77			$15.52			$12.89			$11.53			$12.97
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	(0.08		)	(0.07		)	(0.10		)	—^d
Net gain (loss) on investments (realized and unrealized)	(2.12		)	(1.62		)	2.70			1.49			(1.44		)
Total from investment operations	(2.21		)	(1.70		)	2.63			1.39			(1.44		)
Less distributions from:
Net investment income	(0.12		)	(0.05		)	—			(0.03		)	—
Total distributions	(0.12		)	(0.05		)	—			(0.03		)	—
Net asset value, end of period		$11.44			$13.77			$15.52			$12.89			$11.53
Total Return^b	(16.14		%)	(10.94		%)	20.40		%	12.09		%	(11.10		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$440			$1,023			$535			$402			$439
Ratios to average net assets:
Net investment income (loss)	(0.64		%)	(0.50		%)	(0.48		%)	(0.83		%)	0.03		%
Total expenses^c	2.42		%	2.48		%	2.47		%	2.42		%	2.43		%
Portfolio turnover rate	920		%	608		%	654		%	903		%	318		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Net investment income (loss) is less than $0.01 per share.

PROSPECTUS | 526

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$23.29			$19.31			$17.39			$15.45			$14.95
Income (loss) from investment operations:
Net investment income (loss)^a	(0.28		)	(0.25		)	(0.31		)	(0.20		)	(0.22		)
Net gain (loss) on investments (realized and unrealized)	(3.31		)	4.23			2.23			2.14			0.72
Total from investment operations	(3.59		)	3.98			1.92			1.94			0.50
Net asset value, end of period		$19.70			$23.29			$19.31			$17.39			$15.45
Total Return^b	(15.41		%)	20.61		%	11.04		%	12.56		%	3.34		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$351			$447			$624			$2,025			$1,428
Ratios to average net assets:
Net investment income (loss)	(1.22		%)	(1.27		%)	(1.50		%)	(1.40		%)	(1.49		%)
Total expenses^c	1.51		%	1.54		%	1.52		%	1.51		%	1.51		%
Portfolio turnover rate	543		%	405		%	—			—			—

527 | PROSPECTUS

Financial Highlights (continued)

JAPAN 2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$22.23			$18.49			$16.76			$14.99			$14.60
Income (loss) from investment operations:
Net investment income (loss)^a	(0.42		)	(0.39		)	(0.43		)	(0.29		)	(0.31		)
Net gain (loss) on investments (realized and unrealized)	(3.15		)	4.13			2.16			2.06			0.70
Total from investment operations	(3.57		)	3.74			1.73			1.77			0.39
Net asset value, end of period		$18.66			$22.23			$18.49			$16.76			$14.99
Total Return^b	(16.06		%)	20.23		%	10.32		%	11.81		%	2.67		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$56			$317			$104			$246			$140
Ratios to average net assets:
Net investment income (loss)	(1.91		%)	(2.04		%)	(2.25		%)	(2.15		%)	(2.23		%)
Total expenses^c	2.24		%	2.30		%	2.27		%	2.25		%	2.26		%
Portfolio turnover rate	543		%	405		%	—			—			—


^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 | 528

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^e			2013^e			2012^e
Per Share Data
Net asset value, beginning of period		$60.50			$66.27			$73.59			$87.40			$134.76
Income (loss) from investment operations:
Net investment income (loss)^a	(0.23		)	(0.37		)	(0.54		)	(0.35		)	(—)^b
Net gain (loss) on investments (realized and unrealized)	(14.83		)	(5.40		)	(6.78		)	(13.46		)	(41.76		)
Total from investment operations	(15.06		)	(5.77		)	(7.32		)	(13.81		)	(41.76		)
Less distributions from:
Net investment income	(0.65		)	—			—			—			—
Net realized gains	—			—			—			—			(5.60		)
Total distributions	(0.65		)	—			—			—			(5.60		)
Net asset value, end of period		$44.79			$60.50			$66.27			$73.59			$87.40
Total Return^c	(24.84		%)	(8.72		%)	(9.96		%)	(15.79		%)	(30.00		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,988			$382			$744			$106			$363
Ratios to average net assets:
Net investment income (loss)	(0.48		%)	(0.53		%)	(0.82		%)	(0.51		%)	(0.01		%)
Total expenses	1.75		%	1.75		%	1.81		%	1.88		%	1.77		%
Net expenses	1.75		%	1.75		%	1.76%^d			1.75%^d			1.69%^d
Portfolio turnover rate	2,874		%	1,085		%	1,412		%	730		%	883		%

529 | PROSPECTUS

Financial Highlights (continued)

EMERGING MARKETS 2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^e			2013^e			2012^e
Per Share Data
Net asset value, beginning of period		$59.37			$65.46			$72.92			$87.31			$134.13
Income (loss) from investment operations:
Net investment income (loss)^a	(0.74		)	(0.73		)	(1.04		)	(1.25		)	(0.90		)
Net gain (loss) on investments (realized and unrealized)	(14.42		)	(5.36		)	(6.42		)	(13.14		)	(40.32		)
Total from investment operations	(15.16		)	(6.09		)	(7.46		)	(14.39		)	(41.22		)
Less distributions from:
Net investment income	(0.65		)	—			—			—			—
Net realized gains	—			—			—			—			(5.60		)
Total distributions	(0.65		)	—			—			—			(5.60		)
Net asset value, end of period		$43.56			$59.37			$65.46			$72.92			$87.31
Total Return^c	(25.48		%)	(9.32		%)	(10.21		%)	(16.49		%)	(29.75		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$271			$1,287			$409			$108			$62
Ratios to average net assets:
Net investment income (loss)	(1.49		%)	(0.99		%)	(1.73		%)	(1.61		%)	(0.87		%)
Total expenses	2.46		%	2.48		%	2.66		%	2.59		%	2.54		%
Net expenses	2.46		%	2.48		%	2.61%^d			2.46%^d			2.46%^d
Portfolio turnover rate	2,874		%	1,085		%	1,412		%	730		%	883		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Net investment loss is less than $0.01 per share.


^c	Total return does not reflect the impact of any applicable sales charges.


^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 | 530

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$16.87			$18.34			$19.23			$19.29			$21.15
Income (loss) from investment operations:
Net investment income (loss)^a	(0.32		)	(0.29		)	(0.35		)	(0.33		)	(0.39		)
Net gain (loss) on investments (realized and unrealized)	0.42			(1.18		)	(0.54		)	0.27			(1.47		)
Total from investment operations	0.10			(1.47		)	(0.89		)	(0.06		)	(1.86		)
Net asset value, end of period		$16.97			$16.87			$18.34			$19.23			$19.29
Total Return^b	0.53		%	(7.96		%)	(4.63		%)	(0.26		%)	(8.84		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$448			$62			$4,859			$258			$8
Ratios to average net assets:
Net investment income (loss)	(1.59		%)	(1.74		%)	(1.74		%)	(1.60		%)	(1.66		%)
Total expenses	1.75		%	1.75		%	1.78		%	1.85		%	1.78		%
Net expenses	1.75		%	1.75		%	1.75%^c			1.71%^c			1.69%^c
Portfolio turnover rate	—			—			—			—			—

531 | PROSPECTUS

Financial Highlights (continued)

INVERSE EMERGING MARKETS 2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$17.37			$19.03			$20.07			$20.25			$21.33
Income (loss) from investment operations:
Net investment income (loss)^a	(0.47		)	(0.39		)	(0.52		)	(0.49		)	(0.55		)
Net gain (loss) on investments (realized and unrealized)	0.41			(1.27		)	(0.52		)	0.31			(0.53		)
Total from investment operations	(0.06		)	(1.66		)	(1.04		)	(0.18		)	(1.08		)
Net asset value, end of period		$17.31			$17.37			$19.03			$20.07			$20.25
Total Return^b	(0.29		%)	(8.78		%)	(5.23		%)	(0.84		%)	(5.06%)^d
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$371			$102			$262			$115			$1,261
Ratios to average net assets:
Net investment income (loss)	(2.44		%)	(2.47		%)	(2.44		%)	(2.41		%)	(2.41		%)
Total expenses	2.50		%	2.48		%	2.48		%	2.65		%	2.53		%
Net expenses	2.50		%	2.48		%	2.46%^c			2.51%^c			2.44%^c
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	Net expense information reflects the expense ratios after expense waivers.

Generally, the performance of the Fund’s Class C shares will underperform the Fund’s Class H shares and Class A shares due to the Class C shares’ higher expense ratio. However, the performance of the Fund’s Class C shares is greater than that of the Class H shares and Class A shares due to the impact large redemptions of Class C shares had on the expense accruals for Class C shares. The effect of the expense accruals on the performance of the Class C shares of the Fund was magnified by the small asset base of the Class C shares.

PROSPECTUS | 532

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$55.75			$38.36			$42.75			$40.35			$40.39
Income (loss) from investment operations:
Net investment income (loss)^a	(0.58		)	(0.56		)	(0.69		)	(0.63		)	(0.66		)
Net gain (loss) on investments (realized and unrealized)	(5.32		)	17.95			(3.70		)	3.03			0.62
Total from investment operations	(5.90		)	17.39			(4.39		)	2.40			(0.04		)
Less distributions from:
Net realized gains	(2.17		)	—			—			—			—
Total distributions	(2.17		)	—			—			—			—
Net asset value, end of period		$47.68			$55.75			$38.36			$42.75			$40.35
Total Return^b	(11.01		%)	45.33		%	(10.27		%)	5.95		%	(0.07		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,900			$15,765			$3,547			$10,427			$6,875
Ratios to average net assets:
Net investment income (loss)	(1.10		%)	(1.19		%)	(1.72		%)	(1.53		%)	(1.62		%)
Total expenses^c	1.69		%	1.68		%	1.74		%	1.66		%	1.68		%
Portfolio turnover rate	376		%	299		%	—			—			—

533 | PROSPECTUS

Financial Highlights (continued)

STRENGTHENING DOLLAR 2x STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$51.55			$35.74			$40.15			$38.14			$38.48
Income (loss) from investment operations:
Net investment income (loss)^a	(0.85		)	(0.81		)	(0.94		)	(0.90		)	(0.90		)
Net gain (loss) on investments (realized and unrealized)	(4.93		)	16.62			(3.47		)	2.91			0.56
Total from investment operations	(5.78		)	15.81			(4.41		)	2.01			(0.34		)
Less distributions from:
Net realized gains	(2.17		)	—			—			—			—
Total distributions	(2.17		)	—			—			—			—
Net asset value, end of period		$43.60			$51.55			$35.74			$40.15			$38.14
Total Return^b	(11.69		%)	44.24		%	(10.96		%)	5.27		%	(0.94		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,938			$3,836			$2,099			$3,530			$4,091
Ratios to average net assets:
Net investment income (loss)	(1.75		%)	(1.96		%)	(2.48		%)	(2.29		%)	(2.36		%)
Total expenses^c	2.45		%	2.44		%	2.50		%	2.42		%	2.44		%
Portfolio turnover rate	376		%	299		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 534

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$11.78			$17.86			$16.95			$18.95			$20.34
Income (loss) from investment operations:
Net investment income (loss)^a	(0.14		)	(0.20		)	(0.30		)	(0.28		)	(0.33		)
Net gain (loss) on investments (realized and unrealized)	0.91			(5.88		)	1.21			(1.72		)	(1.06		)
Total from investment operations	0.77			(6.08		)	0.91			(2.00		)	(1.39		)
Net asset value, end of period		$12.55			$11.78			$17.86			$16.95			$18.95
Total Return^b	6.54		%	(34.04		%)	5.37		%	(10.55		%)	(6.83		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,314			$508			$1,129			$1,346			$2,881
Ratios to average net assets:
Net investment income (loss)	(1.13		%)	(1.23		%)	(1.73		%)	(1.53		%)	(1.62		%)
Total expenses^c	1.70		%	1.70		%	1.75		%	1.65		%	1.70		%
Portfolio turnover rate	699		%	219		%	—			—			—

535 | PROSPECTUS

Financial Highlights (continued)

WEAKENING DOLLAR 2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$10.81			$16.51			$15.79			$17.79			$19.23
Income (loss) from investment operations:
Net investment income (loss)^a	(0.20		)	(0.29		)	(0.40		)	(0.38		)	(0.44		)
Net gain (loss) on investments (realized and unrealized)	0.82			(5.41		)	1.12			(1.62		)	(1.00		)
Total from investment operations	0.62			(5.70		)	0.72			(2.00		)	(1.44		)
Net asset value, end of period		$11.43			$10.81			$16.51			$15.79			$17.79
Total Return^b	5.74		%	(34.52		%)	4.56		%	(11.24		%)	(7.49		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$536			$163			$821			$1,687			$2,826
Ratios to average net assets:
Net investment income (loss)	(1.81		%)	(1.94		%)	(2.49		%)	(2.27		%)	(2.36		%)
Total expenses^c	2.45		%	2.46		%	2.52		%	2.39		%	2.44		%
Portfolio turnover rate	699		%	219		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.

PROSPECTUS | 536

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$38.34			$33.47			$34.43			$30.27			$29.06
Income (loss) from investment operations:
Net investment income (loss)^a	0.65			0.42			0.65			0.58			0.45
Net gain (loss) on investments (realized and unrealized)	(1.24		)	4.77			(0.14		)	4.18			1.07
Total from investment operations	(0.59		)	5.19			0.51			4.76			1.52
Less distributions from:
Net investment income	(0.44		)	(0.32		)	(1.47		)	(0.60		)	(0.31		)
Total distributions	(0.44		)	(0.32		)	(1.47		)	(0.60		)	(0.31		)
Net asset value, end of period		$37.31			$38.34			$33.47			$34.43			$30.27
Total Return^b	(1.46		%)	15.58		%	1.86		%	16.03		%	5.42		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,223			$6,329			$4,124			$12,495			$2,364
Ratios to average net assets:
Net investment income (loss)	1.82		%	1.13		%	1.92		%	1.82		%	1.59		%
Total expenses	1.62		%	1.60		%	1.65		%	1.61		%	1.61		%
Portfolio turnover rate	880		%	599		%	788		%	699		%	974		%

537 | PROSPECTUS

Financial Highlights (continued)

REAL ESTATE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$34.81			$30.64			$31.89			$28.29			$27.41
Income (loss) from investment operations:
Net investment income (loss)^a	0.22			0.23			0.29			0.27			0.22
Net gain (loss) on investments (realized and unrealized)	(1.03		)	4.26			(0.07		)	3.93			0.97
Total from investment operations	(0.81		)	4.49			0.22			4.20			1.19
Less distributions from:
Net investment income	(0.44		)	(0.32		)	(1.47		)	(0.60		)	(0.31		)
Total distributions	(0.44		)	(0.32		)	(1.47		)	(0.60		)	(0.31		)
Net asset value, end of period		$33.56			$34.81			$30.64			$31.89			$28.29
Total Return^b	(2.25		%)	14.73		%	1.09		%	15.12		%	4.57		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,947			$2,937			$2,497			$2,910			$1,798
Ratios to average net assets:
Net investment income (loss)	0.69		%	0.70		%	0.93		%	0.92		%	0.83		%
Total expenses	2.36		%	2.35		%	2.38		%	2.35		%	2.36		%
Portfolio turnover rate	880		%	599		%	788		%	699		%	974		%


^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 | 538

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$59.47			$46.07			$48.73			$44.77			$34.34
Income (loss) from investment operations:
Net investment income (loss)^a	0.64			0.51			0.48			0.48			0.87
Net gain (loss) on investments (realized and unrealized)	(0.65		)	13.42			(2.65		)	4.29			10.43
Total from investment operations	(0.01		)	13.93			(2.17		)	4.77			11.30
Less distributions from:
Net investment income	(0.96		)	(0.53		)	(0.49		)	(0.57		)	(0.87		)
Net realized gains	—			—			—			(0.24		)	—
Total distributions	(0.96		)	(0.53		)	(0.49		)	(0.81		)	(0.87		)
Net asset value, end of period		$58.50			$59.47			$46.07			$48.73			$44.77
Total Return^b	0.12		%	30.37		%	(4.40		%)	10.62		%	33.00		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,438			$3,879			$1,724			$15,476			$10,885
Ratios to average net assets:
Net investment income (loss)	1.16		%	0.97		%	1.04		%	0.94		%	2.02		%
Total expenses^c	1.20		%	1.20		%	1.22		%	1.20		%	1.20		%
Portfolio turnover rate	2,699		%	1,932		%	2,661		%	1,759		%	2,322		%

539 | PROSPECTUS

Financial Highlights (continued)

GOVERNMENT LONG BOND 1.2X STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$59.09			$45.79			$48.51			$44.63			$34.25
Income (loss) from investment operations:
Net investment income (loss)^a	0.22			0.13			0.12			0.15			0.57
Net gain (loss) on investments (realized and unrealized)	(0.64		)	13.30			(2.71		)	4.21			10.35
Total from investment operations	(0.42		)	13.43			(2.59		)	4.36			10.92
Less distributions from:
Net investment income	(0.54		)	(0.13		)	(0.13		)	(0.24		)	(0.54		)
Net realized gains	—			—			—			(0.24		)	—
Total distributions	(0.54		)	(0.13		)	(0.13		)	(0.48		)	(0.54		)
Net asset value, end of period		$58.13			$59.09			$45.79			$48.51			$44.63
Total Return^b	(0.62		%)	29.37		%	(5.33		%)	9.69		%	32.01		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,276			$2,873			$3,198			$4,594			$4,451
Ratios to average net assets:
Net investment income (loss)	0.41		%	0.26		%	0.34		%	0.31		%	1.32		%
Total expenses^c	1.95		%	1.95		%	1.97		%	1.94		%	1.95		%
Portfolio turnover rate	2,699		%	1,932		%	2,661		%	1,759		%	2,322		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 540

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$34.66			$44.68			$42.77			$47.18			$64.00
Income (loss) from investment operations:
Net investment income (loss)^a	(1.20		)	(1.23		)	(1.73		)	(1.35		)	(2.25		)
Net gain (loss) on investments (realized and unrealized)	(0.35		)	(8.79		)	3.64			(3.06		)	(14.57		)
Total from investment operations	(1.55		)	(10.02		)	1.91			(4.41		)	(16.82		)
Net asset value, end of period		$33.11			$34.66			$44.68			$42.77			$47.18
Total Return^b	(4.47		%)	(22.43		%)	4.51		%	(9.43		%)	(26.25		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$17,676			$21,580			$49,859			$32,842			$37,607
Ratios to average net assets:
Net investment income (loss)	(3.32		%)	(3.06		%)	(3.73		%)	(3.20		%)	(4.24		%)
Total expenses^d,e	3.75		%	3.40		%	3.78		%	3.37		%	4.38		%
Portfolio turnover rate	838		%	2,190		%	1,097		%	1,309		%	1,107		%

541 | PROSPECTUS

Financial Highlights (continued)

INVERSE GOVERNMENT LONG BOND STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$31.07			$40.35			$38.92			$43.25			$59.09
Income (loss) from investment operations:
Net investment income (loss)^a	(1.31		)	(1.36		)	(1.86		)	(1.50		)	(2.40		)
Net gain (loss) on investments (realized and unrealized)	(0.30		)	(7.92		)	3.29			(2.83		)	(13.44		)
Total from investment operations	(1.61		)	(9.28		)	1.43			(4.33		)	(15.84		)
Net asset value, end of period		$29.46			$31.07			$40.35			$38.92			$43.25
Total Return^b	(5.18		%)	(23.00		%)	3.73		%	(10.06		%)	(26.82		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$27,899			$35,874			$57,323			$55,404			$69,472
Ratios to average net assets:
Net investment income (loss)	(4.08		%)	(3.78		%)	(4.45		%)	(3.96		%)	(4.98		%)
Total expenses^d,e	4.50		%	4.14		%	4.49		%	4.13		%	5.12		%
Portfolio turnover rate	838		%	2,190		%	1,097		%	1,309		%	1,107		%


^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	Does not include expenses of the underlying funds in which the Fund invests.


^e	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratios for the years ended would be:



	03/31/16	03/31/15	03/31/14	03/28/13	03/31/12
Class A	1.65%	1.65%	1.66%	1.64%	1.65%
Class C	2.40%	2.40%	2.41%	2.39%	2.40%

PROSPECTUS | 542

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$23.84			$22.89			$25.16			$22.93			$21.98
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	(0.15		)	(0.30		)	(0.22		)	(0.27		)
Net gain (loss) on investments (realized and unrealized)	0.46			1.10			2.13			3.13			1.77
Total from investment operations	0.37			0.95			1.83			2.91			1.50
Less distributions from:
Net investment income	(0.89		)	—			(1.14		)	(0.43		)	(0.55		)
Net realized gains	—			—			(2.96		)	(0.25		)	—
Total distributions	(0.89		)	—			(4.10		)	(0.68		)	(0.55		)
Net asset value, end of period		$23.32			$23.84			$22.89			$25.16			$22.93
Total Return^b	1.66		%	4.06		%	7.53		%	12.86		%	6.94		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,787			$10,123			$12,499			$10,777			$11,890
Ratios to average net assets:
Net investment income (loss)	(0.40		%)	(0.63		%)	(1.21		%)	(0.92		%)	(1.21		%)
Total expenses^c	1.49		%	1.50		%	1.53		%	1.50		%	1.49		%
Portfolio turnover rate	521		%	393		%	205		%	95		%	583		%

543 | PROSPECTUS

Financial Highlights (continued)

HIGH YIELD STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$22.01			$21.29			$23.83			$21.92			$21.19
Income (loss) from investment operations:
Net investment income (loss)^a	(0.19		)	(0.27		)	(0.44		)	(0.37		)	(0.45		)
Net gain (loss) on investments (realized and unrealized)	0.32			0.99			2.00			2.96			1.73
Total from investment operations	0.13			0.72			1.56			2.59			1.28
Less distributions from:
Net investment income	(0.89		)	—			(1.14		)	(0.43		)	(0.55		)
Net realized gains	—			—			(2.96		)	(0.25		)	—
Total distributions	(0.89		)	—			(4.10		)	(0.68		)	(0.55		)
Net asset value, end of period		$21.25			$22.01			$21.29			$23.83			$21.92
Total Return^b	0.70		%	3.33		%	6.74		%	11.98		%	6.16		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,020			$3,632			$5,100			$6,958			$7,343
Ratios to average net assets:
Net investment income (loss)	(0.88		%)	(1.25		%)	(1.89		%)	(1.62		%)	(2.10		%)
Total expenses^c	2.24		%	2.25		%	2.28		%	2.27		%	2.25		%
Portfolio turnover rate	521		%	393		%	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 | 544

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$19.23			$21.27			$23.98			$28.15			$31.99
Income (loss) from investment operations:
Net investment income (loss)^a	(0.20		)	(0.21		)	(0.35		)	(0.37		)	(0.43		)
Net gain (loss) on investments (realized and unrealized)	(1.11		)	(1.83		)	(2.36		)	(3.80		)	(3.41		)
Total from investment operations	(1.31		)	(2.04		)	(2.71		)	(4.17		)	(3.84		)
Net asset value, end of period		$17.92			$19.23			$21.27			$23.98			$28.15
Total Return^b	(6.81		%)	(9.59		%)	(11.30		%)	(14.81		%)	(11.98		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,642			$372			$5,155			$157			$556
Ratios to average net assets:
Net investment income (loss)	(1.07		%)	(1.02		%)	(1.52		%)	(1.38		%)	(1.39		%)
Total expenses^c	1.50		%	1.52		%	1.54		%	1.49		%	1.51		%
Portfolio turnover rate	1,722		%	784		%	—			—			—

545 | PROSPECTUS

Financial Highlights (continued)

INVERSE HIGH YIELD STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$18.31			$20.23			$22.98			$27.21			$31.12
Income (loss) from investment operations:
Net investment income (loss)^a	(0.29		)	(0.30		)	(0.50		)	(0.53		)	(0.55		)
Net gain (loss) on investments (realized and unrealized)	(1.10		)	(1.62		)	(2.25		)	(3.70		)	(3.36		)
Total from investment operations	(1.39		)	(1.92		)	(2.75		)	(4.23		)	(3.91		)
Net asset value, end of period		$16.92			$18.31			$20.23			$22.98			$27.21
Total Return^b	(7.59		%)	(9.49		%)	(11.97		%)	(15.51		%)	(12.60		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,653			$734			$1,561			$2,037			$693
Ratios to average net assets:
Net investment income (loss)	(1.60		%)	(1.53		%)	(2.28		%)	(2.13		%)	(1.87		%)
Total expenses^c	2.25		%	2.25		%	2.30		%	2.25		%	2.26		%
Portfolio turnover rate	1,722		%	784		%	—			—			—


^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 | 546

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.



	Year Ended March 31,			Year Ended March 31,			Period Ended March 31,
Class A	2016			2015			2014^a
Per Share Data
Net asset value, beginning of period		$20.38			$25.17			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	0.28			(0.36		)	(0.21		)
Net gain (loss) on investments (realized and unrealized)	0.56			(0.94		)	0.38
Total from investment operations	0.84			(1.30		)	0.17
Less distributions from:
Net investment income	(3.03		)	(3.49		)	—
Total distributions	(3.03		)	(3.49		)	—
Net asset value, end of period		$18.19			$20.38			$25.17
Total Return^c	5.13		%	(5.31		%)	0.72		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$259			$39			$499
Ratios to average net assets:
Net investment income (loss)	1.59		%	(1.50		%)	(1.78		%)
Total expenses^d	1.58		%	1.71		%	1.83		%
Portfolio turnover rate	21,555		%	655		%	—

547 | PROSPECTUS

Financial Highlights (continued)

EMERGING MARKETS BOND STRATEGY FUND



	Year Ended March 31,			Year Ended March 31,			Period Ended March 31,
Class C	2016			2015			2014^a
Per Share Data
Net asset value, beginning of period		$20.08			$25.09			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.25		)	(0.45		)	(0.28		)
Net gain (loss) on investments (realized and unrealized)	0.83			(1.07		)	0.37
Total from investment operations	0.58			(1.52		)	0.09
Less distributions from:
Net investment income	(3.03		)	(3.49		)	—
Total distributions	(3.03		)	(3.49		)	—
Net asset value, end of period		$17.63			$20.08			$25.09
Total Return^c	3.73		%	(6.19		%)	0.40		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$129			$34			$10
Ratios to average net assets:
Net investment income (loss)	(1.33		%)	(1.85		%)	(2.34		%)
Total expenses^d	2.32		%	2.24		%	2.39		%
Portfolio turnover rate	21,555		%	655		%	—


^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	Does not include expenses of the underlying funds in which the Fund invests.

PROSPECTUS | 548

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$16.16			$15.07			$13.48			$13.28			$14.28
Income (loss) from investment operations:
Net investment income (loss)^a	(0.10		)	(0.06		)	(0.13		)	(0.05		)	0.03
Net gain (loss) on investments (realized and unrealized)	(0.80		)	1.15			1.72			0.30			(1.03		)
Total from investment operations	(0.90		)	1.09			1.59			0.25			(1.00		)
Less distributions from:
Net investment income	—			—			—			(0.05		)	—
Total distributions	—			—			—			(0.05		)	—
Net asset value, end of period		$15.26			$16.16			$15.07			$13.48			$13.28
Total Return^b	(5.57		%)	7.23		%	11.80		%	1.89		%	(7.00		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,803			$6,063			$7,552			$13,106			$16,510
Ratios to average net assets:
Net investment income (loss)	(0.66		%)	(0.42		%)	(0.91		%)	(0.35		%)	0.21		%
Total expenses^c,f	2.53		%	2.17		%	2.34		%	1.92		%	1.66		%
Portfolio turnover rate	224		%	331		%	256		%	183		%	190		%

549 | PROSPECTUS

Financial Highlights (continued)

LONG SHORT EQUITY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$14.64			$13.76			$12.40			$12.31			$13.33
Income (loss) from investment operations:
Net investment income (loss)^a	(0.21		)	(0.16		)	(0.24		)	(0.14		)	(0.07		)
Net gain (loss) on investments (realized and unrealized)	(0.71		)	1.04			1.60			0.28			(0.95		)
Total from investment operations	(0.92		)	0.88			1.36			0.14			(1.02		)
Less distributions from:
Net investment income	—			—			—			(0.05		)	—
Total distributions	—			—			—			(0.05		)	—
Net asset value, end of period		$13.72			$14.64			$13.76			$12.40			$12.31
Total Return^b	(6.28		%)	6.40		%	10.97		%	1.14		%	(7.65		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$16,760			$19,952			$22,354			$23,554			$32,503
Ratios to average net assets:
Net investment income (loss)	(1.45		%)	(1.16		%)	(1.79		%)	(1.12		%)	(0.54		%)
Total expenses^c,f	3.24		%	2.92		%	3.11		%	2.69		%	2.41		%
Portfolio turnover rate	224		%	331		%	256		%	183		%	190		%

PROSPECTUS | 550

Financial Highlights (continued)

LONG SHORT EQUITY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Period Ended March 31,
Institutional Class	2016			2015			2014			2013			2012^d
Per Share Data
Net asset value, beginning of period		$16.38			$15.24			$13.60			$13.33			$12.39
Income (loss) from investment operations:
Net investment income (loss)^a	(0.05		)	—^e			(0.12		)	(0.02		)	0.06
Net gain (loss) on investments (realized and unrealized)	(0.83		)	1.14			1.76			0.31			0.88
Total from investment operations	(0.88		)	1.14			1.64			0.29			0.94
Less distributions from:
Net investment income	—			—			—			(0.02		)	—
Total distributions	—			—			—			(0.02		)	—
Net asset value, end of period		$15.50			$16.38			$15.24			$13.60			$13.33
Total Return^b	(5.37		%)	7.48		%	12.06		%	2.15		%	7.59		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$525			$302			$12			$11			$11
Ratios to average net assets:
Net investment income (loss)	(0.29		%)	(0.01		%)	(0.82		%)	(0.17		%)	1.29		%
Total expenses^c,f	2.27		%	1.95		%	2.11		%	1.72		%	1.36		%
Portfolio turnover rate	224		%	331		%	256		%	183		%	190		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Since commencement of operations: November 30, 2011. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.


^e	Net investment loss is less than $0.01 per share.


^f	Excluding interest and dividend expense related to short sales, the operating ratios for the years or periods presented would be:



	3/31/2016		3/31/2015		3/31/2014		3/28/2013		3/31/2012
Class A	1.66	%	1.66	%	1.68	%	1.65	%	1.66	%
Class C	2.41	%	2.41	%	2.42	%	2.40	%	2.41	%
Institutional Class	1.41	%	1.40	%	1.42	%	1.41	%	N/A

551 | PROSPECTUS

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class A	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$26.82			$28.42			$27.56			$25.37			$26.86
Income (loss) from investment operations:
Net investment income (loss)^a	0.03			(0.31		)	(0.49		)	(0.21		)	(0.37		)
Net gain (loss) on investments (realized and unrealized)	(0.72		)	(0.09		)	3.09			2.40			(0.36		)
Total from investment operations	(0.69		)	(0.40		)	2.60			2.19			(0.73		)
Less distributions from:
Net investment income	(0.37		)	(0.06		)	—			—			—
Net realized gains	—			(1.14		)	(1.74		)	—			(0.76		)
Total distributions	(0.37		)	(1.20		)	(1.74		)	—			(0.76		)
Net asset value, end of period		$25.76			$26.82			$28.42			$27.56			$25.37
Total Return^b	(2.52		%)	(1.18		%)	9.58		%	8.63		%	(2.60		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$927			$1,371			$4,303			$2,080			$2,595
Ratios to average net assets:
Net investment income (loss)	0.11		%	(1.10		%)	(1.73		%)	(0.80		%)	(1.43		%)
Total expenses^c	2.00		%	2.01		%	2.02		%	2.03		%	1.93		%
Net expenses^d	1.90		%	1.90		%	1.90		%	1.91		%	1.85		%
Portfolio turnover rate	32		%	107		%	161		%	228		%	513		%

PROSPECTUS | 552

Financial Highlights (continued)

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class C	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$25.74			$27.53			$26.95			$24.99			$26.67
Income (loss) from investment operations:
Net investment income (loss)^a	(0.16		)	(0.45		)	(0.67		)	(0.43		)	(0.52		)
Net gain (loss) on investments (realized and unrealized)	(0.69		)	(0.14		)	2.99			2.39			(0.40		)
Total from investment operations	(0.85		)	(0.59		)	2.32			1.96			(0.92		)
Less distributions from:
Net investment income	(0.37		)	(0.06		)	—			—			—
Net realized gains	—			(1.14		)	(1.74		)	—			(0.76		)
Total distributions	(0.37		)	(1.20		)	(1.74		)	—			(0.76		)
Net asset value, end of period		$24.52			$25.74			$27.53			$26.95			$24.99
Total Return^b	(3.25		%)	(1.92		%)	8.74		%	7.89		%	(3.38		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$879			$1,230			$1,253			$1,038			$1,022
Ratios to average net assets:
Net investment income (loss)	(0.64		%)	(1.68		%)	(2.45		%)	(1.67		%)	(2.04		%)
Total expenses^c	2.75		%	2.75		%	2.77		%	2.79		%	2.66		%
Net expenses^d	2.65		%	2.65		%	2.65		%	2.66		%	2.60		%
Portfolio turnover rate	32		%	107		%	161		%	228		%	513		%

553 | PROSPECTUS

Financial Highlights (continued)

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Institutional Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$27.17			$28.71			$27.76			$25.49			$26.91
Income (loss) from investment operations:
Net investment income (loss)^a	0.10			(0.16		)	(0.42		)	(0.19		)	(0.23		)
Net gain (loss) on investments (realized and unrealized)	(0.72		)	(0.18		)	3.11			2.46			(0.43		)
Total from investment operations	(0.62		)	(0.34		)	2.69			2.27			(0.66		)
Less distributions from:
Net investment income	(0.37		)	(0.06		)	—			—			—
Net realized gains	—			(1.14		)	(1.74		)	—			(0.76		)
Total distributions	(0.37		)	(1.20		)	(1.74		)	—			(0.76		)
Net asset value, end of period		$26.18			$27.17			$28.71			$27.76			$25.49
Total Return^b	(2.23		%)	(0.96		%)	9.84		%	8.91		%	(2.34		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,289			$3,746			$975			$891			$329
Ratios to average net assets:
Net investment income (loss)	0.37		%	(0.57		%)	(1.46		%)	(0.70		%)	(0.90		%)
Total expenses^c	1.75		%	1.75		%	1.77		%	1.80		%	1.61		%
Net expenses^d	1.65		%	1.65		%	1.65		%	1.67		%	1.58		%
Portfolio turnover rate	32		%	107		%	161		%	228		%	513		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Net expense information reflects the expense ratios after expense waivers.

PROSPECTUS | 554

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Money Market Class^a	2016			2015			2014			2013			2012
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			—^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	—		%	—		%	—		%	—		%	—		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$643,872			$694,549			$780,135			$848,370			$607,565
Ratios to average net assets:
Net investment income (loss)	—%^d			—%^d			—%^d			—%^d			—%^d
Total expenses	0.91		%	0.92		%	0.93		%	0.95		%	0.91		%
Net expenses^c	0.22		%	0.08		%	0.09		%	0.17		%	0.11		%
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%.

555 | PROSPECTUS

INDEX PUBLISHERS INFORMATION

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:


•	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.

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.

PROSPECTUS | 556

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 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.

NASDAQ OMX Group, Inc.

The Inverse NASDAQ-100^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x 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;

557 | PROSPECTUS


•	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.

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.

S&P Dow Jones Indices LLC

The "Dow Jones Industrial Average" is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Security Investors, LLC. Standard & Poor’s^® and S&P^® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); DJIA^®, The Dow^®, Dow Jones^® and Dow Jones Industrial Average^® are trademarks of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Security Investors, LLC. The Dow Jones Industrial Average^®Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of the Dow Jones Industrial Average^®Fund or any member of the public regarding the advisability of investing in securities generally or in the Dow Jones Industrial Average^®Fund particularly or the ability of the Dow Jones Industrial Average to track general market performance. S&P Dow Jones Indices’ only relationship to Security Investors, LLC with respect to the Dow Jones Industrial Average is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices or its licensors. The Dow Jones Industrial Average is determined, composed and calculated by S&P Dow Jones Indices without regard to Security Investors, LLC or the Dow Jones Industrial Average^®Fund. S&P Dow Jones Indices have no obligation to take the needs of Security Investors, LLC or the owners of the Dow Jones Industrial Average^®Fund into consideration in determining, composing or calculating the Dow Jones Industrial Average. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the Dow Jones Industrial Average^®Fund or the timing of the issuance or sale of the Dow Jones Industrial Average^®Fund or in the determination or calculation of the equation by which the Dow Jones Industrial Average^®Fund is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no

PROSPECTUS | 558

obligation or liability in connection with the administration, marketing or trading of the Dow Jones Industrial Average^®Fund. There is no assurance that investment products based on the Dow Jones Industrial Average will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc., a shareholder of S&P Dow Jones Indices, and its affiliates may independently issue and/or sponsor financial products unrelated to the Dow Jones Industrial Average^®Fund currently being issued by Security Investors, LLC, but which may be similar to and competitive with the Dow Jones Industrial Average^®Fund. In addition, CME Group Inc. and its affiliates may trade financial products which are linked to the performance of the Dow Jones Industrial Average.

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE DOW JONES INDUSTRIAL AVERAGE OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY SECURITY INVESTORS, LLC, OWNERS OF THE DOW JONES INDUSTRIAL AVERAGE^® FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW JONES INDUSTRIAL AVERAGE OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND SECURITY INVESTORS, LLC, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

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,”

559 | PROSPECTUS

“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.

PROSPECTUS | 560

ADDITIONAL INFORMATION

Additional and more detailed information about the Funds is included in the SAI dated August 1, 2016, as revised from time to time. 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 SEC registration number is 811-07584.

561 | PROSPECTUS

805 King Farm Boulevard, Suite 600

Rockville, MD 20850

800.820.0888

guggenheiminvestments.com

562 | PROSPECTUS



Mutual Funds	\|	\|	8.1.2016

Rydex Funds Prospectus
Investor Class and Class H



Ticker Symbol		Fund Name
Rydex Domestic Equity — Broad Market Funds
Investor Class	Class H
RYNVX	RYNHX	Nova Fund*
	RYSPX	S&P 500^® Fund
RYURX	RYUHX	Inverse S&P 500^® Strategy Fund*
	RMQHX	Monthly Rebalance NASDAQ-100^® 2x Strategy Fund*
RYOCX	RYHOX	NASDAQ-100^® Fund
RYAIX	RYALX	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*
	RYDHX	Dow Jones Industrial Average^® Fund
Rydex Domestic Equity — Style Box Funds
	Class H
	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
Investor Class	Class H
RYKIX	RYKAX	Banking Fund
RYBIX	RYBAX	Basic Materials Fund
RYOIX	RYOAX	Biotechnology Fund
RYCIX	RYCAX	Consumer Products Fund
RYSIX	RYSAX	Electronics Fund
RYEIX	RYEAX	Energy Fund
RYVIX	RYVAX	Energy Services Fund
RYFIX	RYFAX	Financial Services Fund
RYHIX	RYHAX	Health Care Fund



Ticker Symbol		Fund Name
Rydex Sector Funds (continued)
Investor Class	Class H
RYIIX	RYIAX	Internet Fund
RYLIX	RYLAX	Leisure Fund
RYPMX	RYMPX	Precious Metals Fund
RYRIX	RYRAX	Retailing Fund
RYTIX	RYTAX	Technology Fund
RYMIX	RYMAX	Telecommunications Fund
RYPIX	RYPAX	Transportation Fund
RYUIX	RYAUX	Utilities Fund
Rydex International Equity Funds
	Class H
	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
	Class H
	RYSBX	Strengthening Dollar 2x Strategy Fund*
	RYWBX	Weakening Dollar 2x Strategy Fund*
	RYHRX	Real Estate Fund
Rydex Fixed Income Funds
Investor Class	Class H
RYGBX	RYHBX	Government Long Bond 1.2x Strategy Fund*
RYJUX	RYHJX	Inverse Government Long Bond Strategy Fund*
	RYHGX	High Yield Strategy Fund
	RYIHX	Inverse High Yield Strategy Fund*
	RYGTX	Emerging Markets Bond Strategy Fund
Rydex Money Market Fund
Money Market Class
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.



SERIAH-1-0816x0817	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 and the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund seeks to provide such investment results on a calendar month basis. The Inverse Funds pursue investment goals which are inverse to the performance of their respective underlying index and the Leveraged Inverse Funds pursue investment goals which are inverse to 200% of the performance of their respective underlying index, a result opposite of most other mutual funds. The pursuit of such leveraged and inverse investment goals has the following implications: • The Leveraged Funds and Leveraged Inverse Funds are riskier than alternatives that do not use leverage because the performance of an investment in a Leveraged Fund 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 or full calendar month, as applicable. This means that the return of a Fund for a period of longer than a single trading day or full calendar month, as applicable, will be the result of each day’s or month's compounded returns over the period, which will very 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 or different than a full calendar month (whether for a period shorter or longer than a full calendar month), as applicable, will not be the product of the return of a Fund’s stated investment goal (i.e., 2x) and the cumulative performance of the Fund’s benchmark. For the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, which seeks to provide investment results on a calendar month basis, an investor who purchases shares on a day other than the last business day of a calendar month will generally receive more, or less, than the exposure to the underlying index from that point until the end of the calendar month. In addition, for Funds that seek to provide investment results on a daily basis, 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.

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)
Rydex Domestic Equity Funds—Broad Market Funds
Nova Fund	1
S&P 500^® Fund	11
Inverse S&P 500^® Strategy Fund	18
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	28
NASDAQ-100^® Fund	39
Inverse NASDAQ-100^® Strategy Fund	48
Mid-Cap 1.5x Strategy Fund	58
Inverse Mid-Cap Strategy Fund	68
Russell 2000^® 1.5x Strategy Fund	78
Russell 2000^® Fund	88
Inverse Russell 2000^® Strategy Fund	95
Dow Jones Industrial Average^® Fund	105
Rydex Domestic Equity Funds—Style Box Funds
S&P 500^® Pure Growth Fund	112
S&P 500^® Pure Value Fund	119
S&P MidCap 400^® Pure Growth Fund	125
S&P MidCap 400^® Pure Value Fund	131
S&P SmallCap 600^® Pure Growth Fund	138
S&P SmallCap 600^® Pure Value Fund	144

Rydex Sector Funds
Banking Fund	150
Basic Materials Fund	156
Biotechnology Fund	162
Consumer Products Fund	168
Electronics Fund	174
Energy Fund	180
Energy Services Fund	186
Financial Services Fund	192
Health Care Fund	198
Internet Fund	204
Leisure Fund	210
Precious Metals Fund	216
Retailing Fund	222
Technology Fund	228
Telecommunications Fund	234



Transportation Fund	240
Utilities Fund	246
Rydex International Equity Funds
Europe 1.25x Strategy Fund	252
Japan 2x Strategy Fund	262
Emerging Markets 2x Strategy Fund	273
Inverse Emerging Markets 2x Strategy Fund	283

Rydex Specialty Funds
Strengthening Dollar 2x Strategy Fund	293
Weakening Dollar 2x Strategy Fund	302
Real Estate Fund	311

Rydex Fixed Income Funds
Government Long Bond 1.2x Strategy Fund	317
Inverse Government Long Bond Strategy Fund	326
High Yield Strategy Fund	335
Inverse High Yield Strategy Fund	343
Emerging Markets Bond Strategy Fund	351

Rydex Money Market Fund
U.S. Government Money Market Fund	359
MORE INFORMATION ABOUT THE TRUST AND THE FUNDS	363
MANAGEMENT OF THE FUNDS	396
SHAREHOLDER INFORMATION	399
BUYING, SELLING AND EXCHANGING FUND SHARES	401
BUYING FUND SHARES	404
SELLING FUND SHARES	408
EXCHANGING FUND SHARES	410
ACCOUNT POLICIES	412
DISTRIBUTION AND SHAREHOLDER SERVICES	415
DIVIDENDS AND DISTRIBUTIONS	415
ADDITIONAL TAX INFORMATION	416
FINANCIAL HIGHLIGHTS	419
INDEX PUBLISHERS INFORMATION	491
ADDITIONAL INFORMATION	496

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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.51%
Total Annual Fund Operating Expenses	1.25%	1.51%

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
Investor Class	$127	$397	$686	$1,511
Class H	$154	$477	$824	$1,802

PROSPECTUS | 1

PORTFOLIO TURNOVER

PRINCIPAL INVESTMENT STRATEGIES

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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.

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 the principal risks described below.

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%

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.

PROSPECTUS | 5

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

6 | PROSPECTUS

period of time, the portfolio manager may be unable to capitalize on securities with higher interest rates or wider spreads.

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 7

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 4.09%.



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

8 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.39%	16.58%	7.02%
Return After Taxes on Distributions	-0.44%	16.55%	6.64%
Return After Taxes on Distributions and Sale of Fund Shares	-0.22%	13.43%	5.48%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Since Inception (9/18/2014)
Return Before Taxes	-0.65%	2.34%
Return After Taxes on Distributions	-0.71%	2.26%
Return After Taxes on Distributions and Sale of Fund Shares	-0.37%	1.75%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	3.38%

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 minimum account balance requirements for Investor Class and 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

Investor Class and Class H 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 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.

PROSPECTUS | 9

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

10 | PROSPECTUS

S&P 500^® 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 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	0.55	%
Total Annual Fund Operating Expenses	1.55	%

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
$158	$490	$845	$1,845

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 181% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 11

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 the principal risks described below.

12 | PROSPECTUS

PROSPECTUS | 13

and financial instruments, under certain market conditions, such as when trading in a particular investment has been halted temporarily by an exchange because the maximum price change of that investment has been realized, 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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

14 | PROSPECTUS

dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change or due to increased competition.

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 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.

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, 2016 through June 30, 2016 is 2.94%.

PROSPECTUS | 15



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	-0.20%	10.73%	5.82%
Return After Taxes on Distributions	-1.22%	10.40%	5.53%
Return After Taxes on Distributions and Sale of Fund Shares	0.54%	8.48%	4.57%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	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.


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

16 | PROSPECTUS

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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

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.

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 | 17

INVERSE S&P 500^® STRATEGY 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.51%	0.52%
Acquired Fund Fees and Expenses	0.01%	0.01%
Total Annual Fund Operating Expenses*	1.42%	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.

18 | PROSPECTUS



	1 Year	3 Years	5 Years	10 Years
Investor Class	$145	$449	$776	$1,702
Class H	$171	$530	$913	$1,987

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 63% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 19

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.

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 the principal risks described below.

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.

20 | 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 | 21

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.

22 | PROSPECTUS

investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

PROSPECTUS | 23

SECTOR RISK—The Fund is subject to the following Sector Risks:

24 | PROSPECTUS

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 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.

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -4.87%.



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

PROSPECTUS | 25

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-4.39%	-14.17%	-9.36%
Return After Taxes on Distributions	-4.39%	-14.17%	-9.64%
Return After Taxes on Distributions and Sale of Fund Shares	-2.48%	-9.93%	-6.19%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Since Inception (9/18/2014)
Return Before Taxes	-4.63%	-6.46%
Return After Taxes on Distributions	-4.63%	-6.46%
Return After Taxes on Distributions and Sale of Fund Shares	-2.62%	-4.91%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	3.38%

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 minimum account balance requirements for Investor Class and 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

26 | PROSPECTUS

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 | 27

MONTHLY REBALANCE NASDAQ-100^® 2X STRATEGY FUND

IMPORTANT INFORMATION ABOUT THE FUND

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 monthly 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

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	%
Fee Waiver and/or Expense Reimbursement*	-0.32	%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement	1.35	%

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 1.35% 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 1.35%. 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.

PROSPECTUS | 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. 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
$137	$495	$877	$1,949

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 551% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 29

necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the computer, internet, semi-conductors, and software industries or groups of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. The Fund also may enter into repurchase agreements with counterparties that are deemed to present acceptable credit risks. Depending on the effect on the Fund's portfolio of the underlying index's movements during any calendar month it may be necessary for the Advisor to rebalance the Fund's portfolio on the last trading day of each calendar month. Generally, the Fund's portfolio would be rebalanced at the end of a given month to increase the portfolio's exposure in response to that calendar month's gains or to reduce the portfolio's exposure in response to that calendar month's losses. 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

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 the principal risks described below.

PROSPECTUS | 30

investment techniques, 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 full calendar month. The risk of the Fund not achieving its calendar month investment objective will be more acute when the underlying index has an extreme intra-month movement approaching -50%. The Fund rebalances its portfolio on a calendar month basis, increasing exposure in response to that calendar month's gains and vice versa. This means that for a period longer than a calendar month, the pursuit of the Fund's investment objective may result in calendar month leveraged compounding. As a result, the Fund’s performance for periods different than a full calendar month 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 Fund fees and expenses.



Index Performance		Annualized Volatility
1x	2x	10%	25%	50%	75%	100%
-60%	-120%	-85%	-86%	-89%	-93%	-97%
-50%	-100%	-76%	-78%	-82%	-88%	-94%
-40%	-80%	-65%	-67%	-73%	-82%	-90%
-30%	-60%	-52%	-54%	-62%	-74%	-86%
-20%	-40%	-37%	-40%	-50%	-65%	-80%
-10%	-20%	-20%	-24%	-36%	-54%	-74%
0%	0%	-1%	-5%	-20%	-42%	-66%
10%	20%	20%	15%	-3%	-29%	-58%
20%	40%	42%	36%	16%	-14%	-48%
30%	60%	67%	60%	36%	1%	-37%
40%	80%	93%	85%	57%	19%	-28%
50%	100%	120%	111%	81%	36%	-15%
60%	120%	149%	140%	105%	56%	-2%

PROSPECTUS | 31

PROSPECTUS | 32

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. As of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the computer, internet, semi-conductors, and software industries or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The prices of the securities of companies in the computer and software industries may fluctuate widely due to competitive pressures, aggressive pricing, technological developments, changing domestic demand, and the ability to attract and retain skilled employees. Furthermore, the market for products produced by computer and software companies is characterized by rapidly changing technology, rapid product obsolescence, and cyclical market patterns, all of which may affect the success of computer and software companies. The prices of the securities of companies in the internet industry may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. The prices of the securities of companies in the semi-conductors industry may fluctuate widely due to rapid changes in product cycles, rapid product obsolescence, and competition both domestically and internationally, including competition from foreign competitors with lower production costs. Companies in the semiconductor industry rely heavily on technology, especially those of smaller, less-seasoned companies, and tend to be more volatile than the overall market. Legislative or regulatory changes and increased government supervision may also affect companies in the computer, internet, semi-conductors, and software industries.

PROSPECTUS | 33

favorable to the Fund, the investor will receive less than 200% exposure to the underlying index. Conversely, if the underlying index moves in a direction adverse to the Fund, the investor will receive greater than 200% exposure to the underlying index. Only on the last trading day of a calendar month, could an investor receive 200% exposure to the underlying index.

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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

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. Further, purchasing shares intra-calendar month may result in greater than 200% exposure to the performance of the underlying index if the underlying index declines between the end of the last calendar month and the time the investor purchased Fund shares. Leverage also will have the effect of magnifying tracking error.

PROSPECTUS | 34

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 35

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, 2016 through June 30, 2016 is -7.29%.



Highest Quarter Return		Lowest Quarter Return
Q4 2015	19.53%	Q3 2015	-8.03	%

PROSPECTUS | 36

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Since Inception (11/28/2014)
Return Before Taxes	22.52%	15.18%
Return After Taxes on Distributions	22.52%	15.18%
Return After Taxes on Distributions and Sale of Fund Shares	12.74%	11.58%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	6.60%

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 minimum 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 | 37

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 38

NASDAQ-100^® 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.51%
Total Annual Fund Operating Expenses	1.25%	1.51%

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
Investor Class	$127	$397	$686	$1,511
Class H	$154	$477	$824	$1,802

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 228% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 39

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 $153.8 million to $523.7 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the internet industry or group of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

40 | PROSPECTUS

reaction to interest rates and other factors difficult to predict, making their prices very volatile and they are subject to liquidity risk.

PROSPECTUS | 41

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 net asset value ("NAV"). Futures are also subject to leverage risks and to liquidity risk.

42 | PROSPECTUS

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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

PROSPECTUS | 43

period of time, the portfolio manager may be unable to capitalize on securities with higher interest rates or wider spreads.

SECTOR RISK—The Fund is subject to the following Sector Risks:

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.

44 | 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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -3.75%.



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	8.59%	15.70%	10.56%
Return After Taxes on Distributions	7.67%	14.86%	10.15%
Return After Taxes on Distributions and Sale of Fund Shares	4.87%	12.42%	8.63%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	17.09%	11.82%

PROSPECTUS | 45



Class H	Past 1 Year	Since Inception (9/18/2014)
Return Before Taxes	8.22%	8.82%
Return After Taxes on Distributions	7.23%	7.46%
Return After Taxes on Distributions and Sale of Fund Shares	4.66%	6.11%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	10.48%

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 minimum account balance requirements for Investor Class and 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

46 | PROSPECTUS

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 47

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

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



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.54%	0.55%
Total Annual Fund Operating Expenses	1.44%	1.70%

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
Investor Class	$147	$456	$787	$1,724
Class H	$173	$536	$923	$2,009

48 | 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 1,674% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 derivatives 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 $153.8 million to $523.7 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the internet industry or group of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 49

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

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 the principal risks described below.

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.

50 | 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 | 51

52 | PROSPECTUS

PROSPECTUS | 53

SECTOR RISK—The Fund is subject to the following Sector Risks:

54 | PROSPECTUS

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 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.

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 1.04%.



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

PROSPECTUS | 55

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-11.88%	-17.72%	-13.61%
Return After Taxes on Distributions	-11.88%	-17.72%	-13.84%
Return After Taxes on Distributions and Sale of Fund Shares	-6.72%	-12.08%	-8.28%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	17.09%	11.82%



Class H	Past 1 Year	Since Inception (9/18/2014)
Return Before Taxes	-12.11%	-12.78%
Return After Taxes on Distributions	-12.11%	-12.78%
Return After Taxes on Distributions and Sale of Fund Shares	-6.86%	-9.69%
NASDAQ-100 Index^® (reflects no deduction for fees, expenses or taxes)	9.75%	10.48%

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 minimum account balance requirements for Investor Class and 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.

56 | 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 | 57

MID-CAP 1.5X STRATEGY 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 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	0.51	%
Total Annual Fund Operating Expenses	1.66	%

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
$169	$523	$902	$1,965

58 | 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 1,506% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 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 $930.2 million to $9.8 billion as of June 30, 2016. To the extent the Fund’s underlying index is concentrated in a particular industry the Fund will necessarily be concentrated in that industry. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 59

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 the principal risks described below.

60 | 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%

PROSPECTUS | 61

62 | PROSPECTUS

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

PROSPECTUS | 63

security beyond the prepayment time. If the Fund’s investments are locked in at a lower interest rate for a longer period of time, the portfolio manager may be unable to capitalize on securities with higher interest rates or wider spreads.

SECTOR RISK—The Fund is subject to the following Sector Risks:

64 | 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, 2016 through June 30, 2016 is 10.49%.



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

PROSPECTUS | 65

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-5.58%	12.68%	6.95%
Return After Taxes on Distributions	-5.83%	12.60%	6.60%
Return After Taxes on Distributions and Sale of Fund Shares	-3.15%	10.13%	5.51%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	-2.18%	10.68%	8.18%

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.


•	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 minimum 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.

66 | 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 | 67

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

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	0.50	%
Total Annual Fund Operating Expenses	1.65	%

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
$168	$520	$897	$1,955

68 | 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 199% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 69

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 the principal risks described below.

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.

70 | 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 | 71

72 | PROSPECTUS

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

PROSPECTUS | 73

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 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.

74 | 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, 2016 through June 30, 2016 is -9.10%.



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

PROSPECTUS | 75

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-1.01%	-13.75%	-11.30%
Return After Taxes on Distributions	-1.01%	-13.75%	-11.60%
Return After Taxes on Distributions and Sale of Fund Shares	-0.57%	-9.66%	-7.20%
S&P MidCap 400^® Index (reflects no deduction for fees, expenses or taxes)	-2.18%	10.68%	8.18%

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.


•	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 minimum 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.

76 | PROSPECTUS

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 | 77

RUSSELL 2000^® 1.5X STRATEGY 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 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	0.55	%
Total Annual Fund Operating Expenses	1.70	%

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
$173	$536	$923	$2,009

78 | 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 971% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Fund's benchmark. The Advisor attempts 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 derivatives 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 Fund's benchmark.

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 $23.4 million to $4.1 billion as of June 30, 2016. 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the communications, consumer (cyclical and non-cyclical), financial, industrial, and technology sectors.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 79

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 the principal risks described below.

80 | 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%

PROSPECTUS | 81

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.

82 | PROSPECTUS

PROSPECTUS | 83

SECTOR RISK—The Fund is subject to the following Sector Risks:

84 | 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, 2016 through June 30, 2016 is 1.69%.



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

PROSPECTUS | 85

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-8.85%	10.23%	5.28%
Return After Taxes on Distributions	-11.76%	9.50%	4.86%
Return After Taxes on Distributions and Sale of Fund Shares	-4.94%	7.80%	4.07%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	12.37%	8.52%

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 minimum 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.

86 | PROSPECTUS

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 | 87

RUSSELL 2000^® 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 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	0.60	%
Total Annual Fund Operating Expenses	1.60	%

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
$163	$505	$871	$1,900

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 442% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

88 | 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 the principal risks described below.

PROSPECTUS | 89

90 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 91

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 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.

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, 2016 through June 30, 2016 is 1.23%.

92 | PROSPECTUS



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Since Inception (5/31/2006)
Return Before Taxes	-6.15%	7.50%	4.61%
Return After Taxes on Distributions	-7.19%	6.55%	4.08%
Return After Taxes on Distributions and Sale of Fund Shares	-3.47%	5.47%	3.42%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	12.37%	8.43%

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.

PROSPECTUS | 93

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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

94 | 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

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	0.55	%
Total Annual Fund Operating Expenses	1.70	%

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
$173	$536	$923	$2,009

PROSPECTUS | 95

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 584% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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.

96 | PROSPECTUS

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

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 the principal risks described below.

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 | 97



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%

98 | PROSPECTUS

PROSPECTUS | 99

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

SECTOR RISK—The Fund is subject to the following Sector Risks:

100 | 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. Small-capitalization companies may be more vulnerable than larger, more established organizations to adverse business or economic developments. Securities of small-capitalization companies may experience much more price volatility, greater spreads between their bid and ask prices, significantly lower trading volumes, and cyclical or static growth prospects. Small-capitalization companies often have limited product lines, markets or financial resources, and may therefore be more vulnerable to adverse developments than larger capitalization companies.

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 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 | 101

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, 2016 through June 30, 2016 is -4.66%.



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

102 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.10%	-13.81%	-12.21%
Return After Taxes on Distributions	0.10%	-13.81%	-12.50%
Return After Taxes on Distributions and Sale of Fund Shares	0.06%	-9.70%	-7.64%
Russell 2000^® Index (reflects no deduction for fees, expenses or taxes)	-2.20%	12.37%	8.52%

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 minimum 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 | 103

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

104 | PROSPECTUS

DOW JONES INDUSTRIAL AVERAGE^® 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 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	0.55	%
Total Annual Fund Operating Expenses	1.55	%

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
$158	$490	$845	$1,845

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 98% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 105

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.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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

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 the principal risks described below.

PROSPECTUS | 106

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.

PROSPECTUS | 107

PROSPECTUS | 108

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 109

due to legislative or regulatory changes, adverse market conditions and/or increased competition affecting the industrial sector. The prices of the securities of industrial companies may fluctuate due to the level and volatility of commodity prices, the exchange value of the dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control devices.

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 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.

PERFORMANCE INFORMATION

Updated performance information is available on the Fund’s website at guggenheiminvestments.com or by calling Guggenheim 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.

PROSPECTUS | 110

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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 | 111

S&P 500^® PURE GROWTH 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 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	0.51	%
Total Annual Fund Operating Expenses	1.51	%

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
$154	$477	$824	$1,802

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 290% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

112 | 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 the principal risks described below.

PROSPECTUS | 113

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.

114 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 115

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.

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, 2016 through June 30, 2016 is -0.13%.



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

116 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.96%	12.54%	8.35%
Return After Taxes on Distributions	0.34%	12.09%	8.09%
Return After Taxes on Distributions and Sale of Fund Shares	1.07%	9.89%	6.73%
S&P 500 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	2.73%	14.45%	10.21%

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 minimum 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 | 117

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

118 | PROSPECTUS

S&P 500^® PURE VALUE 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 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	0.50	%
Total Annual Fund Operating Expenses	1.50	%

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.



1 Year	3 Years	5 Years	10 Years
$153	$474	$818	$1,791

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 365% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 119

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 the principal risks described below.

120 | PROSPECTUS

PROSPECTUS | 121

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

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 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.

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.

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 Class H shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 3.94%.



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-9.54%	11.44%	5.57%
Return After Taxes on Distributions	-11.01%	10.44%	3.36%
Return After Taxes on Distributions and Sale of Fund Shares	-5.36%	8.68%	3.29%
S&P 500 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-8.14%	13.81%	8.19%

PROSPECTUS | 123

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 minimum 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

124 | PROSPECTUS

S&P MIDCAP 400^® PURE GROWTH 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 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	0.50	%
Total Annual Fund Operating Expenses	1.50	%

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.



1 Year	3 Years	5 Years	10 Years
$153	$474	$818	$1,791

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 143% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 125

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 the principal risks described below.

126 | PROSPECTUS

PROSPECTUS | 127

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 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.

128 | 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, 2016 through June 30, 2016 is -2.36%.



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	1.44%	9.23%	8.69%
Return After Taxes on Distributions	0.26%	7.70%	7.49%
Return After Taxes on Distributions and Sale of Fund Shares	1.83%	6.94%	6.68%
S&P MidCap 400 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	2.91%	10.53%	10.38%

PROSPECTUS | 129

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 minimum 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

130 | PROSPECTUS

S&P MIDCAP 400^® PURE VALUE 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 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	0.51	%
Total Annual Fund Operating Expenses	1.51	%

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
$154	$477	$824	$1,802

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 493% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 131

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 the principal risks described below.

132 | PROSPECTUS

PROSPECTUS | 133

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 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.

134 | 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, 2016 through June 30, 2016 is 7.59%.



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

PROSPECTUS | 135

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-12.17%	6.30%	4.19%
Return After Taxes on Distributions	-12.27%	6.23%	3.72%
Return After Taxes on Distributions and Sale of Fund Shares	-6.88%	4.90%	3.11%
S&P MidCap 400 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-10.51%	8.93%	7.15%

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 minimum 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.

136 | PROSPECTUS

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 | 137

S&P SMALLCAP 600^® PURE GROWTH 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 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	0.50	%
Total Annual Fund Operating Expenses	1.50	%

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.



1 Year	3 Years	5 Years	10 Years
$153	$474	$818	$1,791

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 309% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

138 | 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 the principal risks described below.

PROSPECTUS | 139

140 | PROSPECTUS

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

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 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 | 141

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, 2016 through June 30, 2016 is 1.38%.



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.52%	9.92%	6.61%
Return After Taxes on Distributions	-0.52%	9.92%	6.48%
Return After Taxes on Distributions and Sale of Fund Shares	-0.29%	7.87%	5.28%
S&P SmallCap 600 Pure Growth Index (reflects no deduction for fees, expenses or taxes)	1.21%	11.98%	8.81%

142 | 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.


•	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 minimum 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 | 143

S&P SMALLCAP 600^® PURE VALUE 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 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	0.50	%
Total Annual Fund Operating Expenses	1.50	%

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.



1 Year	3 Years	5 Years	10 Years
$153	$474	$818	$1,791

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 417% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

144 | 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 the principal risks described below.

PROSPECTUS | 145

146 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 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.

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.

PROSPECTUS | 147

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, 2016 through June 30, 2016 is 3.04%.



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-13.54%	5.53%	2.80%
Return After Taxes on Distributions	-13.54%	5.53%	0.95%
Return After Taxes on Distributions and Sale of Fund Shares	-7.66%	4.32%	1.30%
S&P SmallCap 600 Pure Value Index (reflects no deduction for fees, expenses or taxes)	-12.25%	8.18%	6.07%

148 | 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.


•	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 minimum 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 | 149

BANKING 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.58%
Total Annual Fund Operating Expenses	1.34%	1.68%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$171	$530	$913	$1,987

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 514% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

150 | PROSPECTUS

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

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 the principal risks described below.

PROSPECTUS | 151

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.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the banking industry or group of industries. As a result, 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. Government regulations may limit both the amounts and types of loans and financial commitments companies in the banking industry can make, the interest rates and fees they can charge, and the amount of capital they must maintain, all of which may affect profitability. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of banking companies. In addition, the prices of the securities of companies in the banking industry 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. Legislative or regulatory changes and increased government supervision may also affect companies in the banking industry.

152 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risk:

PERFORMANCE INFORMATION

The following bar chart shows the performance of the Investor Class 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 Investor Class shares and 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 upon the close of business on September 30, 2015, the Fund converted its former Advisor Class shares to Class H shares. For periods prior to September 30, 2015, the performance shown reflects the performance of Advisor Class shares. The returns shown have not been adjusted to reflect any differences in expenses between Advisor Class shares and Class H shares. However, the Fund's Class H shares would have had annual returns substantially similar to those of the Fund's former Advisor Class shares because they are invested in the same portfolio of securities and have a similar expense structure to that of Advisor Class shares. 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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -6.30%.

PROSPECTUS | 153



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-4.86%	4.72%	-4.18%
Return After Taxes on Distributions	-5.05%	4.49%	-4.61%
Return After Taxes on Distributions and Sale of Fund Shares	-2.75%	3.57%	-3.19%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-5.17%	4.24%	-4.66%
Return After Taxes on Distributions	-5.38%	3.99%	-5.12%
Return After Taxes on Distributions and Sale of Fund Shares	-2.92%	3.18%	-3.52%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

154 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 155

BASIC MATERIALS 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.54%
Total Annual Fund Operating Expenses	1.35%	1.64%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$137	$428	$739	$1,624
Class H	$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 471% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

156 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 157

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.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the chemicals industry and mining industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or group of industries than a fund that does not concentrate its investments. The prices of securities of companies in the chemicals industry may fluctuate widely due to intense competition, product obsolescence, and raw materials prices. In addition, chemicals companies may be subject to risks associated with the production, handling, and disposal of hazardous chemicals. The prices of the securities of companies in the mining industry may fluctuate widely due to events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and taxes. Investments in companies in the mining industry may be speculative and may be subject to greater price volatility than investments in other types of companies. Legislative or regulatory changes and increased government supervision may also affect companies in the chemicals and mining industries.

158 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 21.04%.

PROSPECTUS | 159



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-17.19%	-5.06%	3.25%
Return After Taxes on Distributions	-17.93%	-5.36%	2.97%
Return After Taxes on Distributions and Sale of Fund Shares	-9.72%	-3.87%	2.43%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-17.55%	-5.51%	2.75%
Return After Taxes on Distributions	-18.36%	-5.34%	2.44%
Return After Taxes on Distributions and Sale of Fund Shares	-9.92%	-4.21%	2.02%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

160 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 161

BIOTECHNOLOGY 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.47%	0.55%
Total Annual Fund Operating Expenses	1.32%	1.65%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$134	$418	$723	$1,590
Class H	$168	$520	$897	$1,955

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 83% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

162 | PROSPECTUS

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 (“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

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 the principal risks described below.

PROSPECTUS | 163

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. As of the date of this Prospectus, the Fund's assets are concentrated in the biotechnology industry and pharmaceuticals industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The prices of the securities of companies in the biotechnology industry 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. The prices of the securities of companies in the pharmaceuticals industry may fluctuate widely, particularly when products are up for regulatory approval or under regulatory scrutiny. The prices of securities of pharmaceutical companies may also be affected by effects from world events and economic conditions, including economic and political risks of countries where the companies are located or do business. Legislative or regulatory changes and increased government supervision may also affect companies in the biotechnology and pharmaceuticals industries.

164 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risk:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -21.74%.

PROSPECTUS | 165



Highest Quarter Return		Lowest Quarter Return
Q1 2012	21.70%	Q3 2015	-19.40	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	8.80%	27.85%	15.26%
Return After Taxes on Distributions	8.12%	27.30%	15.01%
Return After Taxes on Distributions and Sale of Fund Shares	4.98%	22.94%	12.85%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	8.39%	27.24%	14.70%
Return After Taxes on Distributions	7.64%	26.64%	14.43%
Return After Taxes on Distributions and Sale of Fund Shares	4.74%	22.83%	12.33%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

166 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 167

CONSUMER PRODUCTS 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.56%
Total Annual Fund Operating Expenses	1.34%	1.66%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$169	$523	$902	$1,965

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 104% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

168 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 169

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. As of the date of this Prospectus, the Fund's assets are concentrated in the food industry and beverage industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The food and beverage industries are highly competitive and can be significantly affected by demographic and product trends, competitive pricing, food fads, marketing campaigns, environmental factors, consumer preferences, nutritional and health concerns, federal, state and local food inspection and processing controls, consumer product liability claims, possible product tampering and the availability and expense of liability insurance. Legislative or regulatory changes and increased government supervision may also affect companies in the food and beverage industries.

SECTOR RISK—The Fund is subject to the following Sector Risk:

170 | 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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 11.71%.

PROSPECTUS | 171



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	6.55%	14.18%	10.58%
Return After Taxes on Distributions	5.57%	13.17%	9.37%
Return After Taxes on Distributions and Sale of Fund Shares	3.68%	10.88%	8.07%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	6.15%	13.64%	10.05%
Return After Taxes on Distributions	5.07%	12.54%	8.75%
Return After Taxes on Distributions and Sale of Fund Shares	3.46%	10.38%	7.56%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

172 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 173

ELECTRONICS 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.64%
Total Annual Fund Operating Expenses	1.34%	1.74%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$177	$548	$944	$2,052

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 769% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

174 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 175

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. As of the date of this Prospectus, the Fund's assets are concentrated in the semi-conductors industry or group of industries. As a result, 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. The prices of the securities of companies in the semi-conductors industry may fluctuate widely due to rapid changes in product cycles, rapid product obsolescence, and competition both domestically and internationally, including competition from foreign competitors with lower production costs. Companies in the semiconductors industry rely heavily on technology, especially those of smaller, less-seasoned companies, and tend to be more volatile than the overall market. Legislative or regulatory changes and increased government supervision may also affect companies in the semi-conductors industry.

SECTOR RISK—The Fund is subject to the following Sector Risk:

176 | PROSPECTUS

technology sector. The prices of the securities of technology companies are closely tied to market competition, increased sensitivity to short product cycles and aggressive pricing, and problems with bringing products to market.

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 0.61%.

PROSPECTUS | 177



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	2.57%	7.33%	3.25%
Return After Taxes on Distributions	2.49%	7.31%	3.24%
Return After Taxes on Distributions and Sale of Fund Shares	1.45%	5.75%	2.55%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	2.21%	6.80%	2.75%
Return After Taxes on Distributions	2.13%	6.78%	2.74%
Return After Taxes on Distributions and Sale of Fund Shares	1.25%	5.32%	2.15%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

178 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 179

ENERGY 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.60%
Total Annual Fund Operating Expenses	1.35%	1.70%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$137	$428	$739	$1,624
Class H	$173	$536	$923	$2,009

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 595% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

180 | PROSPECTUS

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 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

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 the principal risks described below.

PROSPECTUS | 181

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. As of the date of this Prospectus, the Fund's assets are concentrated in the oil and gas industry or group of industries. As a result, 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. The prices of the securities of companies in the oil and gas industry may fluctuate widely due to supply and demand for a specific product or service, the price of oil and gas, exploration and production spending, world events, and economic conditions. Natural disasters and changes in exchange rates and interest rates may also affect companies in the oil and gas industry. In addition, the policies of the Organization of Petroleum Exporting Countries ("OPEC"), changes in relationships among OPEC members and between OPEC and oil-importing nations, the regulatory environment, taxation policies, and the economies of the key energy-consuming countries may also affect the prices of the securities in the oil and gas industry. Legislative or regulatory changes and increased government supervision may also affect companies in the oil and gas industry.

182 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risk:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 14.90%.

PROSPECTUS | 183



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-30.17%	-7.31%	-0.79%
Return After Taxes on Distributions	-30.51%	-7.57%	-1.07%
Return After Taxes on Distributions and Sale of Fund Shares	-16.93%	-5.40%	-0.52%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-30.39%	-7.73%	-1.27%
Return After Taxes on Distributions	-30.75%	-8.01%	-1.57%
Return After Taxes on Distributions and Sale of Fund Shares	-17.03%	-5.69%	-0.87%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

184 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 185

ENERGY SERVICES 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.57%
Total Annual Fund Operating Expenses	1.35%	1.67%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$137	$428	$739	$1,624
Class H	$170	$526	$907	$1,976

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 1,241% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

186 | PROSPECTUS

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 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

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 the principal risks described below.

PROSPECTUS | 187

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. As of the date of this Prospectus, the Fund's assets are concentrated in the oil and gas industry and oil and gas services industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The prices of the securities of companies in the oil and gas and oil and gas services industries may fluctuate widely due to supply and demand for a specific product or service, the price of oil and gas, exploration and production spending, world events, and economic conditions. Natural disasters and changes in exchange rates and interest rates may also affect companies in the oil and gas and oil and gas services industries. In addition, the policies of the Organization of Petroleum Exporting Countries ("OPEC"), changes in relationships among OPEC members and between OPEC and oil-importing nations, the regulatory environment, taxation policies, and the economies of the key energy-consuming countries may also affect the prices of the securities in the oil and gas and oil and gas services industries. For the oil and gas services industry, companies are at risk of civil liability from accidents resulting in injury, loss of life or property, pollution or other environmental damage claims and risk of loss from terrorism and natural disasters. Disruptions in oil and gas services or shifts in fuel consumption may significantly impact companies in the oil and gas services industry. Legislative or regulatory changes and increased government supervision may also affect companies in the oil and gas and oil and gas services industries.

188 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risk:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 7.21%.

PROSPECTUS | 189



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-31.77%	-11.36%	-3.05%
Return After Taxes on Distributions	-32.08%	-11.44%	-3.09%
Return After Taxes on Distributions and Sale of Fund Shares	-17.96%	-8.14%	-2.26%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-32.13%	-11.81%	-3.54%
Return After Taxes on Distributions	-32.47%	-11.90%	-3.59%
Return After Taxes on Distributions and Sale of Fund Shares	-18.16%	-8.44%	-2.60%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

190 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 191

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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.55%
Acquired Fund Fees and Expenses	0.04%	0.04%
Total Annual Fund Operating Expenses**	1.38%	1.69%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$141	$437	$755	$1,657
Class H	$172	$533	$918	$1,998

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 268% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

192 | PROSPECTUS

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 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

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 the principal risks described below.

PROSPECTUS | 193

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. As of the date of this Prospectus, the Fund's assets are concentrated in the banking industry, insurance industry, and real estate investment trusts (REITs) industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. Companies in the banking industry may be affected by government regulations that may limit both the amounts and types of loans and financial commitments companies in the banking industry can make, the interest rates and fees they can charge, and the amount of capital they must maintain, all of which may affect profitability. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of banking companies. In addition, the prices of the securities of companies in the banking industry 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. The prices of the securities of companies in the insurance industry, and the overall profitability of such companies, may fluctuate widely due to a number of factors including interest rate movements, the imposition of premium rate caps, and competition and pressure to compete globally. In addition, certain types of insurance companies may also be affected by weather catastrophes and other disasters and mortality rates. Companies in the REITs industry are subject to the risks associated with direct ownership of real estate. Market conditions or events affecting the overall real estate and REIT markets, such as declining property values or rising interest rates, could have a negative impact on the real estate market and the value of REITs in general. Further, REITs are dependent upon specialized management skills and may have their investments in relatively few properties, or in a small geographic area or a single property type. Legislative or regulatory changes and increased government supervision may also affect companies in the banking, insurance and REITs industries.

194 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risk:

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 | 195

The performance information shown below for Investor Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 0.20%.



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-3.74%	7.76%	-0.20%
Return After Taxes on Distributions	-4.03%	7.56%	-0.57%
Return After Taxes on Distributions and Sale of Fund Shares	-2.06%	6.02%	-0.32%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-4.10%	7.25%	-0.70%
Return After Taxes on Distributions	-4.41%	7.04%	-1.09%
Return After Taxes on Distributions and Sale of Fund Shares	-2.26%	5.60%	-0.70%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

196 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 197

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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.61%
Total Annual Fund Operating Expenses	1.34%	1.71%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$174	$539	$928	$2,019

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 249% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

198 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 199

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.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the health care products industry and pharmaceuticals industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. The prices of securities of companies in the health care products industry may fluctuate widely due to government regulation and approval of health care 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. The prices of the securities of companies in the pharmaceuticals industry may fluctuate widely, particularly when products are up for regulatory approval or under regulatory scrutiny. The prices of securities of pharmaceutical companies may also be affected by effects from world events and economic conditions and market, economic and political risks of countries where the companies are located or do business. Legislative or regulatory changes and increased government supervision may also affect companies in the health care products and pharmaceuticals industries.

200 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risk:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -6.36%.

PROSPECTUS | 201



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	4.16%	17.90%	9.80%
Return After Taxes on Distributions	1.78%	16.94%	9.35%
Return After Taxes on Distributions and Sale of Fund Shares	2.71%	14.25%	7.95%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	3.78%	17.38%	9.29%
Return After Taxes on Distributions	1.18%	16.34%	8.80%
Return After Taxes on Distributions and Sale of Fund Shares	2.53%	13.78%	7.48%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

202 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 203

INTERNET 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.57%
Total Annual Fund Operating Expenses	1.35%	1.67%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$137	$428	$739	$1,624
Class H	$170	$526	$907	$1,976

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 520% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

204 | PROSPECTUS

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 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

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 the principal risks described below.

PROSPECTUS | 205

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. As of the date of this Prospectus, the Fund's assets are concentrated in the internet industry or group of industries. As a result, 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. The prices of the securities of companies in the internet industry may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. Legislative or regulatory changes and increased government supervision may also affect companies in the internet industry.

206 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -4.93%.

PROSPECTUS | 207



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	8.74%	12.15%	9.02%
Return After Taxes on Distributions	8.58%	11.77%	8.75%
Return After Taxes on Distributions and Sale of Fund Shares	4.98%	9.58%	7.29%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	8.31%	11.60%	8.48%
Return After Taxes on Distributions	8.14%	11.19%	8.19%
Return After Taxes on Distributions and Sale of Fund Shares	4.74%	9.12%	6.81%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

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.


•	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 minimum account balance requirements for Investor Class and 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 | 209

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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.54%
Total Annual Fund Operating Expenses	1.34%	1.64%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$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 339% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

210 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 211

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. As of the date of this Prospectus, the Fund's assets are concentrated in the media industry or group of industries. As a result, 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. The prices of the securities of companies in the media industry may fluctuate widely due to unpredictable earnings, rapid obsolescence of products and services, changing consumer tastes, intense competition, and dependency on patent protection. Legislative or regulatory changes and increased government supervision may also affect companies in the media industry.

SECTOR RISK—The Fund is subject to the following Sector Risks:

212 | 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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 3.38%.

PROSPECTUS | 213



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.78%	14.03%	7.60%
Return After Taxes on Distributions	0.50%	13.79%	7.49%
Return After Taxes on Distributions and Sale of Fund Shares	0.48%	11.22%	6.16%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.39%	13.49%	7.09%
Return After Taxes on Distributions	0.09%	13.23%	6.97%
Return After Taxes on Distributions and Sale of Fund Shares	0.26%	10.77%	5.72%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

214 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 215

PRECIOUS METALS 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.59%
Acquired Fund Fees and Expenses	0.02%	0.02%
Total Annual Fund Operating Expenses**	1.27%	1.61%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$129	$403	$697	$1,534
Class H	$164	$508	$876	$1,911

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 797% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

216 | PROSPECTUS

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

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 the principal risks described below.

PROSPECTUS | 217

markets are highly volatile and the use of futures may increase the volatility of the Fund’s net asset value ("NAV"). Futures are also subject to leverage risks and to liquidity risk.

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. As of the date of this Prospectus, the Fund's assets are concentrated in the mining industry or group of industries. As a result, 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. The prices of the securities of companies in the mining industry may fluctuate widely due to events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and taxes. Investments in companies in the mining industry may be speculative and may be subject to greater price volatility than investments in other types of companies. Legislative or regulatory changes and increased government supervision may also affect companies in the mining industry.

218 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risk:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 110.97%.

PROSPECTUS | 219



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

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-30.49%	-25.89%	-8.17%
Return After Taxes on Distributions	-30.67%	-26.23%	-8.40%
Return After Taxes on Distributions and Sale of Fund Shares	-17.26%	-16.26%	-5.47%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-30.81%	-26.24%	-8.62%
Return After Taxes on Distributions	-31.00%	-26.61%	-8.85%
Return After Taxes on Distributions and Sale of Fund Shares	-17.44%	-16.41%	-5.73%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

220 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 221

RETAILING 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.61%
Total Annual Fund Operating Expenses	1.34%	1.71%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$174	$539	$928	$2,019

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 238% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

222 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 223

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. As of the date of this Prospectus, the Fund's assets are concentrated in the retail industry or group of industries. As a result, 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. The prices of the securities of companies in the retail industry may fluctuate widely due to consumer spending, which is affected by general economic conditions and consumer confidence levels. The retail industry is highly competitive, and a company’s success is often tied to its ability to anticipate and react to changing consumer tastes. Many retail companies are thinly capitalized, and are dependent upon a relatively few number of business days to achieve their overall results. Legislative or regulatory changes and increased government supervision may also affect companies in the retail industry.

SECTOR RISK—The Fund is subject to the following Sector Risks:

224 | PROSPECTUS

competition affecting the communications sector. The prices of the securities of communications companies are closely tied to government regulation and market competition.

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -2.33%.

PROSPECTUS | 225



Highest Quarter Return		Lowest Quarter Return
Q3 2009	16.77%	Q4 2008	-24.20	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-1.10%	12.89%	7.47%
Return After Taxes on Distributions	-1.13%	12.88%	7.45%
Return After Taxes on Distributions and Sale of Fund Shares	-0.62%	10.33%	6.07%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-1.42%	12.41%	7.01%
Return After Taxes on Distributions	-1.45%	12.39%	7.00%
Return After Taxes on Distributions and Sale of Fund Shares	-0.80%	9.92%	5.68%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

226 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 227

TECHNOLOGY 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.58%
Total Annual Fund Operating Expenses	1.35%	1.68%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$137	$428	$739	$1,624
Class H	$171	$530	$913	$1,987

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 388% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

228 | PROSPECTUS

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 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

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 the principal risks described below.

PROSPECTUS | 229

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. As of the date of this Prospectus, the Fund's assets are concentrated in the software industry or group of industries. As a result, 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. The prices of the securities of companies in the software industry may fluctuate widely due to competitive pressures, aggressive pricing, technological developments, changing domestic demand, and the ability to attract and retain skilled employees. In addition, the market for products produced by software companies is characterized by rapidly changing technology, rapid product obsolescence, and cyclical market patterns, all of which may affect the success of software companies. Legislative or regulatory changes and increased government supervision may also affect companies in the software industry.

230 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -0.87%.

PROSPECTUS | 231



Highest Quarter Return		Lowest Quarter Return
Q2 2009	19.09%	Q4 2008	-26.87	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	1.25%	8.94%	5.80%
Return After Taxes on Distributions	1.25%	8.94%	5.80%
Return After Taxes on Distributions and Sale of Fund Shares	0.70%	7.07%	4.66%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.86%	8.42%	5.27%
Return After Taxes on Distributions	0.86%	8.42%	5.27%
Return After Taxes on Distributions and Sale of Fund Shares	0.49%	6.64%	4.22%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

232 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 233

TELECOMMUNICATIONS 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.54%
Total Annual Fund Operating Expenses	1.34%	1.64%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$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 660% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

234 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 235

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. As of the date of this Prospectus, the Fund's assets are concentrated in the telecommunications industry or group of industries. As a result, 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. The prices of the securities of companies in the telecommunications industry 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 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. Legislative or regulatory changes and increased government supervision may also affect companies in the telecommunications industry.

SECTOR RISK—The Fund is subject to the following Sector Risks:

236 | PROSPECTUS

competition affecting the communications sector. The prices of the securities of communications companies are closely tied to government regulation and market competition.

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 7.73%.

PROSPECTUS | 237



Highest Quarter Return		Lowest Quarter Return
Q2 2009	18.85%	Q4 2008	-20.98	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-6.93%	0.15%	0.68%
Return After Taxes on Distributions	-8.31%	-0.90%	-0.10%
Return After Taxes on Distributions and Sale of Fund Shares	-3.91%	-0.32%	0.19%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-7.39%	-0.33%	0.20%
Return After Taxes on Distributions	-8.90%	-1.46%	-0.63%
Return After Taxes on Distributions and Sale of Fund Shares	-4.17%	-0.71%	-0.18%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

238 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 239

TRANSPORTATION 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.49%	0.62%
Total Annual Fund Operating Expenses	1.34%	1.72%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$136	$425	$734	$1,613
Class H	$175	$542	$933	$2,030

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 219% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

240 | PROSPECTUS

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.

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

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 the principal risks described below.

PROSPECTUS | 241

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. As of the date of this Prospectus, the Fund's assets are concentrated in the transportation industry or group of industries. As a result, 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. The prices of the securities of companies in the transportation industry 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. Legislative or regulatory changes and increased government supervision may also affect companies in the transportation industry.

SECTOR RISK—The Fund is subject to the following Sector Risks:

242 | PROSPECTUS

competition affecting the consumer sector. The prices of the securities of consumer companies have historically been closely tied to the performance of the overall economy, and are also affected by consumer confidence, attitudes and spending. Companies engaged in the consumer cyclical sector rely heavily on business cycles and economic conditions and may be adversely affected and lose value more quickly in periods of economic downturns than companies engaged in the consumer non-cyclical sector.

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -5.02%.

PROSPECTUS | 243



Highest Quarter Return		Lowest Quarter Return
Q3 2009	18.91%	Q3 2011	-24.42	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-13.84%	10.84%	5.80%
Return After Taxes on Distributions	-14.01%	10.80%	5.75%
Return After Taxes on Distributions and Sale of Fund Shares	-7.83%	8.61%	4.63%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-14.15%	10.33%	5.30%
Return After Taxes on Distributions	-14.34%	10.29%	5.26%
Return After Taxes on Distributions and Sale of Fund Shares	-8.01%	8.19%	4.22%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

244 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 245

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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.50%	0.58%
Total Annual Fund Operating Expenses	1.35%	1.68%


*	Effective upon the close of business on September 30, 2015, the Fund converted its existing Advisor Class shares to Class H shares, which effectively reduced the distribution and shareholder services fees paid by the Fund. The Annual Fund Operating Expense information in the fee table has been restated to reflect this reduction.

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
Investor Class	$137	$428	$739	$1,624
Class H	$171	$530	$913	$1,987

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 475% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

246 | PROSPECTUS

public utility operations. The Fund also may purchase American Depositary Receipts (“ADRs”) to gain exposure to foreign Utilities 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 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

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 the principal risks described below.

PROSPECTUS | 247

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. As of the date of this Prospectus, the Fund's assets are concentrated in the electric industry or group of industries. As a result, 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. The prices of securities of companies in the electric industry may fluctuate significantly due to supply and demand, governmental regulation and environmental issues, economic conditions generally affecting electric supply and utilities companies, competitive pressures due to deregulation in the electric and utilities industries, increased sensitivity to the cost of energy production; and environmental factors such as conservation of natural resources or pollution control. Legislative or regulatory changes and increased government supervision may also affect companies in the utilities industry.

SECTOR RISK—The Fund is subject to the following Sector Risk:

248 | PROSPECTUS

utilities sector. The prices of the securities of utilities companies are closely tied to government regulation and market competition.

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 23.52%.

PROSPECTUS | 249



Highest Quarter Return		Lowest Quarter Return
Q1 2013	13.38%	Q3 2008	-17.45	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-7.22%	9.27%	6.41%
Return After Taxes on Distributions	-7.88%	8.25%	5.35%
Return After Taxes on Distributions and Sale of Fund Shares	-4.10%	6.84%	4.63%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-7.53%	8.78%	5.89%
Return After Taxes on Distributions	-8.26%	7.67%	4.77%
Return After Taxes on Distributions and Sale of Fund Shares	-4.28%	6.40%	4.17%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

250 | 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.


•	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 minimum account balance requirements for Investor Class and 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 | 251

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 125% 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 (i.e., 1.25x) and the cumulative performance of the benchmark.

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

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	0.51	%
Total Annual Fund Operating Expenses	1.66	%

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
$169	$523	$902	$1,965

PORTFOLIO TURNOVER

252 | 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 920% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Fund's benchmark. The Advisor attempts to consistently apply leverage to increase the Fund’s exposure to 125% of the underlying index. The Fund also has 125% exposure to the foreign currencies in which the securities included in the underlying index are denominated. If the U.S. dollar rises in value against a foreign currency, a security denominated in that currency will be worth less in U.S. dollars and if the U.S. dollar decreases in value against a foreign currency, a security denominated in that currency will be worth more in U.S. dollars. 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 derivatives 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 Fund's benchmark. 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 Fund's benchmark.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 253

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 the principal risks described below.

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 net asset values ("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.

254 | PROSPECTUS



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 | 255

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.

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

256 | PROSPECTUS

currency fluctuations, adverse political and economic developments, unreliable or untimely information, less liquidity, limited legal recourse and higher transactional costs.

PROSPECTUS | 257

258 | PROSPECTUS

SECTOR RISK—The Fund is subject to the following Sector Risks:

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, 2016 through June 30, 2016 is -6.45%.

PROSPECTUS | 259



Highest Quarter Return		Lowest Quarter Return
Q2 2009	34.73%	Q4 2008	-33.31	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-6.61%	1.46%	-2.27%
Return After Taxes on Distributions	-6.95%	1.34%	-2.46%
Return After Taxes on Distributions and Sale of Fund Shares	-3.73%	1.07%	-1.70%
STOXX Europe 50^® Index (reflects no deduction for fees, expenses or taxes)	-4.40%	2.83%	1.75%

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.


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

260 | PROSPECTUS

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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 | 261

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 (i.e., 2x) and the cumulative performance of the benchmark.

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

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	0.49	%
Acquired Fund Fees and Expenses	0.01	%
Total Annual Fund Operating Expenses*	1.50	%

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.

262 | PROSPECTUS



1 Year	3 Years	5 Years	10 Years
$153	$474	$818	$1,791

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 543% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 Fund's benchmark. The Advisor attempts to consistently apply leverage to increase the Fund's exposure to 200% of the underlying index. The Fund also has 200% exposure to the Japanese yen. If the U.S. dollar rises in value against the Japanese yen, a security denominated in Japanese yen will be worth less in U.S. dollars, and if the U.S. dollar decreases in value against the Japanese yen, a security denominated in Japanese yen will be worth more in U.S. dollars. 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 derivatives 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 Fund's benchmark. 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 Fund's benchmark.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 263

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 the principal risks described below.

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 net asset values ("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.

264 | 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 | 265

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.

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.

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.

266 | PROSPECTUS

PROSPECTUS | 267

SECTOR RISK—The Fund is subject to the following Sector Risks:

268 | PROSPECTUS

PROSPECTUS | 269

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.

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, 2016 through June 30, 2016 is -4.80%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	44.17%	Q1 2009	-33.01	%

270 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Since Inception (2/22/2008)
Return Before Taxes	14.56%	4.74%	-1.68%
Return After Taxes on Distributions	14.56%	4.74%	-1.68%
Return After Taxes on Distributions and Sale of Fund Shares	8.24%	3.69%	-1.26%
Nikkei 225 Stock Average (reflects no deduction for fees, expenses or taxes)	8.03%	4.75%	2.87%

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 minimum 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 | 271

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

272 | PROSPECTUS

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 (i.e., 2x) and the cumulative performance of the benchmark.

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 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 | 273

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 2,874% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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.

274 | 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 the principal risks described below.

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%

PROSPECTUS | 275

276 | PROSPECTUS

markets are highly volatile and the use of futures may increase the volatility of the Fund’s net asset value ("NAV"). Futures are also subject to leverage risks and 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.

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. As of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the banking industry, internet industry, oil and gas industry, semi-conductors industry, and telecommunications industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. Companies in the banking industry are subject to government regulations that may limit both the amounts and types of loans and financial commitments banking companies can make, the interest rates and fees they can charge, and the amount of capital they must maintain, all of which may affect profitability. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of banking companies. In addition, the prices of the securities of companies in the banking industry 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. The prices of securities of companies in the internet industry may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. The prices of securities of companies in the oil and gas industry may fluctuate widely due to supply and demand for a specific product or service, the price of oil and gas, exploration and production spending, world events, and economic conditions. Natural disasters and changes in exchange rates and interest rates may also affect companies in the oil and gas industry. In addition, the policies of the Organization of Petroleum Exporting Countries ("OPEC"), changes in relationships among OPEC members and between OPEC and oil-importing nations, the regulatory environment, taxation policies, and the economies of the key energy-consuming countries may also affect the prices of securities in the oil and gas industry. The prices of securities of companies in the semi-conductors industry may fluctuate widely due to rapid changes in product cycles, rapid product obsolescence, and competition both domestically and internationally, including competition from foreign competitors with lower production costs. Companies in the semiconductor industry rely heavily on technology, especially those of smaller, less-seasoned

PROSPECTUS | 277

companies, and tend to be more volatile than the overall market. The prices of the securities of companies in the telecommunications industry 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 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. In addition, legislative or regulatory changes and increased government supervision may also affect companies in each of the banking, internet, oil and gas, semi-conductors, and telecommunications industries.

278 | PROSPECTUS

trading volumes, and cyclical or static growth prospects. 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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 279

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, 2016 through June 30, 2016 is 11.34%.

280 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2012	19.06%	Q3 2011	-43.50	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Since Inception (10/29/2010)
Return Before Taxes	-35.32%	-19.97%	-18.09%
Return After Taxes on Distributions	-35.74%	-20.49%	-18.60%
Return After Taxes on Distributions and Sale of Fund Shares	-19.98%	-13.39%	-12.25%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-16.06%	-6.99%	-5.87%

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.

PROSPECTUS | 281

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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

282 | 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 (i.e., -2x) and the cumulative performance of the benchmark.

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	0.59	%
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 | 283

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 and most 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 $3.8 billion to $237.1 billion as of June 30, 2016. 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. As of the date of this Prospectus, the Fund anticipates that it may have significant exposure to the basic materials, communications, consumer (non-cyclical), energy, financial, and technology sectors. Also, as of the date of this Prospectus, the underlying index components and thus, the Fund's assets are expected to be concentrated in one or more of the banking, internet, oil and gas, semi-conductors, and telecommunications industries or groups of industries, as applicable.

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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.

284 | 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 the principal risks described below.

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.



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 | 285

286 | 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 net asset value ("NAV"). Futures are also subject to leverage risks and 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.

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. As of the date of this Prospectus, the underlying index components and thus, the Fund's assets are concentrated in the banking industry, internet industry, oil and gas industry, semi-conductors industry, and telecommunications industry or groups of industries. As a result, the Fund will be more susceptible to the risks associated with those industries or groups of industries than a fund that does not concentrate its investments. Companies in the banking industry are subject to government regulations that may limit both the amounts and types of loans and financial commitments banking companies can make, the interest rates and fees they can charge, and the amount of capital they must maintain, all of which may affect profitability. Credit losses resulting from financial difficulties of borrowers also can negatively affect the performance of banking companies. In addition, the prices of the securities of companies in the banking industry 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. The prices of securities of companies in the internet industry may fluctuate widely due to competitive pressures, increased sensitivity to short product cycles and aggressive pricing, heavy expenses incurred for research and development of products or services that prove unsuccessful, problems related to bringing products to market, and rapid obsolescence of products. The prices of securities of companies in the oil and gas industry may fluctuate widely due to supply and demand for a specific product or service, the price of oil and gas, exploration and production spending, world events, and economic conditions. Natural disasters and changes in exchange rates and interest rates may also affect companies in the oil and gas industry. In addition, the policies of the Organization of Petroleum Exporting Countries ("OPEC"), changes in relationships among OPEC members and between OPEC and oil-importing nations, the regulatory environment, taxation policies, and the economies of the key energy-consuming countries may also affect the prices of securities in the oil and gas industry. The prices of securities of companies in the semi-conductors industry may fluctuate widely due to rapid changes in product cycles, rapid product obsolescence, and competition both

PROSPECTUS | 287

domestically and internationally, including competition from foreign competitors with lower production costs. Companies in the semiconductor industry rely heavily on technology, especially those of smaller, less-seasoned companies, and tend to be more volatile than the overall market. The prices of the securities of companies in the telecommunications industry 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 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. In addition, legislative or regulatory changes and increased government supervision may also affect companies in each of the banking, internet, oil and gas, semi-conductors, and telecommunications industries.

288 | PROSPECTUS

companies may experience more price volatility, greater spreads between their bid and ask prices, lower trading volumes, and cyclical or static growth prospects. 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.

SECTOR RISK—The Fund is subject to the following Sector Risks:

PROSPECTUS | 289

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, 2016 through June 30, 2016 is -22.00%.

290 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2011	44.83%	Q1 2012	-22.22	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Since Inception (10/29/2010)
Return Before Taxes	21.16%	-1.81%	-3.97%
Return After Taxes on Distributions	21.16%	-1.81%	-3.97%
Return After Taxes on Distributions and Sale of Fund Shares	11.98%	-1.37%	-2.96%
BNY Mellon Emerging Markets 50 ADR Index (reflects no deduction for fees, expenses or taxes)	-16.06%	-6.99%	-5.87%

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.

PROSPECTUS | 291

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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

292 | PROSPECTUS

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 (i.e., 2x) and the cumulative performance of the benchmark.

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 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	0.55	%
Acquired Fund Fees and Expenses	0.02	%
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.

PROSPECTUS | 293



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

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 376% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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. 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.

294 | 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 the principal risks described below.

PROSPECTUS | 295



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%

296 | PROSPECTUS

PROSPECTUS | 297

298 | 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, 2016 through June 30, 2016 is -6.18%.

PROSPECTUS | 299



Highest Quarter Return		Lowest Quarter Return
Q3 2008	17.18%	Q3 2010	-17.58	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	14.03%	4.17%	-1.71%
Return After Taxes on Distributions	12.97%	3.97%	-2.45%
Return After Taxes on Distributions and Sale of Fund Shares	8.85%	3.24%	-1.27%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	9.26%	4.53%	0.79%

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.

300 | PROSPECTUS

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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 | 301

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 (i.e., -2x) and the cumulative performance of the benchmark.

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 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	0.55	%
Acquired Fund Fees and Expenses	0.02	%
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.

302 | PROSPECTUS



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

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 699% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 303

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 the principal risks described below.

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.

304 | 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 | 305

306 | PROSPECTUS

PROSPECTUS | 307

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, 2016 through June 30, 2016 is 4.58%.

308 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2010	19.18%	Q3 2008	-15.93	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-17.17%	-9.21%	-2.47%
Return After Taxes on Distributions	-17.17%	-9.21%	-3.64%
Return After Taxes on Distributions and Sale of Fund Shares	-9.72%	-6.67%	-1.83%
U.S. Dollar Index^® (reflects no deduction for fees, expenses or taxes)	9.26%	4.53%	0.79%

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.

PROSPECTUS | 309

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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

310 | PROSPECTUS

REAL ESTATE 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 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	0.52	%
Total Annual Fund Operating Expenses	1.62	%

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
$165	$511	$881	$1,922

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 880% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 311

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

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 the principal risks described below.

312 | PROSPECTUS

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. As of the date of this Prospectus, the Fund's assets are concentrated in the REITs industry or group of industries. As a result, 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. See “Real Estate Investment Trust (REIT) Risk” below for a description of the risks associated with the Fund’s investments in the REIT industry.

PROSPECTUS | 313

SECTOR RISK—The Fund is subject to the following Sector Risk:

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, 2016 through June 30, 2016 is 11.89%.

314 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q3 2009	29.51%	Q4 2008	-38.29	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-3.03%	7.68%	3.09%
Return After Taxes on Distributions	-3.55%	6.82%	2.31%
Return After Taxes on Distributions and Sale of Fund Shares	-1.72%	5.62%	2.02%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	7.31%

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.

PROSPECTUS | 315

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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

316 | PROSPECTUS

GOVERNMENT LONG BOND 1.2X STRATEGY 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	0.44%	0.45%
Total Annual Fund Operating Expenses	0.94%	1.20%

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 | 317



	1 Year	3 Years	5 Years	10 Years
Investor Class	$96	$300	$520	$1,155
Class H	$122	$381	$660	$1,455

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 2,699% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

318 | 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 the principal risks described below.

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.

PROSPECTUS | 319



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%

320 | PROSPECTUS

PROSPECTUS | 321

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.

322 | 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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 21.32%.



Highest Quarter Return		Lowest Quarter Return
Q4 2008	41.48%	Q1 2009	-16.06	%

PROSPECTUS | 323

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-4.58%	10.25%	7.09%
Return After Taxes on Distributions	-5.41%	9.46%	6.08%
Return After Taxes on Distributions and Sale of Fund Shares	-2.58%	7.77%	5.21%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.74%	6.73%



Class H	Past 1 Year	Since Inception (9/18/2014)
Return Before Taxes	-4.66%	8.13%
Return After Taxes on Distributions	-5.38%	7.41%
Return After Taxes on Distributions and Sale of Fund Shares	-2.63%	5.89%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.71%

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 minimum account balance requirements for Investor Class and 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.

324 | 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”) 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 | 325

INVERSE GOVERNMENT LONG BOND STRATEGY 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 Investor Class shares or Class H shares of the Fund.



	Investor Class	Class H
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 (12b-1) Fees	None	0.25%
Other Expenses	2.58%	2.46%
Short Sales Dividend and Interest Expense	2.08%	1.96%
Remaining Other Expenses	0.50%	0.50%
Acquired Fund Fees and Expenses	0.01%	0.01%
Total Annual Fund Operating Expenses*	3.49%	3.62%

326 | 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
Investor Class	$352	$1,071	$1,812	$3,765
Class H	$365	$1,109	$1,873	$3,880

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 838% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

On a day-to-day basis, the Fund may hold U.S. government securities or cash equivalents. 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 | 327

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 the principal risks described below.

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.

328 | 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 | 329

330 | PROSPECTUS

PROSPECTUS | 331

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

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 Class shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -15.80%.



Highest Quarter Return		Lowest Quarter Return
Q2 2009	12.99%	Q4 2008	-26.00	%

332 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Investor Class	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	-0.48%	-10.27%	-7.84%
Return After Taxes on Distributions	-0.48%	-10.27%	-8.06%
Return After Taxes on Distributions and Sale of Fund Shares	-0.27%	-7.39%	-5.33%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.74%	6.73%



Class H	Past 1 Year	Since Inception (9/18/2014)
Return Before Taxes	-0.68%	-10.37%
Return After Taxes on Distributions	-0.68%	-10.37%
Return After Taxes on Distributions and Sale of Fund Shares	-0.39%	-7.87%
Barclays Capital Long Treasury Bond Index (reflects no deduction for fees, expenses or taxes)	-1.21%	7.71%

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 minimum account balance requirements for Investor Class and 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.

PROSPECTUS | 333

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

334 | PROSPECTUS

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	0.49	%
Acquired Fund Fees and Expenses	0.05	%
Total Annual Fund Operating Expenses*	1.54	%

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
$157	$486	$839	$1,835

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 521% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 335

336 | 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 the principal risks described below.

PROSPECTUS | 337

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.

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 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.

338 | PROSPECTUS

vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

PROSPECTUS | 339

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, 2016 through June 30, 2016 is 7.14%.



Highest Quarter Return		Lowest Quarter Return
Q3 2009	9.54%	Q1 2009	-13.04	%

340 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-0.26%	6.02%	5.77%
Return After Taxes on Distributions	-1.90%	3.89%	3.19%
Return After Taxes on Distributions and Sale of Fund Shares	-0.13%	3.76%	3.34%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	-4.47%	5.04%	6.27%

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 minimum 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 | 341

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

342 | PROSPECTUS

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 (i.e., -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

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	0.50	%
Acquired Fund Fees and Expenses	0.02	%
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

PROSPECTUS | 343

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 1,722% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

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, consisting of 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 derivatives investments may be traded in the over-the-counter (“OTC”) market, which generally provides for less transparency than exchange-traded derivative instruments.

344 | 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 the principal risks described below.

PROSPECTUS | 345

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.

346 | PROSPECTUS

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.

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, the perceived poor management performance, financial leverage or reduced demand of an issuer’s goods or services may contribute to a decrease in the value of a security. A decrease in the value of the securities, held by the Fund, of an issuer or guarantor of a debt instrument may cause the value of your investment in the Fund to decrease.

PROSPECTUS | 347

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, 2016 through June 30, 2016 is -8.22%.

348 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q1 2009	10.37%	Q3 2009	-10.88	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Past 5 Years	Since Inception (4/16/2007)
Return Before Taxes	-4.19%	-10.13%	-10.05%
Return After Taxes on Distributions	-4.19%	-10.13%	-10.18%
Return After Taxes on Distributions and Sale of Fund Shares	-2.37%	-7.30%	-6.78%
Barclays Capital U.S. Corporate High Yield Index (reflects no deduction for fees, expenses or taxes)	-4.47%	5.04%	6.27%

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 minimum 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

PROSPECTUS | 349

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

350 | PROSPECTUS

EMERGING MARKETS BOND STRATEGY 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 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	%
Acquired Fund Fees and Expenses	0.18	%
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

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 21,555% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 351

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.

352 | 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 the principal risks described below.

PROSPECTUS | 353

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.

354 | PROSPECTUS

Securities with greater interest rate sensitivity and longer maturities generally are subject to greater fluctuations in value. The Fund may invest in variable and floating rate securities. Although these instruments are generally less sensitive to interest rate changes than fixed rate instruments, the value of floating rate and variable securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. 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, 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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

PROSPECTUS | 355

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.

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, 2016 through June 30, 2016 is 11.88%.

356 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q2 2014	5.91%	Q3 2014	-7.72%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class H	Past 1 Year	Since Inception (10/8/2013)
Return Before Taxes	-2.67%	-3.21%
Return After Taxes on Distributions	-9.07%	-8.83%
Return After Taxes on Distributions and Sale of Fund Shares	-1.48%	-4.86%
BofA Merrill Lynch U.S. Dollar Emerging Markets Sovereign Plus Index (reflects no deduction for fees, expenses or taxes)	0.64%	3.68%

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.

PROSPECTUS | 357

PURCHASE AND SALE OF FUND SHARES

The minimum initial investment amounts and minimum 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

358 | PROSPECTUS

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 (12b-1) Fees	0.00	%
Other Expenses	0.41	%
Total Annual Fund Operating Expenses	0.91	%


*	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
$93	$290	$504	$1,120

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 359

guaranteed by the U.S. Treasury or supported by the full faith and credit of the U.S. government. However, they are authorized to borrow from the U.S. Treasury to meet their obligations.

“Government money market funds” are not required to impose liquidity fees and/or temporary redemption gates, but the Fund’s Board of Trustees may elect to impose such features in the future.

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 the principal risks described below.

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.

360 | 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 is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is 0.00%.



Highest Quarter Return		Lowest Quarter Return
Q4 2006	1.10%	Q1 2010	0.00	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	0.00%	0.00%	0.99%

YIELD

Call 800.820.0888 for the U.S. Government Money Market Fund’s current yield.

PROSPECTUS | 361

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 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

362 | PROSPECTUS

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 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”), which are grouped into the categories listed below.

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

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.

PROSPECTUS | 363

if the value of the underlying index goes down by 5%, the value of the Fund’s shares should go down by 10% that calendar month).

Inverse Emerging Markets 2x Strategy Fund and Weakening Dollar 2x Strategy Fund. If each 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).

364 | PROSPECTUS

PRINCIPAL INVESTMENT STRATEGIES

With the exception of the 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. The High Yield Strategy Fund and Inverse High Yield Strategy Fund may each, but will not necessarily, invest up to 100% of its assets 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 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.

The High Yield Strategy Fund, Inverse High Yield Strategy Fund and Emerging Markets Bond Strategy Fund 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. 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.

The following Funds – Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, 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 securities 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^®

PROSPECTUS | 365

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.

The Advisor pursues the Fund's investment objective by regularly utilizing leveraged instruments, such as futures contracts and options on securities, futures contracts, and securities indices.

366 | PROSPECTUS

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.

UNDERSTANDING COMPOUNDING & THE EFFECT OF LEVERAGE

PROSPECTUS | 367

368 | PROSPECTUS

Twice (200%) Daily Index Returns

PROSPECTUS | 369

Twice (200%) Calendar Month Index Returns

370 | PROSPECTUS

PROSPECTUS | 371

index for the remainder of that calendar month. If the underlying index moves in a positive direction, an investor in the Fund would receive exposure to the underlying index less than 200%. Conversely, if the underlying index moves in a negative direction, an investor in the Fund would receive exposure to the underlying index greater than 200%. Calendar month rebalancing may compromise the Fund’s performance if the underlying index experiences significant volatility during a month. The table below demonstrates how intra-month movements in the underlying index would affect the underlying index exposure of an investor who purchases shares of the Fund on a day other than the last business day of a calendar month.



Intra-month Change in Index Level Since Previous Month End
	-40%	-35%	-30%	-25%	-20%	-15%	-10%	-5%	0%	5%	10%	15%	20%	25%	30%	35%	40%
Leverage	600%	433%	350%	300%	267%	243%	225%	211%	200%	191%	183%	177%	171%	167%	163%	159%	156%

MARKET VOLATILITY.

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%

372 | PROSPECTUS

Table 2



Benchmark Annualized Volatility Range	Hypothetical Monthly 2x Leveraged Fund Loss
10%	-0.9%
20%	-3.5%
30%	-7.6%
40%	-13.5%
50%	-20.2%
60%	-28.7%
70%	-37.0%
80%	-47.0%
90%	-56.9%
100%	-66.2%

Table 3



Index	Annualized Volatility for the Five Year Period Ended June 30, 2016
BNY Mellon Emerging Markets 50 ADR Index	20.25%
NASDAQ-100 Index^®	14.34%
Nikkei 225 Stock Average	13.86%
Russell 2000^® Index	16.58%
S&P 500^® Index	12.10%
S&P MidCap 400^® Index	14.39%
STOXX Europe 50^® Index	16.31%
U.S. Dollar Index^®	7.26%

PROSPECTUS | 373

Fund seeks calendar monthly leveraged exposure to its underlying index equal to 200% of its net assets. As a consequence, for each Daily Leveraged Fund and the Monthly Leveraged Fund, the risk of total loss of your investment exists in the event of a decline in the value of the underlying index of a Daily Leveraged Fund or the Monthly Leveraged Fund and for each Leveraged Inverse Fund the risk of total loss exists in the event of 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.

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%

374 | PROSPECTUS

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%

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 PROJECTED RETURNS OF MONTHLY LEVERAGED FUNDS FOR SHARES HELD LONGER THAN A FULL TRADING MONTH

PROSPECTUS | 375

provide a return of 20% for the quarter even if it meets its target each calendar month. This is true because of the Fund expenses set forth in the prospectus, but also because the pursuit of monthly goals may result in monthly leveraged compounding, which means that the return of the underlying index over a period of time different than a calendar month multiplied by the Monthly Leveraged Fund’s monthly target (e.g., 200%) will not generally equal the Monthly Leveraged Fund’s performance over that same period.

TABLE 1: NO CLEAR TREND IN THE MARKET



	Index			2x Monthly Leveraged Fund
	Value	Monthly Performance	Cumulative Value	NAV	Monthly Performance	Cumulative Performance
	100			$100.00
Month 1	105	5.00%	5.00%	$110.00	10.00%	10.00%
Month 2	110	4.76%	10.00%	$120.48	9.52%	20.48%
Month 3	100	-9.09%	0.00%	$98.57	-18.18%	-1.43%
Month 4	90	-10.00%	-10.00%	$78.86	-20.00%	-21.14%
Month 5	85	-5.56%	-15.00%	$70.10	-11.11%	-29.90%
Month 6	100	17.65%	0.00%	$94.83	35.29%	-5.17%
Month 7	95	-5.00%	-5.00%	$85.35	-10.00%	-14.65%
Month 8	100	5.26%	0.00%	$94.34	10.53%	-5.66%
Month 9	105	5.00%	5.00%	$103.77	10.00%	3.77%
Month 10	100	-4.76%	0.00%	$93.89	-9.52%	-6.11%

TABLE 2: CLEAR TREND THAT MARKET RISES



	Index			2x Monthly Leveraged Fund
	Value	Monthly Performance	Cumulative Value	NAV	Monthly Performance	Cumulative Performance
	100			$100.00
Month 1	102	2.00%	2.00%	$104.00	4.00%	4.00%
Month 2	104	1.96%	4.00%	$108.08	3.92%	8.08%
Month 3	106	1.92%	6.00%	$112.24	3.85%	12.24%
Month 4	108	1.89%	8.00%	$116.47	3.77%	16.47%
Month 5	110	1.85%	10.00%	$120.78	3.70%	20.78%
Month 6	112	1.82%	12.00%	$125.18	3.64%	25.18%
Month 7	114	1.79%	14.00%	$129.65	3.57%	29.65%
Month 8	116	1.75%	16.00%	$134.20	3.51%	34.20%
Month 9	118	1.72%	18.00%	$138.82	3.45%	38.82%
Month 10	120	1.69%	20.00%	$143.53	3.39%	43.53%

376 | PROSPECTUS

TABLE 3: CLEAR TREND THAT MARKET DECLINES



	Index			2x Monthly Leveraged Fund
	Value	Monthly Performance	Cumulative Value	NAV	Monthly Performance	Cumulative Performance
	100			$100.00
Month 1	98	-2.00%	-2.00%	$96.00	-4.00%	-4.00%
Month 2	96	-2.04%	-4.00%	$92.08	-4.08%	-7.92%
Month 3	94	-2.08%	-6.00%	$88.24	-4.17%	-11.76%
Month 4	92	-2.13%	-8.00%	$84.49	-4.26%	-15.51%
Month 5	90	-2.17%	-10.00%	$80.82	-4.35%	-19.18%
Month 6	88	-2.22%	-12.00%	$77.22	-4.44%	-22.78%
Month 7	86	-2.27%	-14.00%	$73.71	-4.55%	-26.29%
Month 8	84	-2.33%	-16.00%	$70.29	-4.65%	-29.71%
Month 9	82	-2.38%	-18.00%	$66.94	-4.76%	-33.06%
Month 10	80	-2.44%	-20.00%	$63.67	-4.88%	-36.33%

PRINCIPAL INVESTMENT RISKS

PROSPECTUS | 377

378 | PROSPECTUS

PROSPECTUS | 379

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, which would cause a decline in the U.S. value of the holdings of the Fund. Similarly, the Strengthening Dollar 2x Strategy Fund’s exposure to the U.S. Dollar Index^® subjects

380 | PROSPECTUS

PROSPECTUS | 381

The Advisor has claimed an exclusion from the definition of CPO pursuant to CFTC Regulation 4.5 with respect to the following Funds: the S&P 500^®Fund, Russell 2000^® Fund, NASDAQ-100^® Fund, Dow Jones Industrial Average^® 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, each Sector Fund, the Real Estate Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund. Accordingly, neither the Fund nor the Advisor (with respect to the Fund) is subject to registration as a CPO under the CEA or regulation by the CFTC. To remain eligible for the exclusion, the Fund will be limited in its ability to use financial instruments subject to regulation by the CFTC. In the event that the 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 the Fund. The Advisor’s eligibility to claim the exclusion with respect to the 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

382 | PROSPECTUS

interests. The 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 the Fund, the Fund’s expenses may increase, adversely affecting the Fund’s total return.

The Advisor is not eligible to claim the exclusion from registration with respect to the following Funds: the Nova Fund, Inverse S&P 500^® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, 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, and Emerging Markets Bond Strategy Fund. As a result, the Advisor has registered with the CFTC as a commodity pool operator with respect to these Funds, which are considered commodity pools under the CEA. On August 13, 2013, the CFTC issued the final harmonization rule release specifying the disclosure, reporting and recordkeeping requirements that 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.

PROSPECTUS | 383

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.

384 | PROSPECTUS

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.

PROSPECTUS | 385

386 | PROSPECTUS

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.

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 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.

PROSPECTUS | 387

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.

INTRA-CALENDAR MONTH INVESTMENT RISK—The Fund seeks calendar month leveraged investment results which should not be equated with seeking a leveraged goal for a period different than a full calendar month. An investor who purchases shares on a day other than the last business day of a calendar month will likely have more, or less, than 200% leveraged investment exposure to the underlying index, depending upon the movement of the underlying index from the end of the prior calendar month until the point of purchase. If the underlying index moves in value in a direction favorable to the Fund, the Fund’s net assets will rise by the same amount as the Fund’s exposure. Conversely, if the underlying index moves in value in a direction adverse to the Fund, the Fund’s net assets will decline by the same amount as the Fund’s exposure. The Fund begins each calendar month with exposure which is 200% of its net assets, however, subsequent intra-month changes in both the Fund's exposure to the underlying index and the net assets of the Fund will determine whether the Fund is under- or over-exposed to the underlying index and how much exposure an investor who purchases after the first trading day of a calendar month is able to obtain through an investment in the Fund. As an example (using simplified numbers), if the Fund had $100 in net assets at the market close on the last trading day of the calendar month, it would seek $200 of exposure to the next calendar month’s underlying index performance. If the underlying index rose by 1% by mid-calendar month, the exposure of the Fund will have risen by 1% to $202 and the net assets will have risen by that $2 gain to $102. With net assets of $102 and exposure of $202, a purchaser at that point would be receiving 198% exposure of her investment instead of 200%. Only on the lat trading day of a calendar month, could an investor receive 200% exposure to the underlying index.

388 | PROSPECTUS

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.

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 | 389

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 derivatives 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 Emerging Markets Bond Strategy Fund may invest in leveraged instruments in pursuit of its investment objective. The Nova Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy 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, Monthly Rebalance NASDAQ-100^® 2x Strategy 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.

390 | PROSPECTUS

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 derivatives 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 derivatives contracts.

PROSPECTUS | 391

requirements under the federal tax law. A REIT that fails to comply with all those requirements may be subject to federal income taxation, or the federal tax requirement that a REIT distribute substantially all of its net income to its shareholders may result in a REIT’s having insufficient capital for future expenditures. The value of a REIT can depend on the structure of and cash flow generated by the REIT. Also, like mutual funds, REITs have expenses, including advisory and administration fees, that their shareholders pay. As a result, an investor will absorb duplicate levels of fees when the Fund invests in REITs. The failure of a company to qualify as a REIT could have adverse consequences for the Fund, including significantly reducing return to the Fund on its investment in such a company.

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 Funds are subject to the following Sector Risks, as applicable:

392 | PROSPECTUS

PROSPECTUS | 393

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.

394 | PROSPECTUS

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.

PROSPECTUS | 395

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

396 | PROSPECTUS



Fund	Advisory Fee
Nova Fund	0.75	%
S&P 500^® Fund	0.75	%
Inverse S&P 500^® Strategy Fund	0.90	%
Monthly Rebalance NASDAQ-100^® 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	%
Dow Jones Industrial Average^® Fund	0.75	%
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	%
U.S. Government Money Market Fund	0.50	%



Fund	Expense Cap
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	1.35%

PROSPECTUS | 397


•	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

398 | PROSPECTUS

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.

SHAREHOLDER INFORMATION

CALCULATING NET ASSET VALUE

The price at which you buy, sell and exchange shares is the net asset value per share, which also is 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

PROSPECTUS | 399

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.

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.

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.

400 | PROSPECTUS

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

Investor Class shares and Class H shares. Investor Class 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.

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

PROSPECTUS | 401

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.

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 transaction 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

402 | PROSPECTUS



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

PROSPECTUS | 403

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 Investor Class 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 Class shares and 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

Guggenheim Investments does not accept purchase orders from non-resident U.S. citizens or non-resident aliens.

404 | PROSPECTUS

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 | 405



	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.

406 | 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.

CANCELED 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 | 407

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)

408 | PROSPECTUS

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 | 409

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 canceled 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 canceled 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 Investor Class shares or Class H shares of any Rydex Series Fund or Rydex Dynamic Fund for Investor Class 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 Investor Class 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 (collectively, the "Guggenheim Funds"), on the basis of the respective NAVs of the shares involved.

The Guggenheim Funds currently include 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 Guggenheim Funds, please contact Guggenheim Investments Client Services

410 | PROSPECTUS

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 Fund will be subject to the purchaser eligibility requirements of the applicable share class of that Guggenheim Fund, which may include initial investment amount and account balance requirements, as disclosed in that Guggenheim Fund's prospectus.

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

PROSPECTUS | 411

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.

ACCOUNT POLICIES

SHAREHOLDER IDENTIFICATION AND VERIFICATION

CHANGES TO YOUR ACCOUNT

TRANSACTIONS OVER TELEPHONE OR INTERNET

412 | PROSPECTUS

STATEMENTS & CONFIRMATIONS

eDELIVERY SERVICES

HOUSEHOLDING

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


•	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

PROSPECTUS | 413

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

For additional information on fees for employee accounts please refer to the SAI.

FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES

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.

414 | PROSPECTUS

RIGHTS RESERVED BY THE FUNDS

DISTRIBUTION AND SHAREHOLDER SERVICES

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 firms that provide distribution-related services ("Service Providers") 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

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

PROSPECTUS | 415

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

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.

•

416 | PROSPECTUS


•	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.


•	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

NON-U.S. INVESTORS

PROSPECTUS | 417

Internal Revenue Code or (2) is physically present in the U.S. for 183 days or more per year. Different tax consequences may result if the foreign shareholder is engaged in a trade or business within the United States. In addition, the tax consequences to a foreign shareholder entitled to claim the benefits of a tax treaty may be different than those described above.

418 | PROSPECTUS

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand each Fund’s financial performance for the past five years (or, if shorter, the period of operations of that Fund’s Investor Class shares, former Advisor Class shares 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). Effective upon the close of business on September 30, 2015, the outstanding Advisor Class shares of the Sector Funds were converted to Class H shares. For periods prior to September 30, 2015, the Sector Funds' financial performance reflects the expense structure and performance of the former Advisor Class shares. The information provided below has been derived from financial statements that have been audited by Ernst & Young LLP, the Funds' independent registered public accounting firm, whose report, along with the Funds' financial statements and related notes, are included in the Funds' 2016 Annual Reports. The 2016 Annual Reports are available upon request and is incorporated by reference in the SAI.

PROSPECTUS | 419

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$49.42			$42.15			$32.05			$26.82			$24.59
Income (loss) from investment operations:
Net investment income (loss)^a	0.07			0.14			0.14			0.05			0.08
Net gain (loss) on investments (realized and unrealized)	(0.25		)	7.18			9.96			5.21			2.15
Total from investment operations	(0.18		)	7.32			10.10			5.26			2.23
Less distributions from:
Net investment income	(0.06		)	(0.05		)	—			(0.03		)	—
Total distributions	(0.06		)	(0.05		)	—			(0.03		)	—
Net asset value, end of period		$49.18			$49.42			$42.15			$32.05			$26.82
Total Return^b	(0.36		%)	17.36		%	31.51		%	19.62		%	9.07		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$164,820			$136,800			$103,254			$52,785			$54,598
Ratios to average net assets:
Net investment income (loss)	0.14		%	0.31		%	0.37		%	0.20		%	0.36		%
Total expenses^c	1.25		%	1.27		%	1.28		%	1.26		%	1.26		%
Portfolio turnover rate	619		%	403		%	259		%	137		%	116		%

PROSPECTUS | 420

Financial Highlights (continued)

NOVA FUND



	Year Ended March 31, 2016			Period Ended March 31, 2015^d
Class H
Per Share Data
Net asset value, beginning of period		$46.40			$44.40
Income (loss) from investment operations:
Net investment income (loss)^a	(0.06		)	0.02
Net gain (loss) on investments (realized and unrealized)	(0.22		)	2.03
Total from investment operations	(0.28		)	2.05
Less distributions from:
Net investment income	(0.06		)	(0.05		)
Total distributions	(0.06		)	(0.05		)
Net asset value, end of period		$46.06			$46.40
Total Return^b	(0.60		%)	4.61		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,938			$1,692
Ratios to average net assets:
Net investment income (loss)	(0.14		%)	0.08		%
Total expenses^c	1.51		%	1.51		%
Portfolio turnover rate	619		%	403		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.

PROSPECTUS | 421

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$41.40			$37.78			$31.55			$28.20			$26.39
Income (loss) from investment operations:
Net investment income (loss)^a	0.03			0.05			0.05			0.07			(0.02		)
Net gain (loss) on investments (realized and unrealized)	(0.01		)	4.07			6.22			3.35			1.83
Total from investment operations	0.02			4.12			6.27			3.42			1.81
Less distributions from:
Net investment income	(0.01		)	(0.02		)	(0.04		)	(0.07		)	—
Net realized gains	(1.57		)	(0.48		)	—			—			—
Total distributions	(1.58		)	(0.50		)	(0.04		)	(0.07		)	—
Net asset value, end of period		$39.84			$41.40			$37.78			$31.55			$28.20
Total Return^b	0.06		%	10.90		%	19.87		%	12.16		%	6.86		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$229,420			$254,610			$255,912			$265,358			$240,847
Ratios to average net assets:
Net investment income (loss)	0.07		%	0.12		%	0.15		%	0.24		%	(0.07		%)
Total expenses	1.55		%	1.58		%	1.56		%	1.50		%	1.50		%
Portfolio turnover rate	181		%	256		%	157		%	76		%	196		%


^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

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$14.59			$16.82			$21.03			$24.61			$28.50
Income (loss) from investment operations:
Net investment income (loss)^a	(0.13		)	(0.17		)	(0.25		)	(0.30		)	(0.38		)
Net gain (loss) on investments (realized and unrealized)	(0.61		)	(2.06		)	(3.96		)	(3.28		)	(3.51		)
Total from investment operations	(0.74		)	(2.23		)	(4.21		)	(3.58		)	(3.89		)
Net asset value, end of period		$13.85			$14.59			$16.82			$21.03			$24.61
Total Return^b	(5.07		%)	(13.26		%)	(20.02		%)	(14.55		%)	(13.65		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$153,544			$60,745			$79,172			$106,158			$112,334
Ratios to average net assets:
Net investment income (loss)	(0.91		%)	(1.07		%)	(1.35		%)	(1.27		%)	(1.31		%)
Total expenses^c	1.41		%	1.41		%	1.42		%	1.41		%	1.41		%
Portfolio turnover rate	63.00		%	103.00		%	—			—			—

PROSPECTUS | 423

Financial Highlights (continued)

INVERSE S&P 500^® STRATEGY FUND



	Year Ended March 31, 2016			Period Ended March 31, 2015^d
Class H
Per Share Data
Net asset value, beginning of period		$13.59			$14.35
Income (loss) from investment operations:
Net investment income (loss)^a	(0.15		)	(0.09		)
Net gain (loss) on investments (realized and unrealized)	(0.58		)	(0.67		)
Total from investment operations	(0.73		)	(0.76		)
Net asset value, end of period		$12.86			$13.59
Total Return^b	(5.37		%)	(5.30		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,319			$13,085
Ratios to average net assets:
Net investment income (loss)	(1.08		%)	(1.27		%)
Total expenses^c	1.67		%	1.60		%
Portfolio turnover rate	63		%	103		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.

PROSPECTUS | 424

Financial Highlights

MONTHLY REBALANCE NASDAQ-100^® 2X STRATEGY FUND



	Year Ended March 31, 2016			Period Ended March 31, 2015^a
Class H
Per Share Data
Net asset value, beginning of period		$51.57			$50.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.17		)	(0.10		)
Net gain (loss) on investments (realized and unrealized)	4.39			1.67
Total from investment operations	4.22			1.57
Net asset value, end of period		$55.79			$51.57
Total Return^e	8.18		%	3.14		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,220			$342,658
Ratios to average net assets:
Net investment income (loss)	(0.30		%)	(0.60		%)
Total expenses^c	1.67		%	1.64		%
Net expenses^d,f	1.35		%	1.35		%
Portfolio turnover rate	551		%	84		%


^a	Since commencement of operations: November 28, 2014. 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.


^e	Total return does not reflect the impact of any applicable sales charge and has not been annualized.


^f	Net expenses may include expenses that are excluded from the expense limitation agreement. Excluding these expenses, the operating expense ratios for the period presented would be:



	3/31/2016		3/31/2015
Class H	1.35	%	1.35	%

PROSPECTUS | 425

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$25.38			$21.38			$18.38			$17.92			$15.23
Income (loss) from investment operations:
Net investment income (loss)^a	(0.05		)	(0.01		)	0.02			0.02			(0.05		)
Net gain (loss) on investments (realized and unrealized)	0.96			4.39			5.01			0.44			2.74
Total from investment operations	0.91			4.38			5.03			0.46			2.69
Less distributions from:
Net realized gains	(0.54		)	(0.38		)	(2.03		)	—			—
Total distributions	(0.54		)	(0.38		)	(2.03		)	—			—
Net asset value, end of period		$25.75			$25.38			$21.38			$18.38			$17.92
Total Return^b	3.49		%	20.53		%	27.74		%	2.57		%	17.66		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$667,018			$769,257			$632,598			$461,269			$770,626
Ratios to average net assets:
Net investment income (loss)	(0.19		%)	(0.05		%)	0.10		%	0.13		%	(0.34		%)
Total expenses^c	1.25		%	1.26		%	1.29		%	1.26		%	1.27		%
Portfolio turnover rate	228		%	267		%	141		%	94		%	94		%

PROSPECTUS | 426

Financial Highlights (continued)

NASDAQ-100^® FUND



	Year Ended March 31, 2016			Period Ended March 31, 2015^d
Class H
Per Share Data
Net asset value, beginning of period		$23.76			$22.91
Income (loss) from investment operations:
Net investment income (loss)^a	(0.13		)	0.01
Net gain (loss) on investments (realized and unrealized)	0.91			1.22
Total from investment operations	0.78			1.23
Less distributions from:
Net realized gains	(0.54		)	(0.38		)
Total distributions	(0.54		)	(0.38		)
Net asset value, end of period		$24.00			$23.76
Total Return^b	3.18		%	5.40		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$173,638			$12,009
Ratios to average net assets:
Net investment income (loss)	(0.51		%)	0.07		%
Total expenses^c	1.51		%	1.47		%
Portfolio turnover rate	228		%	267		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.

PROSPECTUS | 427

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014^e			2013^e			2012^e
Per Share Data
Net asset value, beginning of period		$26.37			$33.09			$43.91			$46.95			$59.62
Income (loss) from investment operations:
Net investment income (loss)^a	(0.27		)	(0.33		)	(0.54		)	(0.60		)	(0.80		)
Net gain (loss) on investments (realized and unrealized)	(2.00		)	(6.39		)	(10.28		)	(2.44		)	(11.87		)
Total from investment operations	(2.27		)	(6.72		)	(10.82		)	(3.04		)	(12.67		)
Net asset value, end of period		$24.10			$26.37			$33.09			$43.91			$46.95
Total Return^b	(8.61		%)	(20.31		%)	(24.62		%)	(6.50		%)	(21.22		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,857			$6,821			$6,865			$7,709			$8,792
Ratios to average net assets:
Net investment income (loss)	(1.04		%)	(1.14		%)	(1.44		%)	(1.32		%)	(1.38		%)
Total expenses^c	1.44		%	1.46		%	1.46		%	1.44		%	1.45		%
Portfolio turnover rate	1,674		%	149		%	—			—			—

PROSPECTUS | 428

Financial Highlights (continued)

INVERSE NASDAQ-100^® STRATEGY FUND



	Year Ended March31, 2016			Period Ended March31, 2015^d
Class H
Per Share Data
Net asset value, beginning of period		$25.44			$27.50
Income (loss) from investment operations:
Net investment income (loss)^a	(0.29		)	(0.20		)
Net gain (loss) on investments (realized and unrealized)	(1.95		)	(1.86		)
Total from investment operations	(2.24		)	(2.06		)
Net asset value, end of period		$23.20			$25.44
Total Return^b	(8.80		%)	(7.49		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$252			$335
Ratios to average net assets:
Net investment income (loss)	(1.18		%)	(1.35		%)
Total expenses^c	1.70		%	1.68		%
Portfolio turnover rate	1,674		%	149		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.


^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 | 429

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$67.45			$58.56			$45.13			$36.27			$37.12
Income (loss) from investment operations:
Net investment income (loss)^a	(0.57		)	(0.29		)	(0.34		)	(0.15		)	(0.24		)
Net gain (loss) on investments (realized and unrealized)	(4.63		)	9.38			13.77			9.01			(0.61		)
Total from investment operations	(5.20		)	9.09			13.43			8.86			(0.85		)
Less distributions from:
Net realized gains	(0.40		)	(0.20		)	—			—			—
Total distributions	(0.40		)	(0.20		)	—			—			—
Net asset value, end of period		$61.85			$67.45			$58.56			$45.13			$36.27
Total Return^b	(7.73		%)	15.56		%	29.76		%	24.43		%	(2.29		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,611			$16,433			$19,413			$57,067			$16,974
Ratios to average net assets:
Net investment income (loss)	(0.93		%)	(0.47		%)	(0.66		%)	(0.41		%)	(0.72		%)
Total expenses^c	1.66		%	1.66		%	1.68		%	1.67		%	1.66		%
Portfolio turnover rate	1,506		%	598		%	563		%	447		%	141		%


^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 | 430

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$30.70			$35.49			$44.59			$54.57			$61.08
Income (loss) from investment operations:
Net investment income (loss)^a	(0.42		)	(0.47		)	(0.66		)	(0.81		)	(1.05		)
Net gain (loss) on investments (realized and unrealized)	0.41			(4.32		)	(8.44		)	(9.17		)	(5.46		)
Total from investment operations	(0.01		)	(4.79		)	(9.10		)	(9.98		)	(6.51		)
Net asset value, end of period		$30.69			$30.70			$35.49			$44.59			$54.57
Total Return^b	(0.07		%)	(13.47		%)	(20.39		%)	(18.31		%)	(10.66		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,680			$3,015			$3,825			$1,409			$1,578
Ratios to average net assets:
Net investment income (loss)	(1.32		%)	(1.38		%)	(1.65		%)	(1.53		%)	(1.64		%)
Total expenses^c	1.65		%	1.65		%	1.67		%	1.65		%	1.67		%
Portfolio turnover rate	199		%	38		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 431

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$57.94			$53.13			$39.24			$32.13			$34.29
Income (loss) from investment operations:
Net investment income (loss)^a	(0.51		)	(0.40		)	(0.37		)	(0.08		)	(0.37		)
Net gain (loss) on investments (realized and unrealized)	(8.87		)	5.41			14.26			7.19			(1.79		)
Total from investment operations	(9.38		)	5.01			13.89			7.11			(2.16		)
Less distributions from:
Net realized gains	(3.81		)	(0.20		)	—			—			—
Total distributions	(3.81		)	(0.20		)	—			—			—
Net asset value, end of period		$44.75			$57.94			$53.13			$39.24			$32.13
Total Return^b	(16.63		%)	9.48		%	35.40		%	22.13		%	(6.30		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,049			$18,596			$19,056			$44,955			$14,902
Ratios to average net assets:
Net investment income (loss)	(1.01		%)	(0.76		%)	(0.81		%)	(0.25		%)	(1.24		%)
Total expenses^c	1.70		%	1.70		%	1.72		%	1.71		%	1.73		%
Portfolio turnover rate	971		%	830		%	472		%	527		%	177		%

^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 | 432

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$38.79			$37.73			$32.25			$28.16			$28.52
Income (loss) from investment operations:
Net investment income (loss)^a	(0.35		)	(0.28		)	(0.27		)	(0.12		)	(0.22		)
Net gain (loss) on investments (realized and unrealized)	(4.05		)	2.62			7.48			4.21			(0.14		)
Total from investment operations	(4.40		)	2.34			7.21			4.09			(0.36		)
Less distributions from:
Net realized gains	(0.91		)	(1.28		)	(1.73		)	—			—
Total distributions	(0.91		)	(1.28		)	(1.73		)	—			—
Net asset value, end of period		$33.48			$38.79			$37.73			$32.25			$28.16
Total Return^b	(11.43		%)	6.37		%	22.69		%	14.52		%	(1.26		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$46,251			$27,902			$44,185			$101,053			$63,447
Ratios to average net assets:
Net investment income (loss)	(0.97		%)	(0.77		%)	(0.78		%)	(0.42		%)	(0.83		%)
Total expenses	1.60		%	1.58		%	1.59		%	1.52		%	1.58		%
Portfolio turnover rate	442		%	947		%	267		%	160		%	121		%


^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 | 433

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$29.30			$33.11			$43.26			$52.42			$59.37
Income (loss) from investment operations:
Net investment income (loss)^a	(0.41		)	(0.46		)	(0.65		)	(0.84		)	(1.05		)
Net gain (loss) on investments (realized and unrealized)	1.94			(3.35		)	(9.50		)	(8.32		)	(5.90		)
Total from investment operations	1.53			(3.81		)	(10.15		)	(9.16		)	(6.95		)
Net asset value, end of period		$30.83			$29.30			$33.11			$43.26			$52.42
Total Return^b	5.22		%	(11.51		%)	(23.46		%)	(17.46		%)	(11.72		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$36,713			$5,775			$11,691			$12,822			$17,283
Ratios to average net assets:
Net investment income (loss)	(1.28		%)	(1.41		%)	(1.69		%)	(1.62		%)	(1.70		%)
Total expenses^c	1.70		%	1.70		%	1.72		%	1.74		%	1.77		%
Portfolio turnover rate	584		%	189		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 434

Financial Highlights

DOW JONES INDUSTRIAL AVERAGE^® FUND



	Period Ended March 31, 2016^a
Class H
Per Share Data
Net asset value, beginning of period		$50.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.03		)
Net gain (loss) on investments (realized and unrealized)	(0.38		)
Total from investment operations	(0.41		)
Net asset value, end of period		$49.59
Total Return^d
Ratios/Supplemental Data	(0.82%)
Net assets, end of period (in thousands)		$18,293
Ratios to average net assets:
Net investment income (loss)	(0.17		%)
Total expenses^c	1.55		%
Portfolio turnover rate	98		%


^a	Since commencement of operations: December 1, 2015. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.


^b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Total return does not reflect the impact of any applicable sales charges.

PROSPECTUS | 435

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$55.84			$50.80			$38.84			$34.52			$33.13
Income (loss) from investment operations:
Net investment income (loss)^a	(0.18		)	(0.34		)	(0.23		)	(0.15		)	(0.19		)
Net gain (loss) on investments (realized and unrealized)	(2.51		)	6.87			12.19			4.47			1.81
Total from investment operations	(2.69		)	6.53			11.96			4.32			1.62
Less distributions from:
Net realized gains	(1.42		)	(1.49		)	—			—			(0.23		)
Total distributions	(1.42		)	(1.49		)	—			—			(0.23		)
Net asset value, end of period		$51.73			$55.84			$50.80			$38.84			$34.52
Total Return^b	(4.91		%)	12.98		%	30.79		%	12.51		%	4.96		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$113,223			$104,628			$103,502			$52,483			$36,627
Ratios to average net assets:
Net investment income (loss)	(0.35		%)	(0.65		%)	(0.50		%)	(0.43		%)	(0.59		%)
Total expenses	1.51		%	1.50		%	1.52		%	1.50		%	1.51		%
Portfolio turnover rate	290		%	274		%	594		%	421		%	586		%

^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

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$145.62			$141.89			$112.06			$93.80			$90.50
Income (loss) from investment operations:
Net investment income (loss)^a	1.60			0.97			0.51			0.57			0.33
Net gain (loss) on investments (realized and unrealized)	(9.46		)	7.03			35.23			17.83			2.97
Total from investment operations	(7.86		)	8.00			35.74			18.40			3.30
Less distributions from:
Net investment income	(1.96		)	(0.14		)	(0.23		)	(0.14		)	—
Net realized gains	(3.25		)	(4.13		)	(5.68		)	—			—
Total distributions	(5.21		)	(4.27		)	(5.91		)	(0.14		)	—
Net asset value, end of period		$132.55			$145.62			$141.89			$112.06			$93.80
Total Return^b	(5.44		%)	5.60		%	32.21		%	19.64		%	3.65		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$70,983			$48,920			$114,984			$78,480			$68,886
Ratios to average net assets:
Net investment income (loss)	1.17		%	0.66		%	0.40		%	0.58		%	0.38		%
Total expenses	1.50		%	1.51		%	1.52		%	1.52		%	1.51		%
Portfolio turnover rate	365		%	295		%	410		%	669		%	762		%


^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

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$53.91			$58.71			$49.80			$44.14			$42.81
Income (loss) from investment operations:
Net investment income (loss)^a	(0.36		)	(0.29		)	(0.18		)	(0.20		)	(0.44		)
Net gain (loss) on investments (realized and unrealized)	(4.48		)	3.88			11.02			5.86			1.77
Total from investment operations	(4.84		)	3.59			10.84			5.66			1.33
Less distributions from:
Net realized gains	(2.51		)	(8.39		)	(1.93		)	—			—
Total distributions	(2.51		)	(8.39		)	(1.93		)	—			—
Net asset value, end of period		$46.56			$53.91			$58.71			$49.80			$44.14
Total Return^b	(9.22		%)	7.18		%	21.91		%	12.82		%	3.11		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$94,915			$124,672			$186,863			$242,157			$312,510
Ratios to average net assets:
Net investment income (loss)	(0.71		%)	(0.52		%)	(0.33		%)	(0.45		%)	(1.08		%)
Total expenses	1.50		%	1.51		%	1.52		%	1.50		%	1.50		%
Portfolio turnover rate	143		%	134		%	131		%	188		%	226		%


^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

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$45.62			$42.98			$36.16			$30.86			$31.42
Income (loss) from investment operations:
Net investment income (loss)^a	0.20			0.11			0.06			0.08			0.01
Net gain (loss) on investments (realized and unrealized)	(3.33		)	2.58			6.95			5.22			(0.57		)
Total from investment operations	(3.13		)	2.69			7.01			5.30			(0.56		)
Less distributions from:
Net investment income	(0.11		)	(0.05		)	(0.19		)	—			—
Total distributions	(0.11		)	(0.05		)	(0.19		)	—			—
Net asset value, end of period		$42.38			$45.62			$42.98			$36.16			$30.86
Total Return^b	(6.86		%)	6.26		%	19.39		%	17.17		%	(1.78		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$48,048			$8,968			$10,563			$78,237			$18,838
Ratios to average net assets:
Net investment income (loss)	0.47		%	0.25		%	0.15		%	0.24		%	0.02		%
Total expenses	1.51		%	1.51		%	1.52		%	1.52		%	1.51		%
Portfolio turnover rate	493		%	638		%	506		%	757		%	619		%


^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 | 439

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$58.89			$52.99			$41.94			$37.97			$36.07
Income (loss) from investment operations:
Net investment income (loss)^a	(0.28		)	(0.31		)	(0.38		)	(0.31		)	(0.39		)
Net gain (loss) on investments (realized and unrealized)	(6.34		)	6.21			11.43			4.28			2.29
Total from investment operations	(6.62		)	5.90			11.05			3.97			1.90
Net asset value, end of period		$52.27			$58.89			$52.99			$41.94			$37.97
Total Return^b	(11.24		%)	11.13		%	26.35		%	10.46		%	5.27		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$25,046			$50,810			$16,996			$5,844			$29,214
Ratios to average net assets:
Net investment income (loss)	(0.49		%)	(0.58		%)	(0.77		%)	(0.81		%)	(1.10		%)
Total expenses	1.50		%	1.49		%	1.52		%	1.50		%	1.52		%
Portfolio turnover rate	309		%	380		%	677		%	645		%	500		%

^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 | 440

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$25.71			$25.55			$19.47			$17.00			$17.38
Income (loss) from investment operations:
Net investment income (loss)^a	(0.07		)	(0.01		)	(0.06		)	(0.06		)	(0.11		)
Net gain (loss) on investments (realized and unrealized)	(2.57		)	0.17			6.14			2.53			(0.27		)
Total from investment operations	(2.64		)	0.16			6.08			2.47			(0.38		)
Net asset value, end of period		$23.07			$25.71			$25.55			$19.47			$17.00
Total Return^b	(10.27		%)	0.63		%	31.23		%	14.53		%	(2.19		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$18,071			$11,374			$22,380			$30,743			$24,298
Ratios to average net assets:
Net investment income (loss)	(0.32		%)	(0.03		%)	(0.25		%)	(0.32		%)	(0.69		%)
Total expenses	1.50		%	1.50		%	1.53		%	1.51		%	1.49		%
Portfolio turnover rate	417		%	579		%	658		%	655		%	744		%

^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 | 441

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$62.71			$63.60			$52.58			$46.75			$49.75
Income (loss) from investment operations:
Net investment income (loss)^a	0.68			0.51			0.54			0.54			0.44
Net gain (loss) on investments (realized and unrealized)	(6.97		)	(0.98		)	11.09			5.44			(3.39		)
Total from investment operations	(6.29		)	(0.47		)	11.63			5.98			(2.95		)
Less distributions from:
Net investment income	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Total distributions	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Net asset value, end of period		$56.13			$62.71			$63.60			$52.58			$46.75
Total Return^b	(10.10		%)	(0.73		%)	22.17		%	12.84		%	(5.89		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,206			$43,989			$11,241			$8,915			$29,061
Ratios to average net assets:
Net investment income (loss)	1.07		%	0.82		%	0.92		%	1.16		%	1.02		%
Total expenses	1.34		%	1.34		%	1.37		%	1.35		%	1.34		%
Portfolio turnover rate	514		%	583		%	481		%	382		%	544		%

PROSPECTUS | 442

Financial Highlights (continued)

BANKING FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$56.30			$57.40			$47.71			$42.63			$45.63
Income (loss) from investment operations:
Net investment income (loss)^a	0.33			(0.01		)	0.23			0.17			0.12
Net gain (loss) on investments (realized and unrealized)	(6.12		)	(0.67		)	10.07			5.06			(3.07		)
Total from investment operations	(5.79		)	(0.68		)	10.30			5.23			(2.95		)
Less distributions from:
Net investment income	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Total distributions	(0.29		)	(0.42		)	(0.61		)	(0.15		)	(0.05		)
Net asset value, end of period		$50.22			$56.30			$57.40			$47.71			$42.63
Total Return^b	(10.34		%)	(1.19		%)	21.64		%	12.32		%	(6.43		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,360			$847			$540			$4,235			$1,105
Ratios to average net assets:
Net investment income (loss)	0.57		%	(0.02		%)	0.44		%	0.38		%	0.30		%
Total expenses	1.68		%	1.85		%	1.87		%	1.86		%	1.83		%
Portfolio turnover rate	514		%	583		%	481		%	382		%	544		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 443

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$50.18			$52.53			$49.94			$49.80			$56.36
Income (loss) from investment operations:
Net investment income (loss)^a	0.26			0.29			0.32			0.46			0.09
Net gain (loss) on investments (realized and unrealized)	(4.39		)	(2.26		)	2.58			(0.15		)	(6.65		)
Total from investment operations	(4.13		)	(1.97		)	2.90			0.31			(6.56		)
Less distributions from:
Net investment income	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Total distributions	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Net asset value, end of period		$45.18			$50.18			$52.53			$49.94			$49.80
Total Return^b	(8.07		%)	(3.77		%)	5.84		%	0.65		%	(11.66		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$30,653			$46,509			$33,687			$36,012			$36,847
Ratios to average net assets:
Net investment income (loss)	0.55		%	0.56		%	0.66		%	0.95		%	0.17		%
Total expenses	1.35		%	1.34		%	1.38		%	1.36		%	1.36		%
Portfolio turnover rate	471		%	358		%	349		%	251		%	217		%

PROSPECTUS | 444

Financial Highlights (continued)

BASIC MATERIALS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^e	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$46.19			$48.64			$46.50			$46.61			$53.00
Income (loss) from investment operations:
Net investment income (loss)^a	.09			—^c			0.08			0.19			0.08
Net gain (loss) on investments (realized and unrealized)	(4.04		)	(2.07		)	2.37			(0.13		)	(6.47		)
Total from investment operations	(3.95		)	(2.07		)	2.45			0.06			(6.39		)
Less distributions from:
Net investment income	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Total distributions	(0.87		)	(0.38		)	(0.31		)	(0.17		)	—
Net asset value, end of period		$41.37			$46.19			$48.64			$46.50			$46.61
Total Return^b	(8.36		%)	(4.30		%)	5.31		%	0.16		%	(12.08		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,612			$2,073			$2,678			$3,616			$5,287
Ratios to average net assets:
Net investment income (loss)	0.24%			—%^d			0.18		%	0.43		%	0.17		%
Total expenses	1.64		%	1.85		%	1.88		%	1.86		%	1.86		%
Portfolio turnover rate	471		%	358		%	349		%	251		%	217		%


^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.


^d	Less than 0.01%.


^e	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 445

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$93.63			$68.47			$48.97			$36.90			$29.16
Income (loss) from investment operations:
Net investment income (loss)^a	(0.75		)	(0.27		)	(0.51		)	(0.40		)	(0.34		)
Net gain (loss) on investments (realized and unrealized)	(23.30		)	28.59			20.01			12.47			8.08
Total from investment operations	(24.05		)	28.32			19.50			12.07			7.74
Less distributions from:
Net realized gains	(1.28		)	(3.16		)	—			—			—
Total distributions	(1.28		)	(3.16		)	—			—			—
Net asset value, end of period		$68.30			$93.63			$68.47			$48.97			$36.90
Total Return^b	(25.98		%)	42.19		%	39.82		%	32.71		%	26.54		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$260,476			$498,068			$313,324			$171,844			$89,027
Ratios to average net assets:
Net investment income (loss)	(0.84		%)	(0.34		%)	(0.82		%)	(0.98		%)	(1.09		%)
Total expenses	1.32		%	1.33		%	1.36		%	1.35		%	1.36		%
Portfolio turnover rate	83		%	107		%	119		%	197		%	333		%

PROSPECTUS | 446

Financial Highlights (continued)

BIOTECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$85.38			$62.98			$45.27			$34.27			$27.22
Income (loss) from investment operations:
Net investment income (loss)^a	(0.96		)	(0.61		)	(0.74		)	(0.56		)	(0.48		)
Net gain (loss) on investments (realized and unrealized)	(21.14		)	26.17			18.45			11.56			7.53
Total from investment operations	(22.10		)	25.56			17.71			11.00			7.05
Less distributions from:
Net realized gains	(1.28		)	(3.16		)	—			—			—
Total distributions	(1.28		)	(3.16		)	—			—			—
Net asset value, end of period		$62.00			$85.38			$62.98			$45.27			$34.27
Total Return^b	(26.22		%)	41.49		%	39.12		%	32.10		%	25.90		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$27,346			$63,196			$37,978			$22,486			$8,313
Ratios to average net assets:
Net investment income (loss)	(1.17		%)	(0.84		%)	(1.32		%)	(1.46		%)	(1.65		%)
Total expenses	1.65		%	1.83		%	1.86		%	1.86		%	1.87		%
Portfolio turnover rate	83		%	107		%	119		%	197		%	333		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 447

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$58.55			$52.08			$47.79			$40.19			$36.37
Income (loss) from investment operations:
Net investment income (loss)^a	0.61			0.71			0.46			0.57			0.49
Net gain (loss) on investments (realized and unrealized)	4.92			6.44			5.81			7.14			4.82
Total from investment operations	5.53			7.15			6.27			7.71			5.31
Less distributions from:
Net investment income	(0.49		)	(0.24		)	(0.46		)	(0.11		)	(0.57		)
Net realized gains	(0.75		)	(0.44		)	(1.52		)	—			(0.92		)
Total distributions	(1.24		)	(0.68		)	(1.98		)	(0.11		)	(1.49		)
Net asset value, end of period		$62.84			$58.55			$52.08			$47.79			$40.19
Total Return^b	9.65		%	13.77		%	13.24		%	19.26		%	15.06		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$276,578			$222,954			$102,231			$181,945			$155,432
Ratios to average net assets:
Net investment income (loss)	1.03		%	1.27		%	0.91		%	1.38		%	1.29		%
Total expenses	1.34		%	1.34		%	1.37		%	1.35		%	1.35		%
Portfolio turnover rate	104		%	87		%	112		%	230		%	402		%

PROSPECTUS | 448

Financial Highlights (continued)

CONSUMER PRODUCTS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$52.94			$47.39			$43.87			$37.08			$33.84
Income (loss) from investment operations:
Net investment income (loss)^a	0.39			0.37			0.24			0.35			0.24
Net gain (loss) on investments (realized and unrealized)	4.41			5.86			5.26			6.55			4.49
Total from investment operations	4.80			6.23			5.50			6.90			4.73
Less distributions from:
Net investment income	(0.49		)	(0.24		)	(0.46		)	(0.11		)	(0.57		)
Net realized gains	(0.75		)	(0.44		)	(1.52		)	—			(0.92		)
Total distributions	(1.24		)	(0.68		)	(1.98		)	(0.11		)	(1.49		)
Net asset value, end of period		$56.50			$52.94			$47.39			$43.87			$37.08
Total Return^b	9.29		%	13.19		%	12.66		%	18.66		%	14.49		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$65,702			$49,751			$27,162			$10,148			$16,975
Ratios to average net assets:
Net investment income (loss)	0.72		%	0.74		%	0.51		%	0.93		%	0.68		%
Total expenses	1.66		%	1.85		%	1.87		%	1.85		%	1.84		%
Portfolio turnover rate	104		%	87		%	112		%	230		%	402		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 449

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$83.54			$69.82			$52.11			$55.09			$60.57
Income (loss) from investment operations:
Net investment income (loss)^a	0.02			0.29			(0.04		)	0.22			(0.12		)
Net gain (loss) on investments (realized and unrealized)	(2.20		)	13.43			17.79			(3.20		)	(5.36		)
Total from investment operations	(2.18		)	13.72			17.75			(2.98		)	(5.48		)
Less distributions from:
Net investment income	(0.13		)	—			(0.04		)	—			—
Total distributions	(0.13		)	—			(0.04		)	—			—
Net asset value, end of period		$81.23			$83.54			$69.82			$52.11			$55.09
Total Return^b	(2.61		%)	19.65		%	34.07		%	(5.41		%)	(9.05		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$8,217			$18,144			$9,655			$2,942			$5,453
Ratios to average net assets:
Net investment income (loss)	0.02		%	0.38		%	(0.07		%)	0.45		%	(0.22		%)
Total expenses	1.34		%	1.35		%	1.37		%	1.35		%	1.35		%
Portfolio turnover rate	769		%	562		%	1,436		%	1,640		%	1,329		%

PROSPECTUS | 450

Financial Highlights (continued)

ELECTRONICS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$76.66			$64.40			$48.33			$51.40			$56.77
Income (loss) from investment operations:
Net investment income (loss)^a	(0.30		)	0.06			(0.17		)	(0.12		)	(0.34		)
Net gain (loss) on investments (realized and unrealized)	(1.91		)	12.20			16.28			(2.95		)	(5.03		)
Total from investment operations	(2.21		)	12.26			16.11			(3.07		)	(5.37		)
Less distributions from:
Net investment income	(0.13		)	—			(0.04		)	—			—
Total distributions	(0.13		)	—			(0.04		)	—			—
Net asset value, end of period		$74.32			$76.66			$64.40			$48.33			$51.40
Total Return^b	(2.88		%)	19.04		%	33.34		%	(5.97		%)	(9.46		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$11,257			$6,285			$3,577			$1,288			$1,271
Ratios to average net assets:
Net investment income (loss)	(0.40		%)	0.09		%	(0.29		%)	(0.26		%)	(0.67		%)
Total expenses	1.74		%	1.85		%	1.87		%	1.85		%	1.86		%
Portfolio turnover rate	769		%	562		%	1,436		%	1,640		%	1,329		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 451

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$23.34			$29.70			$26.12			$24.58			$28.70
Income (loss) from investment operations:
Net investment income (loss)^a	0.28			0.21			0.15			0.12			0.07
Net gain (loss) on investments (realized and unrealized)	(6.59		)	(6.56		)	3.43			1.89			(4.19		)
Total from investment operations	(6.31		)	(6.35		)	3.58			2.01			(4.12		)
Less distributions from:
Net investment income	(0.13		)	(0.11		)	—			(0.07		)	—
Net realized gains	(0.15		)	—			—			—			—
Return of capital	—			—			—			(0.40		)	—
Total distributions	(0.28		)	(0.11		)	—			(0.47		)	—
Net asset value, end of period		$16.65			$23.24			$29.70			$26.12			$24.58
Total Return^b	(27.30		%)	(21.42		%)	13.71		%	8.50		%	(14.39		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$22,216			$28,123			$35,546			$49,160			$40,947
Ratios to average net assets:
Net investment income (loss)	1.38		%	0.72		%	0.55		%	0.52		%	0.27		%
Total expenses	1.35		%	1.35		%	1.37		%	1.35		%	1.36		%
Portfolio turnover rate	595		%	463		%	231		%	248		%	288		%

PROSPECTUS | 452

Financial Highlights (continued)

ENERGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$21.34			$27.40			$24.23			$22.95			$26.93
Income (loss) from investment operations:
Net investment income (loss)^a	0.10			0.07			(0.02		)	0.01			(0.08		)
Net gain (loss) on investments (realized and unrealized)	(5.94		)	(6.02		)	3.19			1.74			(3.90		)
Total from investment operations	(5.84		)	(5.95		)	3.17			1.75			(3.98		)
Less distributions from:
Net investment income	(0.13		)	(0.11		)	—			(0.07		)	—
Net realized gains	(0.15		)	—			—			—			—
Return of capital	—			—			—			(0.40		)	—
Total distributions	(0.28		)	(0.11		)	—			(0.47		)	—
Net asset value, end of period		$15.22			$21.34			$27.40			$24.23			$22.95
Total Return^b	(27.53		%)	(21.76		%)	13.08		%	7.92		%	(14.78		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,795			$6,452			$4,764			$5,272			$11,080
Ratios to average net assets:
Net investment income (loss)	0.55		%	0.27		%	(0.09		%)	0.06		%	(0.33		%)
Total expenses	1.70		%	1.85		%	1.87		%	1.85		%	1.86		%
Portfolio turnover rate	595		%	463		%	231		%	248		%	288		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 453

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$39.36			$62.43			$54.43			$50.87			$62.66
Income (loss) from investment operations:
Net investment income (loss)^a	0.29			0.48			0.02			(0.05		)	(0.14		)
Net gain (loss) on investments (realized and unrealized)	(10.90		)	(23.55		)	7.98			3.61			(11.65		)
Total from investment operations	(10.61		)	(23.07		)	8.00			3.56			(11.79		)
Less distributions from:
Net investment income	(0.34		)	—			—			—			—
Total distributions	(0.34		)	—			—			—			—
Net asset value, end of period		$28.41			$39.36			$62.43			$54.43			$50.87
Total Return^b	(27.05		%)	(36.95		%)	14.70		%	7.00		%	(18.82		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,521			$16,144			$33,244			$26,097			$34,353
Ratios to average net assets:
Net investment income (loss)	0.83		%	0.86		%	0.03		%	(0.10		%)	(0.25		%)
Total expenses	1.35		%	1.36		%	1.37		%	1.35		%	1.36		%
Portfolio turnover rate	1,241		%	494		%	350		%	275		%	162		%

PROSPECTUS | 454

Financial Highlights (continued)

ENERGY SERVICES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$36.29			$57.89			$50.72			$47.64			$58.97
Income (loss) from investment operations:
Net investment income (loss)^a	0.05			0.07			(0.27		)	(0.25		)	(0.34		)
Net gain (loss) on investments (realized and unrealized)	(9.93		)	(21.67		)	7.44			3.33			(10.99		)
Total from investment operations	(9.88		)	(21.60		)	7.17			3.08			(11.33		)
Less distributions from:
Net investment income	(0.34		)	—			—			—			—
Total distributions	(0.34		)	—			—			—			—
Net asset value, end of period		$26.07			$36.29			$57.89			$50.72			$47.64
Total Return^b	(27.31		%)	(37.33		%)	14.14		%	6.47		%	(19.21		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,700			$1,814			$4,933			$9,685			$8,025
Ratios to average net assets:
Net investment income (loss)	0.15		%	0.13		%	(0.50		%)	(0.54		%)	(0.66		%)
Total expenses	1.67		%	1.86		%	1.87		%	1.85		%	1.86		%
Portfolio turnover rate	1,241		%	494		%	350		%	275		%	162		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 455

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$115.57			$106.10			$90.67			$78.47			$81.18
Income (loss) from investment operations:
Net investment income (loss)^a	1.53			0.92			0.78			0.76			0.61
Net gain (loss) on investments (realized and unrealized)	(8.38		)	8.81			15.21			11.99			(3.29		)
Total from investment operations	(6.85		)	9.73			15.99			12.75			(2.68		)
Less distributions from:
Net investment income	(0.60		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net realized gains	(0.31		)	—			—			—			—
Total distributions	(0.91		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net asset value, end of period		$107.81			$115.57			$106.10			$90.67			$78.47
Total Return^b	(5.95		%)	9.17		%	17.67		%	16.37		%	(3.31		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$15,110			$49,897			$17,688			$17,007			$19,973
Ratios to average net assets:
Net investment income (loss)	1.36		%	0.82		%	0.81		%	0.95		%	0.86		%
Total expenses	1.34		%	1.34		%	1.37		%	1.36		%	1.34		%
Portfolio turnover rate	268		%	326		%	414		%	590		%	970		%

PROSPECTUS | 456

Financial Highlights (continued)

FINANCIAL SERVICES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$106.60			$98.37			$84.51			$73.53			$76.47
Income (loss) from investment operations:
Net investment income (loss)^a	0.85			0.29			0.24			0.22			0.26
Net gain (loss) on investments (realized and unrealized)	(7.48		)	8.20			14.18			11.31			(3.17		)
Total from investment operations	(6.63		)	8.49			14.42			11.53			(2.91		)
Less distributions from:
Net investment income	(0.60		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net realized gains	(0.31		)	—			—			—			—
Total distributions	(0.91		)	(0.26		)	(0.56		)	(0.55		)	(0.03		)
Net asset value, end of period		$99.06			$106.60			$98.37			$84.51			$73.53
Total Return^b	(6.25		%)	8.63		%	17.10		%	15.80		%	(3.80		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,028			$4,479			$4,583			$7,103			$4,243
Ratios to average net assets:
Net investment income (loss)	0.83		%	0.28		%	0.26		%	0.29		%	0.37		%
Total expenses	1.65		%	1.85		%	1.87		%	1.85		%	1.85		%
Portfolio turnover rate	268		%	326		%	414		%	590		%	970		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 457

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$35.83			$27.76			$22.35			$18.83			$17.14
Income (loss) from investment operations:
Net investment income (loss)^a	(0.04		)	(0.07		)	(0.03		)	0.09			0.01
Net gain (loss) on investments (realized and unrealized)	(5.11		)	8.50			7.00			3.48			1.68
Total from investment operations	(5.15		)	8.43			6.97			3.57			1.69
Less distributions from:
Net investment income	—			—			(0.03		)	(0.05		)	—
Net realized gains	(2.03		)	(0.36		)	(1.53		)	—			—
Total distributions	(2.03		)	(0.36		)	(1.56		)	(0.05		)	—
Net asset value, end of period		$28.65			$35.83			$27.76			$22.35			$18.83
Total Return^b	(14.82		%)	30.51		%	31.70		%	18.98		%	9.86		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$44,663			$175,397			$98,209			$104,525			$39,036
Ratios to average net assets:
Net investment income (loss)	(0.11		%)	(0.23		%)	(0.12		%)	0.45		%	0.08		%
Total expenses	1.34		%	1.34		%	1.37		%	1.35		%	1.36		%
Portfolio turnover rate	249		%	176		%	277		%	266		%	582		%

PROSPECTUS | 458

Financial Highlights (continued)

HEALTH CARE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$32.71			$25.49			$20.73			$17.55			$16.04
Income (loss) from investment operations:
Net investment income (loss)^a	(0.14		)	(0.21		)	(0.15		)	(0.06		)	(0.07		)
Net gain (loss) on investments (realized and unrealized)	(4.63		)	7.79			6.47			3.29			1.58
Total from investment operations	(4.77		)	7.58			6.32			3.23			1.51
Less distributions from:
Net investment income	—			—			(0.03		)	(0.05		)	—
Net realized gains	(2.03		)	(0.36		)	(1.53		)	—			—
Total distributions	(2.03		)	(0.36		)	(1.56		)	(0.05		)	—
Net asset value, end of period		$25.91			$32.71			$25.49			$20.73			$17.55
Total Return^b	(15.08		%)	29.89		%	31.03		%	18.43		%	9.41		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$5,244			$50,135			$38,480			$3,605			$4,275
Ratios to average net assets:
Net investment income (loss)	(0.44		%)	(0.73		%)	(0.62		%)	(0.31		%)	(0.44		%)
Total expenses	1.71		%	1.85		%	1.87		%	1.86		%	1.85		%
Portfolio turnover rate	249		%	176		%	277		%	266		%	582		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 459

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$77.87			$75.05			$55.46			$51.90			$52.28
Income (loss) from investment operations:
Net investment income (loss)^a	(0.41		)	(0.49		)	(0.62		)	(0.44		)	(0.51		)
Net gain (loss) on investments (realized and unrealized)	0.78			5.27			20.53			5.26			0.13
Total from investment operations	0.37			4.78			19.91			4.82			(0.38		)
Less distributions from:
Net realized gains	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Total distributions	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Net asset value, end of period		$77.91			$77.87			$75.05			$55.46			$51.90
Total Return^b	0.46		%	6.40		%	35.93		%	9.65		%	(0.73		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$24,435			$8,328			$26,828			$6,109			$6,206
Ratios to average net assets:
Net investment income (loss)	(0.52		%)	(0.64		%)	(0.87		%)	(0.87		%)	(1.05		%)
Total expenses	1.35		%	1.35		%	1.37		%	1.35		%	1.36		%
Portfolio turnover rate	520		%	495		%	472		%	442		%	380		%

PROSPECTUS | 460

Financial Highlights (continued)

INTERNET FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$71.64			$69.58			$51.70			$48.71			$49.31
Income (loss) from investment operations:
Net investment income (loss)^a	(0.72		)	(0.78		)	(1.07		)	(0.64		)	(0.71		)
Net gain (loss) on investments (realized and unrealized)	0.81			4.80			19.27			4.89			0.11
Total from investment operations	0.09			4.02			18.20			4.25			(0.60		)
Less distributions from:
Net realized gains	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Total distributions	(0.33		)	(1.96		)	(0.32		)	(1.26		)	—
Net asset value, end of period		$71.40			$71.64			$69.58			$51.70			$48.71
Total Return^b	0.11		%	5.80		%	35.23		%	9.13		%	(1.24		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$7,132			$1,830			$11,814			$552			$719
Ratios to average net assets:
Net investment income (loss)	(0.97		%)	(1.12		%)	(1.53		%)	(1.36		%)	(1.58		%)
Total expenses	1.67		%	1.85		%	1.87		%	1.85		%	1.86		%
Portfolio turnover rate	520		%	495		%	472		%	442		%	380		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 461

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$60.75			$55.81			$44.93			$36.94			$33.50
Income (loss) from investment operations:
Net investment income (loss)^a	0.22			0.52			0.20			0.36			0.17
Net gain (loss) on investments (realized and unrealized)	0.82			5.64			10.95			7.66			3.27
Total from investment operations	1.04			6.16			11.15			8.02			3.44
Less distributions from:
Net investment income	(0.32		)	(0.12		)	(0.27		)	(0.03		)	—
Net realized gains	(0.11		)	(1.10		)	—			—			—
Total distributions	(0.43		)	(1.22		)	(0.27		)	(0.03		)	—
Net asset value, end of period		$61.36			$60.75			$55.81			$44.93			$36.94
Total Return^b	1.72		%	11.15		%	24.83		%	21.74		%	10.27		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$15,173			$48,494			$24,139			$22,005			$12,687
Ratios to average net assets:
Net investment income (loss)	0.35		%	0.89		%	0.39		%	0.92		%	0.49		%
Total expenses	1.34		%	1.34		%	1.37		%	1.35		%	1.35		%
Portfolio turnover rate	339		%	343		%	265		%	517		%	797		%

PROSPECTUS | 462

Financial Highlights (continued)

LEISURE FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$55.50			$51.31			$41.54			$34.33			$31.29
Income (loss) from investment operations:
Net investment income (loss)^a	0.27			0.30			(0.11		)	0.29			(0.01		)
Net gain (loss) on investments (realized and unrealized)	0.51			5.11			10.15			6.95			3.05
Total from investment operations	0.78			5.41			10.04			7.24			3.04
Less distributions from:
Net investment income	(0.32		)	(0.12		)	(0.27		)	(0.03		)	—
Net realized gains	(0.11		)	(1.10		)	—			—			—
Total distributions	(0.43		)	(1.22		)	(0.27		)	(0.03		)	—
Net asset value, end of period		$55.85			$55.50			$51.31			$41.54			$34.33
Total Return^b	1.41		%	10.66		%	24.18		%	21.12		%	9.72		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,212			$7,074			$3,115			$1,241			$1,379
Ratios to average net assets:
Net investment income (loss)	0.49		%	0.55		%	(0.23		%)	0.80		%	(0.03		%)
Total expenses	1.64		%	1.83		%	1.87		%	1.85		%	1.86		%
Portfolio turnover rate	339		%	343		%	265		%	517		%	797		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 463

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$25.11			$35.78			$51.65			$65.73			$86.74
Income (loss) from investment operations:
Net investment income (loss)^a	(0.07		)	0.01			0.36			0.34			(0.02		)
Net gain (loss) on investments (realized and unrealized)	2.44			(9.88		)	(16.06		)	(12.12		)	(20.70		)
Total from investment operations	2.37			(9.87		)	(15.70		)	(11.78		)	(20.72		)
Less distributions from:
Net investment income	(0.11		)	(0.80		)	(0.17		)	(0.10		)	(0.29		)
Net realized gains	—			—			—			(2.20		)	—
Total distributions	(0.11		)	(0.80		)	(0.17		)	(2.30		)	(0.29		)
Net asset value, end of period		$27.37			$25.11			$35.78			$51.65			$65.73
Total Return^b	9.67		%	(27.88		%)	(30.37		%)	(18.60		%)	(23.91		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$49,321			$30,528			$42,846			$71,386			$79,637
Ratios to average net assets:
Net investment income (loss)	(0.31		%)	0.04		%	0.96		%	0.55		%	(0.03		%)
Total expenses^c	1.25		%	1.25		%	1.27		%	1.25		%	1.26		%
Portfolio turnover rate	797		%	371		%	348		%	206		%	235		%

PROSPECTUS | 464

Financial Highlights (continued)

PRECIOUS METALS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^d	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$23.64			$33.92			$49.20			$63.02			$83.59
Income (loss) from investment operations:
Net investment income (loss)^a	(0.11		)	(0.14		)	0.12			(0.02		)	(0.44		)
Net gain (loss) on investments (realized and unrealized)	2.22			(9.34		)	(15.23		)	(11.50		)	(19.84		)
Total from investment operations	2.11			(9.48		)	(15.11		)	(11.52		)	(20.28		)
Less distributions from:
Net investment income	(0.11		)	(0.80		)	(0.17		)	(0.10		)	(0.29		)
Net realized gains	—			—			—			(2.20		)	—
Total distributions	(0.11		)	(0.80		)	(0.17		)	(2.30		)	(0.29		)
Net asset value, end of period		$25.64			$23.64			$33.92			$49.20			$63.02
Total Return^b	9.17		%	(28.24		%)	(30.71		%)	(18.99		%)	(24.29		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,556			$8,400			$4,009			$3,148			$9,610
Ratios to average net assets:
Net investment income (loss)	(0.53		%)	(0.45		%)	0.34		%	(0.04		%)	(0.59		%)
Total expenses^c	1.59		%	1.75		%	1.77		%	1.75		%	1.76		%
Portfolio turnover rate	797		%	371		%	348		%	206		%	235		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 465

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$28.13			$23.54			$19.62			$17.45			$14.66
Income (loss) from investment operations:
Net investment income (loss)^a	(.03)			.11			—^b			0.09			0.01
Net gain (loss) on investments (realized and unrealized)	(1.10		)	4.48			3.92			2.08			2.79
Total from investment operations	(1.13		)	4.59			3.92			2.17			2.80
Less distributions from:
Net investment income	(0.02		)	—			—			—			(0.01		)
Total distributions	(0.02		)	—			—			—			(0.01		)
Net asset value, end of period		$26.98			$28.13			$23.54			$19.62			$17.45
Total Return^c	(4.01		%)	19.50		%	19.98		%	12.44		%	19.14		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,265			$46,283			$65,195			$14,671			$34,802
Ratios to average net assets:
Net investment income (loss)	(0.10		%)	0.42		%	0.01		%	0.51		%	0.04		%
Total expenses	1.34		%	1.33		%	1.37		%	1.35		%	1.34		%
Portfolio turnover rate	238		%	395		%	671		%	472		%	822		%

PROSPECTUS | 466

Financial Highlights (continued)

RETAILING FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^d	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$26.22			$22.00			$18.45			$16.45			$13.91
Income (loss) from investment operations:
Net investment income (loss)^a	(0.11		)	0.01			(0.14		)	(0.01		)	(0.09		)
Net gain (loss) on investments (realized and unrealized)	(1.02		)	4.21			3.69			2.01			2.64
Total from investment operations	(1.13		)	4.22			3.55			2.00			2.55
Less distributions from:
Net investment income	(0.02		)	—			—			—			(0.01		)
Total distributions	(0.02		)	—			—			—			(0.01		)
Net asset value, end of period		$25.07			$26.22			$22.00			$18.45			$16.45
Total Return^c	(4.31		%)	19.18		%	19.24		%	12.16		%	18.38		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,407			$8,871			$5,391			$2,454			$3,979
Ratios to average net assets:
Net investment income (loss)	(0.44		%)	0.05		%	(0.64		%)	(0.05		%)	(0.66		%)
Total expenses	1.71		%	1.83		%	1.87		%	1.85		%	1.84		%
Portfolio turnover rate	238		%	395		%	671		%	472		%	822		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Net investment income is less than $0.01 per share.


^c	Total return does not reflect the impact of any applicable sales charges.


^d	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 467

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$61.23			$55.90			$43.58			$42.92			$41.81
Income (loss) from investment operations:
Net investment income (loss)^a	(0.06		)	(0.10		)	(0.09		)	0.03			(0.03		)
Net gain (loss) on investments (realized and unrealized)	(0.64		)	5.43			12.41			0.63			1.14
Total from investment operations	(0.70		)	5.33			12.32			0.66			1.11
Net asset value, end of period		$60.53			$61.23			$55.90			$43.58			$42.92
Total Return^b	(1.14		%)	9.53		%	28.24		%	1.54		%	2.65		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$22,167			$20,458			$32,858			$8,325			$19,985
Ratios to average net assets:
Net investment income (loss)	(0.10		%)	(0.17		%)	(0.18		%)	0.10		%	(0.10		%)
Total expenses	1.35		%	1.35		%	1.37		%	1.35		%	1.36		%
Portfolio turnover rate	388		%	280		%	321		%	324		%	487		%

PROSPECTUS | 468

Financial Highlights (continued)

TECHNOLOGY FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^d	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$56.54			$51.87			$40.65			$40.22			$39.39
Income (loss) from investment operations:
Net investment income (loss)^a	(0.23		)	(0.37		)	(0.27		)	(0.12		)	(0.33		)
Net gain (loss) on investments (realized and unrealized)	(0.59		)	5.04			11.49			0.55			1.16
Total from investment operations	(0.82		)	4.67			11.22			0.43			0.83
Net asset value, end of period		$55.72			$56.54			$51.87			$40.65			$40.22
Total Return^b	(1.45		%)	9.00		%	27.60		%	1.04		%	2.13		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,829			$2,831			$6,915			$1,286			$2,361
Ratios to average net assets:
Net investment income (loss)	(0.42		%)	(0.69		%)	(0.54		%)	(0.33		%)	(0.87		%)
Total expenses	1.68		%	1.85		%	1.87		%	1.85		%	1.85		%
Portfolio turnover rate	388		%	280		%	321		%	324		%	487		%


^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.


^d	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 469

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$45.56			$45.51			$40.76			$41.52			$47.13
Income (loss) from investment operations:
Net investment income (loss)^a	0.44			0.72			1.06			0.81			1.23
Net gain (loss) on investments (realized and unrealized)	(1.64		)	0.63			4.26			(0.67		)	(5.52		)
Total from investment operations	(1.20		)	1.35			5.32			0.14			(4.29		)
Less distributions from:
Net investment income	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Total distributions	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Net asset value, end of period		$42.91			$45.56			$45.51			$40.76			$41.52
Total Return^b	(2.49		%)	2.93		%	13.12		%	0.50		%	(8.77		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$19,198			$1,316			$2,497			$2,970			$7,028
Ratios to average net assets:
Net investment income (loss)	0.97		%	1.55		%	2.47		%	2.06		%	2.86		%
Total expenses	1.34		%	1.36		%	1.38		%	1.35		%	1.36		%
Portfolio turnover rate	660		%	804		%	1,271		%	1,550		%	793		%

PROSPECTUS | 470

Financial Highlights (continued)

TELECOMMUNICATIONS FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^d	2016			2015			2014^c			2013^c			2012^c
Per Share Data
Net asset value, beginning of period		$41.59			$41.86			$37.75			$38.69			$44.21
Income (loss) from investment operations:
Net investment income (loss)^a	0.17			0.60			0.29			0.57			0.66
Net gain (loss) on investments (realized and unrealized)	(1.46		)	0.43			4.39			(0.61		)	(4.86		)
Total from investment operations	(1.29		)	1.03			4.68			(0.04		)	(4.20		)
Less distributions from:
Net investment income	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Total distributions	(1.45		)	(1.30		)	(0.57		)	(0.90		)	(1.32		)
Net asset value, end of period		$38.85			$41.59			$41.86			$37.75			$38.69
Total Return^b	(2.95		%)	2.42		%	12.53		%	(0.01		%)	(9.15		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,352			$151			$316			$133			$200
Ratios to average net assets:
Net investment income (loss)	0.44		%	1.40		%	0.74		%	1.59		%	1.65		%
Total expenses	1.64		%	1.86		%	1.88		%	1.86		%	1.85		%
Portfolio turnover rate	660		%	804		%	1,271		%	1,550		%	793		%


^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.


^d	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 471

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$52.06			$44.63			$32.07			$26.96			$27.85
Income (loss) from investment operations:
Net investment income (loss)^a	0.16			0.18			(0.04		)	(0.07		)	(0.06		)
Net gain (loss) on investments (realized and unrealized)	(5.78		)	7.25			12.60			5.18			(0.83		)
Total from investment operations	(5.62		)	7.43			12.56			5.11			(0.89		)
Less distributions from:
Net investment income	(0.21		)	—			—			—			—
Total distributions	(0.21		)	—			—			—			—
Net asset value, end of period		$46.23			$52.06			$44.63			$32.07			$26.96
Total Return^b	(10.80		%)	16.65		%	39.16		%	18.95		%	(3.20		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,638			$42,947			$44,021			$78,644			$8,031
Ratios to average net assets:
Net investment income (loss)	0.33		%	0.37		%	(0.09		%)	(0.25		%)	(0.22		%)
Total expenses	1.34		%	1.35		%	1.37		%	1.37		%	1.35		%
Portfolio turnover rate	219		%	247		%	593		%	737		%	1,082		%

PROSPECTUS | 472

Financial Highlights (continued)

TRANSPORTATION FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$47.12			$40.61			$29.32			$24.76			$25.70
Income (loss) from investment operations:
Net investment income (loss)^a	(0.09		)	(0.10		)	(0.18		)	(0.15		)	(0.14		)
Net gain (loss) on investments (realized and unrealized)	(5.11		)	6.61			11.47			4.71			(0.80		)
Total from investment operations	(5.20		)	6.51			11.29			4.56			(0.94		)
Less distributions from:
Net investment income	(0.21		)	—			—			—			—
Total distibutions	(0.21		)	—			—			—			—
Net asset value, end of period		$41.71			$47.12			$40.61			$29.32			$24.76
Total Return^b	(11.04		%)	16.03		%	38.51		%	18.42		%	(3.66		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$9,031			$6,249			$2,583			$4,483			$2,355
Ratios to average net assets:
Net investment income (loss)	(0.20		%)	(0.22		%)	(0.50		%)	(0.57		%)	(0.55		%)
Total expenses	1.72		%	1.85		%	1.87		%	1.86		%	1.86		%
Portfolio turnover rate	219		%	247		%	593		%	737		%	1,082		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 473

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$36.98			$34.01			$32.71			$29.13			$27.00
Income (loss) from investment operations:
Net investment income (loss)^a	0.73			0.84			0.78			0.74			0.73
Net gain (loss) on investments (realized and unrealized)	3.09			2.26			1.98			3.96			1.80
Total from investment operations	3.82			3.10			2.76			4.70			2.53
Less distributions from:
Net investment income	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Total distributions	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Net asset value, end of period		$40.23			$36.98			$34.01			$32.71			$29.13
Total Return^b	10.61		%	9.12		%	8.88		%	16.75		%	9.44		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$50,753			$55,156			$95,854			$42,907			$37,469
Ratios to average net assets:
Net investment income (loss)	2.00		%	2.31		%	2.38		%	2.45		%	2.59		%
Total expenses	1.35		%	1.35		%	1.40		%	1.35		%	1.35		%
Portfolio turnover rate	475		%	384		%	508		%	534		%	549		%

PROSPECTUS | 474

Financial Highlights (continued)

UTILITIES FUND



	Year Ended March 31,			Year Ended March 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H^c	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$33.61			$31.09			$30.19			$27.10			$25.26
Income (loss) from investment operations:
Net investment income (loss)^a	0.54			0.60			0.69			0.48			0.56
Net gain (loss) on investments (realized and unrealized)	2.82			2.05			1.67			3.73			1.68
Total from investment operations	3.36			2.65			2.36			4.21			2.24
Less distributions from:
Net investment income	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Total distributions	(0.57		)	(0.13		)	(1.46		)	(1.12		)	(0.40		)
Net asset value, end of period		$36.40			$33.61			$31.09			$30.19			$27.10
Total Return^b	10.31		%	8.53		%	8.29		%	16.23		%	8.90		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$6,448			$13,546			$2,269			$4,812			$8,036
Ratios to average net assets:
Net investment income (loss)	1.65		%	1.79		%	2.30		%	1.70		%	2.11		%
Total expenses	1.68		%	1.84		%	1.88		%	1.85		%	1.84		%
Portfolio turnover rate	475		%	384		%	508		%	534		%	549		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Effective September 30, 2015, the Fund's Advisor Class shares were converted into Class H shares. The financial highlights for periods prior to that date reflect the performance of the former Advisor Class.

PROSPECTUS | 475

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$15.42			$17.26			$14.20			$12.59			$14.06
Income (loss) from investment operations:
Net investment income (loss)^a	0.03			0.10			0.03			(0.02		)	0.16
Net gain (loss) on investments (realized and unrealized)	(2.43		)	(1.89		)	3.03			1.66			(1.63		)
Total from investment operations	(2.40		)	(1.79		)	3.06			1.64			(1.47		)
Less distributions from:
Net investment income	(0.12		)	(0.05		)	—			(0.03		)	—
Total distributions	(0.12		)	(0.05		)	—			(0.03		)	—
Net asset value, end of period		$12.90			$15.42			$17.26			$14.20			$12.59
Total Return^b	(15.64		%)	(10.36		%)	21.55		%	13.06		%	(10.46		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$4,533			$9,719			$11,553			$10,752			$7,759
Ratios to average net assets:
Net investment income (loss)	0.19		%	0.62		%	0.19		%	(0.18		%)	1.22		%
Total expenses^c	1.66		%	1.72		%	1.71		%	1.67		%	1.68		%
Portfolio turnover rate	920		%	608		%	654		%	903		%	318		%


^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 | 476

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$23.28			$19.38			$17.44			$15.49			$14.98
Income (loss) from investment operations:
Net investment income (loss)^a	(0.27		)	(0.26		)	(0.30		)	(0.20		)	(0.22		)
Net gain (loss) on investments (realized and unrealized)	(3.32		)	4.26			2.24			2.15			0.73
Total from investment operations	(3.59		)	4.00			1.94			1.95			0.51
Net asset value, end of period		$19.79			$23.38			$19.38			$17.44			$15.49
Total Return^b	(15.36		%)	20.64		%	11.12		%	12.59		%	3.40		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,413			$16,862			$3,104			$9,020			$4,574
Ratios to average net assets:
Net investment income (loss)	(1.17		%)	(1.28		%)	(1.50		%)	(1.40		%)	(1.48		%)
Total expenses^c	1.49		%	1.54		%	1.52		%	1.50		%	1.51		%
Portfolio turnover rate	543		%	405		%	—			—			—


^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 | 477

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 31,			Year Ended March 31,			Year Ended March 28			Year Ended March 31,
Class H	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$60.61			$66.37			$73.87			$87.74			$134.69
Income (loss) from investment operations:
Net investment income (loss)^a	(0.41		)	0.20			(0.34		)	(0.35		)	(0.35		)
Net gain (loss) on investments
(realized and unrealized)	(14.71		)	(5.96		)	(7.16		)	(13.52		)	(41.00		)
Total from investment operations	(15.12		)	(5.76		)	(7.50		)	(13.87		)	(41.35		)
Less distributions from:
Net investment income	(.65)			—			—			—			—
Net realized gains	—			—			—			—			(5.60		)
Total distributions	(0.65		)	—			—			—			(5.60		)
Net asset value, end of period		$44.84			$60.61			$66.37			$73.87			$87.74
Total Return^b	(24.88		%)	(8.71		%)	(10.19		%)	(15.78		%)	(29.70		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$13,238			$2,136			$4,719			$2,087			$4,713
Ratios to average net assets:
Net investment income (loss)	(0.76		%)	0.25		%	(0.51		%)	(0.49		%)	(0.37		%)
Total expenses	1.74		%	1.75		%	1.80		%	1.83		%	1.77		%
Net expenses	1.74		%	1.75		%	1.74%^c			1.69%^c			1.69%^c
Portfolio turnover rate	2,874		%	1,085		%	1,412		%	730		%	883		%


^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 expense information reflects the expense ratios after expense waivers.


^d	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 | 478

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$16.80			$18.33			$19.22			$19.29			$21.15
Income (loss) from investment operations:
Net investment income (loss)^a	(0.34		)	(0.28		)	(0.35		)	(0.33		)	(0.38		)
Net gain (loss) on investments (realized and unrealized)	0.42			(1.25		)	(0.54		)	0.26			(1.48		)
Total from investment operations	0.08			(1.53		)	(0.89		)	(0.07		)	(1.86		)
Net asset value, end of period		$16.88			$16.80			$18.33			$19.22			$19.29
Total Return^b	0.48		%	(8.35		%)	(4.63		%)	(0.36		%)	(8.79		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$26,336			$23,091			$5,815			$1,942			$2,215
Ratios to average net assets:
Net investment income (loss)	(1.65		%)	(1.71		%)	(1.74		%)	(1.56		%)	(1.67		%)
Total expenses	1.74		%	1.73		%	1.78		%	1.82		%	1.79		%
Net expenses	1.74		%	1.73		%	1.76%^c			1.68%^c			1.70%^c
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	Net expense information reflects the expense ratios after expense waivers.

PROSPECTUS | 479

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014^d			2013^d			2012^d
Per Share Data
Net asset value, beginning of period		$55.53			$38.21			$42.60			$40.17			$40.20
Income (loss) from investment operations:
Net investment income (loss)^a	(0.59		)	(0.56		)	(0.69		)	(0.63		)	(0.66		)
Net gain (loss) on investments (realized and unrealized)	(5.28		)	17.88			(3.70		)	3.06			0.63
Total from investment operations	(5.87		)	17.32			(4.39		)	2.43			(0.03		)
Less distributions from:
Net realized gains	(2.17		)	—			—			—			—
Total distributions	(2.17		)
Net asset value, end of period		$47.49			$55.53			$38.21			$42.60			$40.17
Total Return^b	(11.00		%)	45.33		%	(10.31		%)	6.05		%	(0.07		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$10,608			$158,098			$9,764			$11,979			$21,982
Ratios to average net assets:
Net investment income (loss)	(1.12		%)	(1.19		%)	(1.72		%)	(1.53		%)	(1.62		%)
Total expenses^c	1.70		%	1.68		%	1.74		%	1.66		%	1.69		%
Portfolio turnover rate	376		%	299		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	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 | 480

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$11.77			$17.83			$16.93			$18.93			$20.32
Income (loss) from investment operations:
Net investment income (loss)^a	(0.13		)	(0.19		)	(0.30		)	(0.27		)	(0.32		)
Net gain (loss) on investments (realized and unrealized)	0.90			(5.87		)	1.20			(1.73		)	(1.07		)
Total from investment operations	0.77			(6.06		)	0.90			(2.00		)	(1.39		)
Net asset value, end of period		$12.54			$11.77			$17.83			$16.93			$18.93
Total Return^b	6.54		%	(33.99		%)	5.32		%	(10.57		%)	(6.84		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$3,645			$3,651			$5,449			$10,058			$13,551
Ratios to average net assets:
Net investment income (loss)	(1.04		%)	(1.20		%)	(1.74		%)	(1.52		%)	(1.61		%)
Total expenses^c	1.70		%	1.70		%	1.76		%	1.64		%	1.69		%
Portfolio turnover rate	699		%	219		%	—			—			—


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.

PROSPECTUS | 481

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$38.25			$33.40			$34.38			$30.23			$29.02
Income (loss) from investment operations:
Net investment income (loss)^a	0.71			0.48			0.52			0.46			0.42
Net gain (loss) on investments (realized and unrealized)	(1.31		)	4.69			(0.03		)	4.29			1.10
Total from investment operations	(0.60		)	5.17			0.49			4.75			1.52
Less distributions from:
Net investment income	(0.44		)	(0.32		)	(1.47		)	(0.60		)	(0.31		)
Total distributions	(0.44		)	(0.32		)	(1.47		)	(0.60		)	(0.31		)
Net asset value, end of period		$37.21			$38.25			$33.40			$34.38			$30.23
Total Return^b	(1.49		%)	15.55		%	1.84		%	15.95		%	5.42		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$34,504			$37,625			$19,753			$10,273			$13,511
Ratios to average net assets:
Net investment income (loss)	1.97		%	1.32		%	1.52		%	1.45		%	1.48		%
Total expenses	1.62		%	1.60		%	1.64		%	1.60		%	1.61		%
Portfolio turnover rate	880		%	599		%	788		%	699		%	974		%


^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 | 482

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014^e			2013^e			2012^e
Per Share Data
Net asset value, beginning of period		$59.12			$45.80			$48.55			$44.73			$34.28
Income (loss) from investment operations:
Net investment income (loss)^a	0.76			0.63			0.61			0.57			0.96
Net gain (loss) on investments (realized and unrealized)	(0.67		)	13.34			(2.76		)	4.21			10.45
Total from investment operations	0.09			13.97			(2.15		)	4.78			11.41
Less distributions from:
Net investment income	(1.09		)	(0.65		)	(0.60		)	(0.72		)	(0.96		)
Net realized gains	—			—			—			(0.24		)	—
Total distributions	(1.09		)	(0.65		)	(0.60		)	(0.96		)	(0.96		)
Net asset value, end of period		$58.12			$59.12			$45.80			$48.55			$44.73
Total Return^b	0.33		%	30.66		%	(4.37		%)	10.63		%	33.38		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$56,419			$61,460			$43,573			$281,800			$43,709
Ratios to average net assets:
Net investment income (loss)	1.39		%	1.21		%	1.22		%	1.15		%	2.24		%
Total expenses^c	0.94		%	0.95		%	0.97		%	0.95		%	0.95		%
Portfolio turnover rate	2,699		%	1,932		%	2,661		%	1,759		%	2,322		%

PROSPECTUS | 483

Financial Highlights (continued)

GOVERNMENT LONG BOND 1.2X STRATEGY FUND



	Year Ended March 31, 2015			Period Ended March 31, 2015^d
Class H
Per Share Data
Net asset value, beginning of period		$59.44			$48.83
Income (loss) from investment operations:
Net investment income (loss)^a	0.61			0.28
Net gain (loss) on investments (realized and unrealized)	(0.54		)	10.59
Total from investment operations	0.07			10.87
Less distributions from:
Net investment income	(0.96		)	(0.26		)
Total distributions	(0.96		)	(0.26		)
Net asset value, end of period		$58.55			$59.44
Total Return^b	0.26		%	22.28		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$49,639			$78,382
Ratios to average net assets:
Net investment income (loss)	1.11		%	0.89		%
Total expenses^c	1.20		%	1.18		%
Portfolio turnover rate	2,699		%	1,932		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.


^e	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 | 484

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Investor Class	2016			2015			2014^e			2013^e			2012^e
Per Share Data
Net asset value, beginning of period		$35.78			$46.01			$43.94			$48.33			$65.42
Income (loss) from investment operations:
Net investment income (loss)^a	(1.15		)	(1.15		)	(1.65		)	(1.20		)	(2.15		)
Net gain (loss) on investments (realized and unrealized)	(0.36		)	(9.08		)	3.72			(3.19		)	(14.94		)
Total from investment operations	(1.51		)	(10.23		)	2.07			(4.39		)	(17.09		)
Net asset value, end of period		$34.27			$35.78			$46.01			$43.94			$48.33
Total Return^b	(4.22		%)	(22.23		%)	4.69		%	(9.10		%)	(26.07		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$89,071			$105,696			$177,735			$143,739			$247,454
Ratios to average net assets:
Net investment income (loss)	(3.07		%)	(2.80		%)	(3.46		%)	(2.82		%)	(3.99		%)
Total expenses^c,f	3.48		%	3.15		%	3.50		%	2.99		%	4.13		%
Portfolio turnover rate	838		%	2,190		%	1,097		%	1,309		%	1,107		%

PROSPECTUS | 485

Financial Highlights (continued)

INVERSE GOVERNMENT LONG BOND STRATEGY FUND



Class H	Year Ended March 31, 2016			Period Ended March 31, 2015^d
Per Share Data
Net asset value, beginning of period		$34.67			$41.85
Income (loss) from investment operations:
Net investment income (loss)^a	(1.15		)	(0.52		)
Net gain (loss) on investments (realized and unrealized)	(0.40		)	(6.66		)
Total from investment operations	(1.55		)	(7.18		)
Net asset value, end of period		$33.12			$34.67
Total Return^b	(4.47		%)	(17.16		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$72,833			$43,800
Ratios to average net assets:
Net investment income (loss)	(3.17		%)	(2.75		%)
Total expenses^c,f	3.61		%	3.07		%
Portfolio turnover rate	838		%	2,190		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Since commencement of operations: September 18, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.


^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.


^f	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratios for the years ended would be:



	03/31/16	03/31/15	03/31/14	03/28/13	03/31/12
Investor Class	1.40%	1.40%	1.41%	1.39%	1.39%
Class H	1.65%	1.60%	—	—	—

PROSPECTUS | 486

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$23.90			$22.94			$25.12			$22.90			$21.95
Income (loss) from investment operations:
Net investment income (loss)^a	(0.15		)	(0.19		)	(0.24		)	(0.24		)	(0.28		)
Net gain (loss) on investments (realized and unrealized)	0.45			1.15			2.16			3.14			1.78
Total from investment operations	0.30			0.96			1.92			2.90			1.50
Less distributions from:
Net investment income	(0.89		)	—			(1.14		)	(0.43		)	(0.55		)
Net realized gains	—			—			(2.96		)	(0.25		)	—
Total distributions	(0.89		)	—			(4.10		)	(0.68		)	(0.55		)
Net asset value, end of period		$23.31			$23.90			$22.94			$25.12			$22.90
Total Return^b	1.36		%	4.14		%	7.86		%	12.83		%	6.95		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$738,018			$621,455			$87,315			$434,113			$266,950
Ratios to average net assets:
Net investment income (loss)	(0.64		%)	(0.81		%)	(0.97		%)	(0.99		%)	(1.26		%)
Total expenses^c	1.49		%	1.46		%	1.53		%	1.51		%	1.49		%
Portfolio turnover rate	521		%	393		%	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 | 487

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class H	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$19.48			$21.37			$24.04			$28.22			$32.04
Income (loss) from investment operations:
Net investment income (loss)^a	(0.16		)	(0.19		)	(0.35		)	(0.36		)	(0.47		)
Net gain (loss) on investments (realized and unrealized)	(1.14		)	(1.70		)	(2.32		)	(3.82		)	(3.35		)
Total from investment operations	(1.30		)	(1.89		)	(2.67		)	(4.18		)	(3.82		)
Net asset value, end of period		$18.18			$19.48			$21.37			$24.04			$28.22
Total Return^b	(6.67		%)	(8.84		%)	(11.11		%)	(14.81		%)	(11.92		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$2,513			$2,124			$2,453			$9,208			$13,357
Ratios to average net assets:
Net investment income (loss)	(0.84		%)	(0.93		%)	(1.50		%)	(1.38		%)	(1.51		%)
Total expenses^c	1.50		%	1.51		%	1.52		%	1.50		%	1.51		%
Portfolio turnover rate	1,722		%	784		%	—			—			—


^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 | 488

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.



	Year Ended March 31,			Year Ended March 31,			Period Ended March 31,
Class H	2016			2015			2014^a
Per Share Data
Net asset value, beginning of period		$20.29			$25.18			$25.00
Income (loss) from investment operations:
Net investment income (loss)^b	(0.11		)	(0.39		)	(0.19		)
Net gain (loss) on investments (realized and unrealized)	0.90			(1.01		)	0.37
Total from investment operations	0.79			(1.40		)	0.18
Less distributions from:
Net investment income	(3.03		)	(3.49		)	—
Total distributions	(3.03		)	(3.49		)	—
Net asset value, end of period		$18.05			$20.29			$25.18
Total Return^c	4.82		%	(5.74		%)	0.80		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$212			$153			$5,580
Ratios to average net assets:
Net investment income (loss)	(0.55		%)	(1.64		%)	(1.62		%)
Total expenses^d	1.56		%	1.74		%	1.64		%
Portfolio turnover rate	21,555		%	655		%	—


^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	Does not include expenses of the underlying funds in which the Fund invests.

PROSPECTUS | 489

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Money Market Class^a	2016			2015			2014			2013			2012
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			—^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			—			(—)^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	—		%	—		%	—		%	—		%	—		%
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$643,872			$694,549			$780,135			$848,370			$607,565
Ratios to average net assets:
Net investment income (loss)	—%^d			—%^d			—%^d			—%^d			—%^d
Total expenses	0.91		%	0.92		%	0.93		%	0.95		%	0.91		%
Net expenses^c	0.22		%	0.08		%	0.09		%	0.17		%	0.11		%
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 | 490

INDEX PUBLISHERS INFORMATION

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.


•	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.

Frank Russell Company

PROSPECTUS | 491

Russell^® is a trademark of the Frank Russell Company.

ICE Futures U.S., Inc.

NASDAQ OMX Group, Inc.

Nikkei Inc.


•	The advisability of investing in index funds;

492 | PROSPECTUS


•	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.

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.

S&P Dow Jones Indices LLC

PROSPECTUS | 493

Standard & Poor’s

494 | PROSPECTUS

“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.

PROSPECTUS | 495

ADDITIONAL INFORMATION

Additional and more detailed information about the Funds is included in the SAI dated August 1, 2016, as revised from time to time. 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 SEC registration number is 811-07584.

496 | PROSPECTUS

805 King Farm Boulevard, Suite 600

Rockville, MD 20850

800.820.0888

guggenheiminvestments.com



Mutual Funds	\|	Alternative	\|	8.1.2016

Guggenheim Funds Prospectus
Class P



Ticker Symbol	Fund Name
RYSRX	Guggenheim Long Short Equity Fund
RYDSX	Guggenheim Event Driven and Distressed Strategies Fund



SERP-1-0816x0817	guggenheiminvestments.com

Table of Contents



FUND SUMMARIES (Includes Investment Objective; Fees and Expenses; 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)
Alternative Funds
Long Short Equity Fund	1
Event Driven and Distressed Strategies Fund	8
MORE INFORMATION ABOUT THE TRUST AND THE FUNDS	17
COMPARABLE INDEX INFORMATION	30
MANAGEMENT OF THE FUNDS	30
SHAREHOLDER INFORMATION	32
BUYING, SELLING AND EXCHANGING FUND SHARES	34
BUYING FUND SHARES	34
SELLING FUND SHARES	35
EXCHANGING FUND SHARES	35
ACCOUNT POLICIES	36
DISTRIBUTION AND SHAREHOLDER SERVICES	37
DIVIDENDS AND DISTRIBUTIONS	38
ADDITIONAL TAX INFORMATION	38
FINANCIAL HIGHLIGHTS	41
ADDITIONAL INFORMATION	44

i | PROSPECTUS

LONG SHORT EQUITY 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 P 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	1.35%
Short Sales Dividend and Interest Expense	0.84%
Remaining Other Expenses	0.51%
Total Annual Fund Operating Expenses	2.50%

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.



1 Year	3 Years	5 Years	10 Years
$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 224% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most derivatives. If such instruments were included, the Fund’s portfolio turnover rate might be significantly higher.

PRINCIPAL INVESTMENT STRATEGIES

PROSPECTUS | 1

in derivatives to hedge or gain leveraged exposure to a particular industry, style or company depending on market conditions.

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 the principal risks described below.

2 | PROSPECTUS

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.

PROSPECTUS | 3

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.

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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

4 | PROSPECTUS

halted temporarily by an exchange because the maximum price change of that investment has been realized, 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.

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.

PROSPECTUS | 5

PERFORMANCE INFORMATION

The following bar chart shows the performance of the Class P 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 P shares of the Fund as an average over different periods of time in comparison to the performance of a broad-based market index. Effective upon the close of business on April 30, 2015, the Fund converted its existing Class H shares to Class P shares. For periods prior to May 1, 2015, the performance shown reflects the performance of Class H shares. The returns shown have not been adjusted to reflect any differences in expenses between Class H shares and Class P shares. However, the Fund's Class P shares would have had annual returns substantially similar to those of the Fund's former Class H shares because they are invested in the same portfolio of securities and have a similar, if not identical, expense structure to that of Class H shares. 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. 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 H shares is based on a calendar year. The year-to-date return for the period from January 1, 2016 through June 30, 2016 is -1.13%.



Highest Quarter Return		Lowest Quarter Return
Q3 2009	15.91%	Q4 2008	-21.78	%

6 | PROSPECTUS

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class P	Past 1 Year	Past 5 Years	Past 10 Years
Return Before Taxes	1.15%	3.55%	3.13%
Return After Taxes on Distributions	1.15%	3.52%	2.92%
Return After Taxes on Distributions and Sale of Fund Shares	0.65%	2.74%	2.46%
HFRX Equity Hedge Index (reflects no deduction for fees, expenses or taxes)	-2.33%	-1.36%	-0.34%
Russell 3000^® Index (reflects no deduction for fees, expenses or taxes)	0.48%	12.18%	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.


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

PURCHASE AND SALE OF FUND SHARES

Class P shares of the Fund are offered primarily through broker/dealers and other financial intermediaries with which the Fund's distributor, Guggenheim Funds Distributors, LLC (the "Distributor"), has an agreement for the use of Class P shares of the Fund in investment products, programs or accounts. Class P shares do not have a minimum initial investment amount, minimum subsequent investment amount or a minimum account balance. The Fund reserves the right to modify its minimum investment amount and account balance requirements at any time, with or without prior notice to you.

You may purchase or redeem Fund shares through your broker/dealer or other financial intermediary that has an agreement with the Distributor. You may purchase, redeem or exchange Class P shares of the Fund on any day the New York Stock Exchange (the "NYSE") is open for business (a "Business Day").

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 7

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 P 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	0.85%
Acquired Fund Fees and Expenses	0.13%
Total Annual Fund Operating Expenses*	2.13%
Fee Waiver and/or Expense Reimbursement**	-0.10%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement*	2.03%

The Advisor has contractually agreed to reduce fees and/or reimburse expenses to the extent necessary to keep net operating expenses for Class P 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 P 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. 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
$206	$657	$1,135	$2,454

PORTFOLIO TURNOVER

8 | PROSPECTUS

32% of the average value of its portfolio. The Fund’s portfolio turnover rate is calculated without regard to cash instruments and most 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 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 | 9

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

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 the principal risks described below.

10 | PROSPECTUS

PROSPECTUS | 11

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 will incur its pro rata share of the expenses of the underlying investment vehicles. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying investment vehicles.

12 | PROSPECTUS

not be able to attain the high growth rate of smaller companies, especially during extended periods of economic expansion.

PROSPECTUS | 13

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.

PERFORMANCE INFORMATION

The following bar chart shows the performance of the Class P 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 P shares of the Fund as an average over different periods of time in comparison to the performance of a broad-based market index and the Credit Suisse Event Driven Liquid Index. Effective upon the close of business on April 30, 2015, the Fund converted its existing Class H shares to Class P shares. For periods prior to May 1, 2015, the performance shown reflects the performance of Class H shares. The returns shown have not been adjusted to reflect any differences in expenses between Class H shares and Class P shares. However, the Fund's Class P shares would have had annual returns substantially similar to those of the Fund's former Class H shares because they are invested in the same portfolio of securities and have a similar, if not identical, expense structure to that of Class H shares. 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.

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, 2016 through June 30, 2016 is 5.02%.

14 | PROSPECTUS



Highest Quarter Return		Lowest Quarter Return
Q4 2011	7.95%	Q3 2011	-10.94	%

AVERAGE ANNUAL TOTAL RETURN (for periods ended December 31, 2015)



Class P	Past 1 Year	Past 5 Years	Since Inception (6/30/2010)
Return Before Taxes	-3.06%	2.34%	4.21%
Return After Taxes on Distributions	-3.68%	1.17%	2.63%
Return After Taxes on Distributions and Sale of Fund Shares	-1.73%	1.36%	2.67%
S&P 500^® Index (reflects no deduction for fees, expenses or taxes)	1.38%	12.57%	15.67%
Credit Suisse Event Driven Liquid Index (reflects no deduction for fees, expenses or taxes)	-6.95%	2.72%	4.57%

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.


•	Larry Shank, CFA, CAIA, Portfolio Manager. Mr. Shank has been associated with the Advisor since 2001.

PURCHASE AND SALE OF FUND SHARES

TAX INFORMATION

PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

PROSPECTUS | 15

the Fund over another investment. Ask your sales person or visit your financial intermediary’s website for more information.

16 | PROSPECTUS

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 P shares of the Long Short Equity Fund and Event Driven and Distressed Strategies Fund (together, 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 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 the Funds must adhere to the limits set forth in Section 12(d)(1) of the 1940 Act when investing in the Funds.

INVESTMENT OBJECTIVES

The investment objective of each Fund is non-fundamental and may be changed without shareholder approval.

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 market sector in order to maintain consistency and predictability.

Each Fund may, but will not necessarily, invest up to 100% of its assets 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 market conditions. 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. 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.

While the Funds seek to target return characteristics similar to those achieved by certain hedge fund strategies, the 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 Funds are not permitted to engage in certain investment activities to the same extent as hedge funds, such as borrowing and leverage. Therefore, the 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. The Advisor allocates investments to industries and styles according to several measures of momentum. Industries and styles that have performed well in the recent past will generally be held long, while industries and styles that have performed poorly will generally be held short. The ability of the Fund to achieve its desired industry and style exposures is subject to constraints such as, but not limited to: portfolio turnover, equity market beta, notional exposure, and long & short individual position sizes; these constraints are imposed through an optimization process that seeks to obtain the desired industry and style exposures as efficiently as possible. The Fund will generally short-sell securities with the intention of achieving certain industry or style exposures, or for risk management purposes. 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. 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.

PROSPECTUS | 17

PRINCIPAL INVESTMENT RISKS

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.”

18 | PROSPECTUS

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of property specifically traceable to them, only a proportional share of all property available for distribution to all of that FCM’s customers. Certain swap agreements also may be considered to be illiquid.

20 | PROSPECTUS

operations. In addition, transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities.

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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 Long Short Equity Fund. Accordingly, neither the Fund nor the Advisor (with respect to the Fund) is subject to registration as a CPO under the CEA or regulation by the CFTC. To remain eligible for the exclusion, the Fund will be limited in its ability to use financial instruments subject to regulation by the CFTC. In the event that the 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 the Fund. The Advisor’s eligibility to claim the exclusion with respect to the 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. The 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 the Fund, the Fund’s expenses may increase, adversely affecting that Fund’s total return.

The Advisor is not eligible to claim the exclusion from registration with respect to the Event Driven and Distressed Strategies Fund. As a result, the Advisor has registered with the CFTC as a commodity pool operator with respect to the Fund, which is considered a commodity pool under the CEA. On August 13, 2013, the CFTC issued the final harmonization rule release specifying the disclosure, reporting and recordkeeping requirements that apply to the Advisor and the Fund. Compliance with the CFTC’s new disclosure, reporting and recordkeeping requirements could increase Fund expenses. The Fund 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 Fund's ability to obtain exposure to certain investments and the commodities markets generally.

22 | PROSPECTUS

continue to monitor developments in this area, particularly to the extent regulatory changes affect the Fund’s ability to enter into swap agreements.

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.

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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

24 | PROSPECTUS

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.

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company may differ from the performance the Fund would achieve if it invested directly in the underlying investments of the investment company. 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 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.

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.

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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.

LEVERAGING RISK—The Fund may invest in leveraged instruments in pursuit of its investment objective. 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.

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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.”

PORTFOLIO TURNOVER RISK—The Fund’s strategies may involve the frequent purchase and sale of portfolio securities. Such frequent and active trading may lead to significantly higher transaction costs for the Fund because of increased broker commissions associated with such transactions. The Fund calculates portfolio turnover without including the short term cash instruments or derivatives transactions that may comprise the majority of the Fund’s trading. As such, if the Fund’s extensive use of derivative instruments were reflected, the calculated portfolio turnover rate would be significantly higher. Portfolio turnover may cause the Fund’s performance to be less than you expect.

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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.

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.

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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.

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.

MANAGEMENT OF THE FUNDS

INVESTMENT ADVISOR



Fund	Advisory Fee
Long Short Equity Fund	0.90	%
Event Driven and Distressed Strategies Fund	0.90	%

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:

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Fund	Expense Cap
Event Driven and Distressed Strategies Fund	1.90	%

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, 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.

PORTFOLIO MANAGEMENT

The Funds are managed by a team of investment professionals. On a day-to-day basis, Messrs. Michael P. Byrum and Ryan Harder are jointly and primarily responsible for the day-to-day management of the Long Short Equity Fund. On a day-to-day basis, Messrs. Byrum, Harder and Larry Shank are jointly and primarily responsible for the day-to-day management of the Event Driven and Distressed Strategies Fund. Biographical information for each of the portfolio managers is listed below.

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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.

SHAREHOLDER INFORMATION

CALCULATING NET ASSET VALUE

The price at which you buy, sell and exchange shares is the net asset value per share, which also is 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 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 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.

In calculating NAV, each Fund 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

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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

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 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.

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BUYING, SELLING AND EXCHANGING FUND SHARES

Class P shares of each Fund are available only to investors purchasing shares through broker/dealers and other financial intermediaries that have specific agreements with the Distributor, including:


•	Authorized no transaction fee platforms;


•	Authorized fee-based programs of financial intermediaries;


•	Authorized registered investment advisers and discretionary managed account programs;


•	Authorized banks, trust company, broker/dealers, or other financial organizations that charge an advisory fee, management fee, consulting fee, fee in lieu of brokerage commissions or other similar fee for their services;


•	Authorized retirement platforms of financial intermediaries; and


•	Other authorized intermediaries approved by the Distributor.

Each Fund reserves the right to waive and/or amend the investor eligibility requirements at any time, with or without prior notice to you.

Class P shares of the Funds will be held in an account at a financial intermediary. The Funds' transfer agent, Rydex Fund Services, LLC (the "Transfer Agent"), will have no information with respect to or control over an account of a shareholder of Class P shares of a Fund. A shareholder may obtain information about an account only through its financial intermediary, which generally will hold the shareholder’s Class P shares as the shareholder’s agent in nominee or street name.

TRANSACTION INFORMATION

The Funds accept orders to buy, sell or exchange Fund shares from financial intermediaries 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 Funds' 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.

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, Distributor, or authorized dealer. All shareholder transaction orders must be received by the close of the market to receive that day's NAV. Any purchase transaction that is sent to the Transfer Agent does not constitute a purchase order until the Transfer Agent processes the transaction and receives correct payment by check, wire transfer or ACH.

Each financial intermediary may have its own rules about share transactions, and may impose earlier cut-off times for processing your transaction order.

BUYING FUND SHARES

Each Fund offers its shares continuously and investors may submit purchase orders through their financial intermediary 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.

Each financial intermediary may impose earlier cut-off times for processing your purchase order.

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SELLING FUND SHARES

Each Fund redeems its shares continuously and investors may sell their shares back to the Fund through their financial intermediary 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 redemption order is received in good order by your financial intermediary.

RECEIVING YOUR REDEMPTION PROCEEDS

Your redemption proceeds normally will be sent to your financial intermediary within seven days of the Funds' Transfer Agent receiving your request. For redemption orders that settle on federal bank holidays, your redemption proceeds will be sent to your financial intermediary on the next Business Day following the holiday.

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 through their financial intermediary on any Business Day of Class P shares of a Fund for Class P shares of any other fund in the Guggenheim Investments family of funds (collectively, the "Guggenheim Funds"), on the basis of the respective NAVs of the shares involved. However, such exchanges may be subject to, and limited by, the availability of Class P shares of the Guggenheim Funds offered by the participating broker/dealer or financial intermediary. Investors also may make exchanges on any Business Day of Class P shares of a Fund for shares of the U.S. Government Money Market Fund (shares of the U.S. Government Money Market Fund are offered in a separate prospectus).

Shareholders who hold Class P shares through certain financial intermediaries who either charge periodic fees to their customers for financial planning, investment advisory or asset management programs, or provide such services in connection with the establishment of an investment account for a comprehensive wrap fee may be able to convert their shares to Institutional Class shares, if available. In certain circumstances, shareholders of Class P shares may be converted automatically by their financial intermediaries. Shareholders should inquire with their financial intermediary regarding the availability of these conversions.

The Guggenheim Funds currently include all closed- and open-end funds (including all of their portfolios) advised by the Advisor, including each series of the Trust, the Guggenheim Funds Trust 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 Guggenheim Funds, please contact your financial intermediary or 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 Fund will be subject to the purchaser eligibility requirements of that Guggenheim Fund, as disclosed in that Guggenheim 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 Guggenheim Funds not included in this Prospectus may be subject to different transaction cut-off times. All exchange requests must be received by your financial intermediary prior to the cut-off time of the Guggenheim Fund you are exchanging out of or the Guggenheim 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 Guggenheim Funds, including the Funds, do not allow unlimited trading. If you are contemplating an exchange for shares of a Guggenheim Fund not offered in this Prospectus, you should obtain and review that Guggenheim Fund's current prospectus before making the exchange. You can obtain a prospectus for

PROSPECTUS | 35

any Guggenheim Fund by calling 800.820.0888 or 301.296.5100 or visiting the Guggenheim Investments website at www.guggenheiminvestments.com.

The cut-off times and the exchange limitations for your financial intermediary may be different than those described in this Prospectus.

The exchange privilege may be modified or discontinued at any time.

EXCHANGE PROCEDURES

You will ordinarily submit your transaction order through the financial intermediary through which you opened your shareholder account.

ACCOUNT POLICIES

SHAREHOLDER IDENTIFICATION AND VERIFICATION

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 Funds are required to withhold such proceeds.

HOUSEHOLDING

FREQUENT PURCHASES AND REDEMPTIONS OF FUND SHARES

Frequent Trading Policy. The Funds are not suitable for purchase by active investors. The Funds are intended for long-term investment purposes only and discourage shareholders from engaging in “market timing” or other types of excessive short-term trading. This frequent trading into and out of the 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 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

36 | PROSPECTUS

redemption requests, and experiencing increased transaction costs. The 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 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

DISTRIBUTION SERVICES

The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act with respect to Class P shares that allows the Funds to pay distribution fees to the Distributor and other firms that provide distribution-related services 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.

COMPENSATION TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES

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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 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.

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.

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•


•	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.


•	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

NON-U.S. INVESTORS

PROSPECTUS | 39

from net investment income. A Fund may, under certain circumstances, report all or a portion of a dividend as an “interest-related dividend” or a “short-term capital gain dividend,” which would generally be exempt from this 30% U.S. withholding tax, provided certain other requirements are met. Distributions to foreign shareholders of long-term capital gains and any gains from the sale or other disposition of shares of the Funds generally are not subject to U.S. taxation, unless the recipient is an individual who either (1) meets the definition of “resident alien” under the Internal Revenue Code or (2) is physically present in the U.S. for 183 days or more per year. Different tax consequences may result if the foreign shareholder is engaged in a trade or business within the United States. In addition, the tax consequences to a foreign shareholder entitled to claim the benefits of a tax treaty may be different than those described above.

40 | PROSPECTUS

FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand each Fund’s financial performance for the past five years (or, if shorter, the period of operations of that Fund's Class P shares). 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 the Funds (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 report, along with the financial statements and related notes, appears in the Funds' 2016 Annual Report. The 2016 Annual Report is available by telephoning the Funds' Transfer Agent at 800.820.0888 or 301.296.5100.

PROSPECTUS | 41

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class P*	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$16.21			$15.12			$13.53			$13.33			$14.32
Income (loss) from investment operations:
Net investment income (loss)^a	(0.11		)	(0.07		)	(0.16		)	(0.04		)	0.03
Net gain (loss) on investments
(realized and unrealized)	(0.79		)	1.16			1.75			0.29			(1.02		)
Total from investment operations	(0.90		)	1.09			1.59			0.25			(0.99		)
Less distributions from:
Net investment income	—			—			—			(0.05		)	—
Total distributions	—			—			—			(0.05		)	—
Net asset value, end of period		$15.31			$16.21			$15.12			$13.53			$13.33
Total Return^b	(5.55		%)	7.21		%	11.75		%	1.88		%	(6.91		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$23,477			$20,020			$29,287			$26,257			$54,589
Ratios to average net assets:
Net investment income (loss)	(0.67		%)	(0.43		%)	(1.07		%)	(0.29		%)	0.20		%
Total expenses^c,d	2.50		%	2.17		%	2.36		%	1.88		%	1.66		%
Portfolio turnover rate	224		%	331		%	256		%	183		%	190		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Excluding interest and dividend expense related to short sales, the operating ratios for the years or periods presented would be:



	3/31/2016		3/31/2015		3/31/2014		3/28/2013		3/31/2012
Class P	1.66	%	1.66	%	1.67	%	1.65	%	1.66	%

^* Class H shares redesignated as Class P shares effective following the close of business on April 30, 2015.

PROSPECTUS | 42

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 31,			Year Ended March 31,			Year Ended March 28,			Year Ended March 31,
Class P*	2016			2015			2014			2013			2012
Per Share Data
Net asset value, beginning of period		$26.82			$28.42			$27.57			$25.37			$26.86
Income (loss) from investment operations:
Net investment income (loss)^a	0.02			(0.29		)	(0.49		)	(0.23		)	(0.34		)
Net gain (loss) on investments (realized and unrealized)	(0.71		)	(0.11		)	3.08			2.43			(0.39		)
Total from investment operations	(0.69		)	(0.40		)	2.59			2.20			(0.73		)
Less distributions from:
Net investment income	(0.37		)	(0.06		)	—			—			—
Net realized gains	—			(1.14		)	(1.74		)	—			(0.76		)
Total distributions	(0.37		)	(1.20		)	(1.74		)	—			(0.76		)
Net asset value, end of period		$25.76			$26.82			$28.42			$27.57			$25.37
Total Return^b	(2.52		%)	(1.18		%)	9.54		%	8.67		%	(2.60		%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)		$1,667			$3,318			$6,809			$6,134			$6,183
Ratios to average net assets:
Net investment income (loss)	0.09		%	(1.05		%)	(1.72		%)	(0.88		%)	(1.33		%)
Total expenses^c	2.00		%	2.01		%	2.02		%	2.03		%	1.91		%
Net expenses^d	1.90		%	1.90		%	1.90		%	1.91		%	1.85		%
Portfolio turnover rate	32		%	107		%	161		%	228		%	513		%


^a	Net investment income (loss) per share was computed using average shares outstanding throughout the period.


^b	Total return does not reflect the impact of any applicable sales charges.


^c	Does not include expenses of the underlying funds in which the Fund invests.


^d	Net expense information reflects the expense ratios after expense waivers.

^* Class H shares redesignated as Class P shares effective following the close of business on April 30, 2015.

PROSPECTUS | 43

ADDITIONAL INFORMATION

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.

The Trust’s SEC registration number is 811-07584.

44 | PROSPECTUS

805 King Farm Boulevard, Suite 600

Rockville, MD 20850

800.820.0888

guggenheiminvestments.com

STATEMENT OF ADDITIONAL INFORMATION

RYDEX SERIES FUNDS

805 KING FARM BOULEVARD, SUITE 600

ROCKVILLE, MARYLAND 20850

800.820.0888 301.296.5100

WWW.GUGGENHEIMINVESTMENTS.COM

This Statement of Additional Information (“SAI”) relates to each share class of the following portfolios (each, a “Fund” and collectively, the “Funds”) of Rydex Series Funds (the "Trust"):



	Investor Class	Class A	Class C	Class H	Class P	Institutional Class	U.S. Government Money Market Fund Shares
Rydex Domestic Equity – Broad Market Funds
Inverse Mid-Cap Strategy Fund	--	RYAGX	RYCLX	RYMHX	--	--	--
Inverse NASDAQ-100^® Strategy Fund	RYAIX	RYAPX	RYACX	RYALX	--	--	--
Inverse Russell 2000^® Strategy Fund	--	RYAFX	RYCQX	RYSHX	--	--	--
Inverse S&P 500^® Strategy Fund	RYURX	RYARX	RYUCX	RYUHX	--	--	--
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	--	RMQAX	RMQCX	RMQHX	--	--	--
Mid-Cap 1.5x Strategy Fund	--	RYAHX	RYDCX	RYMDX	--	--	--
Nova Fund	RYNVX	RYANX	RYNCX	RYNHX	--	--	--
NASDAQ-100^® Fund	RYOCX	RYATX	RYCOX	RYHOX	--	--	--
Russell 2000^® Fund	--	RYRRX	RYROX	RYRHX	--	--	--
Russell 2000^® 1.5x Strategy Fund	--	RYAKX	RYCMX	RYMKX	--	--	--
S&P 500^® Fund	--	RYSOX	RYSYX	RYSPX	--	--	--
Dow Jones Industrial Average^® Fund	--	RYDAX	RYDKX	RYDHX	--	--	--
Rydex Domestic Equity - Pure Style Funds
S&P 500^® Pure Growth Fund	--	RYLGX	RYGRX	RYAWX	--	--	--
S&P 500^® Pure Value Fund	--	RYLVX	RYVVX	RYZAX	--	--	--
S&P MidCap 400^® Pure Growth Fund	--	RYMGX	RYCKX	RYBHX	--	--	--
S&P MidCap 400^® Pure Value Fund	--	RYMVX	RYMMX	RYAVX	--	--	--
S&P SmallCap 600^® Pure Growth Fund	--	RYSGX	RYWCX	RYWAX	--	--	--
S&P SmallCap 600^® Pure Value Fund	--	RYSVX	RYYCX	RYAZX	--	--	--
Rydex Sector Funds
Banking Fund	RYKIX	RYBKX	RYKCX	RYKAX	--	--	--
Basic Materials Fund	RYBIX	RYBMX	RYBCX	RYBAX	--	--	--
Biotechnology Fund	RYOIX	RYBOX	RYCFX	RYOAX	--	--	--
Consumer Products Fund	RYCIX	RYPDX	RYCPX	RYCAX	--	--	--
Electronics Fund	RYSIX	RYELX	RYSCX	RYSAX	--	--	--
Energy Fund	RYEIX	RYENX	RYECX	RYEAX	--	--	--
Energy Services Fund	RYVIX	RYESX	RYVCX	RYVAX	--	--	--
Financial Services Fund	RYFIX	RYFNX	RYFCX	RYFAX	--	--	--
Health Care Fund	RYHIX	RYHEX	RYHCX	RYHAX	--	--	--
Internet Fund	RYIIX	RYINX	RYICX	RYIAX	--	--	--
Leisure Fund	RYLIX	RYLSX	RYLCX	RYLAX	--	--	--
Precious Metals Fund	RYPMX	RYMNX	RYZCX	RYMPX	--	--	--
Retailing Fund	RYRIX	RYRTX	RYRCX	RYRAX	--	--	--
Technology Fund	RYTIX	RYTHX	RYCHX	RYTAX	--	--	--
Telecommunications Fund	RYMIX	RYTLX	RYCSX	RYMAX	--	--	--
Transportation Fund	RYPIX	RYTSX	RYCNX	RYPAX	--	--	--
Utilities Fund	RYUIX	RYUTX	RYCUX	RYAUX	--	--	--
Rydex International Equity Funds
Europe 1.25x Strategy Fund	--	RYAEX	RYCEX	RYEUX	--	--	--
Japan 2x Strategy Fund	--	RYJSX	RYJTX	RYJHX	--	--	--
Emerging Markets 2x Strategy Fund	--	RYWTX	RYWUX	RYWVX	--	--	--
Inverse Emerging Markets 2x Strategy Fund	--	RYWWX	RYWZX	RYWYX	--	--	--
Rydex Specialty Funds
Strengthening Dollar 2x Strategy Fund	--	RYSDX	RYSJX	RYSBX	--	--	--
Weakening Dollar 2x Strategy Fund	--	RYWDX	RYWJX	RYWBX	--	--	--
Real Estate Fund	--	RYREX	RYCRX	RYHRX	--	--	--
Rydex Fixed Income Funds
Government Long Bond 1.2x Strategy Fund	RYGBX	RYABX	RYCGX	RYHBX	--	--	--
Inverse Government Long Bond Strategy Fund	RYJUX	RYAQX	RYJCX	RYHJX	--	--	--
High Yield Strategy Fund	--	RYHDX	RYHHX	RYHGX	--	--	--
Inverse High Yield Strategy Fund	--	RYILX	RYIYX	RYIHX	--	--	--
Emerging Markets Bond Strategy Fund	--	RYIEX	RYFTX	RYGTX	--	--	--
Guggenheim Alternative Funds
Long Short Equity Fund	--	RYAMX	RYISX	--	RYSRX	RYQTX	--
Event Driven and Distressed Strategies Fund	--	RYDOX	RYDQX	--	RYDSX	RYDTX	--
Rydex Money Market Fund
U.S. Government Money Market Fund	--	--	--	--	--	--	RYFXX

This SAI is not a prospectus. It should be read in conjunction with the Funds’ Investor Class and Class H; Class A, Class C, and Institutional Class; Class P; and Money Market Fund prospectuses dated August 1, 2016, as each may be revised from time to time (each, a “Prospectus” and collectively, the “Prospectuses”). Capitalized terms not defined herein are defined in the Prospectuses. Copies of the Funds’ Prospectuses are available, without charge, upon request to the Trust at the address listed above or by telephoning the Trust at the telephone numbers listed above. The Funds’ financial statements for the fiscal year ended March 31, 2016 are included in the Funds’ Annual Reports to Shareholders, which have been filed with the U.S. Securities and Exchange Commission (the “SEC”) and are incorporated herein by reference.

The date of this SAI is August 1, 2016

RFB-SAI-0816x0817

A/75517545.6

TABLE OF CONTENTS



GENERAL INFORMATION ABOUT THE TRUST	1
INVESTMENT POLICIES, TECHNIQUES AND RISK FACTORS	2
ADDITIONAL INFORMATION ABOUT THE SECTOR FUNDS	32
SPECIAL CONSIDERATIONS REGARDING THE USE OF LEVERAGED AND INVERSE INVESTMENT STRATEGIES	36
INVESTMENT RESTRICTIONS	39
MORE INFORMATION ABOUT PORTFOLIO TURNOVER	45
BROKERAGE ALLOCATION AND OTHER PRACTICES	47
MANAGEMENT OF THE TRUST	54
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES	77
DETERMINATION OF NET ASSET VALUE	77
PURCHASE, EXCHANGE AND REDEMPTION OF SHARES	79
SALES CHARGES, REDUCTIONS, AND WAIVERS	81
DIVIDENDS, DISTRIBUTIONS, AND TAXES	84
OTHER INFORMATION	92
INDEX PUBLISHERS INFORMATION	93
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	98
CUSTODIAN	98
FINANCIAL STATEMENTS	98
APPENDIX A – DESCRIPTION OF RATINGS	A-1
APPENDIX B – CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES	B-1

GENERAL INFORMATION ABOUT THE TRUST

The Trust, an open-end management investment company, was organized as a Delaware statutory trust on February 10, 1993. The Trust is permitted to offer separate series (i.e., funds) and different classes of shares, and additional series and classes of shares may be created from time to time. All payments received by the Trust for shares of any Fund belong to that Fund. Each Fund has its own assets and liabilities.

Each Fund is an open-end management investment company. Currently, the Trust offers fifty-three (53) separate funds that issue a combination of Investor Class, Class A, Class C, Class H, Class P, and/or Institutional Class shares. The U.S. Government Money Market Fund offers a single share class. The different classes provide for variations in sales charges, certain shareholder servicing and distribution expenses and in the minimum initial investment requirements. In addition, an initial sales charge is imposed on the purchase of Class A shares, and a contingent deferred sales charge is imposed on the redemption of Class C shares. Sales charges and minimum investment requirements are described in the Prospectuses. For more information on shareholder servicing and distribution expenses, see “Dividends, Distributions, and Taxes.” The U.S. Government Money Market Fund is a diversified investment company.



The “Domestic Equity Funds”
Inverse Mid-Cap Strategy Fund	Mid-Cap 1.5x Strategy Fund	S&P 500^® Pure Growth Fund
Inverse NASDAQ-100^® Strategy Fund	Nova Fund NASDAQ-100^® Fund	S&P 500^® Pure Value Fund S&P MidCap 400^® Pure Growth Fund
Inverse Russell 2000^® Strategy Fund	Russell 2000^® Fund Russell 2000^® 1.5x Strategy Fund	S&P MidCap 400^® Pure Value Fund S&P SmallCap 600^® Pure Growth Fund
Inverse S&P 500^® Strategy Fund	S&P 500^® Fund	S&P SmallCap 600^® Pure Value Fund
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	Dow Jones Industrial Average^® Fund



The “Sector Funds”
Banking Fund	Energy Services Fund	Retailing Fund
Basic Materials Fund	Financial Services Fund	Technology Fund
Biotechnology Fund	Health Care Fund	Telecommunications Fund
Consumer Products Fund	Internet Fund	Transportation Fund
Electronics Fund	Leisure Fund	Utilities Fund
Energy Fund	Precious Metals Fund



The “International Equity Funds”
Europe 1.25x Strategy Fund	Emerging Markets 2x Strategy Fund
Japan 2x Strategy Fund	Inverse Emerging Markets 2x Strategy Fund



The “Fixed Income Funds”
Government Long Bond 1.2x Strategy Fund	High Yield Strategy Fund
Inverse Government Long Bond Strategy Fund	Inverse High Yield Strategy Fund
Emerging Markets Bond Strategy Fund



The “Alternative Funds”
Long Short Equity Fund	Event Driven and Distressed Strategies Fund



The “Specialty Funds”
Real Estate Fund	Weakening Dollar 2x Strategy Fund	Strengthening Dollar 2x Strategy Fund



The “Money Market Fund”
U.S. Government Money Market Fund

For the period from April 1, 2000 to April 1, 2007, the Inverse NASDAQ-100^® Strategy Fund, Inverse S&P 500^® Strategy Fund and Inverse Government Long Bond Strategy Fund pursued their respective investment objectives indirectly by investing through what is referred to as a “master-feeder” structure. For the period from August 1, 2001 to April 1, 2007, the Nova Fund also pursued its investment objective indirectly by investing through a master-feeder arrangement. On April 1, 2007, the Inverse NASDAQ-100^® Strategy Fund, Inverse S&P 500^® Strategy Fund, Nova Fund and Inverse Government Long Bond Strategy Fund began pursuing their respective investment objectives directly and the assets and liabilities of each Fund’s corresponding master fund were transferred to the Fund.

INVESTMENT POLICIES, TECHNIQUES AND RISK FACTORS

General

Each Fund’s investment objective and principal investment strategies are described in the Fund’s Prospectuses. The investment objective of the Nova Fund, Inverse S&P 500^® Strategy Fund, NASDAQ-100^® Fund, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund and U.S. Government Money Market Fund are fundamental policies, and cannot be changed without the consent of the holders of a majority of that Fund’s outstanding shares. The investment objective of each other Fund is non-fundamental and may be changed without the consent of the holders of a majority of the Fund’s outstanding shares.

Portfolio management is provided to each Fund by the Trust’s investment adviser, Security Investors, LLC, a Kansas limited liability company with offices at 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850. Security Investors, LLC operates under the name Guggenheim Investments (the “Advisor”). Prior to January 3, 2011, the name of the Advisor was Rydex Advisors, LLC and prior to June 30, 2010, PADCO Advisors, Inc., each of which did business under the name Rydex Investments.

The investment strategies of the Funds discussed below and in the Funds' Prospectuses may, consistent with each Fund’s investment objective and limitations, be used by a Fund if, in the opinion of the Advisor, the strategies will be advantageous to the Fund. Each Fund is free to reduce or eliminate its activity with respect to any of the following investment techniques without changing the Fund’s fundamental investment policies. There is no assurance that any of the Funds’ strategies or any other strategies and methods of investment available to a Fund will result in the achievement of the Fund’s objectives. The following information supplements and should be read in conjunction with the Funds’ Prospectuses.

Principal Investment Policies, Techniques and Risk Factors — The investment policies, techniques and risk factors described below are considered to be principal to the management of the Funds. However, not all of the investment policies, techniques and risk factors described below are applicable to each of the Funds. Please consult the Funds’ Prospectuses to determine which risks are applicable to a particular Fund.

Borrowing

While most of the Funds do not normally borrow funds for investment purposes, each Fund reserves the right to do so. Borrowing for investment purposes is a form of leverage. Leveraging investments, by purchasing securities with borrowed money, is a speculative technique that increases investment risk, but also increases investment opportunity. A Fund also may enter into certain transactions, including reverse repurchase agreements, which can be viewed as constituting a form of leveraging by the Fund. Leveraging will exaggerate the effect on the net asset value per share ("NAV") of a Fund of any increase or decrease in the market value of the Fund’s portfolio. Because substantially all of a Fund’s assets will fluctuate in value, whereas the interest obligations on borrowings may be fixed, the NAV of the Fund will increase more when the Fund’s portfolio assets increase in value and decrease more when the Fund’s portfolio assets decrease in value than would otherwise be the case. Moreover, interest costs on borrowings may fluctuate with changing market rates of interest and may partially offset or exceed the returns on the borrowed funds. Under adverse conditions, a Fund might have to sell portfolio securities to meet interest or principal payments at a time when investment considerations would not favor such sales. Generally, the Funds would use this form of leverage during periods when the Advisor believes that the Fund’s investment objective would be furthered.

Each Fund also may borrow money to facilitate management of the Fund’s portfolio by enabling the Fund to meet redemption requests when the liquidation of portfolio instruments would be inconvenient or disadvantageous to the extent such liquidation would otherwise be required to meet redemption requests in cash. Such borrowing is not for investment purposes and will be repaid by the borrowing Fund promptly. As required by the 1940 Act, a Fund must maintain continuous asset coverage (total assets, including assets acquired with borrowed funds, less liabilities

exclusive of borrowings) of 300% of all amounts borrowed. If, at any time, the value of a Fund’s assets should fail to meet this 300% coverage test, the Fund, within three days (not including Sundays and holidays), will reduce the amount of the Fund’s borrowings to the extent necessary to meet this 300% coverage requirement. Maintenance of this percentage limitation may result in the sale of portfolio securities at a time when investment considerations otherwise indicate that it would be disadvantageous to do so.

In addition to the foregoing, each Fund is authorized to borrow money as a temporary measure for extraordinary or emergency purposes in amounts not in excess of 5% of the value of the Fund’s total assets. Borrowings for extraordinary or emergency purposes are not subject to the foregoing 300% asset coverage requirement. While the Funds do not anticipate doing so, each Fund is authorized to pledge (i.e., transfer a security interest in) portfolio securities in an amount up to one-third of the value of the Fund’s total assets in connection with any borrowing.

Commercial Paper

Commercial paper is a short-term obligation with a maturity ranging from one to 270 days issued by banks, corporations and other borrowers. Such investments are unsecured and usually discounted. The U.S. Government Money Market Fund and the Emerging Markets Bond Strategy Fund may invest in commercial paper rated A-1 or A-2 by S&P Global Ratings (“S&P”) or Prime-1 or Prime-2 by Moody’s Investors Service, Inc. (“Moody’s”). See “Appendix A –Description of Ratings” for a description of commercial paper ratings.

Currency Transactions

Foreign Currencies. The International Equity Funds and Alternative Funds may, and the Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund will, invest directly and indirectly in foreign currencies. Investments in foreign currencies are subject to numerous risks, not the least of which is the fluctuation of foreign currency exchange rates with respect to the U.S. dollar. Exchange rates fluctuate for a number of reasons.


•	Inflation. Exchange rates change to reflect changes in a currency’s buying power. Different countries experience different inflation rates due to different monetary and fiscal policies, different product and labor market conditions, and a host of other factors.


•	Trade Deficits. Countries with trade deficits tend to experience a depreciating currency. Inflation may be the cause of a trade deficit, making a country’s goods more expensive and less competitive thereby reducing demand for its currency.


•	Interest Rates. High interest rates may raise currency values in the short term by making such currencies more attractive to investors. However, since high interest rates are often the result of high inflation, long-term results may be the opposite.

•

Budget Deficits and Low Savings Rates. Countries that run large budget deficits and save little of their national income tend to suffer a depreciating currency because they are forced to borrow abroad to finance their deficits. Payments of interest on this debt can inundate the currency markets with the currency of the debtor nation. Budget deficits also can indirectly contribute to currency depreciation if a government chooses inflationary measures to cope with its deficits and debt.


•	Political Factors. Political instability in a country can cause a currency to depreciate. Demand for a certain currency may fall if a country appears to be a less desirable place in which to invest and do business.

•

Government Control. Through their own buying and selling of currencies, the world’s central banks sometimes manipulate exchange rate movements. In addition, governments occasionally issue statements to influence people’s expectations about the direction of exchange rates, or they may initiate policies with an exchange rate target as the goal. The value of the Funds’ investments is calculated in U.S. dollars each day that the New York Stock Exchange (the “NYSE”) is open for business. As a result, to the extent a Fund’s assets are invested in instruments denominated in foreign currencies and the currencies appreciate relative to the U.S. dollar, the Fund’s NAV as expressed in U.S. dollars (and, therefore, the value of your investment) should increase. If the U.S. dollar appreciates relative to the other currencies, the opposite should occur. The currency-related gains and losses experienced by a Fund will be based on changes in the value of portfolio securities attributable to currency fluctuations only in relation to the original purchase price of such securities

as stated in U.S. dollars. Gains or losses on shares of a Fund will be based on changes attributable to fluctuations in the NAV of such shares, expressed in U.S. dollars, in relation to the original U.S. dollar purchase price of the shares. The amount of appreciation or depreciation in a Fund’s assets also will be affected by the net investment income generated by the money market instruments in which the Fund invests and by changes in the value of the securities that are unrelated to changes in currency exchange rates.

The International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund and Alternative Funds may incur currency exchange costs when they sell instruments denominated in one currency and buy instruments denominated in another.

Currency-Related Derivatives and Other Financial Instruments. Although the International Equity Funds, Emerging Markets Bond Strategy Fund, and the Alternative Funds do not currently expect to engage in currency hedging, each Fund may use currency transactions in order to hedge the value of portfolio holdings denominated in particular currencies against fluctuations in relative value. Currency transactions include forward currency contracts, exchange-listed currency futures and options thereon, exchange-listed and over-the-counter (“OTC”) options on currencies, and currency swaps. A forward currency contract involves a privately negotiated obligation to purchase or sell (with delivery generally required) a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are traded in the interbank market conducted directly between currency traders (usually large, commercial banks) and their customers. A forward foreign currency contract generally has no deposit requirement, and no commissions are charged at any stage for trades. A currency swap is an agreement to exchange cash flows based on the notional difference among two or more currencies and operates similarly to an interest rate swap, which is described below. A Fund may enter into currency transactions with counterparties which have received (or the guarantors of the obligations of which have received) a short-term credit rating of A-1 or P-1 by S&P or Moody’s, respectively, or that have an equivalent rating from a Nationally Recognized Statistical Rating Organization (“NRSRO”) or (except for OTC currency options) are determined to be of equivalent credit quality by the Advisor.

A Fund’s dealings in forward currency contracts and other currency transactions such as futures, options on futures, options on currencies and swaps will be limited to hedging involving either specific transactions (“Transaction Hedging”) or portfolio positions (“Position Hedging”). Transaction Hedging is entering into a currency transaction with respect to specific assets or liabilities of a Fund, which will generally arise in connection with the purchase or sale of its portfolio securities or the receipt of income therefrom. A Fund may enter into Transaction Hedging out of a desire to preserve the U.S. dollar price of a security when it enters into a contract for the purchase or sale of a security denominated in a foreign currency. A Fund may be able to protect itself against possible losses resulting from changes in the relationship between the U.S. dollar and foreign currencies during the period between the date the security is purchased or sold and the date on which payment is made or received by entering into a forward contract for the purchase or sale, for a fixed amount of dollars, of the amount of the foreign currency involved in the underlying security transactions.

Position Hedging is entering into a currency transaction with respect to portfolio security positions denominated or generally quoted in that currency. A Fund may use Position Hedging when the Advisor believes that the currency of a particular foreign country may suffer a substantial decline against the U.S. dollar. A Fund may enter into a forward foreign currency contract to sell, for a fixed amount of dollars, the amount of foreign currency approximating the value of some or all of its portfolio securities denominated in such foreign currency. The precise matching of the forward foreign currency contract amount and the value of the portfolio securities involved may not have a perfect correlation since the future value of the securities hedged will change as a consequence of the market between the date the forward contract is entered into and the date it matures. The projection of short-term currency market movement is difficult, and the successful execution of this short-term hedging strategy is uncertain.

A Fund will not enter into a transaction to hedge currency exposure to an extent greater, after netting all transactions intended wholly or partially to offset other transactions, than the aggregate market value (at the time of entering into the transaction) of the securities held in its portfolio that are denominated or generally quoted in or currently convertible into such currency, other than with respect to Proxy Hedging as described below.

A Fund may also cross-hedge currencies by entering into transactions to purchase or sell one or more currencies that are expected to decline in value relative to other currencies to which that Fund has or in which that Fund expects to have portfolio exposure.

To reduce the effect of currency fluctuations on the value of existing or anticipated holdings of portfolio securities, a Fund may also engage in Proxy Hedging, a type of currency hedging. Proxy Hedging is often used when the currency to which a Fund’s portfolio is exposed is difficult to hedge or to hedge against the dollar. Proxy Hedging entails entering into a forward contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies in which some or all of a Fund’s portfolio securities are or are expected to be denominated, and to buy U.S. dollars. The amount of the contract would not exceed the value of the Fund’s securities denominated in linked currencies. For example, if the Advisor considers that the Swedish krona is linked to the euro, the Fund holds securities denominated in krona and the Advisor believes that the value of the krona will decline against the U.S. dollar, the Advisor may enter into a contract to sell euros and buy dollars. Currency hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency transactions can result in losses to a Fund if the currency being hedged fluctuates in value to a degree or in a direction that is not anticipated. Furthermore, there is risk that the perceived linkage between various currencies may not be present or may not be present during the particular time that a Fund is engaging in Proxy Hedging. If a Fund enters into a Proxy Hedging transaction, the Fund will “cover” its position so as not to create a “senior security” as defined in Section 18 of the 1940 Act.

Currency transactions are subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchase and sales of currency and related instruments can be negatively affected by government exchange controls, blockages, and manipulations or exchange restrictions imposed by governments. These actions can result in losses to a Fund if it is unable to deliver or receive currency or funds in settlement of obligations and could also cause hedges it has entered into to be rendered useless, resulting in full currency exposure as well as incurring transaction costs. Buyers and sellers of currency futures are subject to the same risks that apply to the use of futures generally. Furthermore, settlement of a currency futures contract for the purchase of most currencies must occur at a bank based in the issuing nation. Trading options on currency futures is relatively new, and the ability to establish and close out positions on such options is subject to the maintenance of a liquid market, which may not always be available. Currency exchange rates may fluctuate based on factors extrinsic to that country’s economy. Although forward foreign currency contracts and currency futures tend to minimize the risk of loss due to a decline in the value of the hedged currency, at the same time they tend to limit any potential gain which might result should the value of such currency increase.

A Fund may also buy or sell put and call options on foreign currencies either on exchanges or in the OTC market. A put option on a foreign currency gives the purchaser of the option the right to sell a foreign currency at the exercise price until the option expires. A call option on a foreign currency gives the purchaser of the option the right to purchase the currency at the exercise price until the option expires. Currency options traded on U.S. or other exchanges may be subject to position limits which may limit the ability of the Fund to reduce foreign currency risk using such options. OTC options differ from exchange-traded options in that they are two-party contracts with price and other terms negotiated between the buyer and seller, and generally do not have as much market liquidity as exchange-traded options.

The International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund may conduct currency exchange transactions on a spot basis. Currency transactions made on a spot basis are for cash at the spot rate prevailing in the currency exchange market for buying or selling currency. The International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund will regularly enter into forward currency contracts.

Each Fund may invest in a combination of forward currency contracts and U.S. dollar-denominated market instruments in an attempt to obtain an investment result that is substantially the same as a direct investment in a foreign currency-denominated instrument. This investment technique creates a “synthetic” position in the particular foreign-currency instrument whose performance the manager is trying to duplicate. For example, the combination of U.S. dollar-denominated instruments with “long” forward currency exchange contracts creates a position economically equivalent to a money market instrument denominated in the foreign currency itself. Such combined positions are sometimes necessary when the market in a particular foreign currency is small or relatively illiquid.

The International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund may invest in forward currency contracts to engage in either Transaction Hedging or Position Hedging. The International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar

2x Strategy Fund, and Weakening Dollar 2x Strategy Fund may each use forward currency contracts for Position Hedging if consistent with its policy of trying to expose its net assets to foreign currencies. The Funds are not required to enter into forward currency contracts for hedging purposes and it is possible that the Funds may not be able to hedge against a currency devaluation that is so generally anticipated that the Funds are unable to contract to sell the currency at a price above the devaluation level it anticipates. It also is possible that, under certain circumstances, the International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund may have to limit their currency transactions to qualify as “regulated investment companies” under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).

The International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund currently do not intend to enter into forward currency contracts with a term of more than one year, or to engage in Position Hedging with respect to the currency of a particular country to more than the aggregate market value (at the time the hedging transaction is entered into) of its portfolio securities denominated in (or quoted in or currently convertible into or directly related through the use of forward currency contracts in conjunction with money market instruments to) that particular currency.

At or before the maturity of a forward currency contract, the International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund may either sell a portfolio security and make delivery of the currency, or retain the security and terminate its contractual obligation to deliver the currency by buying an “offsetting” contract obligating it to buy, on the same maturity date, the same amount of the currency.

If the International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund engage in an offsetting transaction, each Fund may later enter into a new forward currency contract to sell the currency. If the International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and/or Weakening Dollar 2x Strategy Fund engage in an offsetting transaction, the Fund will incur a gain or loss to the extent that there has been movement in forward currency contract prices. If forward prices go down during the period between the date a Fund enters into a forward currency contract for the sale of a currency and the date it enters into an offsetting contract for the purchase of the currency, the Fund will realize a gain to the extent that the price of the currency it has agreed to sell exceeds the price of the currency it has agreed to buy. If forward prices go up, the Fund will suffer a loss to the extent the price of the currency it has agreed to buy exceeds the price of the currency it has agreed to sell.

The International Equity Funds, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund may convert their holdings of foreign currencies into U.S. dollars from time to time, but will incur the costs of currency conversion. Foreign exchange dealers do not charge a fee for conversion, but they do realize a profit based on the difference between the prices at which they buy and sell various currencies. Thus, a dealer may offer to sell a foreign currency to a Fund at one rate, and offer to buy the currency at a lower rate if the Fund tries to resell the currency to the dealer.

Foreign Currency Exchange-Related Securities. The Japan 2x Strategy Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, Emerging Markets Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund may invest in foreign currency warrants. Foreign currency warrants such as Currency Exchange Warrants^SM (“CEWs^SM”) are warrants which entitle the holder to receive from their issuer an amount of cash (generally, for warrants issued in the United States, in U.S. dollars) which is calculated pursuant to a predetermined formula and based on the exchange rate between a specified foreign currency and the U.S. dollar as of the exercise date of the warrant. Foreign currency warrants generally are exercisable upon their issuance and expire as of a specified date and time. Foreign currency warrants have been issued in connection with U.S. dollar-denominated debt offerings by major corporate issuers in an attempt to reduce the foreign currency exchange risk which, from the point of view of prospective purchasers of the securities, is inherent in the international fixed-income marketplace. Foreign currency warrants may attempt to reduce the foreign exchange risk assumed by purchasers of a security by, for example, providing for a supplemental payment in the event that the U.S. dollar depreciates against the value of a major foreign currency such as the Japanese yen or the euro. The formula used to determine the amount payable upon exercise of a foreign currency warrant may make the warrant worthless unless the applicable foreign currency exchange rate moves in a particular direction (i.e., unless the U.S. dollar appreciates or depreciates against the particular foreign currency to which the warrant is linked or indexed). Foreign currency warrants are severable from the debt obligations with which they may be offered, and may be listed on exchanges. Foreign currency warrants

may be exercisable only in certain minimum amounts, and an investor wishing to exercise warrants who possesses less than the minimum number required for exercise may be required either to sell the warrants or to purchase additional warrants, thereby incurring additional transaction costs. In the case of any exercise of warrants, there may be a time delay between the time a holder of warrants gives instructions to exercise and the time the exchange rate relating to exercise is determined, during which time the exchange rate could change significantly, thereby affecting both the market and cash settlement values of the warrants being exercised. The expiration date of the warrants may be accelerated if the warrants should be delisted from an exchange or if their trading should be suspended permanently, which would result in the loss of any remaining “time value” of the warrants (i.e., the difference between the current market value and the exercise value of the warrants), and, in the case the warrants were “out-of-the-money,” in a total loss of the purchase price of the warrants.

Warrants are generally unsecured obligations of their issuers and are not standardized foreign currency options issued by the Options Clearing Corporation (“OCC”). Unlike foreign currency options issued by OCC, the terms of foreign exchange warrants generally will not be amended in the event of governmental or regulatory actions affecting exchange rates or in the event of the imposition of other regulatory controls affecting the international currency markets. The initial public offering price of foreign currency warrants is generally considerably in excess of the price that a commercial user of foreign currencies might pay in the interbank market for a comparable option involving significantly larger amounts of foreign currencies. Foreign currency warrants are subject to significant foreign exchange risk, including risks arising from complex political or economic factors.

Equity Securities

Each Fund may invest in equity securities. Equity securities represent ownership interests in a company or partnership and consist of common stocks, preferred stocks, warrants to acquire common stock, securities convertible into common stock, and investments in master limited partnerships. Investments in equity securities in general are subject to market risks that may cause their prices to fluctuate over time. Fluctuations in the value of equity securities in which a Fund invests will cause the NAV of the Fund to fluctuate. The value of equity securities may fall as a result of factors directly relating to the issuer, such as decisions made by its management or lower demand for its products or services. An equity security’s value also may fall because of factors affecting not just the issuer, but also companies in the same industry or in a number of different industries, such as increases in production costs. The value of an issuer’s equity securities also may be affected by changes in financial markets that are relatively unrelated to the issuer or its industry, such as changes in interest rates or currency exchange rates. Global stock markets, including the U.S. stock market, tend to be cyclical, with periods when stock prices generally rise and periods when stock prices generally decline. The Domestic Equity Funds, Sector Funds, International Equity Funds, Emerging Markets Bond Strategy Fund, Alternative Funds, and Specialty Funds may purchase equity securities traded in the United States on registered exchanges or the OTC market. The Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, NASDAQ-100^® Fund, Inverse NASDAQ-100^® Strategy Fund, Sector Funds, International Equity Funds, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund and the Alternative Funds also may purchase equity securities traded on exchanges all over the world. The Funds may invest in the types of equity securities described in more detail below.


•	Common Stock. Common stock represents an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock.

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Preferred Stock. Preferred stock represents an equity or ownership interest in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. Preferred stocks may pay fixed or adjustable rates of return. Preferred stocks usually do not have voting rights. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of preferred stock take precedence over the claims of those who own common stock, but are subordinate to those of bond owners.

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Convertible Securities. Convertible securities are bonds, debentures, notes, preferred stocks or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at a stated exchange ratio. A convertible security may also be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a Fund is called for redemption or conversion, the Fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a third party. In the event an issuer is liquidated or declares

bankruptcy, the claims of owners of bonds take precedence over the claims of those who own convertible securities.

Convertible securities generally have less potential for gain or loss than common stocks. Convertible securities generally provide yields higher than the underlying common stocks, but generally lower than comparable non-convertible securities. Because of this higher yield, convertible securities generally sell at a price above their “conversion value,” which is the current market value of the stock to be received upon conversion. The difference between this conversion value and the price of convertible securities will vary over time depending on changes in the value of the underlying common stocks and interest rates. When the underlying common stocks decline in value, convertible securities tend not to decline to the same extent because of the interest or dividend payments and the repayment of principal at maturity for certain types of convertible securities. However, securities that are convertible other than at the option of the holder generally do not limit the potential for loss to the same extent as securities convertible at the option of the holder. When the underlying common stocks rise in value, the value of convertible securities may also be expected to increase. At the same time, however, the difference between the market value of convertible securities and their conversion value will narrow, which means that the value of convertible securities will generally not increase to the same extent as the value of the underlying common stocks. Because convertible securities may also be interest-rate sensitive, their value may increase as interest rates fall and decrease as interest rates rise. Convertible securities are also subject to credit risk, and are often lower-quality securities.

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Small and Medium Capitalization Issuers. Investing in equity securities of small and medium capitalization companies often involves greater risk than do investments in larger capitalization companies. This increased risk may be due to greater business risks customarily associated with a smaller size, limited markets and financial resources, narrow product lines and frequent lack of depth of management. The securities of smaller companies are often traded in the OTC market and even if listed on a national securities exchange may not be traded in volumes typical for that exchange. Consequently, the securities of smaller companies are less likely to be liquid, may have limited market stability, and may be subject to more abrupt or erratic market movements than securities of larger, more established growth companies or market averages in general.

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Master Limited Partnerships (“MLPs”). MLPs are limited partnerships in which the ownership units are publicly traded. MLP units are registered with the SEC and are freely traded on a securities exchange or in the OTC market. MLPs often own several properties or businesses (or own interests) that are related to real estate development and oil and gas industries, but they also may finance motion pictures, research and development and other projects. Generally, a MLP is operated under the supervision of one or more managing general partners. Limited partners are not involved in the day-to-day management of the partnership.

The risks of investing in a MLP are generally those involved in investing in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded investors in a MLP than investors in a corporation. Additional risks involved with investing in a MLP are risks associated with the specific industry or industries in which the partnership invests, such as the risks of investing in real estate or oil and gas industries.

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Initial Public Offerings (“IPOs”). The Emerging Markets Bond Strategy Fund may invest a portion of its assets in securities of companies offering shares in IPOs. IPOs may be more volatile than other securities, and may have a magnified performance impact on funds with small asset bases. The impact of IPOs on the Fund’s performance likely will decrease as the Fund’s asset size increases, which could reduce the Fund’s total returns. IPOs may not be consistently available to the Fund for investing, particularly as the Fund’s asset base grows. Because IPO shares frequently are volatile in price, the Fund may hold IPO shares for a very short period of time. This may increase the turnover of the Fund’s portfolio and may lead to increased expenses for the Fund, such as commissions and transaction costs. By selling IPO shares, the Fund may realize taxable gains it will subsequently distribute to shareholders. In addition, the market for IPO shares can be speculative and/or inactive for extended periods of time. The limited number of shares available for trading in some IPOs may make it more difficult for the Fund to buy or sell significant amounts of shares without an unfavorable impact on prevailing prices. Holders of IPO shares can be affected by substantial dilution in the value of their shares, by sales of additional shares and by concentration of control in existing management and principal shareholders. The Fund’s investments in IPO shares may include the securities of unseasoned companies

(companies with less than three years of continuous operations), which presents risks considerably greater than common stocks of more established companies. These companies may have limited operating histories and their prospects for profitability may be uncertain. These companies may be involved in new and evolving businesses and may be vulnerable to competition and changes in technology, markets and economic conditions. They may be more dependent on key managers and third parties and may have limited product lines.

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Warrants. As a matter of non-fundamental policy, the Funds (except the S&P 500^® Fund and Russell 2000^® Fund) do not invest in warrants. However, the Funds may, from time to time, receive warrants as a result of, for example, a corporate action or some other event affecting one or more of the companies in which a Fund invests. In such event, the Fund generally intends to hold such warrants until they expire. Each Fund, however, reserves the right to exercise the warrants. Warrants are instruments that entitle the holder to buy an equity security at a specific price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments.

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Rights. Each Fund may from time to time receive rights as a result of, for example, a corporate action or some other event affecting one or more of the companies in which the Fund invests. A right is a privilege granted to existing shareholders of a corporation to subscribe to shares of a new issue of common stock before it is issued. Rights normally have a short life of usually two to four weeks, are freely transferable and entitle the holder to buy the new common stock at a price lower than the public offering price. An investment in rights may entail greater risks than certain other types of investments. Generally, rights do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. Investing in rights increases the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities.

Fixed Income Securities

The Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Dow Jones Industrial Average^® Fund, Fixed Income Funds, Alternative Funds, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and U.S. Government Money Market Fund may invest in fixed income securities. The market value of the fixed income securities in which a Fund invests will change in response to interest rate changes and other factors. During periods of falling interest rates, the values of outstanding fixed income securities generally rise. Conversely, during periods of rising interest rates, the values of such securities generally decline. Moreover, while securities with longer maturities tend to produce higher yields, the prices of longer maturity securities are also subject to greater market fluctuations as a result of changes in interest rates. Changes by recognized agencies in the rating of any fixed income security and in the ability of an issuer to make payments of interest and principal also affect the value of these investments. Changes in the value of these securities will not necessarily affect cash income derived from these securities but will affect a Fund’s NAV. Additional information regarding fixed income securities is described below:

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Duration. Duration is a measure of the expected change in value of a fixed income security for a given change in interest rates. For example, if interest rates changed by one percent (1%), the value of a security having an effective duration of two years generally would vary by two percent (2%). Duration takes the length of the time intervals between the present time and time that the interest and principal payments are scheduled, or in the case of a callable bond, expected to be received, and weighs them by the present values of the cash to be received at each future point in time.

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Variable and Floating Rate Securities. Variable and floating rate instruments involve certain obligations that may carry variable or floating rates of interest, and may involve a conditional or unconditional demand feature. Such instruments bear interest at rates which are not fixed, but which vary with changes in specified market rates or indices. The interest rates on these securities may be reset daily, weekly, quarterly, or some other reset period, and may have a set floor or ceiling on interest rate changes. There is a risk that the current

interest rate on such obligations may not accurately reflect existing market interest rates. A demand instrument with a demand notice exceeding seven days may be considered illiquid if there is no secondary market for such security.

Debt Securities. The Specialty Funds, Fixed Income Funds, Alternative Funds, and U.S. Government Money Market Fund may invest in debt securities. A debt security is a security consisting of a certificate or other evidence of a debt (secured or unsecured) on which the issuing company or governmental body promises to pay the holder thereof a fixed, variable, or floating rate of interest for a specified length of time, and to repay the debt on the specified maturity date. Some debt securities, such as zero coupon bonds, do not make regular interest payments but are issued at a discount to their principal or maturity value. Debt securities include a variety of fixed income obligations, including, but not limited to, corporate bonds, government securities, municipal securities, convertible securities, mortgage-backed securities, and asset-backed securities. Debt securities include investment-grade securities, non-investment-grade securities, and unrated securities. Debt securities are subject to a variety of risks, such as interest rate risk, income risk, call/prepayment risk, inflation risk, credit risk, and (in the case of foreign securities) country risk and currency risk.

Corporate Debt Securities. The High Yield Strategy Fund and Emerging Markets Bond Strategy Fund may seek investment in, and the Inverse High Yield Strategy Fund may seek inverse exposure to, corporate debt securities representative of one or more high yield bond or credit derivative indices, which may change from time to time. Selection will generally not be dependent on independent credit analysis or fundamental analysis performed by the Advisor. The High Yield Strategy Fund and Emerging Markets Bond Strategy Fund may invest in, and the Inverse High Yield Strategy Fund may seek inverse exposure to, all grades of corporate debt securities including below investment grade as discussed below. See Appendix A for a description of corporate bond ratings. The Funds may also invest in unrated securities. The U.S. Government Money Market Fund may invest in corporate debt securities that at the time of purchase are rated in the top two rating categories by any two NRSROs (or one NRSRO if that NRSRO is the only such NRSRO that rates such security) or, if not so rated, must be determined by the Advisor to be of comparable quality.

Corporate debt securities are typically fixed-income securities issued by businesses to finance their operations, but may also include bank loans to companies. Notes, bonds, debentures and commercial paper are the most common types of corporate debt securities. The primary differences between the different types of corporate debt securities are their maturities and secured or un-secured status. Commercial paper has the shortest term and is usually unsecured. The broad category of corporate debt securities includes debt issued by domestic or foreign companies of all kinds, including those with small-, mid- and large-capitalizations. Corporate debt may be rated investment-grade or below investment-grade and may carry variable or floating rates of interest.

Because of the wide range of types, and maturities, of corporate debt securities, as well as the range of creditworthiness of its issuers, corporate debt securities have widely varying potentials for return and risk profiles. For example, commercial paper issued by a large established domestic corporation that is rated investment-grade may have a modest return on principal, but carries relatively limited risk. On the other hand, a long-term corporate note issued by a small foreign corporation from an emerging market country that has not been rated may have the potential for relatively large returns on principal, but carries a relatively high degree of risk.

Corporate debt securities carry both credit risk and interest rate risk. Credit risk is the risk that a Fund could lose money if the issuer of a corporate debt security is unable to pay interest or repay principal when it is due. Some corporate debt securities that are rated below investment-grade are generally considered speculative because they present a greater risk of loss, including default, than higher quality debt securities. The credit risk of a particular issuer’s debt security may vary based on its priority for repayment. For example, higher ranking (senior) debt securities have a higher priority than lower ranking (subordinated) securities. This means that the issuer might not make payments on subordinated securities while continuing to make payments on senior securities. In addition, in the event of bankruptcy, holders of higher-ranking senior securities may receive amounts otherwise payable to the holders of more junior securities. Interest rate risk is the risk that the value of certain corporate debt securities will tend to fall when interest rates rise. In general, corporate debt securities with longer terms tend to fall more in value when interest rates rise than corporate debt securities with shorter terms.

Non-Investment-Grade Debt Securities. The High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund and Event Driven and Distressed Strategies Fund may invest in non-investment-grade

securities. Non-investment-grade securities, also referred to as “high yield securities” or “junk bonds,” are debt securities that are rated lower than the four highest rating categories by a NRSRO (for example, lower than Baa3 by Moody’s Investors Service, Inc. or lower than BBB– by S&P) or are determined to be of comparable quality by the Advisor. These securities are generally considered to be, on balance, predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation and will generally involve more credit risk than securities in the investment-grade categories. Investment in these securities generally provides greater income and increased opportunity for capital appreciation than investments in higher quality securities, but they also typically entail greater price volatility and principal and income risk.

Analysis of the creditworthiness of issuers of high yield securities may be more complex than for issuers of investment-grade securities. Thus, reliance on credit ratings in making investment decisions entails greater risks for high yield securities than for investment-grade debt securities. The success of a fund’s investment adviser in managing high yield securities is more dependent upon its own credit analysis than is the case with investment-grade securities.

Some high yield securities are issued by smaller, less-seasoned companies, while others are issued as part of a corporate restructuring, such as an acquisition, merger, or leveraged buyout. Companies that issue high yield securities are often highly leveraged and may not have available to them more traditional methods of financing. Therefore, the risk associated with acquiring the securities of such issuers generally is greater than is the case with investment-grade securities. Some high yield securities were once rated as investment-grade but have been downgraded to junk bond status because of financial difficulties experienced by their issuers.

The market values of high yield securities tend to reflect individual issuer developments to a greater extent than do investment-grade securities, which in general react to fluctuations in the general level of interest rates. High yield securities also tend to be more sensitive to economic conditions than are investment-grade securities. A projection of an economic downturn or of a period of rising interest rates, for example, could cause a decline in junk bond prices because the advent of a recession could lessen the ability of a highly leveraged company to make principal and interest payments on its debt securities. If an issuer of high yield securities defaults, in addition to risking payment of all or a portion of interest and principal, a fund investing in such securities may incur additional expenses to seek recovery.

The secondary market on which high yield securities are traded may be less liquid than the market for investment-grade securities. Less liquidity in the secondary trading market could adversely affect the ability of a fund to sell a high yield security or the price at which a fund could sell a high yield security, and could adversely affect the daily NAV of fund shares. When secondary markets for high yield securities are less liquid than the market for investment-grade securities, it may be more difficult to value the securities because such valuation may require more research, and elements of judgment may play a greater role in the valuation because there is less reliable, objective data available.

The High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund and Event Driven and Distressed Strategies Fund will not necessarily dispose of a security if a credit-rating agency downgrades the rating of the security below its rating at the time of purchase. However, the Advisor will monitor the investment to determine whether continued investment in the security is in the best interest of Fund shareholders.

Unrated Debt Securities. The High Yield Strategy Fund, Inverse High Yield Strategy Fund and Emerging Markets Bond Strategy Fund may also invest in unrated debt securities. Unrated debt, while not necessarily lower in quality than rated securities, may not have as broad a market. Because of the size and perceived demand for the issue, among other factors, certain issuers may decide not to pay the cost of getting a rating for their bonds. The creditworthiness of the issuer, as well as any financial institution or other party responsible for payments on the security, will be analyzed to determine whether to purchase unrated bonds.

Debt Securities Issued by the International Bank for Reconstruction and Development (“World Bank”). The Emerging Markets Bond Strategy Fund and the U.S. Government Money Market Fund may invest in debt securities issued by the World Bank. Debt securities issued by the World Bank may include high quality global bonds backed by 185 member governments, including the United States, Japan, Germany, France and the United Kingdom, as well as in bonds in “non-core” currencies, including emerging markets and European accession countries with ratings of AAA or Aaa, structured notes, and discount notes represented by certificates, in bearer form only, or in un-certified form (Book Entry Discount Notes) with maturities of 360 days or less at a discount, and in the case of Discount Notes, in certified form only and on an interest bearing basis in the U.S. and Eurodollar markets.

Foreign Issuers

The Domestic Equity Funds, Sector Funds, International Equity Funds, Real Estate Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund and Alternative Funds may invest in issuers located outside the United States directly, or in financial instruments that are indirectly linked to the performance of foreign issuers. Examples of such financial instruments include American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”), European Depositary Receipts (“EDRs”), International Depository Receipts (“IDRs”), “ordinary shares,” and “New York shares” issued and traded in the United States. ADRs are U.S. dollar-denominated receipts typically issued by U.S. banks and trust companies that evidence ownership of underlying securities issued by a foreign issuer. The underlying securities may not necessarily be denominated in the same currency as the securities into which they may be converted. The underlying securities are held in trust by a custodian bank or similar financial institution in the issuer’s home country. The depositary bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. Generally, ADRs in registered form are designed for use in domestic securities markets and are traded on exchanges or the OTC market in the United States. GDRs, EDRs, and IDRs are similar to ADRs in that they are certificates evidencing ownership of shares of a foreign issuer, however, GDRs, EDRs, and IDRs may be issued in bearer form and denominated in other currencies, and are generally designed for use in specific or multiple securities markets outside the United States. EDRs, for example, are designed for use in European securities markets while GDRs are designed for use throughout the world. Ordinary shares are shares of foreign issuers that are traded abroad and on a U.S. exchange. New York shares are shares that a foreign issuer has allocated for trading in the United States. ADRs, ordinary shares, and New York shares all may be purchased with and sold for U.S. dollars, which protects the Fund from the foreign settlement risks described below.

Depositary receipts may be sponsored or unsponsored. Although the two types of depositary receipt facilities (unsponsored or sponsored) are similar, there are differences in a holder’s rights and obligations and the practices of market participants. A depository may establish an unsponsored facility without participation by (or acquiescence of) the underlying issuer; typically, however, the depository requests a letter of non-objection from the underlying issuer prior to establishing the facility. Holders of unsponsored depositary receipts generally bear all the costs of the facility. The depository usually charges fees upon the deposit and withdrawal of the underlying securities, the conversion of dividends into U.S. dollars or other currency, the disposition of non-cash distributions, and the performance of other services. The depository of an unsponsored facility frequently is under no obligation to distribute shareholder communications received from the underlying issuer or to pass through voting rights to depositary receipt holders with respect to the underlying securities.

Sponsored depositary receipt facilities are created in generally the same manner as unsponsored facilities, except that sponsored depositary receipts are established jointly by a depository and the underlying issuer through a deposit agreement. The deposit agreement sets out the rights and responsibilities of the underlying issuer, the depository, and the depositary receipt holders. With sponsored facilities, the underlying issuer typically bears some of the costs of the depositary receipts (such as dividend payment fees of the depository), although most sponsored depositary receipts holders may bear costs such as deposit and withdrawal fees. Depositories of most sponsored depositary receipts agree to distribute notices of shareholder meetings, voting instructions, and other shareholder communications and information to the depositary receipt holders at the underlying issuer’s request.

The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets can be very volatile. Foreign stock exchanges, brokers and listed companies generally are subject to less government supervision and regulation than in the United States. The customary settlement time for foreign securities may be longer than the customary settlement time for United States securities. Many foreign countries lack uniform 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, the costs of foreign investing, including withholding taxes, brokerage commissions, and custodial fees, generally are higher than for U.S. investments.

Investing in companies located abroad also carries political and economic risks distinct from those associated with investing in the United States. Foreign investment may be affected by actions of foreign governments adverse to the interests of U.S. investors, including the possibility of seizure, expropriation or nationalization of assets, including

foreign deposits, confiscatory taxation, restrictions on U.S. investment, or on the ability to repatriate assets or to convert currency into U.S. dollars. There may be a greater possibility of default by foreign governments or foreign-government sponsored enterprises. Investments in foreign countries also involve a risk of local political, economic, or social instability, military action or unrest, or adverse diplomatic or legal developments, including favorable or unfavorable changes in currency exchange rates, foreign interest rates, exchange control regulations (including currency blockage), and possible difficulty in obtaining and enforcing judgments against foreign entities. The risks of foreign investments are heightened when investing in issuers in emerging market countries. Emerging market countries tend to have economic, political and legal systems that are less fully developed and are less stable than those of more developed countries. They are often particularly sensitive to market movements because their market prices tend to reflect speculative expectations. Low trading volumes may result in a lack of liquidity and in extreme price volatility.

The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable or unsuccessful government actions, reduction of government or central bank support and political or financial instability. Lack of information may also affect the value of these securities. To the extent the Fund focuses its investments in a single country or only a few countries in a particular geographic region, economic, political, regulatory or other conditions affecting such country or region may have a greater impact on Fund performance relative to a more geographically diversified fund. There are also special tax considerations which apply to securities and obligations of foreign issuers and securities and obligations principally traded overseas.

Risk Factors Regarding Europe. The Europe 1.25x Strategy Fund seeks to provide investment results which correlate to the performance of the STOXX Europe 50^® Index. The STOXX Europe 50^® Index is a capitalization-weighted index composed of 50 European blue chip stocks. Index members are chosen by STOXX Ltd. from 17 countries under criteria designed to identify highly liquid companies that are market leaders in their sectors. The 17 countries include Switzerland, Norway, and 15 of the 27 countries of the European Union (“EU”) - Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.

The securities markets of many European countries are relatively small, with the majority of market capitalization and trading volume concentrated in a limited number of companies representing a small number of industries. Consequently, a portfolio invested in securities of European companies may experience greater price volatility and significantly lower liquidity than a portfolio invested in equity securities of U.S. companies. These markets may be subject to greater influence than the U.S. market with respect to adverse events generally affecting the market and large investors trading significant blocks of securities.

In addition, the securities markets of European countries are subject to varying degrees of regulation, which may be either less or more restrictive than regulation imposed by the U.S. government. For example, the reporting, accounting and auditing standards of European countries differ from U.S. standards in important respects and less information is available to investors in securities of European companies than to investors in securities of U.S. companies.

Most developed countries in Western Europe are members of the European Union (“EU”), and many are also members of the EU’s Economic and Monetary Union (“EMU”), which requires compliance with restrictions on inflation rates, deficits, debt levels, and fiscal and monetary controls. These controls may significantly affect every country in Europe by limiting EMU member countries’ ability to implement domestic monetary policies that address regional economic conditions. The EU and its members also face other issues that may affect the region’s economic stability, including historically high levels of unemployment in certain regions, the proposed enlargement of EU membership, and uncertainty surrounding the adoption, amendment, or abandonment of a constitutional treaty.

The need for fiscal and democratic accountability among EMU members is also a very important issue facing Europe. EMU nations facing large public deficits, such as Greece, Ireland, Portugal, and Spain, are in need of economic assistance from other EMU nations. As a condition upon the receipt of such assistance, countries with large public deficits may be required to implement specific economic reforms or meet specific performance levels. A failure on the part of these EMU nations to make these required reforms or achieve these stated objectives may either slow Europe’s overall economic recovery or result in an economic downturn that impacts the value of all European debt securities.

The EU has been extending its influence to the east, but, despite recent reform and privatization, Eastern Europe continues to experience inflation, long-term unemployment, and declining exports. The EU has accepted several new members that were previously behind the Iron Curtain and has plans to accept several more in the medium-term. It is hoped that membership for these countries will help cement economic and political stability. Nevertheless, eight of the new entrants are former Soviet satellites and remain burdened to various extents by the inherited inefficiencies of centrally planned economies and state-owned industries similar to what existed under the former Soviet Union. A significant portion of the work force is unionized, and many others are unable to find work, contributing to periods of labor and social unrest. Eastern European governments also continue to control a large proportion of the region’s economic activity, and government spending in these countries remains high compared to that of Western Europe. In the past, some of these Eastern European governments expropriated significant amounts of private property without ever settling claims filed by the rightful owners. The securities markets in these countries have fewer protections for its investors, less information available on its corporations, and less trading activity. In addition, compliance with the terms of EMU membership, including tight fiscal and monetary controls and outside restrictions on a country’s ability to subsidize and privatize its industries, may significantly affect the Eastern European economy. The current and future status of the EU continues to be the subject of political controversy, with widely differing views both within and between member countries.

The recent global economic crisis also increases uncertainty surrounding Europe-linked investments. The crisis triggered recessions among many European countries and weakened the countries’ banking and financial sectors. Several smaller European economies were brought to the brink of bankruptcy. In addition, the crisis worsened public deficits across Europe, and some European countries including Greece, Ireland, Italy, Portugal and Spain, may be dependent on assistance from other governments or organizations. Such assistance may be subject to a country’s successful implementation of certain reforms. An insufficient level of assistance (whether triggered by a failure to implement reforms or by any other factor) could cause a deep economic downturn and affect the value of a Fund’s investments.

For some countries, the ability to repay their debt is still in question, and the possibility of default is real, which could affect their ability to borrow in the future. A default or debt restructuring of any European country would adversely impact holders of that country’s debt and sellers of credit default swaps linked to that country’s creditworthiness, which may be located outside the country defaulting or restructuring. Furthermore, there is the fear of contagion that could occur if one country defaults on its debt, and that a default in one country could trigger declines and cause other countries in the region to default as well.

Certain of the larger European economies have shown limited signs of recovery from this recent crisis; however, significant risks still threaten the potential recovery, such as high official debts and deficits, aging populations, over-regulation of non-financial businesses, and doubts about the sustainability of the EMU. In response to the crisis, many countries instituted measures to temporarily increase liquidity. These countries will need to make certain economic and political decisions in order to restore sustainable economic growth and fiscal policy. While many initiatives have been instituted to strengthen regulation and supervision of financial markets in the EU, greater regulation is expected in the near future.

The EU currently faces major issues involving its membership, structure, procedures, and policies, including: the adoption, abandonment, or adjustment of the new constitutional treaty; the EU’s expansion to the south and east; and resolution of the EU’s fiscal and democratic accountability problems. As member states unify their economic and monetary policies, movements in European markets will lose the benefit of diversification within the region. One or more member states might exit the EU, placing its currency and banking system in jeopardy. Recently, the United Kingdom voted via referendum to exit the EU. The precise details and the resulting impact of the United Kingdom’s vote to leave the EU, commonly referred to as “Brexit,” are not yet known. The effect on the United Kingdom’s economy will likely depend on the nature of trade relations with the EU following its exit, which is a matter to be negotiated. The decision may cause increased volatility which may be sustained for some period of time and have a significant adverse impact on world financial markets, other international trade agreements, and the United Kingdom and European economies, as well as the broader global economy for some time. These uncertainties have contributed to increased volatility in various currencies.

While certain EU countries continue to use their own currency, there is a collective group of EU countries, known as the Eurozone, that use the euro as their currency. Although the Eurozone has adopted a common currency and central bank, there is no fiscal union; therefore, money does not automatically flow from countries with surpluses to those

with fiscal deficits. Several Eurozone countries continue to face deficits and budget issues, some of which may have negative long-term effects for the economies of not just Eurozone countries but all of Europe. Rising government debt levels could increase market volatility and the probability of a recession, lead to emergency financing for certain countries, and foster increased speculation that certain countries may require bailouts. Eurozone policymakers have previously struggled to agree on solutions to debt crises, which has stressed the European banking system as lending continued to tighten. Similar crises in the future could place additional stress on the banking system and lead to downgrades of European sovereign debt. There continues to be concern over national-level support for the euro, which could lead to the implementation of currency controls, certain countries leaving the EU, or potentially a breakup of the Eurozone and dissolution of the euro. A breakup of the Eurozone, particularly a disorderly breakup, would pose special challenges for the financial markets and could lead to exchange controls and/or market closures. In the event of a Eurozone default or breakup, some of the most significant challenges faced by the funds with euro-denominated holdings and derivatives involving the euro would include diminished market liquidity, operational issues relating to the settlement of trades, difficulty in establishing the fair values of holdings, and the redenomination of holdings into other currencies.

Risk Factors Regarding Japan. The Japan 2x Strategy Fund seeks to provide investment results that correlate to the performance of the Nikkei 225 Stock Average. 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. Because the Nikkei 225 Stock Average is expected to represent the performance of the stocks on the First Section - and by extension the market in general - the mix of components is rebalanced from time to time to assure that all issues in the index are both highly liquid and representative of Japan’s industrial structure.

For three decades overall real economic growth in Japan had been spectacular: a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of over investment during the late 1980s and contractionary domestic policies intended to wring speculative excesses from the stock and real estate markets. From 2000 to 2003, government efforts to revive economic growth met with little success and were further hampered by the slowing of the US, European, and Asian economies. In 2004 and 2005, growth improved and the lingering fears of deflation in prices and economic activity lessened. At present, the Japanese economy continues to show signs of recovery from the long recession of the 1990s despite the fact that uncertainties about its recovery remain. Japan’s huge government debt, which totals more than 160% of GDP, and the aging of the population are two major long-run problems. A rise in taxes could be viewed as endangering the revival of growth.

Japanese unemployment levels are high and have been an area of increasing concern. Japan also has an aging workforce and has experienced a significant population decline in recent years. Japan’s labor market appears to be undergoing fundamental structural changes, as a labor market traditionally accustomed to lifetime employment adjusts to meet the need for increased labor mobility, which may adversely affect Japan’s economic competitiveness. Also of concern are Japan’s trade surpluses. As a trade-dependent nation long used to high levels of government protection, it is unclear how the Japanese economy will react to the potential adoption of the trade liberalization measures which are constantly promoted by their trading partners. Japan’s heavy dependence on international trade has been adversely affected by trade tariffs and other protectionist measures, as well as the economic condition of its trading partners. Japan’s high volume of exports, such as automobiles, machine tools and semiconductors, has caused trade tensions, particularly with the Unites States. The relaxing of official and de facto barriers to imports, or hardships created by any pressures brought by trading partners, could adversely affect Japan’s economy. Additionally, the strength of the yen itself may prove an impediment to strong continued exports and economic recovery, because it makes Japanese goods sold in other countries more expensive and reduces the value of foreign earnings repatriated to Japan. Since the Japanese economy is so dependent on exports, any fall off in exports may be seen as a sign of economic weakness, which may adversely affect the market.

The most pressing need for action is the daunting task of overhauling the nation’s financial institutions and securing public support for taxpayer-funded bailouts. Banks, in particular, must dispose of their huge overhang of bad loans and trim their balance sheets in preparation for greater competition from foreign institutions as more areas of the financial sector are opened. In addition, the Japanese securities markets are less regulated than the U.S. markets, and evidence has emerged from time to time of distortion of market prices to serve political or other purposes. Shareholders’ rights also are not always enforced. Successful financial sector reform would allow Japan’s financial institutions to act as a catalyst for economic recovery at home and across the troubled Asian region. Internal conflict over the proper way to reform the ailing banking system continues.

Because Japan’s economy and equity market share a strong correlation with the U.S. markets, the Japanese economy may be affected by economic problems in the U.S. Japan also has a growing economic relationship with China and other Southeast Asian countries, and thus Japan’s economy may also be affected by economic, political or social instability in those countries. Despite a strengthening in the economic relationship between Japan and China, the countries’ political relationship has at times been strained in recent years. Should political tension increase, it could adversely affect the economy and destabilize the region as a whole. Japan also remains heavily dependent on oil imports, and higher commodity prices could therefore have a negative impact on the economy. Japanese securities may also be subject to lack of liquidity; excessive taxation; government seizure of assets; different legal or accounting standards and less government supervision and regulation of exchanges than in the United States.

The natural disasters that have impacted Japan and the ongoing recovery efforts have had a negative effect on Japan’s economy, and may continue to do so. The risks of natural disasters occurring, and the resulting damage, continue to exist and could have a severe and negative impact on a fund’s holdings in Japanese securities. Japan also has one of the world’s highest population densities. A significant percentage of the total population of Japan is concentrated in the metropolitan areas of Tokyo, Osaka, and Nagoya. Therefore, a natural disaster centered in or very near one of these cities could have particularly devastating effect on Japan’s financial markets. Additionally, Japan has few natural resources. Any fluctuation or shortage in the commodity markets could have a negative impact on Japanese securities.

Japan’s relations with its neighbors, particularly China, North Korea, South Korea and Russia, have at times been strained due to territorial disputes, historical animosities and defense concerns. Most recently, the Japanese government has shown concern over the increased nuclear and military activity by North Korea and China. Strained relations may cause uncertainty in the Japanese markets and adversely affect the overall Japanese economy, particularly in times of crisis.

Risk Factors Regarding Emerging Markets. The Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund may invest in emerging markets. Investing in companies domiciled in emerging market countries may be subject to greater risks than investments in developed countries. These risks include: (i) less social, political, and economic stability; (ii) greater illiquidity and price volatility due to smaller or limited local capital markets for such securities, or low or non-existent trading volumes; (iii) foreign exchanges and broker-dealers may be subject to less scrutiny and regulation by local authorities; (iv) local governments may decide to seize or confiscate securities held by foreign investors and/or local governments may decide to suspend or limit an issuer’s ability to make dividend or interest payments; (v) local governments may limit or entirely restrict repatriation of invested capital, profits, and dividends; (vi) capital gains may be subject to local taxation, including on a retroactive basis; (vii) issuers facing restrictions on dollar or euro payments imposed by local governments may attempt to make dividend or interest payments to foreign investors in the local currency; (viii) investors may experience difficulty in enforcing legal claims related to the securities and/or local judges may favor the interests of the issuer over those of foreign investors; (ix) bankruptcy judgments may only be permitted to be paid in the local currency; (x) limited public information regarding the issuer may result in greater difficulty in determining market valuations of the securities, and (xi) lax financial reporting on a regular basis, substandard disclosure, and differences in accounting standards may make it difficult to ascertain the financial health of an issuer.

In addition, unlike developed countries, many emerging countries’ economic growth highly depends on exports and inflows of external capital, making them more vulnerable to the downturns of the world economy. The recent global economic crisis weakened the global demand for their exports and tightened international credit supplies and, as a result, many emerging countries are facing significant economic difficulties and some countries have fallen into recession and recovery may be gradual.

Many emerging market countries suffer from uncertainty and corruption in their legal and political systems. Legislation may be difficult to interpret and laws may be too new to provide any precedential value. Laws regarding foreign investment and private property may be weak or non-existent. Sudden changes in governments may result in policies which are less favorable to investors such as policies designed to expropriate or nationalize “sovereign” assets. Certain emerging market countries in the past have expropriated large amounts of private property, in many cases with little or no compensation, and there can be no assurance that such expropriation will not occur in the future. Similarly, a lack of social, political, and economic among emerging market countries can be common and may lead to social unrest, labor strikes, and civil wars. Economic instability in emerging market countries may take the form of: (i) high interest rates; (ii) high levels of inflation, including hyperinflation; (iii) high levels of unemployment or underemployment;

(iv) changes in government economic and tax policies, including confiscatory taxation; and (v) imposition of trade barriers.

A change in the leadership or politics of emerging market countries, or the countries that exercise a significant influence over those countries, may halt the expansion of or reverse the liberalization of foreign investment policies now occurring and adversely affect existing investment opportunities. Furthermore, high rates of inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.

Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers may be less liquid and more volatile than securities of comparable U.S. issuers. Foreign security trading, settlement and custodial practices (including those involving securities settlement where fund assets may be released prior to receipt of payment) are often less developed than those in U.S. markets, and may result in increased investment or valuation risk or substantial delays in the event of a failed trade or the insolvency of, or breach of duty by, a foreign broker-dealer, securities depository, or foreign subcustodian. In addition, the costs associated with foreign investments, including withholding taxes, brokerage commissions, and custodial costs, are generally higher than with U.S. investments.

Currencies of emerging market countries are subject to significantly greater risks than currencies of developed countries. Some emerging market currencies may not be internationally traded or may be subject to strict controls by local governments, resulting in undervalued or overvalued currencies. Some emerging market countries have experienced balance of payment deficits and shortages in foreign exchange reserves. Governments have responded by restricting currency conversions. Future restrictive exchange controls could prevent or restrict a company’s ability to make dividend or interest payments in the original currency of the obligation (usually U.S. dollars). In addition, even though the currencies of some emerging market countries may be convertible into U.S. dollars, the conversion rates may be artificial to their actual market values.

In the past, governments of many emerging market countries have become overly reliant on the international capital markets and other forms of foreign credit to finance large public spending programs which cause huge budget deficits. Often, interest payments have become too overwhelming for these governments to meet, representing a large percentage of total GDP. These foreign obligations have become the subject of political debate and served as fuel for political parties of the opposition, which pressure the governments not to make payments to foreign creditors, but instead to use these funds for social programs. Either due to an inability to pay or submission to political pressure, the governments have been forced to seek a restructuring of their loan and/or bond obligations, have declared a temporary suspension of interest payments, or have defaulted. These events have adversely affected the values of securities issued by the governments and corporations domiciled in these emerging market countries and have negatively affected not only their cost of borrowing, but their ability to borrow in the future as well.

In addition to their over-reliance on international capital markets, many emerging economies are also highly dependent on international trade and exports, including exports of oil and other commodities. As a result, these economies are particularly vulnerable to downturns of the world economy. The recent global economic crisis tightened international credit supplies and weakened global demand for their exports and, as a result, certain of these economies are now facing significant difficulties and some economies have fallen into recession.

Futures and Options Transactions; CFTC Regulations

Futures and Options on Futures. Each Fund (other than the U.S. Government Money Market Fund) may engage in futures transactions and options transactions. Futures contracts provide for the future sale by one party and purchase by another party of a specified amount of a specific security at a specified future time and at a specified price. An option on a futures contract gives the purchaser the right, in exchange for a premium, to assume a position in a futures contract at a specified exercise price during the term of the option. A Fund will reduce the risk that it will be unable to close out a futures contract by only entering into futures contracts that are traded on a national futures exchange regulated by the Commodities Futures Trading Commission (the “CFTC”). A Fund may use futures contracts and related options for bona fide hedging; attempting to offset changes in the value of securities held or expected to be acquired or be disposed of; attempting to gain exposure to a particular market, index, or instrument; or other risk management purposes. To the extent a Fund invests in futures, options on futures or other instruments subject to regulation by the CFTC, it will do so in reliance upon and in accordance with the Commodity Exchange Act (the "CEA") and applicable CFTC regulations.

Due to their investments in certain futures and other instruments deemed to be commodity interests and subject to the regulatory jurisdiction of the CFTC, the Nova Fund, Inverse S&P 500® Strategy Fund, Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, 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, and Emerging Markets Bond Strategy Fund are considered commodity pools and subject to regulation by the CFTC under the CEA and applicable CFTC regulations. The Advisor is subject to registration and regulation as a commodity pool operator ("CPO") under the CEA with respect to its service as investment adviser to such Funds. Regulations imposed by the CFTC applicable to the Funds may cause the Advisor and the Funds to incur additional compliance expenses or impede the Funds' ability to implement their investment programs as contemplated.

With respect to the S&P 500^® Fund, Russell 2000^® Fund, NASDAQ-100^® Fund, Dow Jones Industrial Average^® 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, each Sector Fund, the Real Estate Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund, the Trust has filed with the National Futures Association (the "NFA") a notice claiming an exclusion pursuant to CFTC Rule 4.5 from the definition of “commodity pool operator” under the CEA and the rules of the CFTC promulgated thereunder, with respect to such Funds' operation. Accordingly, the Funds are not subject to registration or regulation as commodity pools or commodity pool operators. However, changes to a Fund's investment strategies or investments may cause the Fund to lose the benefits of the exclusion and may trigger additional CFTC regulation. If a Fund becomes subject to CFTC regulation, the Fund may incur additional expenses. In addition, as of the date of this SAI, the Advisor is not deemed to be a “commodity pool operator” or “commodity trading adviser” with respect to the advisory services it provides to the Funds.

Each Fund may buy and sell index futures contracts with respect to any index that is traded on a recognized exchange or board of trade. An index futures contract is a bilateral agreement pursuant to which two parties agree to take or make delivery of an amount of cash equal to a specified dollar amount times the difference between the index value at the close of trading of the contract and the price at which the futures contract is originally struck. No physical delivery of the securities comprising the index is made. Instead, settlement in cash must occur upon the termination of the contract, with the settlement being the difference between the contract price and the actual level of the stock index at the expiration of the contract. Generally, contracts are closed out prior to the expiration date of the contract.

When a Fund purchases or sells a futures contract, or sells an option thereon, it is required to “cover” its position in order to limit the risk associated with the use of leverage and other related risks. To cover its position, a Fund may maintain with its custodian bank (and marked-to-market on a daily basis), a segregated account consisting of cash or liquid securities that, when added to any amounts deposited with a futures commission merchant as margin, are equal to the market value of the futures contract or otherwise “cover” its position in a manner consistent with the 1940 Act or the rules and SEC interpretations thereunder. If a Fund continues to engage in the described securities trading practices and properly segregates assets, the segregated account will function as a practical limit on the amount of leverage the Fund may undertake and on the potential increase in the speculative character of the Fund’s outstanding portfolio securities. Additionally, such segregated accounts will generally assure the availability of adequate funds to meet the obligations of the Fund arising from such investment activities.

Each Fund may also cover its long position in a futures contract by purchasing a put option on the same futures contract with a strike price (i.e., an exercise price) as high or higher than the price of the futures contract. In the alternative, if the strike price of the put is less than the price of the futures contract, the Fund will maintain, in a segregated account, cash or liquid securities equal in value to the difference between the strike price of the put and the price of the futures contract. Each Fund may also cover its long position in a futures contract by taking a short position in the instruments underlying the futures contract (or, in the case of an index futures contract, a portfolio with a volatility substantially similar to that of the index on which the futures contract is based), or by taking positions in instruments with prices which are expected to move relatively consistently with the futures contract. Each Fund may cover its short position in a futures contract by taking a long position in the instruments underlying the futures contract, or by taking positions in instruments with prices that are expected to move relatively consistently with the futures contract.

Each Fund may cover its sale of a call option on a futures contract by taking a long position in the underlying futures contract at a price less than or equal to the strike price of the call option. In the alternative, if the long position in the underlying futures contract is established at a price greater than the strike price of the written (sold) call, a Fund will maintain, in a segregated account, cash or liquid securities equal in value to the difference between the strike price of the call and the price of the futures contract. Each Fund may also cover its sale of a call option by taking positions in instruments with prices which are expected to move relatively consistently with the call option. Each Fund may cover its sale of a put option on a futures contract by taking a short position in the underlying futures contract at a price greater than or equal to the strike price of the put option, or, if the short position in the underlying futures contract is established at a price less than the strike price of the written put, a Fund will maintain, in a segregated account, cash or liquid securities equal in value to the difference between the strike price of the put and the price of the futures contract. Each Fund may also cover its sale of a put option by taking positions in instruments with prices that are expected to move relatively consistently with the put option.

There are significant risks associated with a Fund’s use of futures contracts and related options, including the following: (1) the success of a hedging strategy may depend on the Advisor’s ability to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect or no correlation between the changes in market value of the securities held by a Fund and the prices of futures and options on futures; (3) there may not be a liquid secondary market for a futures contract or option; (4) trading restrictions or limitations may be imposed by an exchange; and (5) government regulations may restrict trading in futures contracts and options on futures. In addition, some strategies reduce a Fund’s exposure to price fluctuations, while others tend to increase its market exposure.

Options. Each Fund, except for the U.S. Government Money Market Fund, may purchase and write (sell) put and call options on securities and on securities indices listed on national securities exchanges or traded in the OTC market as an investment vehicle for the purpose of realizing the Fund’s investment objective.

A put option on a security gives the purchaser of the option the right to sell, and the writer of the option the obligation to buy, the underlying security at any time during the option period. A call option on a security gives the purchaser of the option the right to buy, and the writer of the option the obligation to sell, the underlying security at any time during the option period. The premium paid to the writer is the consideration for undertaking the obligations under the option contract.

A Fund may purchase and write put and call options on foreign currencies (traded on U.S. and foreign exchanges or OTC markets) to manage its exposure to exchange rates. Call options on foreign currency written by a Fund will be “covered,” which means that a Fund will own an equal amount of the underlying foreign currency.

Put and call options on indices are similar to options on securities except that options on an index give the holder the right to receive, upon exercise of the option, an amount of cash if the closing level of the underlying index is greater than (or less than, in the case of puts) the exercise price of the option. This amount of cash is equal to the difference between the closing price of the index and the exercise price of the option, expressed in dollars multiplied by a specified number. Thus, unlike options on individual securities, all settlements are in cash, and gain or loss depends on price movements in the particular market represented by the index generally, rather than the price movements in individual securities.

All options written on indices or securities must be covered. The SEC staff has indicated that a written call option on a security may be covered if a Fund: (1) owns the security underlying the call until the option is exercised or expires; (2) holds an American-style call on the same security as the call written with an exercise price (a) no greater than the exercise price of the call written or (b) greater than the exercise price of the call written if the difference is maintained by the Fund in cash or other liquid assets designated on the Fund’s records or placed in a segregated account with the Fund’s custodian; (3) has an absolute and immediate right to acquire the security without additional cost (or if additional consideration is required, cash or other liquid assets in such amount have been segregated); or (4) segregates cash or other liquid assets on the Fund’s records or with the custodian in an amount equal to (when added to any margin on deposit) the current market value of the call option, but not less than the exercise price, marked to market daily. If the call option is exercised by the purchaser during the option period, the seller is required to deliver the underlying security against payment of the exercise price or pay the difference. The seller’s obligation terminates

upon expiration of the option period or when the seller executes a closing purchase transaction with respect to such option.

All put options written by a Fund will be covered by: (1) segregating cash, cash equivalents, such as U.S. Treasury securities or overnight repurchase agreements, or other liquid assets on the Fund’s records or with the custodian having a value at least equal to exercise price of the option (less cash received, if any); or (2) holding a put option on the same security as the option written where the exercise price of the written put option is (i) equal to or higher than the exercise price of the option written or (ii) less than the exercise price of the option written provided the Fund segregates cash or other liquid assets in the amount of the difference.

Each Fund may trade put and call options on securities, securities indices and currencies, as the Advisor determines is appropriate in seeking the Fund’s investment objective, and except as restricted by the Fund’s investment limitations.

The initial purchase (sale) of an option contract is an “opening transaction.” In order to close out an option position, a Fund may enter into a “closing transaction,” which is simply the purchase of an option contract on the same security with the same exercise price and expiration date as the option contract originally opened. If a Fund is unable to effect a closing purchase transaction with respect to an option it has written, it will not be able to sell the underlying security until the option expires or the Fund delivers the security upon exercise.

Each Fund may purchase put and call options on securities to protect against a decline in the market value of the securities in its portfolio or to anticipate an increase in the market value of securities that the Fund may seek to purchase in the future. A Fund purchasing put and call options pays a premium; therefore if price movements in the underlying securities are such that exercise of the options would not be profitable for the Fund, loss of the premium paid may be offset by an increase in the value of the Fund’s securities or by a decrease in the cost of acquisition of securities by the Fund.

Each Fund may write covered call options on securities as a means of increasing the yield on its assets and as a means of providing limited protection against decreases in its market value. When a Fund writes an option, if the underlying securities do not increase or decrease to a price level that would make the exercise of the option profitable to the holder thereof, the option generally will expire without being exercised and the Fund will realize as profit the premium received for such option. When a call option of which a Fund is the writer is exercised, the Fund will be required to sell the underlying securities to the option holder at the strike price, and will not participate in any increase in the price of such securities above the strike price. When a put option of which the Fund is the writer is exercised, the Fund will be required to purchase the underlying securities at a price in excess of the market value of such securities.

Each Fund may purchase and write options on an exchange or OTC market. OTC options differ from exchange-traded options in several important respects. OTC options are transacted directly with dealers and not with a clearing corporation, and therefore entail the risk of non-performance by the dealer. OTC options are available for a greater variety of securities and for a wider range of expiration dates and exercise prices than are available for exchange-traded options. Because OTC options are not traded on an exchange, pricing is determined normally by reference to information from a market maker. It is the SEC’s position that OTC options are generally illiquid.

The market value of an option generally reflects the market price of an underlying security. Other principal factors affecting market value include supply and demand, interest rates, the pricing volatility of the underlying security and the time remaining until the expiration date.

Risks associated with options transactions include: (1) the success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets and movements in interest rates; (2) there may be an imperfect correlation between the movement in prices of options and the securities underlying them; (3) there may not be a liquid secondary market for options; and (4) while a Fund will receive a premium when it writes covered call options, it may not participate fully in a rise in the market value of the underlying security.

Hybrid Instruments

The Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Dow Jones Industrial Average^® Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund and Event Driven and Distressed Strategies Fund may invest in hybrid instruments. A hybrid instrument is a type of potentially high-risk derivative that 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 instrument is tied (positively or negatively) to the price of some commodity, currency or securities index or another interest rate or some other economic factor (an “underlying benchmark”). The interest rate or (unlike most fixed income securities) the principal amount payable at maturity of a hybrid security may be increased or decreased, depending on changes in the value of the underlying benchmark. An example of a hybrid instrument could be a bond issued by an oil company that pays a small base level of interest with additional interest that accrues in correlation to the extent to which oil prices exceed a certain predetermined level. Such a hybrid instrument would be a combination of a bond and a call option on oil.

Hybrid instruments can be used as an efficient means of pursuing a variety of investment goals, including currency hedging, and increased total return. Hybrid instruments may not bear interest or pay dividends. The value of a hybrid instrument or its interest rate may be a multiple of the underlying benchmark and, as a result, may be leveraged and move (up or down) more steeply and rapidly than the underlying benchmark. These underlying benchmarks may be sensitive to economic and political events, such as commodity shortages and currency devaluations, which cannot be readily foreseen by the purchaser of a hybrid instrument. Under certain conditions, the redemption value of a hybrid instrument could be zero. Thus, an investment in a hybrid instrument may entail significant market risks that are not associated with a similar investment in a traditional, U.S. dollar-denominated bond that has a fixed principal amount and pays a fixed rate or floating rate of interest. The purchase of a hybrid instrument also exposes a Fund to the credit risk of the issuer of the hybrid instrument. These risks may cause significant fluctuations in the NAV of the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Dow Jones Industrial Average^® Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund and Event Driven and Distressed Strategies Fund.

Certain issuers of structured products, such as hybrid instruments, may be deemed to be investment companies as defined in the 1940 Act. As a result, the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund's, Dow Jones Industrial Average^® Fund's, High Yield Strategy Fund's, Inverse High Yield Strategy Fund's, Emerging Markets Bond Strategy Fund's and Event Driven and Distressed Strategies Fund's investments in these products may be subject to limits applicable to investments in investment companies and to restrictions contained in the 1940 Act.

Structured Notes. Each Fund may invest in structured notes, which are debt obligations that also contain an embedded derivative component with characteristics that adjust the obligation’s risk/return profile. Generally, the performance of a structured note will track that of the underlying debt obligation and the derivative embedded within it. In particular, the High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund, and Event Driven and Distressed Strategies Fund will invest in structured notes that are collateralized by one or more credit default swaps on corporate credits. The Funds have the right to receive periodic interest payments from the issuer of the structured notes at an agreed-upon interest rate and a return of the principal at the maturity date.

Structured notes are typically privately negotiated transactions between two or more parties. Each Fund bears the risk that the issuer of the structured note will default or become bankrupt which may result in the loss of principal investment and periodic interest payments expected to be received for the duration of its investment in the structured notes.

In the case of structured notes on credit default swaps, each Fund is also subject to the credit risk of the corporate credit instruments underlying the credit default swaps. If one of the underlying corporate credit instruments defaults, the Fund may receive the security or credit instrument that has defaulted, or alternatively a cash settlement may occur, and the Fund’s principal investment in the structured note would be reduced by the corresponding face value of the defaulted security.

The market for structured notes may be, or suddenly can become, illiquid. The other parties to the transaction may be the only investors with sufficient understanding of the derivative to be interested in bidding for it. Changes in liquidity may result in significant, rapid, and unpredictable changes in the prices for structured notes. In certain cases, a market price for a credit-linked security may not be available. The collateral for a structured note may be one or more credit default swaps, which are subject to additional risks. See “Swap Agreements” for a description of additional risks associated with credit default swaps.

Investments in Other Investment Companies

Each Fund may invest in the securities of other investment companies, including affiliated investment companies, to the extent that such an investment would be consistent with the requirements of Section 12(d)(1) of the 1940 Act, or any rule, regulation or order of the SEC or interpretation thereof. Generally, a Fund may invest in the securities of another investment company (the “acquired company”) provided that the Fund, immediately after such purchase or acquisition, does not own in the aggregate: (i) more than 3% of the total outstanding voting stock of the acquired company; (ii) securities issued by the acquired company having an aggregate value in excess of 5% of the value of the total assets of the Fund; or (iii) securities issued by the acquired company and all other investment companies (other than Treasury stock of the Fund) having an aggregate value in excess of 10% of the value of the total assets of the Fund. A Fund may also invest in the securities of other investment companies if the Fund is part of a “master-feeder” structure or operates as a fund of funds in compliance with Section 12(d)(1)(E), (F) and (G) and the rules thereunder. In addition, Section 12(d)(1) prohibits another investment company from selling its shares to a Fund if, after the sale: (i) the Fund owns more than 3% of the other investment company’s voting stock or (ii) the Fund and other investment companies, and companies controlled by them, own more than 10% of the voting stock of such other investment company. The Trust has entered into agreements with several unaffiliated exchange-traded funds ("ETFs") that permit, pursuant to an SEC order granted to such ETFs, certain Funds, as determined by the Advisor, to purchase shares of those ETFs beyond the Section 12(d)(1) limits described above. A Fund will only make such investments in conformity with the requirements of Subchapter M of the Internal Revenue Code. Similarly, the SEC has issued an exemptive order to the Trust that permits registered investment companies to invest in the Funds beyond the Section 12(d)(1) limits set forth above subject to conditions set forth in the exemptive order, such as entering into an agreement with the Trust. The Funds may rely on this order to allow for such investment only to the extent that the Funds are not, in turn, investing beyond the Section 12(d)(1) limits in another affiliated or unaffiliated investment company in reliance on an exemptive order or Sections 12(d)(1)(G) or 12(d)(1)(F). The Event Driven and Distressed Strategies Fund and Long Short Equity Fund, however, are not currently eligible for such 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 the Event Driven and Distressed Strategies Fund and Long Short Equity Fund must adhere to the limits set forth in Section 12(d)(1) of the 1940 Act when investing in these Funds.

If a Fund invests in, and thus, is a shareholder of, another investment company, the Fund’s shareholders will indirectly bear the Fund’s proportionate share of the fees and expenses paid by such other investment company, including advisory fees, in addition to both the management fees payable directly by the Fund to the Fund’s own investment adviser and the other expenses that the Fund bears directly in connection with the Fund’s own operations.

Consistent with the restrictions discussed above, each Fund may invest in several different types of investment companies from time to time, including mutual funds, ETFs, closed-end funds, and business development companies (“BDCs”), when the Advisor believes such an investment is in the best interests of the Fund and its shareholders. For example, the Fund may elect to invest in another investment company when such an investment presents a more efficient investment option than buying securities individually. A Fund also may invest in investment companies that are included as components of an index, such as BDCs, to seek to track the performance of that index. A BDC is a less common type of closed-end investment company that more closely resembles an operating company than a typical investment company. Similar to an operating company, a BDC’s total annual operating expense ratio typically reflects all of the operating expenses incurred by the BDC, and is generally greater than the total annual operating expense ratio of a mutual fund that does not bear the same types of operating expenses. However, as a shareholder of a BDC, a Fund does not directly pay for a portion of all of the operating expenses of the BDC, just as a shareholder of a computer manufacturer does not directly pay for the cost of labor associated with producing such computers. As a result, the fees and expenses of a Fund that invests in a BDC will be effectively overstated by an amount equal to the “Acquired Fund Fees and Expenses.” Acquired Fund Fees and Expenses are not included as an operating expense of a Fund in the Fund’s financial statements, which more accurately reflect the Fund’s actual operating expenses.

Investment companies may include index-based investments, such as ETFs that hold substantially all of the component securities of a specific index. The main risk of investing in index-based investments is the same as investing in a portfolio of equity securities comprising the index. The market prices of index-based investments will fluctuate in accordance with both changes in the market value of their underlying portfolio securities and due to supply and demand for the instruments on the exchanges on which they are traded (which may result in their trading at a discount or premium to their NAVs). Index-based investments may not replicate exactly the performance of their specific index because of transaction costs and because of the temporary unavailability of certain component securities of the index.

Each Fund also may invest in ETFs that are actively managed to the extent such investments are consistent with its investment objective and policies.

Certain ETFs may produce income that is not qualifying income for purposes of the “90% Test” (as defined under “Dividends, Distributions and Taxes”), which must be met in order for a Fund to maintain its status as a regulated investment company ("RIC") under the Internal Revenue Code. If one or more ETFs generates more non-qualifying income for purposes of the 90% Test than the Fund’s portfolio management expects, it could cause the Fund to inadvertently fail the 90% Test. Similarly, a Fund receiving non-qualifying income from an ETF might fail the 90% Test if it is unable to generate qualifying income in a particular taxable year at sufficient levels, or if it is unable to determine the percentage of qualifying income it derives for a taxable year until after year-end. A failure to meet the 90% Test could cause the Fund to fail to qualify as a RIC under the Internal Revenue Code. Under certain circumstances, a Fund may be able to cure a failure to meet the 90% Test, but in order to do so the Fund may incur significant Fund-level taxes, which would effectively reduce (and could eliminate) the Fund’s returns.

Pooled Investment Vehicles

The Emerging Markets Bond Strategy Fund and the Event Driven and Distressed Strategies Fund may invest in the securities of pooled vehicles that are not investment companies and, thus, not required to comply with the provisions of the 1940 Act. As a shareholder of such vehicles, a Fund will not have all of the investors protections afforded by the 1940 Act. Such pooled vehicles may be required to comply with the provisions of other federal securities laws, such as the Securities Act of 1933. These pooled vehicles typically hold commodities, such as gold or oil, currency, or other property that is itself not a security. If a Fund invests in, and thus, is a shareholder of, a pooled vehicle, the Fund’s shareholders will indirectly bear the Fund’s proportionate share of the fees and expenses paid by the pooled vehicle, including any applicable advisory fees, in addition to both the management fees payable directly by the Fund to the Advisor and the other expenses that the Fund bears directly in connection with its own operations. In addition, a Fund's investment in pooled investment vehicles may be considered illiquid and subject to the Fund's restrictions on illiquid investments.

Portfolio Turnover

As discussed in the Funds’ Prospectuses, the Trust anticipates that investors in the Funds, other than the Emerging Markets Bond Strategy Fund and Alternative Funds, will frequently purchase and/or redeem shares of the Funds as part of an asset allocation investment strategy. The nature of the Funds as asset allocation tools will cause the Funds to experience substantial portfolio turnover. See “Purchasing and Redeeming Shares” and “Financial Highlights” in the Funds’ Prospectuses. Because each Fund’s portfolio turnover rate to a great extent will depend on the purchase, redemption, and exchange activity of the Fund’s investors, it is very difficult to estimate what the Fund’s actual turnover rate will be in the future. However, the Trust expects that the portfolio turnover experienced by the Funds, except for the Alternative Funds, will be substantial.

In general, the Advisor manages the Emerging Markets Bond Strategy Fund and Alternative Funds without regard to restrictions on portfolio turnover. The Funds’ investment strategies may, however, produce relatively high portfolio turnover rates from time to time. The use of certain derivative instruments with relatively short maturities are excluded from the calculation of portfolio turnover. Nevertheless, the use of futures contracts will ordinarily involve the payment of commissions to futures commission merchants. To the extent that the Emerging Markets Bond Strategy Fund and Alternative Funds use derivatives, they will generally be short-term derivative instruments. As a result, the Funds’ reported portfolio turnover may be low despite relatively high portfolio activity which would, in turn, involve correspondingly greater expenses to the Funds, including brokerage commissions or dealer markups and other transaction costs on the sale of securities and reinvestments in other securities. Generally, the higher the rate of portfolio turnover of the Emerging Markets Bond Strategy Fund and Alternative Funds, the higher these transaction costs borne by the Funds and their long-term shareholders generally will be. Such sales may result in the realization of taxable capital gains (including short-term capital gains which are generally taxed to shareholders at ordinary income tax rates) for certain taxable shareholders. For additional information about portfolio turnover rate, please see “More Information About Portfolio Turnover” in this SAI.

Real Estate Investment Trusts (“REITs”)

The Real Estate Fund will invest a majority of its assets in REITs. A REIT is a corporation or business trust (that would otherwise be taxed as a corporation) which meets certain definitional requirements under the Internal Revenue Code. The Internal Revenue Code permits a qualifying REIT to deduct from taxable income the dividends paid, thereby effectively eliminating corporate level federal income tax and making the REIT a pass-through vehicle for federal

income tax purposes. To meet the definitional requirements of the Internal Revenue Code, a REIT must, among other things: invest substantially all of its assets in interests in real estate (including mortgages and other REITs), cash and government securities; derive most of its income from rents from real property or interest on loans secured by mortgages on real property; and distribute annually 90% or more of its otherwise taxable income to shareholders.

REITs are sometimes informally characterized as Equity REITs and Mortgage REITs. An Equity REIT invests primarily in the fee ownership or leasehold ownership of land and buildings; a Mortgage REIT invests primarily in mortgages on real property, which may secure construction, development or long-term loans.

REITs in which the Fund invests may be affected by changes in underlying real estate values, which may have an exaggerated effect to the extent that REITs in which the Fund invests may concentrate investments in particular geographic regions or property types. Additionally, rising interest rates may cause investors in REITs to demand a higher annual yield from future distributions, which may in turn decrease market prices for equity securities issued by REITs. Rising interest rates also generally increase the costs of obtaining financing, which could cause the value of the Fund’s investments to decline. During periods of declining interest rates, certain Mortgage REITs may hold mortgages that the mortgagors elect to prepay, which prepayment may diminish the yield on securities issued by such Mortgage REITs. In addition, Mortgage REITs may be affected by the ability of borrowers to repay when due the debt extended by the REIT and Equity REITs may be affected by the ability of tenants to pay rent.

Certain REITs have relatively small market capitalization, which may tend to increase the volatility of the market price of securities issued by such REITs. Furthermore, REITs are dependent upon specialized management skills, have limited diversification and are, therefore, subject to risks inherent in operating and financing a limited number of projects. By investing in REITs indirectly through the Fund, a shareholder will bear not only his proportionate share of the expenses of the Fund, but also, indirectly, similar expenses of the REITs. REITs depend generally on their ability to generate cash flow to make distributions to shareholders.

In addition to these risks, Equity REITs may be affected by changes in the value of the underlying property owned by the trusts, while Mortgage REITs may be affected by the quality of any credit extended. Further, Equity and Mortgage REITs are dependent upon management skills and generally may not be diversified. Equity and Mortgage REITs are also subject to heavy cash flow dependency defaults by borrowers and self-liquidation. In addition, Equity and Mortgage REITs could possibly fail to qualify for the favorable U.S. federal income tax treatment generally available to REITs under the Internal Revenue Code or to maintain their exemptions from registration under the 1940 Act. The above factors may also adversely affect a borrower’s or a lessee’s ability to meet its obligations to the REIT. In the event of default by a borrower or lessee, the REIT may experience delays in enforcing its rights as a mortgagee or lessor and may incur substantial costs associated with protecting its investments.

Real Estate Securities

The Real Estate Fund may be subject to the risks associated with the direct ownership of real estate because of its investment in the securities of companies principally engaged in the real estate industry. For example, real estate values may fluctuate as a result of general and local economic conditions, overbuilding and increased competition, increases in property taxes and operating expenses, demographic trends and variations in rental income, changes in zoning laws, casualty or condemnation losses, regulatory limitations on rents, changes in neighborhood values, related party risks, changes in how appealing properties are to tenants, changes in interest rates and other real estate capital market influences. The value of securities of companies which service the real estate business sector may also be affected by such risks.

Repurchase Agreements

Each Fund may enter into repurchase agreements with financial institutions. Repurchase agreements are transactions in which the purchaser buys a debt security from a financial institution and simultaneously commits to resell that security to the financial institution at an agreed upon price, date and market rate of interest unrelated to the coupon rate or maturity of the purchased security. The Funds have adopted certain procedures designed to minimize the risks inherent in such agreements. These procedures include effecting repurchase transactions only with large, well-capitalized and well-established financial institutions whose financial condition is continually monitored by the Advisor. In addition, the value of the collateral underlying the repurchase agreement will be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, a Fund will seek to liquidate such collateral. However, exercising the Fund’s right to liquidate such collateral could involve certain costs or delays and, to the extent that proceeds from

any sale upon a default of the obligation to repurchase were less than the repurchase price, the Fund could suffer a loss. While there is no limit on the percentage of Fund assets that may be used in connection with repurchase agreements, it is the current policy of each Fund to not invest in repurchase agreements that do not mature within seven days if any such investment, together with any other illiquid assets held by the Fund, amounts to more than 15% (5% with respect to the U.S. Government Money Market Fund) of the Fund’s net assets. Repurchase agreements with maturities in excess of seven days but which are subject to an agreement obligating the counterparty to the repurchase agreement to repurchase the collateral within seven days are not subject to this policy. A Fund’s investments in repurchase agreements, at times, may be substantial when, in the view of the Advisor, liquidity or other considerations so warrant.

Reverse Repurchase Agreements

The Domestic Equity Funds, Japan 2x Strategy Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund, Alternative Funds, and Specialty Funds (except the Real Estate Fund), may each enter into reverse repurchase agreements as part of the Fund’s investment strategy. Reverse repurchase agreements involve sales by a Fund of portfolio assets concurrently with an agreement by the Fund to repurchase the same assets at a later date at a fixed price. Generally, the effect of such a transaction is that the Fund can recover all or most of the cash invested in the portfolio securities involved during the term of the reverse repurchase agreement, while the Fund will be able to keep the interest income associated with those portfolio securities. Such transactions are advantageous only if the interest cost to the Fund of the reverse repurchase transaction is less than the cost of obtaining the cash otherwise. Opportunities to achieve this advantage may not always be available, and each Fund intends to use the reverse repurchase technique only when it will be advantageous to the Fund. Reverse repurchase agreements involve the risk that the market value of the securities retained in lieu of sale by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the Fund’s obligation to repurchase the securities, and the Fund’s use of the proceeds of the reverse repurchase agreement may effectively be restricted pending such decision.

Each Fund will establish a segregated account with the Trust’s custodian bank in which it will maintain cash or cash equivalents or other portfolio securities equal in value to the Fund’s obligations in respect of reverse repurchase agreements. Although there is no limit on the percentage of fund assets that can be used in connection with reverse repurchase agreements, each Fund does not expect to engage, under normal circumstances, in reverse repurchase agreements with respect to more than 33 1/3% of its total assets.

Short Sales

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, Inverse Government Long Bond Strategy Fund, and Inverse High Yield Strategy Fund will regularly engage in short sales transactions in which a Fund sells a security it does not own. The remaining Domestic Equity Funds, Sector Funds, International Equity Funds, Specialty Funds, High Yield Strategy Fund, Emerging Markets Bond Strategy Fund and Alternative Funds may also engage in short sales transactions in which a Fund sells a security it does not own. To complete such a transaction, a Fund must borrow or otherwise obtain the security to make delivery to the buyer. The Fund then is 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 more or less than the price at which the security was sold by the Fund. Until the security is replaced, the Fund is required to pay to the lender amounts equal to any dividends or interest, which accrue during the period of the loan. To borrow the security, the Fund also may be required to pay a premium, which would increase the cost of the security sold. The Fund may also use repurchase agreements to satisfy delivery obligations in short sale transactions. The proceeds of the short sale will be retained by the broker, to the extent necessary to meet the margin requirements, until the short position is closed out.

If the price of the security sold short increases between the time of the short sale and the time that the Fund replaces the borrowed security, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a capital gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. The successful use of short selling may be adversely affected by imperfect correlation between movements in the price of the security sold short and the securities being hedged.

Until a Fund closes its short position or replaces the borrowed security, the Fund will: (a) maintain a segregated account containing cash or liquid securities at such a level that (i) the amount deposited in the account plus the amount deposited with the broker as collateral will equal the current value of the security sold short and (ii) the amount deposited in the segregated account plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time the security was sold short; or (b) otherwise cover the Fund’s short position. Each Fund may use up to 100% of its portfolio to engage in short sales transactions and collateralize its open short positions.

Swap Agreements

Each Fund (except the U.S. Government Money Market Fund) may enter into swap agreements, including, but not limited to, total return swaps, index swaps, interest rate swaps, and credit default swaps. A Fund may utilize swap agreements in an attempt to gain exposure to the securities in a market without actually purchasing those securities, or to hedge a position. Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a day to more than one-year. 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 gross returns to be exchanged or “swapped” between the parties are calculated with respect to a “notional amount,” i.e., the return on or increase in value of a particular dollar amount invested in a “basket” of securities representing a particular index.

Forms of swap agreements include (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”; (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified level, or “floor”; and (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels.

Another form of swap agreement is a credit default swap. The Inverse High Yield Strategy Fund will primarily employ credit default swaps in order to obtain inverse exposure to the high yield bond market. A credit default swap enables a Fund to buy or sell protection against a defined credit event of an issuer or a basket of securities. Generally, the seller of credit protection against an issuer or basket of securities receives a periodic payment to compensate against potential default events. If a default event occurs, the seller must pay the buyer the full notional value of the reference obligation in exchange for the reference obligation. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the Fund selling the credit protection.

In contrast, the buyer of credit protection would have the right to deliver a referenced debt obligation and receive the par (or other agreed-upon) value of such debt obligation from the counterparty in the event of a default or other credit event (such as a credit downgrade) by the reference issuer, such as a U.S. or foreign corporation, with respect to its debt obligations. In return, the buyer of the credit protection would pay the counterparty a periodic stream of payments over the term of the contract provided that no event of default has occurred. If no default occurs, the counterparty would keep the stream of payments and would have no further obligations to the Fund purchasing the credit protection. The Inverse High Yield Strategy Fund expects to buy credit protection with multiple reference issuers, in which case, payments and settlements in respect of any defaulting reference issuer would typically be dealt with separately from the other reference issuers.

The High Yield Strategy Fund, Inverse High Yield Strategy Fund and Emerging Markets Bond Strategy Fund may enhance income by selling credit protection or attempt to mitigate credit risk by buying protection. The High Yield Strategy Fund and Emerging Markets Bond Strategy Fund are usually a net seller of credit protection and the Inverse High Yield Strategy Fund is usually a net buyer of credit protection, but each Fund may buy or sell credit protection. Credit default swaps could result in losses if the creditworthiness of an issuer or a basket of securities is not accurately evaluated.

Most swap agreements (but generally not credit default swaps) a Fund may enter into calculate the obligations of the parties to the agreement on a “net basis.” Consequently, a Fund’s obligations (or rights) under a swap agreement would 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”). Other swap agreements, such as credit default swaps, may require initial premium (discount) payments as well as periodic payments (receipts) related to the interest leg of the swap or to the default of a reference obligation.

A Fund’s 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 segregating assets determined to be liquid. Obligations under swap agreements so covered will not be construed to be “senior securities” for purposes of a Fund’s investment restriction concerning senior securities. Because they are two party contracts and because they may have terms of greater than seven days, swap agreements may be considered to be illiquid for a Fund’s illiquid investment limitations. A Fund would not enter into any swap agreement unless the Advisor believes that the other party to the transaction is creditworthy. In addition, the secondary market for swap agreements may be less liquid, making them difficult to sell when a Fund determines to do so. The possible lack of a liquid secondary market for a swap agreement and the resulting inability of a Fund to sell a swap agreement could expose the Fund to losses and could make the swap agreement more difficult for the Fund to value accurately. Each Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which the High Yield Strategy Fund or Inverse High Yield Strategy Fund is selling credit protection, the default of a third party issuer. Each Fund may enter into swap agreements that involve a limited number of counterparties, which may increase the Fund’s exposure to counterparty credit risk. Like any contract, swap agreements are subject to certain early termination events, including: failure to make payments when they become due; insolvency of either party to the swap agreement; the occurrence of an event that makes part of the swap agreement unable to be performed due to causes that are outside the control of the parties, such as natural disasters; or where a change in law renders the swap agreement ineffective or illegal.

Each Fund may enter into swap agreements to invest in a market without owning or taking physical custody of the underlying securities in circumstances in which direct investment is restricted for legal reasons or is otherwise impracticable. The counterparty to any swap agreement will typically be a bank, investment banking firm or broker/dealer. The counterparty will generally agree to pay a Fund the amount, if any, by which the notional amount of the swap agreement would have increased in value had it been invested in the particular stocks, plus the dividends that would have been received on those stocks. The Fund will agree to pay to the counterparty a floating rate of interest on the notional amount of the swap agreement plus the amount, if any, by which the notional amount would have decreased in value had it been invested in such stocks. Therefore, the return to a Fund on any swap agreement should be the gain or loss on the notional amount plus dividends on the stocks less the interest paid by the Fund on the notional amount.

Swap agreements typically are settled on a net basis (but generally not credit default swaps), which means that the two payment streams are netted out, with a Fund receiving or paying, as the case may be, only the net amount of the two payments. Payments may be made at the conclusion of a swap agreement or periodically during its term. Other swap agreements, such as credit default swaps, may require initial premium (discount) payments as well as periodic payments (receipts) related to the interest leg of the swap agreement or to the default of a reference obligation. A Fund will earmark and reserve assets necessary to meet any accrued payment obligations when it is the buyer of credit protection. In cases where a Fund is the seller of credit protection, if the credit default swap provides for physical settlement, the Fund generally would earmark and reserve the full notional amount of the credit default swap.

Swap agreements may be either fully funded or unfunded. Unfunded swap agreements do not involve the delivery of securities or other underlying assets. Accordingly, the risk of loss with respect to such swap agreements is limited to the net amount of payments that a Fund is contractually obligated to make. If a swap counterparty defaults, a Fund’s risk of loss consists of the net amount of payments that such Fund is contractually entitled to receive, if any. The net amount of the excess, if any, of a Fund’s obligations over its entitlements with respect to each equity swap agreement will be accrued on a daily basis and an amount of cash or liquid assets, having an aggregate NAV at least equal to such accrued excess will be maintained in a segregated account by a custodian.

The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid in comparison with the markets for other similar instruments, which are traded in the OTC market. The Advisor, under the supervision of the Trust's Board of Trustees (the "Board"), is responsible for determining and monitoring the liquidity of Fund transactions in swap agreements.

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 Funds ability to enter into swap agreements.

A fully funded total return swap agreement requires a Fund to make an upfront lump sum payment to the counterparty in return for the counterparty paying the investment return on an underlying “basket” or portfolio of assets. In return, the counterparty makes payments to the Fund that reflect the returns (if any) on the assets referenced by the swap agreement. The counterparty to a fully funded swap agreement generally will physically invest in the basket or portfolio of assets referenced by the swap agreement in order to manage the risk that it becomes unable to meet its payment obligations under the swap agreement.

The use of swap agreements, including credit default swaps, is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If a counterparty’s creditworthiness declines, the value of the swap would likely decline. Moreover, there is no guarantee that a Fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

Time Deposits and Eurodollar Time Deposits

The U.S. Government Money Market Fund and the Emerging Markets Bond Strategy Fund may invest in Time Deposits, and specifically Eurodollar Time Deposits. Time Deposits are non-negotiable deposits, such as savings accounts or certificates of deposit, held by a financial institution for a fixed term with the understanding that the depositor can withdraw its money only by giving notice to the institution. However, there may be early withdrawal penalties depending upon market conditions and the remaining maturity of the obligation. Eurodollars are deposits denominated in dollars at banks outside of the United States and Canada and thus, are not under the jurisdiction of the Federal Reserve. Because Eurodollar Time Deposits are held by financial institutions outside of the United States and Canada, they may be subject to less regulation and therefore, may pose more risk to the Fund than investments in their U.S. or Canadian counterparts.

Tracking Error

The following factors may affect the ability of the Domestic Equity Funds, International Equity Funds, Government Long Bond 1.2x Strategy Fund, Inverse Government Long Bond Strategy Fund, Strengthening Dollar 2x Strategy Fund, and Weakening Dollar 2x Strategy Fund to achieve correlation with the performance of their respective benchmarks: (1) Fund expenses, including brokerage (which may be increased by high portfolio turnover); (2) fluctuations in currency exchange rates; (3) a Fund holding less than all of the securities in the underlying index and/or securities not included in the underlying index being held by a Fund; (4) an imperfect correlation between the performance of instruments held by a Fund, such as futures contracts and options, and the performance of the underlying securities in the market; (5) bid-ask spreads (the effect of which may be increased by portfolio turnover); (6) a Fund holding instruments traded in a market that has become illiquid or disrupted; (7) Fund share prices being rounded to the nearest cent; (8) changes to the index underlying a benchmark that are not disseminated in advance; (9) the need to conform a Fund’s portfolio holdings to comply with investment restrictions or policies or regulatory or tax law requirements; (10) the time difference between the close of the Europe 1.25x Strategy Fund’s and Japan 2x Strategy Fund’s respective underlying indices and the time the Europe 1.25x Strategy Fund and Japan 2x Strategy Fund price their shares at the close of the New York Stock Exchange (“NYSE”); or (11) market movements that run counter to a leveraged Fund’s investments. Market movements that run counter to a leveraged Fund’s investments will cause some divergence between the Fund and its benchmark over time due to the mathematical effects of leveraging. The magnitude of the divergence is dependent upon the magnitude of the market movement, its duration, and the degree to which the Fund is leveraged. The tracking error of a leveraged Fund is generally small during a well-defined uptrend or downtrend in the market when measured from price peak to price peak, absent a market decline and subsequent recovery, however, the deviation of the Fund from its benchmark may be significant. As a result of fair value pricing, the day-to-day correlation of the Europe 1.25x Strategy and Japan 2x Strategy Funds’ performance may tend to vary from the closing performance of the Europe 1.25x Strategy and Japan 2x Strategy Funds’ respective underlying indices. However, all of the Domestic Equity Funds’, International Equity Funds’, Government Long Bond 1.2x Strategy Fund’s, Inverse Government Long Bond Strategy Fund’s, Strengthening Dollar 2x Strategy Fund’s, and Weakening Dollar 2x Strategy Fund’s performance attempts to correlate highly with the movement in their respective underlying indices over time.

U.S. Government Securities

The Government Long Bond 1.2x Strategy Fund invests primarily in U.S. government securities, and each of the other Funds may invest in U.S. government securities. The Inverse Government Long Bond Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Strengthening Dollar 2x Strategy Fund, Weakening Dollar 2x Strategy Fund, and Event Driven and Distressed Strategies Fund may enter into short transactions in U.S. government securities. Securities issued or guaranteed by the U.S. government or its agencies or instrumentalities include U.S. Treasury securities, which are backed by the full faith and credit of the U.S. Treasury and which differ only in their interest rates, maturities, and times of issuance. U.S. Treasury bills have initial maturities of one-year or less; U.S. Treasury notes have initial maturities of one to ten years; and U.S. Treasury bonds generally have initial maturities of greater than ten years. Certain U.S. government securities are issued or guaranteed by agencies or instrumentalities of the U.S. government including, but not limited to, obligations of U.S. government agencies or instrumentalities such as Fannie Mae, Freddie Mac, the Government National Mortgage Association (“Ginnie Mae”), the Small Business Administration, the Federal Farm Credit Administration, the Federal Home Loan Banks, Banks for Cooperatives (including the Central Bank for Cooperatives), the Federal Land Banks, the Federal Intermediate Credit Banks, the Tennessee Valley Authority, the Export-Import Bank of the United States, the Commodity Credit Corporation, the Federal Financing Bank, the Student Loan Marketing Association, the National Credit Union Administration and the Federal Agricultural Mortgage Corporation.

Some obligations issued or guaranteed by U.S. government agencies and instrumentalities, including, for example, Ginnie Mae pass-through certificates, are supported by the full faith and credit of the U.S. Treasury. Other obligations issued by or guaranteed by federal agencies, such as those securities issued by Fannie Mae, are supported by the discretionary authority of the U.S. government to purchase certain obligations of the federal agency, while still other obligations issued by or guaranteed by federal agencies, such as those of the Federal Home Loan Banks, are supported by the right of the issuer to borrow from the U.S. Treasury. While the U.S. government provides financial support to such U.S. government-sponsored federal agencies, no assurance can be given that the U.S. government will always do so, since the U.S. government is not so obligated by law. As such, it is possible that issuers of U.S. government securities will not have the funds to meet their payment obligations in the future. U.S. Treasury notes and bonds typically pay coupon interest semi-annually and repay the principal at maturity. There is therefore a risk that U.S. Government securities may be adversely affected by changes in interest rates or a decline in the credit quality of the U.S. Government.

Although the U.S. government has recently provided financial support to Fannie Mae and Freddie Mac, which are currently being operated under the conservatorship of the Federal Housing Finance Agency, there can be no assurance that it will support these in other government-sponsored enterprises in the future.

Securities backed by the full faith and credit of the United States are generally considered to be among the most, if not the most, creditworthy investments available. While the U.S. government has honored its credit obligations continuously for the last 200 years, political events have, at times, called into question whether the United States would default on its obligations. Such an event would be unprecedented and there is no way to predict its impact on the securities markets or the funds. However, it is very likely that default by the United States would result in losses to the funds.

Non-Principal Investment Policies, Techniques and Risk Factors — The investment policies, techniques and risk factors described below are not considered to be principal to the management of the Funds. However, the Funds are permitted to, and may from time to time, engage in the investment activities described below if and when the Advisor determines that such activities will help the Funds to achieve their respective investment objectives. Shareholders will be notified if a Fund’s use of any of the non-principal investment policies, techniques or instruments described below represents a material change in the Fund’s principal investment strategies.

Cyber Security Risk

Investment companies, such as the Funds, and their service providers may be vulnerable to operational and information security risks resulting from cyber-attacks. Cyber-attacks include, among other behaviors, stealing or corrupting data maintained online or digitally, denial of service attacks on websites, the unauthorized monitoring, release, misuse, loss destruction or corruption of confidential information, unauthorized access to relevant systems, compromises to networks or devices that the Funds and their service providers use to service the Funds' operations, operational disruption or failures in the physical infrastructure or operating systems that support the Funds and their service providers, or various other forms of cyber security breaches. Cyber-attacks affecting the Funds or the Advisor,

distributor, custodian, transfer agent, intermediaries and other third-party service providers may adversely affect the Funds and their shareholders, potentially resulting in, among other things, financial losses or the inability of Fund shareholders to transact business. For example, cyber-attacks may interfere with the processing of shareholder transactions, affect the Funds' ability to calculate their NAVs, cause the release of private shareholder information or confidential company information, impede trading, subject the Funds to regulatory fines or financial losses, and cause reputational damage. The Funds may also incur additional costs for cyber security risk management efforts designed to mitigate or prevent the risk of cyber-attacks. Such costs may be ongoing because threats of cyber-attacks are constantly evolving as cyber-attackers become more sophisticated and their techniques become more complex. Similar types of cyber security risks are also present for issuers of securities in which the Funds may invest, which could result in material adverse consequences for such issuers, and may cause the Funds' investments in such portfolio companies to lose value. There can be no assurance that the Funds, the Funds' service providers, or the issuers of the securities in which the Funds may invest will be able to prevent cyber-attacks or avoid losses or other adverse consequences relating to cyber-attacks or other information security breaches in the future.

Exchange-Traded Notes

The Emerging Markets Bond Strategy Fund may invest in exchange traded notes (“ETNs”). ETNs are senior, unsecured unsubordinated debt securities issued by an underwriting bank that are designed to provide returns that are linked to a particular benchmark less investor fees. ETNs have a maturity date and, generally, are backed only by the creditworthiness of the issuer. As a result, 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 the underlying market (e.g., the commodities market), changes in the applicable interest rates, and changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the referenced market. ETNs also may be subject to credit risk.

It is expected that the issuer’s credit rating will be investment grade at the time of investment, however, the credit rating may be revised or withdrawn at any time and there is no assurance that a credit rating will remain in effect for any given time period. If a rating agency lowers the issuer’s credit rating or there is a decline in the perceived creditworthiness of the issuer, the value of the ETN will decline as a lower credit rating reflects a greater risk that the issuer will default on its obligation to ETN investors. The Fund must pay an investor fee when investing in an ETN, which will reduce the amount of return on investment at maturity or upon redemption. There may be restrictions on the Fund’s right to redeem its investment in an ETN, which is meant to be held until maturity. There are no periodic interest payments for ETNs, and principal typically is not protected. As is the case with other exchange traded products (“ETPs”), an investor could lose some of or the entire amount invested in ETNs. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary market.

Illiquid Securities

Each Fund may purchase or hold illiquid securities, including securities that are not readily marketable and securities that are not registered (“restricted securities”) under the Securities Act of 1933 (the “1933 Act”), but which can be offered and sold to “qualified institutional buyers” under Rule 144A under the 1933 Act. A Fund will not invest more than 15% (5% with respect to the U.S. Government Money Market Fund) of the Fund’s net assets in illiquid securities. If the percentage of a Fund’s net assets invested in illiquid securities exceeds 15% (5% for the U.S. Government Money Market Fund) due to market activity, the Fund will take appropriate measures to reduce its holdings of illiquid securities. The term “illiquid securities” for this purpose means securities that cannot be disposed of within seven days in the ordinary course of business at approximately the amount at which a Fund has valued the securities. Under the current SEC staff guidelines, illiquid securities also are considered to include, among other securities, purchased OTC options, certain cover for OTC options, repurchase agreements with maturities in excess of seven days, and certain securities whose disposition is restricted under the federal securities laws. A Fund may not be able to sell illiquid securities when the Advisor considers it desirable to do so or may have to sell such securities at a price that is lower than the price that could be obtained if the securities were more liquid. In addition, the sale of illiquid securities also may require more time and may result in higher dealer discounts and other selling expenses than does the sale of securities that are not illiquid. Illiquid securities also may be more difficult to value due to the unavailability of reliable market quotations for such securities, and investment in illiquid securities may have an adverse impact on NAV.

Institutional markets for restricted securities have developed as a result of the promulgation of Rule 144A under the 1933 Act, which provides a “safe harbor” from 1933 Act registration requirements for qualifying sales to institutional investors. When Rule 144A restricted securities present an attractive investment opportunity and meet other selection criteria, a Fund may make such investments whether or not such securities are “illiquid” depending on the market

that exists for the particular security. The Board has delegated the responsibility for determining the liquidity of Rule 144A restricted securities that a Fund may invest in to the Advisor.

Lending of Portfolio Securities

Each Fund expects to lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Fund’s Board. These loans, if and when made, may not exceed 33 1/3% of the total asset value of the Fund (including the loan collateral). The Funds are not permitted to lend portfolio securities to the Advisor or its affiliates unless the Funds apply for and receive specific authority to do so from the SEC. Loans of portfolio securities will be fully collateralized by cash, letters of credit or U.S. government securities, and the collateral will be maintained in an amount equal to at least 100% of the current market value of the loaned securities by marking to market daily. Any gain or loss in the market price of the securities loaned that might occur during the term of the loan would be for the account of the Fund. The Fund may pay a part of the interest earned from the investment of collateral, or other fee, to an unaffiliated third party for acting as the Fund’s securities lending agent. By lending its securities, a Fund may increase its income by receiving payments from the borrower that reflect the amount of any interest or any dividends payable on the loaned securities as well as by either investing cash collateral received from the borrower in short-term instruments or obtaining a fee from the borrower when U.S. government securities or letters of credit are used as collateral. The Fund will invest cash collateral received from the borrower in types of investments previously approved by the Trust’s Board that are intended to be conservative in nature. Investments of cash collateral will be undertaken at the Fund’s risk and the Fund could lose money in the event of a decline in the value of such investments.

Each Fund will adhere to the following conditions whenever its portfolio securities are loaned: (i) the Fund must receive at least 100% cash collateral or equivalent securities of the type discussed in the preceding paragraph from the borrower; (ii) the borrower must increase such collateral whenever the market value of the securities rises above the level of such collateral; (iii) the Fund must be able to terminate the loan on demand; (iv) the Fund must receive reasonable interest on the loan, as well as any dividends, interest or other distributions on the loaned securities and any increase in market value; (v) the Fund may pay only reasonable fees in connection with the loan (which fees may include fees payable to the lending agent, the borrower, the Fund’s administrator and the custodian); and (vi) voting rights on the loaned securities may pass to the borrower, provided, however, that if a material event adversely affecting the investment occurs, the Fund must terminate the loan and regain the right to vote the securities. The Board has adopted procedures reasonably designed to ensure that the foregoing criteria will be met. Loan agreements involve certain risks in the event of default or insolvency of the borrower, including possible delays or restrictions upon a Fund’s ability to recover the loaned securities or dispose of the collateral for the loan, which could give rise to loss because of adverse market action, expenses and/or delays in connection with the disposition of the underlying securities.

When‑Issued and Delayed‑Delivery Securities

Each Fund, from time to time, in the ordinary course of business, may purchase securities on a when-issued or delayed-delivery basis (i.e., delivery and payment can take place between a month and 120 days after the date of the transaction). These securities are subject to market fluctuation and no interest accrues to the purchaser during this period. At the time a Fund makes the commitment to purchase securities on a when-issued or delayed-delivery basis, the Fund will record the transaction and thereafter reflect the value of the securities, each day, in determining the Fund’s NAV. At the time of delivery of the securities, the value of the securities may be more or less than the purchase price. The Fund will also establish a segregated account with its custodian bank in which the Fund will maintain cash or liquid securities equal to or greater in value than the Fund’s purchase commitments for such when-issued or delayed-delivery securities. The Trust does not believe that a Fund’s NAV or income will be adversely affected by the Fund’s purchase of securities on a when-issued or delayed-delivery basis.

Zero Coupon Bonds

The Dow Jones Industrial Average^® Fund and Fixed Income Funds may invest in U.S. Treasury zero-coupon bonds. These securities are U.S. Treasury bonds which have been stripped of their unmatured interest coupons, the coupons themselves, and receipts or certificates representing interests in such stripped debt obligations and coupons. Interest is not paid in cash during the term of these securities, but is accrued and paid at maturity. Such obligations have greater price volatility than coupon obligations and other normal interest-paying securities, and the value of zero coupon securities reacts more quickly to changes in interest rates than do coupon bonds. Because dividend income is accrued throughout the term of the zero coupon obligation, but is not actually received until maturity, the Funds may have to sell other securities to pay said accrued dividends prior to maturity of the zero coupon obligation. Unlike

regular U.S. Treasury bonds which pay semi-annual interest, U.S. Treasury zero coupon bonds do not generate semi-annual coupon payments. Instead, zero coupon bonds are purchased at a substantial discount from the maturity value of such securities, the discount reflecting the current value of the deferred interest; this discount is amortized as interest income over the life of the security, and is taxable even though there is no cash return until maturity. Zero coupon U.S. Treasury issues originally were created by government bond dealers who bought U.S. Treasury bonds and issued receipts representing an ownership interest in the interest coupons or in the principal portion of the bonds. Subsequently, the U.S. Treasury began directly issuing zero coupon bonds with the introduction of “Separate Trading of Registered Interest and Principal of Securities” (or “STRIPS”). While zero coupon bonds eliminate the reinvestment risk of regular coupon issues, that is, the risk of subsequently investing the periodic interest payments at a lower rate than that of the security held, zero coupon bonds fluctuate much more sharply than regular coupon-bearing bonds. Thus, when interest rates rise, the value of zero coupon bonds will decrease to a greater extent than will the value of regular bonds having the same interest rate.

ADDITIONAL INFORMATION ABOUT THE SECTOR FUNDS

Banking Fund

The Fund may invest in companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. In addition, these companies may offer services such as merchant banking, consumer and commercial finance, brokerage, financial planning, wealth management, leasing, mortgage finance and insurance. These companies may concentrate their operations within a specific part of the country rather than operating predominantly on a national or international scale.

SEC regulations provide that the Fund may not invest more than 5% of its total assets in the securities of any one company that derives more than 15% of its revenues from brokerage or investment management activities. These companies, as well as those deriving more than 15% of profits from brokerage and investment management activities, will be considered to be “principally engaged” in this Fund’s business activity. Rule 12d3-1 under the 1940 Act, allows investment portfolios such as the Fund, to invest in companies engaged in securities-related activities subject to certain conditions. Purchases of securities of a company that derived 15% or less of gross revenues during its most recent fiscal year from securities-related activities (i.e., broker/dealer, underwriting, or investment advisory activities) are subject only to the same percentage limitations as would apply to any other security the Fund may purchase. The Fund may purchase securities of an issuer that derived more than 15% of its gross revenues in its most recent fiscal year from securities-related activities, subject to the following conditions:


a.	the purchase cannot cause more than 5% of the Fund’s total assets to be invested in securities of that issuer;


b.	for any equity security, the purchase cannot result in the Fund owning more than 5% of the issuer’s outstanding securities in that class;


c.	for a debt security, the purchase cannot result in the fund owning more than 10% of the outstanding principal amount of the issuer’s debt securities.

In applying the gross revenue test, an issuer’s own securities-related activities must be combined with its ratable share of securities-related revenues from enterprises in which it owns a 20% or greater voting or equity interest. All of the above percentage limitations, as well as the issuer’s gross revenue test, are applicable at the time of purchase. With respect to warrants, rights, and convertible securities, a determination of compliance with the above limitations shall be made as though such warrant, right, or conversion privilege had been exercised. The Fund will not be required to divest its holding of a particular issuer when circumstances subsequent to the purchase cause one of the above conditions to not be met. The purchase of a general partnership interest in a securities-related business is prohibited.

Basic Materials Fund

The Fund may invest in companies engaged in the manufacture, mining, processing, or distribution of raw materials as well as intermediate goods used in the industrial sector. The Fund may invest in companies handling products such as chemicals, lumber, paper, copper, iron ore, nickel, steel, aluminum, textiles, cement, and gypsum. The Fund may also invest in the securities of mining, processing, transportation, and distribution companies primarily involved in this sector.

Biotechnology Fund

The Fund may invest in companies engaged in the research, development, sale, and manufacture of various biotechnological products, services and processes. These include companies involved with developing or experimental technologies such as generic engineering, hybridoma and recombinant DNA techniques and monoclonal antibodies. The Fund may also invest in companies that manufacture and/or distribute biotechnological and biomedical products, including devices and instruments, and that provide or benefit significantly from scientific and technological advances in biotechnology. Some biotechnology companies may provide processes or services instead of, or in addition to, products.

The description of the biotechnology sector may be interpreted broadly to include applications and developments in such areas as human health care (cancer, infectious disease, diagnostics and therapeutics); pharmaceuticals (new drug development and production); agricultural and veterinary applications (improved seed varieties, animal growth hormones); chemicals (enzymes, toxic waste treatment); medical/surgical (epidermal growth factor, in vivo imaging/therapeutics); and industry (biochips, fermentation, enhanced mineral recovery).

Consumer Products Fund

The Fund may invest in companies engaged in the manufacture of goods to consumers, both domestically and internationally. The Fund also may invest in companies that manufacture, wholesale or retail non-durable goods such as beverages, tobacco, household and personal care products. The Fund may invest in owners and operators of distributors, food retail stores, pharmacies, hypermarkets and super centers selling food and a wide-range of consumer staple products. The Fund may invest in distillers, vintners and producers of alcoholic beverages, beer, malt liquors, and non-alcoholic beverages (including mineral water). The Fund may invest in producers of agricultural products (crop growers, owners of plantations) and companies that produce and process food, producers of packaged foods (including dairy products, fruit juices, meats, poultry, fish and pet foods) and producers of non-durable household products (including detergents, soaps, diapers and other tissue and household paper products). The Fund may also invest in manufacturers of personal and beauty care products, including cosmetics and perfumes.

Electronics Fund

The Fund may invest in companies engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. In addition, the Fund may invest in companies in the fields of defense electronics, medical electronics, consumer electronics, advanced manufacturing technologies (computer-aided design and computer-aided manufacturing (“CAD/CAM”), computer-aided engineering, and robotics), lasers and electro-optics, and other developing electronics technologies.

Energy Fund

The Fund may invest in companies in the energy field, including the conventional areas of oil, gas, electricity and coal, and alternative sources of energy such as nuclear, geothermal, oil shale and solar power. The business activities of companies in which the Fund may invest include production, generation, transmission, refining, marketing, control, distribution or measurement of energy or energy fuels such as petrochemicals; providing component parts or services to companies engaged in the above activities; energy research or experimentation; and environmental activities related to pollution control. Companies participating in new activities resulting from technological advances or research discoveries in the energy field may also be considered for this Fund.

Energy Services Fund

The Fund may invest in companies in the energy services field, including those that provide services and equipment to the conventional areas of oil, gas, electricity and coal, and alternative sources of energy such as nuclear, geothermal, oil shale and solar power. The Fund may invest in companies involved in providing services and equipment for drilling processes such as offshore and onshore drilling, drill bits, drilling rig equipment, drilling string equipment, drilling fluids, tool joints and wireline logging. Many energy service companies are engaged in production and well maintenance, providing such products and services as packers, perforating equipment, pressure pumping, downhole equipment, valves, pumps, compression equipment, and well completion equipment and service. Certain companies supply energy providers with exploration technology such as seismic data, geological and geophysical services, and interpretation of this data. The Fund may also invest in companies with a variety of underwater well services, helicopter services, geothermal plant design or construction, electric and nuclear plant design or construction, energy related capital equipment, mining related equipment or services, and high technology companies serving these industries.

Financial Services Fund

The Fund may invest in companies that are involved in the financial services sector, including commercial and investment banks, savings and loan associations, consumer and industrial finance companies, investment banking, asset management, securities brokerage companies, real estate-related companies, leasing companies, and a variety of firms in all segments of the insurance industry such as multi-line, property and casualty, and life insurance.

The financial services sector is currently undergoing relatively rapid change as existing distinctions between financial service segments become less clear. For example, recent business combinations have included insurance, finance, and securities brokerage under single ownership. Some primarily retail corporations have expanded into securities and insurance industries.

SEC regulations provide that the Fund may not invest more than 5% of its total assets in the securities of any one company that derives more than 15% of its revenues from brokerage or investment management activities. These companies, as well as those deriving more than 15% of profits from brokerage and investment management activities, will be considered to be “principally engaged” in this Fund’s business activity. Rule 12d3-1 under the 1940 Act, allows investment portfolios such as this Fund, to invest in companies engaged in securities-related activities subject to certain conditions. Purchases of securities of a company that derived 15% or less of gross revenues during its most recent fiscal year from securities-related activities (i.e., broker/dealer, underwriting, or investment advisory activities) are subject only to the same percentage limitations as would apply to any other security the Fund may purchase. The Fund may purchase securities of an issuer that derived more than 15% of its gross revenues in its most recent fiscal year from securities-related activities, subject to the following conditions:


a.	the purchase cannot cause more than 5% of the Fund’s total assets to be invested in securities of that issuer;


b.	for any equity security, the purchase cannot result in the Fund owning more than 5% of the issuer’s outstanding securities in that class;


c.	for a debt security, the purchase cannot result in the fund owning more than 10% of the outstanding principal amount of the issuer’s debt securities.

Health Care Fund

The Fund may invest in companies that are involved in the health care industry including companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. Companies in the health care sector may include pharmaceutical companies; firms that design, manufacture, sell, or supply medical, dental, and optical products, hardware or services; companies involved in biotechnology, medical diagnostic, and biochemical research and development, as well as companies involved in the operation of health care facilities.

Internet Fund

The Fund may invest in companies that are involved in the Internet sector including companies which the Advisor believes should benefit from the commercialization of technological advances, although they may not be directly involved in research and development. 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 or software which impacts Internet commerce; or provide Internet access to consumers and businesses.

Leisure Fund

The Fund may invest in companies engaged in the design, production, or distribution of goods or services in the leisure industries including television and radio broadcasting or manufacturing (including cable television); motion pictures and photography; recordings and musical instruments; publishing, including newspapers and magazines; sporting goods and camping and recreational equipment; and sports arenas. Other goods and services may include toys and

games (including video and other electronic games), amusement and theme parks, travel and travel-related services, lodging, restaurants, leisure equipment and gaming casinos.

Precious Metals Fund

The Fund may invest in the equity securities of U.S. and foreign companies that are involved in the precious metals sector (“Precious Metals Companies”). Precious Metals Companies include precious metals manufacturers; distributors of precious metals products, such as jewelry, metal foil or bullion; mining and geological exploration companies; and companies which provide services to Precious Metals Companies.

Retailing Fund

The Fund may invest in companies that are involved in the retailing sector including companies engaged in merchandising finished goods and services primarily to individual consumers. The Fund may also invest in companies primarily distributing goods to merchandisers. Companies in which the Fund may invest include general merchandise retailers, department stores, internet retailers and any specialty retailers selling a single category of merchandise such as apparel, toys, jewelry, consumer electronics, home furnishings or home improvement products. The Fund may also invest in companies engaged in selling goods and services through alternative means such as direct telephone marketing, mail order, membership warehouse clubs, computer, or video based electronic systems.

Technology Fund

The Fund may invest in companies that are involved in the technology sector including companies that the Advisor believes have, or will develop, products, processes or services that will provide or will benefit significantly from technological advances and improvements. These may include, for example, companies that develop, produce, or distribute products or services in the computer, semiconductor, electronics and communications.

Telecommunications Fund

The Fund may invest in companies that are involved in the telecommunications sector including companies engaged in the development, manufacture, or sale of communications services and/or equipment. Companies in the telecommunications field offer a variety of services and products, including local and long-distance telephone service; cellular, paging, local and wide-area product networks; satellite, microwave and cable television; Internet access; and equipment used to provide these products and services. Long-distance telephone companies may also have interests in developing technologies, such as fiber optics and data transmission. Certain types of companies in which the Fund may invest are engaged in fierce competition for a share of the market for goods or services such as private and local area networks, or are engaged in the sale of telephone set equipment.

Transportation Fund

The Fund may invest in companies that are involved in the transportation sector, including companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment. Transportation services may include companies involved in the movement of freight and/or people such as airline, railroad, ship, truck, and bus companies. Other service companies include those that provide leasing and maintenance for automobiles, trucks, containers, rail cars, and planes. Equipment manufacturers include makers of trucks, automobiles, planes, containers, rail cars, or any other mode of transportation and their related products. In addition, the Fund may invest in companies that sell fuel-saving devices to the transportation industries and those that sell insurance and software developed primarily for transportation companies.

Utilities Fund

The Fund will invest primarily in companies in the public utilities industry and companies deriving a majority of their revenues from their public utility operations as described in the Fund’s Prospectuses. Such 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 involved in the public communication field, including telephone, telegraph, satellite, microwave and other public communication facilities.

SPECIAL CONSIDERATIONS REGARDING THE USE OF LEVERAGED AND INVERSE INVESTMENT STRATEGIES

To the extent discussed above and in the Prospectuses, the Domestic Equity Funds (except the 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), International Equity Funds, Fixed Income Funds (except the High Yield Strategy Fund), and Specialty Funds (except the Real Estate Fund), present certain risks, some of which are further described below.

Leverage. The Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, 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, and Strengthening Dollar 2x Strategy Fund (the “Leveraged Funds”) and the Inverse Emerging Markets 2x Strategy Fund and Weakening Dollar 2x Strategy Fund (the “Leveraged Inverse Funds”) employ leverage as a principal investment strategy and each of the Leveraged Funds and Leveraged Inverse Funds may borrow or use other forms of leverage for investment purposes. Utilization of leverage involves special risks and should be considered to be speculative. Leverage exists when a Leveraged Fund or Leveraged Inverse Fund achieves the right to a return on a capital base that exceeds the amount the Leveraged Fund or Leveraged Inverse Fund has invested. Leverage creates the potential for greater gains to shareholders of the Leveraged Funds and Leveraged Inverse Funds during favorable market conditions and the risk of magnified losses during adverse market conditions. Leverage should cause higher volatility of the NAVs of the shares of the Leveraged Funds and Leveraged Inverse Funds. Leverage may involve the creation of a liability that does not entail any interest costs or the creation of a liability that requires the Leveraged Funds and Leveraged Inverse Funds to pay interest, which would decrease the Leveraged Funds’ and Leveraged Inverse Funds’ total return to shareholders. If the Leveraged Funds and Leveraged Inverse Funds achieve their investment objectives, during adverse market conditions, shareholders should experience a loss greater than they would have incurred had these Funds not been leveraged.

Each of the Alternative Funds regularly invests in financial instruments that give rise to leverage as part of its principal investment strategy. While the Funds may borrow for investment purposes, each derives its leveraged exposure primarily through the use of derivatives that give rise to leverage. Utilization of leverage involves special risks and should be considered speculative. Leverage exists when a fund achieves the right to a return on a capital base that exceeds the amount the fund has invested. Leverage creates the potential for greater gains to shareholders of the Funds during favorable market conditions and the risk of magnified losses during adverse market conditions. Leverage should cause higher volatility of the NAVs of the shares of the Funds. Leverage may involve the creation of a liability that does not entail any interest costs or the creation of a liability that requires the Funds to pay interest, which would decrease the Funds’ total returns to shareholders. If the Funds achieve their respective investment objectives, during adverse market conditions, shareholders should experience a loss greater than they would have incurred had the Funds not been leveraged.

Special Note Regarding the Correlation Risks of the Leveraged Funds and Leveraged Inverse Funds. As discussed in the Prospectuses, each of the Leveraged Funds and Leveraged Inverse Funds are “leveraged” funds in the sense that each has an investment objective to match a multiple of the performance of an index on a given day or, for the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, on a calendar month basis. The Leveraged Funds and Leveraged Inverse Funds are subject to all of the risks described in the Prospectuses. In addition, there is a special form of correlation risk that derives from the Leveraged Funds’ and Leveraged Inverse Funds’ use of leverage. For periods greater than one day, or for the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, a full calendar month, the use of leverage tends to cause the performance of a Leveraged Fund or Leveraged Inverse Fund to be either greater than, or less than, the Underlying Index performance times the stated multiple in the fund objective.

A Leveraged Fund’s or Leveraged Inverse Fund’s return for periods longer than one day or, for the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, a full calendar month, is primarily a function of the following: (a) index performance; (b) index volatility; (c) financing rates associated with leverage; (d) other fund expenses; (e) dividends paid by companies in the index; and (f) period of time.

A leveraged fund’s performance can be estimated given any set of assumptions for the factors described above. The tables below illustrate the impact of two factors, index volatility and index performance, on a hypothetical leveraged fund. Index volatility is a statistical measure of the magnitude of fluctuations in the returns of an index and is calculated as the standard deviation of the natural logarithms of one plus the index return (calculated daily), multiplied by the square root of the number of trading days per year (assumed to be 252). The tables show estimated fund returns for

a number of combinations of index performance and index volatility over a one year period. Assumptions used in the tables include: (a) no dividends paid by the companies included in the index; (b) no fund expenses; and (c) borrowing/lending rates (to obtain leverage) of zero percent (0%). If fund expenses were included, the fund’s performance would be lower than shown.

The first table below shows the estimated fund return over a one-year period for a hypothetical leveraged fund that has an investment objective to correspond to twice (200% of) the daily performance of an index. The leveraged fund could be expected to achieve a 30% return on a yearly basis if the index performance was 15%, absent any costs or the correlation risk or other factors described above and in the Prospectuses. However, as the table shows, with an index volatility of 20%, such a fund would return 27%, again absent any costs or other factors described above and in the Prospectuses. In the charts below, unshaded areas represent those scenarios where a hypothetical leveraged fund with the investment objective described will outperform (i.e., return more than) the index performance times the stated multiple in the leveraged fund’s investment objective; conversely, shaded areas represent those scenarios where the leveraged fund will underperform (i.e., return less than) the index performance times the stated multiple in the fund’s investment objective.

Hypothetical Leveraged Fund Median Annual Returns



Index Performance		Market Volatility
One Year Index Performance	200% of One Year Index Performance	10%	15%	20%	25%	30%	35%	40%	45%	50%
-40%	-80%	-64%	-64%	-65%	-65%	-67%	-68%	-69%	-70%	-71%
-35%	-70%	-58%	-59%	-59%	-60%	-62%	-63%	-64%	-65%	-66%
-30%	-60%	-52%	-53%	-52%	-53%	-55%	-56%	-58%	-60%	-61%
-25%	-50%	-45%	-46%	-46%	-47%	-48%	-50%	-52%	-53%	-55%
-20%	-40%	-36%	-37%	-39%	-40%	-41%	-43%	-44%	-47%	-50%
-15%	-30%	-29%	-29%	-30%	-32%	-33%	-36%	-38%	-40%	-43%
-10%	-20%	-20%	-21%	-23%	-23%	-26%	-28%	-31%	-32%	-36%
-5%	-10%	-11%	-12%	-13%	-16%	-18%	-20%	-23%	-25%	-29%
0%	0%	-1%	-2%	-4%	-6%	-8%	-11%	-14%	-17%	-20%
5%	10%	9%	8%	6%	3%	2%	-3%	-5%	-8%	-12%
10%	20%	19%	19%	16%	15%	10%	9%	4%	0%	-5%
15%	30%	31%	29%	27%	25%	21%	19%	15%	11%	6%
20%	40%	43%	41%	38%	35%	32%	27%	23%	18%	13%
25%	50%	54%	52%	50%	48%	43%	39%	34%	29%	22%
30%	60%	69%	64%	62%	58%	56%	49%	43%	39%	34%
35%	70%	79%	77%	75%	70%	68%	61%	57%	50%	43%
40%	80%	92%	91%	88%	82%	81%	73%	67%	62%	54%

The second table below shows the estimated fund return over a one-year period for a hypothetical leveraged fund that has an investment objective to correspond to twice (200% of) the monthly performance of an index. The leveraged fund could be expected to achieve a 30% return on a yearly basis if the index performance was 15%, absent any costs or the correlation risk or other factors described above and in the Prospectuses. However, as the table shows, with an index volatility of 20%, such a fund would return 27%, again absent any costs or other factors described above and in the Prospectuses. In the charts below, unshaded areas represent those scenarios where a hypothetical leveraged fund with the investment objective described will outperform (i.e., return more than) the index performance times the stated multiple in the leveraged fund’s investment objective; conversely, shaded areas represent those scenarios where the leveraged fund will underperform (i.e., return less than) the index performance times the stated multiple in the fund’s investment objective.

Hypothetical Leveraged Monthly 2x Fund Median Annual Returns



Index Performance		Market Volatility
One Year Index Performance	200% of One Year Index Performance	10%	15%	20%	25%	30%	35%	40%	45%	50%
-40%	-80%	-65%	-66%	-66%	-67%	-68%	-69%	-70%	-71%	-73%
-35%	-70%	-59%	-59%	-60%	-61%	-62%	-63%	-65%	-66%	-68%
-30%	-60%	-52%	-53%	-53%	-54%	-56%	-57%	-59%	-60%	-62%
-25%	-50%	-45%	-45%	-46%	-47%	-49%	-50%	-52%	-54%	-56%
-20%	-40%	-37%	-38%	-39%	-40%	-41%	-43%	-45%	-48%	-50%
-15%	-30%	-29%	-29%	-31%	-32%	-34%	-36%	-38%	-40%	-43%
-10%	-20%	-20%	-21%	-22%	-24%	-25%	-28%	-30%	-33%	-36%
-5%	-10%	-11%	-12%	-13%	-15%	-17%	-19%	-22%	-25%	-28%
0%	0%	-1%	-2%	-3%	-5%	-8%	-10%	-13%	-17%	-20%
5%	10%	9%	8%	6%	4%	2%	-1%	-4%	-8%	-12%
10%	20%	20%	19%	17%	15%	12%	9%	5%	1%	-3%
15%	30%	31%	30%	28%	25%	22%	19%	15%	11%	6%
20%	40%	42%	41%	39%	36%	33%	30%	25%	21%	16%
25%	50%	54%	53%	51%	48%	44%	40%	36%	31%	25%
30%	60%	67%	65%	63%	60%	56%	52%	47%	41%	36%
35%	70%	79%	78%	75%	72%	68%	64%	58%	53%	47%
40%	80%	93%	91%	88%	85%	80%	76%	70%	64%	57%

The third table below shows the estimated fund return over a one-year period for a hypothetical leveraged inverse fund that has an investment objective to correspond to twice (200% of) the opposite of the daily performance of an index. The hypothetical leveraged inverse fund could be expected to achieve a -30% return on a yearly basis if the index performance was 15%, absent any costs or the correlation risk or other factors described above and in the Prospectuses. However, as the table shows, with an index volatility of 20%, such a fund would return -33%, again absent any costs or other factors described above and in the Prospectuses. In the charts below, unshaded areas represent those scenarios where a hypothetical leveraged fund with the investment objective described will outperform (i.e., return more than) the index performance times the stated multiple in the leveraged fund’s investment objective; conversely, shaded areas represent those scenarios where the leveraged fund will underperform (i.e., return less than) the index performance times the stated multiple in the fund’s investment objective.

Hypothetical Leveraged Inverse Fund Median Annual Returns



Index Performance		Market Volatility
One Year Index Performance	200% Inverse of One Year Index Performance	10%	15%	20%	25%	30%	35%	40%	45%	50%
-40%	80%	165%	153%	145%	127%	114%	99%	74%	57%	35%
-35%	70%	130%	122%	109%	96%	84%	68%	51%	32%	17%
-30%	60%	98%	93%	79%	68%	58%	46%	29%	16%	1%
-25%	50%	73%	68%	58%	49%	36%	26%	13%	2%	-13%
-20%	40%	51%	45%	39%	31%	20%	12%	-2%	-11%	-23%
-15%	30%	35%	29%	23%	16%	6%	-2%	-12%	-22%	-30%
-10%	20%	20%	16%	9%	3%	-5%	-13%	-21%	-30%	-39%
-5%	10%	8%	5%	-2%	-8%	-14%	-21%	-30%	-38%	-46%
0%	0%	-3%	-7%	-12%	-17%	-23%	-28%	-37%	-44%	-51%
5%	-10%	-12%	-15%	-19%	-25%	-31%	-35%	-43%	-47%	-55%
10%	-20%	-19%	-23%	-27%	-32%	-36%	-43%	-47%	-53%	-59%
15%	-30%	-27%	-29%	-32%	-37%	-42%	-46%	-53%	-58%	-63%
20%	-40%	-33%	-35%	-38%	-42%	-46%	-50%	-56%	-60%	-66%
25%	-50%	-38%	-40%	-43%	-47%	-51%	-55%	-59%	-64%	-68%
30%	-60%	-43%	-44%	-47%	-51%	-55%	-59%	-62%	-66%	-71%
35%	-70%	-46%	-49%	-52%	-53%	-58%	-61%	-66%	-68%	-73%
40%	-80%	-50%	-52%	-55%	-57%	-61%	-64%	-68%	-71%	-75%

The foregoing tables are intended to isolate the effect of index volatility and index performance on the return of a hypothetical leveraged fund. A Leveraged Fund’s or Leveraged Inverse Fund’s actual returns may be significantly greater or less than the returns shown above as a result of any of the factors discussed above and in the Prospectuses.

INVESTMENT RESTRICTIONS

Fundamental Policies

The following investment limitations are fundamental policies of the Funds, and cannot be changed with respect to a Fund without the consent of the holders of a majority of the Fund’s outstanding shares. The term “majority of the outstanding shares” means the vote of (i) 67% or more of a Fund’s shares present at a meeting, if more than 50% of the outstanding shares of that Fund are present or represented by proxy, or (ii) more than 50% of that Fund’s outstanding shares, whichever is less.

Fundamental Policies of the Domestic Equity Funds (except the Inverse NASDAQ-100^® Strategy Fund, Inverse S&P 500^® Strategy Fund, Nova Fund and NASDAQ-100^® Fund), Sector Funds (except the Precious Metals Fund), International Equity Funds, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund, Alternative Funds, and Specialty Funds

Each Fund may not:


1.	Borrow money, except as permitted under the 1940 Act, and as interpreted or modified by regulatory authority having jurisdiction from time to time.


2.	Make loans if, as a result, more than 33¹/₃% of its total assets would be lent to other parties, except that the Fund may (i) purchase or hold debt instruments in accordance with its investment objective and policies; (ii) enter into repurchase agreements; and (iii) lend its securities.

Purchase or sell real estate, physical commodities, or commodities contracts, except that the Fund may purchase or sell (i) marketable securities issued by companies which own or invest in real estate (including real estate investment trusts), commodities, or commodities contracts; and (ii) commodities contracts relating to financial instruments, such as financial futures contracts and options on such contracts. This policy does not apply to the Emerging Markets Bond Strategy Fund and Event Driven and Distressed Strategies Fund.


4.	Purchase or sell real estate, except that the Fund may purchase marketable securities issued by companies which own or invest in real estate (including real estate investment trusts). This policy applies only to the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Emerging Markets Bond Strategy Fund and Event Driven and Distressed Strategies Fund.

Purchase or sell commodities or commodities contracts. This restriction shall not prohibit the Fund, subject to restrictions described in the Prospectuses and elsewhere in this SAI, from purchasing, selling or entering into futures contracts on commodities or commodity contracts, options on futures contracts on commodities or commodity contracts, foreign currency forward contracts, foreign currency options, or any interest rate, securities-related or foreign currency-related hedging instrument, including swap agreements and other derivative instruments, subject to compliance with any applicable provisions of the federal securities or commodities laws. This policy applies only to the Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, Emerging Markets Bond Strategy Fund and Event Driven and Distressed Strategies Fund.


6.	Issue senior securities (meaning any bond, debenture, note, or similar obligation or instrument constituting a security and evidencing indebtedness, and any stock of a class having priority over any other class as to distribution of assets or payment of dividends as defined in the 1940 Act) except as permitted by rule, regulation or order of the SEC.


7.	Act as an underwriter of securities of other issuers except as it may be deemed an underwriter in selling a portfolio security.


8.	Invest in interests in oil, gas, or other mineral exploration or development programs and oil, gas or mineral leases.

Invest 25% or more of the value of the Fund’s total assets in the securities of one or more issuers conducting their principal business activities in the same industry¹; except that, (i) to the extent the benchmark selected for a particular Domestic Equity Fund, International Equity Fund, the Strengthening Dollar 2x Strategy Fund, or the Weakening Dollar 2x Strategy Fund is concentrated in a particular industry, the Fund will necessarily be concentrated in that industry; and (ii) a Sector Fund or the Real Estate Fund will be concentrated in an industry or group of industries within a sector. This limitation does not apply to investments or obligations of the U.S. government or any of its agencies or instrumentalities, or shares of investment companies.

Fundamental Policies of the Inverse NASDAQ-100^® Strategy Fund, Inverse S&P 500^® Strategy Fund, Nova Fund, NASDAQ-100^® Fund, Precious Metals Fund, Government Long Bond 1.2x Strategy Fund, and Inverse Government Long Bond Strategy Fund

Each Fund may not:

10.

Lend any security or make any other loan if, as a result, more than 33¹/₃% of the value of the Fund’s total assets would be lent to other parties, except (i) through the purchase of a portion of an issue of debt securities in accordance with the Fund’s investment objective, policies, and limitations; (ii) by engaging in repurchase agreements with respect to portfolio securities; or (iii) through the loans of portfolio securities provided the borrower maintains collateral equal to at least 100% of the value of the borrowed security and marked-to-market daily.


¹	Each Alternative Fund will not invest 25% or more of the value of its total assets in the shares of one or more investment companies with an affirmative investment policy to invest 25% or more of its assets in the securities of one or more issuers conducting their principal business activities in the same industry, as disclosed in its then current registration statement.

11. Underwrite securities of any other issuer.


12.	Purchase, hold, or deal in real estate or oil and gas interests, although the Fund may purchase and sell securities that are secured by real estate or interests therein and may purchase mortgage-related securities and may hold and sell real estate acquired for the Fund as a result of the ownership of securities.

13.

Issue any senior security (as such term is defined in Section 18(f) of the 1940 Act) (including the amount of senior securities issued but excluding liabilities and indebtedness not constituting senior securities), except that the Fund may issue senior securities in connection with transactions in options, futures, options on futures, and other similar investments, and except as otherwise permitted herein and in Investment Restriction Nos. 14, 15, 16, and 17, as applicable to the Fund.

14.

Pledge, mortgage, or hypothecate the Fund’s assets, except to the extent necessary to secure permitted borrowings and to the extent related to the deposit of assets in escrow in connection with: (i) the writing of covered put and call options; (ii) the purchase of securities on a forward-commitment or delayed-delivery basis; and (iii) collateral and initial or variation margin arrangements with respect to currency transactions, options, futures contracts, including those relating to indices, and options on futures contracts or indices.


15.	Invest in commodities, except that a Fund may purchase and sell futures contracts, including those relating to securities, currencies, indices, and options on futures contracts or indices and currencies underlying or related to any such futures contracts, and purchase and sell currencies (and options thereon) or securities on a forward-commitment or delayed-delivery basis.


15.1	The Precious Metals Fund may (a) trade in futures contracts and options on futures contracts; or (b) invest in precious metals and precious minerals.

16.

Invest 25% or more of the value of the Fund’s total assets in the securities of one or more issuers conducting their principal business activities in the same industry (except that, to the extent the benchmark selected for the Fund is concentrated in a particular industry, the Fund will necessarily be concentrated in that industry). This limitation does not apply to investments or obligations of the U.S. government or any of its agencies or instrumentalities, or shares of investment companies.


16.1	The Precious Metals Fund will invest 25% or more of the value of its total assets in securities in the metals-related and minerals-related industries.


17.	Borrow money, except as permitted under the 1940 Act, and as interpreted or modified by regulatory authority having jurisdiction from time to time.

18.

Make short sales of portfolio securities or purchase any portfolio securities on margin, except for such short-term credits as are necessary for the clearance of transactions. The deposit or payment by the Fund of initial or variation margin in connection with futures or options transactions is not considered to be a securities purchase on margin. The Fund may engage in short sales if, at the time of the short sale, the Fund owns or has the right to acquire an equal amount of the security being sold at no additional cost (“selling against the box”).

18.1

The Inverse NASDAQ-100^® Strategy Fund, Inverse S&P 500^® Strategy Fund, and Inverse Government Long Bond Strategy Fund may engage in short sales of portfolio securities or maintain a short position if at all times when a short position is open (i) the Fund maintains a segregated account with the Fund’s custodian to cover the short position in accordance with the position of the SEC or (ii) the Fund owns an equal amount of such securities or securities convertible into or exchangeable, without payment of any further consideration, for securities of the same issue as, and equal in amount to, the securities sold short.

Fundamental Policies of the U.S. Government Money Market Fund

The U.S. Government Money Market Fund may not:


19.	Make loans to others except through the purchase of qualified debt obligations, loans of portfolio securities and entry into repurchase agreements.


20.	Lend its portfolio securities in excess of 15% of the Fund’s total assets. Any loans of the Fund’s portfolio securities will be made according to guidelines established by the Board, including maintenance of cash collateral of the borrower equal at all times to the current market value of the securities loaned.


21.	Issue senior securities, except as permitted by the Fund’s investment objectives and policies.


22.	Write or purchase put or call options.


23.	Mortgage, pledge, or hypothecate the Fund’s assets except to secure permitted borrowings. In those cases, the Fund may mortgage, pledge, or hypothecate assets having a market value not exceeding the lesser of the dollar amounts borrowed or 15% of the value of total assets of the Fund at the time of the borrowing.


24.	Make short sales of portfolio securities or purchase any portfolio securities on margin, except for such short-term credits as are necessary for the clearance of transactions.


25.	Borrow money, except as permitted under the 1940 Act, and as interpreted or modified by regulatory authority having jurisdiction from time to time.


26.	Underwrite securities of any other issuer.

Non-Fundamental Policies

The following investment limitations are non-fundamental policies of the Funds and may be changed with respect to any Fund by the Board.

Each Fund may not:


1.	Invest in warrants. This policy does not apply to the S&P 500^® Fund, Russell 2000^® Fund or Dow Jones Industrial Average^® Fund.


2.	Invest in real estate limited partnerships. This policy does not apply to the Real Estate Fund.


3.	Invest in mineral leases. This policy does not apply to the S&P 500^® Fund, Russell 2000^® Fund or Dow Jones Industrial Average^® Fund.

The Domestic Equity Funds (except for the Inverse NASDAQ-100^® Strategy Fund, Inverse S&P 500^® Strategy Fund, Nova Fund, and NASDAQ-100^® Fund), Sector Funds, International Equity Funds, High Yield Strategy Fund, Inverse High Yield Strategy Fund, Emerging Markets Bond Strategy Fund, Alternative Funds, and Specialty Funds may not:


4.	Pledge, mortgage or hypothecate assets except to secure borrowings permitted by Fundamental Policy Nos. 1 and 17 above, or related to the deposit of assets in escrow or the posting of collateral in segregated accounts in compliance with the SEC’s position regarding the asset segregation requirements imposed by Section 18 of the 1940 Act.


5.	Invest in companies for the purpose of exercising control. This policy does not apply to the S&P 500^® Fund, Russell 2000^® Fund, Dow Jones Industrial Average^® Fund, High Yield Strategy Fund, or Inverse High Yield Strategy Fund.

Purchase securities on margin or effect short sales, except that the Fund may (i) obtain short-term credits as necessary for the clearance of security transactions; (ii) provide initial and variation margin payments in connection with transactions involving futures contracts and options on such contracts; and (iii) make short sales “against the box” or in compliance with the SEC’s position regarding the asset segregation requirements imposed by Section 18 of the 1940 Act, which generally permits a registered investment company to (1) borrow from a bank as long as the registered investment company maintains an asset coverage of at least 300% for all borrowings of such company and (2) enter into certain derivative transactions as long as the Fund at all times maintain an asset coverage of 100%.


7.	Invest its assets in securities of any investment company, except as permitted by the 1940 Act or any rule, regulation or order of the SEC.


8.	Purchase or hold illiquid securities, i.e., securities that cannot be disposed of for their approximate carrying value in seven days or less (which term includes repurchase agreements and time deposits maturing in more than seven days) if, in the aggregate, more than 15% of its net assets would be invested in illiquid securities.

The Monthly Rebalance NASDAQ-100^® 2x Strategy Fund may not:


9.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in the underlying index and securities and financial instruments with economic characteristics that should perform similarly to the securities of companies in its underlying index, without 60 days’ prior notice to shareholders.

The Russell 2000^® 1.5x Strategy Fund may not:


10.	Change its investment strategy to 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 in its underlying index, without 60 days’ prior notice to shareholders.

The Inverse S&P 500^® Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, and Inverse Russell 2000^® Strategy Fund each may not:


11.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments with economic characteristics that should perform opposite the securities of companies in its underlying index, without 60 days’ prior notice to shareholders.

The S&P 500^® Fund, NASDAQ-100^® Fund, Russell 2000^® Fund, and Dow Jones Industrial Average^® Fund each may not:


12.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in its underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index without 60 days’ prior notice to shareholders.

The Mid-Cap 1.5x Strategy Fund may not:


13.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in its underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index without 60 days’ prior notice to shareholders.

The Inverse Mid-Cap Strategy Fund may not:


14.	Change its investment strategy to 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 in its underlying index without 60 days’ prior notice to shareholders.

The 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 each may not:


15.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in its underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index without 60 days’ prior notice to shareholders.

Each Sector Fund and the Real Estate Fund may not:


16.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities (and derivatives thereof) of companies in its respective sector without 60 days’ prior notice to shareholders.

The Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, and Emerging Markets 2x Strategy Fund each may not:


17.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in its underlying index and derivatives and other instruments whose performance is expected to correspond to that of the underlying index without 60 days’ prior notice to shareholders.

The Inverse Emerging Markets 2x Strategy Fund may not:


18.	Change its investment strategy to 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 without 60 days’ prior notice to shareholders.

The Government Long Bond 1.2x Strategy Fund may not:


19.	Change its investment strategy to 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) without 60 days’ prior notice to shareholders.

The Inverse Government Long Bond Strategy Fund may not:


20.	Change its investment strategy to 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 without 60 days’ prior notice to shareholders.

The High Yield Strategy Fund may not:


21.	Change its investment strategy to 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 without 60 days’ prior notice to shareholders.

The Inverse High Yield Strategy Fund may not:


22.	Change its investment strategy to 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 without 60 days’ prior notice to shareholders.

The Emerging Markets Bond Strategy Fund may not:


23.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in a particular type or category of investments or securities without 60 days’ prior notice to shareholders.

The Long Short Equity Fund may not:

24.

Change its investment strategy to invest at least 80% of its 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 calculation) giving exposure (i.e., economic characteristics similar to) to different sectors or industries to which the Fund is seeking exposure, without 60 days' prior notice to shareholders.

The U.S. Government Money Market Fund may not:


25.	Change its investment strategy to invest at least 80% of its net assets, plus any borrowings for investment purposes, in government securities and/or repurchase agreements that are collateralized by government securities without 60 days’ prior notice to shareholders.

With respect to both the fundamental and non-fundamental policies of the Funds, the foregoing percentages: (i) are based on total assets (except for the limitation on illiquid securities, which is based on net assets); (ii) will apply at the time of the purchase of a security (except that if the percentage of a Fund’s net assets invested in illiquid securities exceeds 15% (5% for the U.S. Government Money Market Fund) due to market activity, the Fund will take appropriate measures to reduce its holdings of illiquid securities); and (iii) shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of a purchase of such security, except for the fundamental limitations related to borrowing and the issuance of senior securities.

MORE INFORMATION ABOUT PORTFOLIO TURNOVER

“Portfolio Turnover Rate” is defined under the rules of the SEC as the lesser of the value of the securities purchased or of the securities sold, excluding all securities whose maturities at the time of acquisition were one-year or less, divided by the average monthly value of such securities owned during the year. Based on this definition, instruments with a remaining maturity of less than one-year are excluded from the calculation of the portfolio turnover rate. Instruments excluded from the calculation of portfolio turnover generally would include the futures contracts and option contracts in which the Funds invest because such contracts generally have a remaining maturity of less than one-year.

The following table lists those Funds that have experienced variations in their portfolio turnover rates over one or more of the two most recently completed fiscal years or periods.



Fund Name	Portfolio Turnover Rate for the Fiscal Year Ended March 31, 2016	Portfolio Turnover Rate for the Fiscal Year Ended March 31, 2015	Portfolio Turnover Rate for the Fiscal Year Ended March 31, 2014
Nova Fund	619%	403%	259%
Inverse S&P 500^® Strategy Fund	63%	103%	--
NASDAQ-100^® Fund	228%	267%	141%
Inverse NASDAQ-100^® Strategy Fund	1,674%	149%	--
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	551%	84%	*
Mid-Cap 1.5x Strategy Fund	1,506%	598%	563%
Inverse Mid-Cap Strategy Fund	199%	38%	--
Russell 2000^® 1.5x Strategy Fund	971%	830%	472%
Russell 2000^® Fund	442%	947%	267%
Inverse Russell 2000^® Strategy Fund	584%	189%	--
S&P 500^® Pure Growth Fund	290%	274%	594%
S&P MidCap 400^® Pure Value Fund	493%	638%	506%
S&P SmallCap 600^® Pure Growth Fund	309%	380%	677%
S&P SmallCap 600^® Pure Value Fund	417%	579%	658%
Banking Fund	514%	583%	481%
Basic Materials Fund	471%	358%	349%
Electronics Fund	769%	562%	1,436%
Energy Fund	595%	463%	231%
Energy Services Fund	1,241%	494%	350%
Health Care Fund	249%	176%	277%
Precious Metals Fund	797%	371%	348%
Retailing Fund	238%	395%	671%
Technology Fund	388%	280%	321%
Telecommunications Fund	660%	804%	1,271%
Transportation Fund	219%	247%	593%
Utilities Fund	475%	384%	508%
Europe 1.25x Strategy Fund	920%	608%	654%
Japan 2x Strategy Fund	543%	405%	--
Emerging Markets 2x Strategy Fund	2,874%	1,085%	1,412%
Strengthening Dollar 2x Strategy Fund	376%	299%	--
Weakening Dollar 2x Strategy Fund	699%	219%	--
Real Estate Fund	880%	599%	788%
Government Long Bond 1.2x Strategy Fund	2,699%	1,932%	2,661%
Inverse Government Long Bond Strategy Fund	838%	2,190%	1,097%
High Yield Strategy Fund	521%	393%	205%
Inverse High Yield Strategy Fund	1,722%	784%	--
Emerging Markets Bond Strategy Fund	21,555%	655%	--**

* Not in operation for the period indicated.

** Since commencement of operations: October 8, 2013.

Variations in the Funds’ portfolio turnover rates are due to the fluctuating volume of shareholder purchase and redemption orders.

BROKERAGE ALLOCATION AND OTHER PRACTICES

Brokerage Transactions. Generally, equity securities are bought and sold through brokerage transactions for which commissions are payable. Purchases from underwriters will include the underwriting commission or concession, and purchases from dealers serving as market makers will include a dealer’s markup or reflect a dealer’s markdown. Money market securities and other debt securities are usually bought and sold directly from the issuer or an underwriter or market maker for the securities. Generally, a Fund will not pay brokerage commissions for such purchases. When a debt security is bought from an underwriter, the purchase price will usually include an underwriting commission or concession. The purchase price for securities bought from dealers serving as market makers will similarly include the dealer’s markup or reflect a dealer’s markdown. When a Fund executes transactions in the OTC market, it will generally deal with primary market makers unless prices that are more favorable are otherwise obtainable.

In addition, the Advisor may place a combined order, often referred to as “bunching,” for two or more accounts it manages, including any of the Funds, engaged in the purchase or sale of the same security or other instrument if, in its judgment, joint execution is in the best interest of each participant and will result in best price and execution. Transactions involving commingled orders are allocated in a manner deemed equitable to each account or Fund. Although it is recognized that, in some cases, the joint execution of orders could adversely affect the price or volume of the security that a particular account or a Fund may obtain, it is the opinion of the Advisor and the Trust’s Board that the advantages of combined orders outweigh the possible disadvantages of separate transactions. In addition, in some instances a Fund effecting the larger portion of a combined order may not benefit to the same extent as participants effecting smaller portions of the combined order. Nonetheless, the Advisor believes that the ability of a Fund to participate in higher volume transactions generally will be beneficial to the Fund.

For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following brokerage commissions:



Fund	Fund Inception Date	Aggregate Brokerage Commissions Paid During the Fiscal Year Ended March 31, 2016	Aggregate Brokerage Commissions Paid During the Fiscal Year Ended March 31, 2015	Aggregate Brokerage Commissions Paid During the Fiscal Year Ended March 31, 2014
Inverse Mid-Cap Strategy Fund	2/20/2004	$781	$169	$532
Inverse NASDAQ-100^® Strategy Fund	9/3/1998	$13,080	$1,455	$4,283
Inverse Russell 2000^® Strategy Fund	2/20/2004	$5,339	$2,725	$5,581
Inverse S&P 500^® Strategy Fund	1/7/1994	$6,893	$4,645	$19,233
Mid-Cap 1.5x Strategy Fund	8/16/2001	$81,376	$59,523	$86,941
Dow Jones Industrial Average^® Fund	12/1/2015	$3,293*	**	**
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	11/28/2014	$57,198	$17,256	**
Nova Fund	7/12/1993	$79,367	$31,408	$36,287
NASDAQ-100^® Fund	2/14/1994	$142,756	$175,990	$115,791
Russell 2000^® Fund	5/31/2006	$20,153	$66,922	$107,525
Russell 2000^® 1.5x Strategy Fund	11/1/2000	$27,433	$21,753	$140,492
S&P 500^® Fund	5/31/2006	$63,460	$67,709	$92,406
S&P 500^® Pure Growth Fund	2/20/2004	$112,340	$95,193	$270,582
S&P 500^® Pure Value Fund	2/20/2004	$172,353	$192,059	$202,719
S&P MidCap 400^® Pure Growth Fund	2/20/2004	$77,339	$128,025	$267,848
S&P MidCap 400^® Pure Value Fund	2/20/2004	$86,862	$77,093	$184,257
S&P SmallCap 600^® Pure Growth Fund	2/20/2004	$73,562	$57,236	$286,579
S&P SmallCap 600^® Pure Value Fund	2/20/2004	$77,739	$103,717	$353,371
Banking Fund	4/1/1998	$101,801	$94,966	$101,261
Basic Materials Fund	4/1/1998	$92,867	$119,573	$144,264



Fund	Fund Inception Date	Aggregate Brokerage Commissions Paid During the Fiscal Year Ended March 31, 2016	Aggregate Brokerage Commissions Paid During the Fiscal Year Ended March 31, 2015	Aggregate Brokerage Commissions Paid During the Fiscal Year Ended March 31, 2014
Biotechnology Fund	4/1/1998	$273,046	$390,146	$537,314
Consumer Products Fund	7/6/1998	$160,186	$129,640	$125,794
Electronics Fund	4/1/1998	$108,996	$110,722	$131,172
Energy Fund	4/21/1998	$147,205	$114,715	$68,826
Energy Services Fund	4/1/1998	$207,381	$128,693	$86,995
Financial Services Fund	4/2/1998	$62,170	$66,853	$69,124
Health Care Fund	4/17/1998	$162,061	$114,295	$167,621
Internet Fund	4/6/2000	$91,462	$53,303	$83,493
Leisure Fund	4/1/1998	$73,242	$67,941	$41,684
Precious Metals Fund	12/1/1993	$559,150	$263,832	$703,489
Retailing Fund	4/1/1998	$68,110	$60,161	$88,443
Technology Fund	4/14/1998	$65,699	$48,461	$69,652
Telecommunications Fund	4/1/1998	$57,216	$32,774	$61,294
Transportation Fund	4/2/1998	$26,386	$74,936	$197,689
Utilities Fund	4/3/2000	$140,186	$163,733	$141,919
Europe 1.25x Strategy Fund	5/8/2000	$54,364	$55,297	$109,049
Japan 2x Strategy Fund	2/22/2008	$50,760	$25,205	$37,811
Emerging Markets 2x Strategy Fund	10/29/2010	$99,204	$160,808	$60,385
Inverse Emerging Markets 2x Strategy Fund	10/29/2010	$9,613	$8,621	$6,570
Government Long Bond 1.2x Strategy Fund	1/3/1994	$45,863	$77,025	$121,588
Inverse Government Long Bond Strategy Fund	3/3/1995	$34,223	$70,850	$130,190
High Yield Strategy Fund	4/16/2007	$346,553	$208,361	$37,654
Inverse High Yield Strategy Fund	4/16/2007	$138,163	$33,554	$12,047
Emerging Markets Bond Strategy Fund	10/8/2013	$10,687	$3,406	$542
Strengthening Dollar 2x Strategy Fund	5/25/2005	$94,486	$117,236	$23,559
Weakening Dollar 2x Strategy Fund	5/25/2005	$12,738	$9,467	$11,057
Real Estate Fund	2/20/2004	$133,750	$222,551	$128,437
Long Short Equity Fund	3/22/2002	$73,299	$64,331	$139,158
Event Driven and Distressed Strategies Fund	6/30/2010	$2,717	$3,814	$1,014
U.S. Government Money Market Fund	12/1/1993	$0	$0	$0

* From commencement of operations on December 1, 2015.

** Not in operation for the period indicated.

Differences, year to year, in the amount of brokerage commissions paid by the Funds (as disclosed in the table above) were primarily the result of shareholder purchase and redemption activity, as well as each Fund’s overall volatility. Changes in the amount of commissions paid by a Fund do not reflect material changes in that Fund’s investment objective or strategies over these periods.

Brokerage Selection. The Trust does not expect to use one particular broker or dealer, and when one or more brokers is believed capable of providing the best combination of price and execution, the Advisor may select a broker based upon brokerage or research services provided to the Advisor. The Advisor may pay a higher commission than otherwise obtainable from other brokers in return for such services only if a good faith determination is made that the commission is reasonable in relation to the services provided.

Section 28(e) of the Securities Exchange Act of 1934, as amended (the “1934 Act”) permits the Advisor, under certain circumstances, to cause each Fund to pay a broker or dealer a commission for effecting a transaction in excess of the amount of commission another broker or dealer would have charged for effecting the transaction in recognition of the value of brokerage and research services provided by the broker or dealer. In addition to agency transactions, the Advisor may receive brokerage and research services in connection with certain riskless principal transactions, in accordance with applicable SEC guidance. Brokerage and research services include: (1) furnishing advice as to the value of securities, the advisability of investing in, purchasing or selling securities, and the availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and (3) effecting securities transactions and performing functions incidental thereto (such as clearance, settlement, and custody). In the case of research services, the Advisor believes that access to independent investment research is beneficial to its investment decision-making processes and, therefore, to each Fund.

To the extent research services may be a factor in selecting brokers, such services may be in written form or through direct contact with individuals and may include information as to particular companies and securities as well as market, economic, or institutional areas and information which assists in the valuation and pricing of investments. Examples of research-oriented services for which the Advisor might utilize Fund commissions include research reports and other information on the economy, industries, sectors, groups of securities, individual companies, statistical information, political developments, technical market action, pricing and appraisal services, credit analysis, risk measurement analysis, performance and other analysis. The Advisor may use research services furnished by brokers in servicing all client accounts and not all services may necessarily be used in connection with the account that paid commissions to the broker providing such services. Information so received by the Advisor will be in addition to and not in lieu of the services required to be performed by the Advisor under the Advisory Agreement (as defined below). Any advisory or other fees paid to the Advisor are not reduced as a result of the receipt of research services.

In some cases the Advisor may receive a service from a broker that has both a “research” and a “non-research” use. When this occurs, the Advisor makes a good faith allocation, under all the circumstances, between the research and non-research uses of the service. The percentage of the service that is used for research purposes may be paid for with client commissions, while the Advisor will use its own funds to pay for the percentage of the service that is used for non-research purposes. In making this good faith allocation, the Advisor faces a potential conflict of interest, but the Advisor believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates the anticipated use of such services to its research and non-research uses.

From time to time, a Fund may purchase new issues of securities for clients in a fixed price offering. In these situations, the seller may be a member of the selling group that will, in addition to selling securities, provide the Advisor with research services. The Financial Industry Regulatory Authority (“FINRA”) has adopted rules expressly permitting these types of arrangements under certain circumstances. Generally, the seller will provide research “credits” in these situations at a rate that is higher than that which is available for typical secondary market transactions. These arrangements may not fall within the safe harbor of Section 28(e).

For the fiscal year ended March 31, 2016, the Funds paid the following commissions on brokerage transactions directed to brokers pursuant to an agreement or understanding whereby the broker provides research or other brokerage services to the Advisor:



Fund	Total Dollar Amount of Brokerage Commissions for Research Services Paid During the Fiscal Year Ended March 31, 2016	Total Dollar Amount of Transactions Involving Brokerage Commissions for Research Services Paid During the Fiscal Year Ended March 31, 2016
Inverse Mid-Cap Strategy Fund	$0	$0
Inverse NASDAQ-100^® Strategy Fund	$0	$0
Inverse Russell 2000^® Strategy Fund	$0	$0
Inverse S&P 500^® Strategy Fund	$0	$0
Mid-Cap 1.5x Strategy Fund	$33,785	$245,937,599
Dow Jones Industrial Average^® Fund	$2,467*	$46,174,349*



Fund	Total Dollar Amount of Brokerage Commissions for Research Services Paid During the Fiscal Year Ended March 31, 2016	Total Dollar Amount of Transactions Involving Brokerage Commissions for Research Services Paid During the Fiscal Year Ended March 31, 2016
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	$11,687	$164,851,884
Nova Fund	$29,528	$327,528,691
NASDAQ-100^® Fund	$49,322	$646,811,291
Russell 2000^® Fund	$780	$2,721,535
Russell 2000^® 1.5x Strategy Fund	$10,620	$41,575,281
S&P 500^® Fund	$19,287	$149,347,966
S&P 500^® Pure Growth Fund	$55,777	$414,635,020
S&P 500^® Pure Value Fund	$90,169	$254,362,499
S&P MidCap 400^® Pure Growth Fund	$37,182	$193,686,524
S&P MidCap 400^® Pure Value Fund	$58,986	$114,738,167
S&P SmallCap 600^® Pure Growth Fund	$30,694	$132,176,907
S&P SmallCap 600^® Pure Value Fund	$44,657	$73,962,677
Banking Fund	$47,242	$149,688,938
Basic Materials Fund	$48,194	$137,344,642
Biotechnology Fund	$116,189	$502,249,984
Consumer Products Fund	$98,130	$373,541,664
Electronics Fund	$50,945	$184,582,442
Energy Fund	$77,417	$237,532,880
Energy Services Fund	$97,691	$250,024,254
Financial Services Fund	$31,421	$113,084,347
Health Care Fund	$60,663	$399,054,209
Internet Fund	$48,730	$191,644,147
Leisure Fund	$37,915	$139,307,119
Precious Metals Fund	$288,398	$323,605,603
Retailing Fund	$27,606	$107,853,923
Technology Fund	$34,156	$128,763,680
Telecommunications Fund	$34,725	$93,658,068
Transportation Fund	$9,610	$69,286,178
Utilities Fund	$65,828	$253,375,358
Europe 1.25x Strategy Fund	$12,929	$21,457,253
Japan 2x Strategy Fund	$0	$0
Emerging Markets 2x Strategy Fund	$43,261	$155,083,229
Inverse Emerging Markets 2x Strategy Fund	$0	$0
Strengthening Dollar 2x Strategy Fund	$0	$0
Weakening Dollar 2x Strategy Fund	$0	$0
Real Estate Fund	$64,096	$206,789,269
Government Long Bond 1.2x Strategy Fund	$0	$0
Inverse Government Long Bond Strategy Fund	$0	$0
High Yield Strategy Fund	$21,704	$191,511,641
Inverse High Yield Strategy Fund	$0	$0
Emerging Markets Bond Strategy Fund	$264	$2,479,421
Long Short Equity Fund	$38,022	$166,599,958



Fund	Total Dollar Amount of Brokerage Commissions for Research Services Paid During the Fiscal Year Ended March 31, 2016	Total Dollar Amount of Transactions Involving Brokerage Commissions for Research Services Paid During the Fiscal Year Ended March 31, 2016
Event Driven and Distressed Strategies Fund	$316	$1,308,394
U.S. Government Money Market Fund	$0	$0

* From commencement of operations on December 1, 2015.

Brokerage with Fund Affiliates. A Fund may execute brokerage or other agency transactions through registered broker-dealer affiliates of the Fund, the Advisor or Guggenheim Funds Distributors, LLC (the “Distributor”), the distributor of the Funds’ shares for a commission in conformity with the 1940 Act, the 1934 Act and the rules promulgated by the SEC. In such instances, the placement of orders with such brokers would be consistent with the Funds’ objectives of obtaining best execution and would not be dependent upon the fact that the broker is an affiliate of the Funds, the Advisor or the Distributor. With respect to orders placed with the broker for execution on a securities exchange, commissions received must conform to Section 17(e)(2)(A) of the 1940 Act and Rule 17e-1 thereunder, which permit an affiliated person of a registered investment company, or any affiliated person of such person to receive a brokerage commission from such registered company provided that such commission is fair and reasonable compared to the commission received by other brokers in connection with comparable transactions involving similar securities during a comparable period of time. The members of the Board, including those who are not “interested persons” of the Trust, have adopted procedures for evaluating the reasonableness of commissions paid to affiliates and review these procedures periodically.

For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds did not pay any brokerage commissions to the Distributor or any affiliated brokers.

Securities of “Regular Broker-Dealers.” The Funds are required to identify any securities of their “regular brokers and dealers” (as such term is defined in the 1940 Act) which the Funds may hold at the close of their most recent fiscal year. “Regular brokers or dealers” of the Trust are the ten brokers or dealers that, during the most recent fiscal year, (i) received the greatest dollar amounts of brokerage commissions from the Trust’s portfolio transactions, (ii) engaged as principal in the largest dollar amounts of portfolio transactions of the Trust, or (iii) sold the largest dollar amounts of the Trust’s shares. As of March 31, 2016, the following Funds held the following securities of the Trust’s “regular brokers or dealers”:



Fund	Name of Broker/Dealer	Type of Security	Total Dollar Amount of Securities of Each Regular Broker-Dealer Held
Banking Fund	Bank of America Corp.	Common Stocks	$462,168
	Barclays PLC ADR	Common Stocks	$118,189
	Citigroup, Inc.	Common Stocks	$446,391
	Credit Suisse Group-Spon	Common Stocks	$121,673
	Deutsche Bank-RG	Common Stocks	$116,666
	HSBC Holdings	Common Stocks	$134,127
	Royal Bank of Canada	Common Stocks	$136,993
	UMB Financial Corp.	Common Stocks	$71,456
	HSBC Securities, Inc.	Repurchase Agreements	$94,691
Basic Materials Fund	HSBC Securities, Inc.	Repurchase Agreements	$271,891
Biotechnology Fund	HSBC Securities, Inc.	Repurchase Agreements	$972,186
Consumer Products Fund	HSBC Securities, Inc.	Repurchase Agreements	$1,690,390



Fund	Name of Broker/Dealer	Type of Security	Total Dollar Amount of Securities of Each Regular Broker-Dealer Held
Dow Jones Industrial Average^® Fund	Goldman Sachs Group Inc.	Common Stocks	$2,504,459
	HSBC Securities, Inc.	Repurchase Agreements	$4,300,388
	RBC Capital Markets	Repurchase Agreements	$12,646,618
Electronics Fund	HSBC Securities, Inc.	Repurchase Agreements	$128,157
Emerging Markets 2x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$4,175,894
Emerging Markets 2x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$1,565,564
Emerging Markets Bond Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$65,081
Emerging Markets Bond Strategy Fund	RBC Capital Markets	Repurchase Agreements	$191,390
Energy Fund	HSBC Securities, Inc.	Repurchase Agreements	$84,494
Energy Services Fund	HSBC Securities, Inc.	Repurchase Agreements	$142,541
Europe 1.25x Strategy Fund	Barclays PLC ADR	Common Stocks	$33,256
	BNP Paribas-ADR	Common Stocks	$52,106
	Credit Suisse Group-Spon	Common Stocks	$24,289
	Deutsche Bank-RG	Common Stocks	$21,615
	HSBC Holdings	Common Stocks	$112,779
	HSBC Securities, Inc.	Repurchase Agreements	$309,932
	RBC Capital Markets	Repurchase Agreements	$911,452
Event Driven and Distressed Strategies Fund	HSBC Securities, Inc.	Repurchase Agreements	$523,685
Event Driven and Distressed Strategies Fund	RBC Capital Markets	Repurchase Agreements	$186,703
Financial Services Fund	Bank of America Corp.	Common Stocks	$305,579
	Barclays PLC ADR	Common Stocks	$79,425
	Citigroup, Inc.	Common Stocks	$272,335
	Deutsche Bank-RG	Common Stocks	$82,362
	Goldman Sachs Group Inc.	Common Stocks	$232,016
	HSBC Holdings	Common Stocks	$88,661
	Morgan Stanley	Common Stocks	$170,168
	Royal Bank of Canada	Common Stocks	$99,464
	HSBC Securities, Inc.	Repurchase Agreements	$54,189
Government Long Bond 1.2x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$7,156,420
Government Long Bond 1.2x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$21,045,662
Health Care Fund	HSBC Securities, Inc.	Repurchase Agreements	$142,686
High Yield Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$28,464,766
High Yield Strategy Fund	RBC Capital Markets	Repurchase Agreements	$83,709,434
Internet Fund	HSBC Securities, Inc.	Repurchase Agreements	$105,190
Inverse Emerging Markets 2x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$1,472,100
Inverse Emerging Markets 2x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$1,458,452
Inverse Government Long Bond Strategy Fund	Barclays	Repurchase Agreements	$114,109,500
	HSBC Securities, Inc.	Repurchase Agreements	$482,063
	RBC Capital Markets	Repurchase Agreements	$1,417,654
Inverse High Yield Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$1,746,236
Inverse High Yield Strategy Fund	RBC Capital Markets	Repurchase Agreements	$5,135,347
Inverse Mid-Cap Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$651,200
Inverse Mid-Cap Strategy Fund	RBC Capital Markets	Repurchase Agreements	$1,191,437



Fund	Name of Broker/Dealer	Type of Security	Total Dollar Amount of Securities of Each Regular Broker-Dealer Held
Inverse NASDAQ-100^® Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$14,106,668
Inverse NASDAQ-100^® Strategy Fund	RBC Capital Markets	Repurchase Agreements	$14,502,101
Inverse Russell 2000^® Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$3,365,285
Inverse Russell 2000^® Strategy Fund	RBC Capital Markets	Repurchase Agreements	$5,515,997
Inverse S&P 500c Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$20,635,734
Inverse S&P 500c Strategy Fund	RBC Capital Markets	Repurchase Agreements	$14,238,042
Japan 2x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$375,838
Japan 2x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$1,105,266
Leisure Fund	HSBC Securities, Inc.	Repurchase Agreements	$394,578
Long Short Equity Fund	Citigroup Inc.	Common Stocks	$175,350
	HSBC Securities, Inc.	Repurchase Agreements	$1,786,411
	RBC Capital Markets	Repurchase Agreements	$5,253,494
Mid-Cap 1.5x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$607,576
Mid-Cap 1.5x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$633,778
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$675,633
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$1,749,149
NASDAQ-100^® Fund	HSBC Securities, Inc.	Repurchase Agreements	$20,685,906
NASDAQ-100^® Fund	RBC Capital Markets	Repurchase Agreements	$28,365,564
Nova Fund	Bank of America Corp.	Common Stocks	$1,220,072
	Citigroup Inc.	Common Stocks	$1,075,731
	Goldman Sachs Group Inc.	Common Stocks	$538,912
	Morgan Stanley	Common Stocks	$333,934
	HSBC Securities, Inc.	Repurchase Agreements	$12,541,190
	RBC Capital Markets	Repurchase Agreements	$16,658,647
Precious Metals Fund	HSBC Securities, Inc.	Repurchase Agreements	$396,314
Real Estate Fund	HSBC Securities, Inc.	Repurchase Agreements	$48,322
Retailing Fund	HSBC Securities, Inc.	Repurchase Agreements	$27,844
Russell 2000^® 1.5x Strategy Fund	UMB Financial Corp.	Common Stocks	$8,622
	HSBC Securities, Inc.	Repurchase Agreements	$677,946
	RBC Capital Markets	Repurchase Agreements	$1,357,602
Russell 2000^® Fund	UMB Financial Corp.	Common Stocks	$14,921
	HSBC Securities, Inc.	Repurchase Agreements	$12,223,497
	RBC Capital Markets	Repurchase Agreements	$32,840,676
S&P 500^® Fund	Bank of America Corp.	Common Stocks	$1,489,120
	Citigroup Inc.	Common Stocks	$1,312,912
	Goldman Sachs Group Inc.	Common Stocks	$657,746
	Morgan Stanley	Common Stocks	$407,563
	HSBC Securities, Inc.	Repurchase Agreements	$13,566,166
	RBC Capital Markets	Repurchase Agreements	$21,752,596
S&P 500^® Pure Growth Fund	HSBC Securities, Inc.	Repurchase Agreements	$228,734
S&P 500^® Pure Growth Fund	RBC Capital Markets	Repurchase Agreements	$672,662



Fund	Name of Broker/Dealer	Type of Security	Total Dollar Amount of Securities of Each Regular Broker-Dealer Held
S&P 500^® Pure Value Fund	Bank of America Corp.	Common Stocks	$749,941
	Citigroup Inc.	Common Stocks	$741,772
	Goldman Sachs Group Inc.	Common Stocks	$538,755
	HSBC Securities, Inc.	Repurchase Agreements	$248,307
	RBC Capital Markets	Repurchase Agreements	$730,223
S&P MidCap 400^® Pure Growth Fund	HSBC Securities, Inc.	Repurchase Agreements	$177,936
S&P MidCap 400^® Pure Growth Fund	RBC Capital Markets	Repurchase Agreements	$523,276
S&P MidCap 400^® Pure Value Fund	HSBC Securities, Inc.	Repurchase Agreements	$124,666
S&P MidCap 400^® Pure Value Fund	RBC Capital Markets	Repurchase Agreements	$366,620
S&P SmallCap 600^® Pure Growth Fund	HSBC Securities, Inc.	Repurchase Agreements	$40,918
S&P SmallCap 600^® Pure Growth Fund	RBC Capital Markets	Repurchase Agreements	$120,332
S&P SmallCap 600^® Pure Value Fund	HSBC Securities, Inc.	Repurchase Agreements	$58,301
S&P SmallCap 600^® Pure Value Fund	RBC Capital Markets	Repurchase Agreements	$171,451
Strengthening Dollar 2x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$1,037,916
Strengthening Dollar 2x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$1,442,266
Technology Fund	HSBC Securities, Inc.	Repurchase Agreements	$184,493
Telecommunications Fund	HSBC Securities, Inc.	Repurchase Agreements	$282,461
Transportation Fund	HSBC Securities, Inc.	Repurchase Agreements	$240,047
U.S. Government Money Market Fund	HSBC Securities, Inc.	Repurchase Agreements	$16,159,705
U.S. Government Money Market Fund	RBC Capital Markets	Repurchase Agreements	$195,980,842
Utilities Fund	HSBC Securities, Inc.	Repurchase Agreements	$1,281,503
Weakening Dollar 2x Strategy Fund	HSBC Securities, Inc.	Repurchase Agreements	$782,280
Weakening Dollar 2x Strategy Fund	RBC Capital Markets	Repurchase Agreements	$1,581,872

MANAGEMENT OF THE TRUST

Board Responsibilities. The management and affairs of the Trust are overseen by the Board under the laws of the State of Delaware and federal securities laws, including the 1940 Act. The Board is responsible for overseeing the management and affairs of the Funds and each of the Trust’s other funds not described in this SAI. The Board has considered and approved contracts, as described below, under which certain companies provide essential management and administrative services to the Trust. Like most mutual funds, the day-to-day business of the Trust, including the day-to-day management of risk, is performed by third-party service providers, such as the Advisor, Distributor, and Rydex Fund Services, LLC (the “Servicer”). The Board is responsible for generally overseeing the Trust’s service providers. The Board has formed a Compliance and Risk Oversight Committee to focus, in part, on the oversight of the risk management performed by the Trust’s service providers. Risk management seeks to identify and eliminate or mitigate the potential effects of risks, i.e., events or circumstances that could have material adverse effects on the business, operations, shareholder services, investment performance or reputation of the Trust or Funds. Under the oversight of the Board, the Compliance and Risk Oversight Committee, and the Audit Committee (discussed in more detail below), the service providers to the Funds employ a variety of processes, procedures and controls to identify risks relevant to the operations of the Trust and the Funds to lessen the probability of the occurrence of such risks and/or to mitigate the effects of such events or circumstances if they do occur. Each service provider is responsible for one or more discrete aspects of the Trust’s operations and, consequently, for managing the risks associated with that activity. The Board periodically emphasizes to the Funds’ service providers the importance of consistent and vigorous risk management.

The Board’s role in risk management oversight begins before the inception of a fund, at which time the fund’s primary service providers present the Board with information concerning the investment objectives, strategies and risks of the fund as well as proposed investment limitations for the fund. Additionally, the fund’s Advisor provides the Board with an overview of, among other things, its investment philosophy, brokerage practices and compliance infrastructure. Thereafter, the Board oversees the risk management of the fund’s operations, in part, by requesting periodic reports

from and otherwise communicating with various personnel of the fund and its service providers, including in particular the Funds’ Chief Compliance Officer and the fund’s independent accountants. The Board, the Compliance and Risk Oversight Committee and, with respect to identified risks that relate to its scope of expertise, the Audit Committee oversee efforts by management and service providers to manage risks to which the fund may be exposed.

The Board is responsible for overseeing the nature, extent and quality of the services provided to each Fund by the Advisor and receives information about those services at its regular meetings. In addition, on an annual basis, in connection with its consideration of whether to renew the Advisory Agreement with the Advisor, the Board meets with the Advisor to review such services. Among other things, the Board regularly considers the Advisor’s adherence to each Fund's investment restrictions and compliance with Fund policies and procedures and with applicable securities regulations. The Board also reviews information about each Fund's investments, including, for example, portfolio holdings schedules and reports on the Advisor’s use of higher-risk financial instruments, such as derivatives, in managing the Fund, if any, as well as reports on the Fund’s investments in other investment companies, if any. The Funds’ Chief Compliance Officer reports regularly to the Board to review and discuss compliance issues and Fund and Advisor risk assessments. At least annually, the Funds’ Chief Compliance Officer provides the Board with a report reviewing the adequacy and effectiveness of the Trust’s policies and procedures and those of its service providers, including the Advisor. The report addresses the operation of the policies and procedures of the Trust and each service provider since the date of the last report; any material changes to the policies and procedures since the date of the last report; any recommendations for material changes to the policies and procedures; and any material compliance matters since the date of the last report.

The Board receives periodic reports from the Funds’ service providers regarding operational risks and risks related to the valuation and liquidity of portfolio securities. The Advisor’s Valuation and Credit Review Committees, in particular, make regular reports to the Board concerning investments for which market quotations are not readily available or as otherwise required in accordance with the 1940 Act or the Trust’s valuation procedures and the creditworthiness of investment counterparties, respectively. Annually, the Trust’s independent registered public accounting firm reviews with the Audit Committee its audit of each Fund’s financial statements, focusing on major areas of risk encountered by the Fund and noting any significant deficiencies or material weaknesses in each Fund’s internal controls. Additionally, in connection with its oversight function, the Board oversees Fund management’s implementation of disclosure controls and procedures, which are designed to ensure that information required to be disclosed by the Trust in its periodic reports with the SEC are recorded, processed, summarized, and reported within the required time periods. The Board also oversees the Trust’s internal controls over financial reporting, which comprise policies and procedures designed to provide reasonable assurance regarding the reliability of the Trust’s financial reporting and the preparation of the Trust’s financial statements.

From their review of these reports and discussions with the Advisor, Chief Compliance Officer, independent registered public accounting firm, and other service providers, the Board, the Compliance and Risk Oversight Committee, and the Audit Committee learn in detail about any material risks associated with each Fund, thereby facilitating a dialogue about how each of the service providers identify and mitigate those risks. The Board recognizes that not all risks that may affect each Fund can be identified, that it may not be practical or cost-effective to eliminate or mitigate certain risks, that it may be necessary to bear certain risks (such as investment-related risks) to achieve each Fund's goals, and that the processes, procedures and controls employed to address certain risks may be limited in their effectiveness. Moreover, despite the periodic reports the Board receives, it may not be made aware of all of the relevant information of a particular risk. Most of each Fund's investment management and business affairs are carried out by or through the Fund’s Advisor and other service providers each of which has an independent interest in risk management but whose policies and the methods by which one or more risk management functions are carried out may differ from each Fund's and each other’s in the setting of priorities, the resources available or the effectiveness of relevant controls. As a result of the foregoing and other factors, the Board’s risk management oversight is subject to limitations.

Members of the Board and Officers of the Trust. Set forth below is the name, year of birth, position with the Trust, term of office, and the principal occupations for a minimum of the last five years of each of the persons currently serving as members of the Board and as Executive Officers of the Trust. Also included below is the term of office for each of the Executive Officers of the Trust. The members of the Board serve as Trustees for the life of the Trust or until retirement, removal, or their office is terminated pursuant to the Trust’s Declaration of Trust. On July 6, 2016, the Board elected two new Trustees: Angela Brock-Kyle and Sandra Sponem. Mses. Brock-Kyle and Sponem commence serving as independent Trustees (as that term is defined below) effective August 18, 2016. Unless otherwise noted, the business address of each Trustee and Officer is 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850.

The Chairman of the Board, Werner E. Keller, is not an interested person, as that term is defined by the 1940 Act, of the Funds and is an “independent Trustee.” The Trust has determined its leadership structure is appropriate given the specific characteristics and circumstances of the Trust. The Trust made this determination in consideration of, among other things, the fact that the Chairman of the Board is an independent Trustee; only one member of the seven member Board is an interested Trustee; the fact that the chairperson of each Committee of the Board is an independent Trustee; and the amount of assets under management in the Trust, and the number of funds (and classes of shares) overseen by the Board. The Board also believes that its leadership structure facilitates the orderly and efficient flow of information to the independent Trustees from Fund management.

Trustees



Name, Address and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
Interested Trustee
Donald C. Cacciapaglia* (1951)	Trustee from 2012 to present.	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and Chief Executive Officer, Channel Capital Group, Inc. (2002-2010).	232	Clear Spring Life Insurance Company (2015-present); Guggenheim Partners Japan, Ltd. (2014-present); Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
Independent Trustees
Angela Brock-Kyle** (1959)	Trustee from August 2016 to present.	Current: Founder and Chief Executive Officer, B.O.A.R.D.S (consulting firm) Former: Senior Leader, TIAA (financial services firm) (1987-2012).	135	Infinity Property & Casualty Corporation (2014-present).
Corey A. Colehour (1945)	Trustee from 1993 to present; Member of the Audit Committee from 1994 to present; Member of the Governance Committee from 2014 to present; and Member of the Investment and Performance Committee from 2014 to present.	Retired.	135	None.



Name, Address and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
J. Kenneth Dalton (1941)	Trustee from 1995 to present; Chairman and Member of the Audit Committee from 1997 to present; and Member of the Compliance and Risk Oversight Committee from 2010 to present.	Retired.	135	Trustee of Epiphany Funds (3) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board from 2014 to present (Chairman of the Board from 2006 to 2014); Trustee and Member of the Audit Committee from 1997 to present; Chairman (since 2014) and Member of the Compliance and Risk Oversight Committee from 2010 to present; Chairman and Member of the Investment and Performance Committee from 2014 to present; and Member of the Nominating Committee from 2014 to present.	Retired.	135	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present (Vice Chairman of the Board from 2010 to 2014); Trustee and Member of the Audit Committee from 2005 to present; Member of the Investment and Performance Committee from 2014 to present; and Member of the Compliance and Risk Oversight Committee, Governance Committee, and Nominating Committee from 2015 to present.	Current: Founder and President, Keller Partners, Inc. (investment research firm) (2005-present).	135	None.



Name, Address and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee****
Thomas F. Lydon (1960)	Trustee and Member of the Audit Committee from 2005 to present; Member of the Nominating Committee from 2005 to present; and Member of the Governance Committee from 2007 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	135	Board of Directors of US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee from 1997 to present; Member of the Audit Committee from 1997 to present; Chairman and Member of the Nominating Committee from 2005 to present; Chairman and Member of the Governance Committee from 2007 to present; and Member of the Compliance and Risk Oversight Committee from 2014 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	135	None.
Sandra G. Sponem** (1958)	Trustee from August 2016 to present.	Current: Senior Vice President and Chief Financial Officer, M.A. Mortenson Companies, Inc. (general contracting firm) (2007-present).	135	None.


*	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Advisor’s parent company.


**	Mses. Brock-Kyle and Sponem commence serving as independent Trustees effective August 18, 2016.


***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Advisor and any funds that have an investment adviser or servicing agent that is an affiliated person of the Advisor. Information provided is as of the date of this SAI.


****	Certain of the Trustees may serve as directors on the boards of companies not required to be disclosed above, including certain non-profit companies and charitable foundations.

Officers



Name, Address and Year of Birth of Officer	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and Chief Executive Officer, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and Chief Executive Officer, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (2000-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director(2008- 2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary(2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Nikolaos Bonos (1963)	Vice President and Treasurer (2003-present).	Current: Treasurer and Vice President, certain other funds in the Fund Complex (2003-present); Senior Vice President, Security Investors, LLC (2010-present); Chief Executive Officer, Guggenheim Specialized Products, LLC (2009-present); President and Chief Executive Officer, Rydex Fund Services, LLC (2009-present); Vice President, Rydex Holdings, LLC (2008-present). Former: Senior Vice President, Security Global Investors, LLC (2010-2011); Senior Vice President, Rydex Advisors, LLC (2006-2011); Senior Vice President, Rydex Advisors II, LLC (2006-2011).
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: Chief Compliance Officer, certain other funds in the Fund Complex (2012-present); Chief Compliance Officer, Security Investors, LLC (2012-present); Chief Compliance Officer, Guggenheim Funds Investment Advisors, LLC (2012-present); Managing Director, Guggenheim Investments (2014-present); Vice President, Guggenheim Funds Distributors, LLC (2014-present). Former: Chief Compliance Officer, Guggenheim Distributors, LLC (2009-2014); Senior Manager, Security Investors, LLC (2004- 2014); Senior Manager, Guggenheim Distributors, LLC (2004-2014).



Name, Address and Year of Birth of Officer	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
Joseph M. Arruda (1966)	Assistant Treasurer (2006-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2006-present); Vice President, Security Investors, LLC (2010-present); Chief Financial Officer and Manager, Guggenheim Specialized Products, LLC (2009- present). Former: Vice President, Security Global Investors, LLC (2010-2011); Vice President, Rydex Advisors, LLC (2010); Vice President, Rydex Advisors II, LLC (2010).
Paul J. Davio (1972)	Assistant Treasurer (2014-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2014-present); Director, Guggenheim Investments (2006-present). Former: Manager, Mutual Fund Administration, Guggenheim Investments (2003-2006).
Amy J. Lee (1961)	Vice President (2009-present); and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2013-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

Board Standing Committees. The Board has established the following standing committees:

Audit Committee. The Board has a standing Audit Committee that is composed of independent trustees of the Trust. The Audit Committee operates pursuant to a written charter approved by the Board. The principal responsibilities of the Audit Committee include: (i) recommending which firm to engage as the Trust’s independent registered public accounting firm and whether to terminate this relationship; (ii) reviewing the independent registered public accounting firm’s compensation, the proposed scope and terms of its engagement, and the firm’s independence; (iii) serving as a channel of communication between the independent registered public accounting firm and the Board; (iv) reviewing the results of each external audit, including any qualifications in the independent registered public accounting firm’s opinion, any related management letter, management’s responses to recommendations made by the independent registered public accounting firm in connection with the audit, if any, reports submitted to the Committee by the Trust’s service providers that are material to the Trust as a whole, and management’s responses to any such reports; (v) reviewing the Trust’s audited financial statements and considering any significant disputes between the Trust’s management and the independent registered public accounting firm that arose in connection with the preparation of those financial statements; (vi) considering, in consultation with the independent registered public accounting firm and the Trust’s senior internal accounting executive, the independent registered public accounting firm’s report on the adequacy of the Trust’s internal financial controls; (vii) reviewing, in consultation with the Trust’s independent registered public accounting firm, major changes regarding auditing and accounting principles and practices to be followed when auditing the Trust’s financial statements; and (viii) other audit related matters. Messrs. Dalton (Chair), Colehour, Demaret, Keller, Lydon and McCarville serve as members of the Audit Committee. The Audit Committee met five (5) times during the fiscal year ended March 31, 2016.

Compliance and Risk Oversight Committee. The Board has a standing Compliance and Risk Oversight Committee that operates under a written charter approved by the Board. The role of the Compliance and Risk Oversight Committee is to assist the Board in fulfilling its responsibility to oversee compliance and risk management activities applicable to the Funds. With respect to compliance, the Committee oversees the activities of the Chief Compliance Officer of the Funds and the policies and procedures of the Funds designed to assure compliance with the 1940 Act and the rules and regulations of the SEC thereunder and other applicable laws and regulations. With respect to risk, the Committee oversees the risk management activities applicable to the Funds, policies and procedures designed to deal with systems failure, disaster recovery, business continuity and other operational risks; counterparty credit, liquidity, valuation, leverage and

other market and investment risks; and legal and compliance risks. Prior to June 4, 2014, the Compliance and Risk Oversight Committee operated as the Risk Oversight Committee and was responsible only for risk oversight. The Committee charter was amended on June 4, 2014 to add the compliance oversight function as a responsibility of the Committee. Messrs. Demaret (Chair), Dalton, Keller and McCarville serve as members of the Compliance and Risk Oversight Committee. The Risk Oversight Committee met once during the fiscal year ended March 31, 2016.

Governance Committee. The Board has a standing Governance Committee that operates under a written charter approved by the Board. The role of the Governance Committee is to assist the Board in assuring the effective governance of the Trust, including: (i) monitoring and making recommendations regarding committees of the Board, including the responsibilities of those committees as reflected in written committee charters, and committee assignments; (ii) making recommendations regarding the term limits and retirement policies applicable to the Independent Trustees of the Trust; (iii) considering and making recommendations to the Board concerning the compensation of the Independent Trustees, the Independent Chairman of the Board, including any special compensation for serving as chairman of a member of a committee of the Board, and expense reimbursement policies applicable to the Independent Trustees; (iv) periodically reviewing and making recommendations regarding the size and composition of the Board, including recommendations to the Board concerning the need to increase or decrease the size of the Board or to add individuals with special knowledge, skill sets or backgrounds to the Board; (v) overseeing the orientation and education processes for new Independent Trustees and continuing education of incumbent Independent Trustees; (vi) monitoring the independence and performance of legal counsel to the Independent Trustees and making recommendations to the Independent Trustees regarding the selection of independent counsel to the Independent Trustees; (vii) overseeing the process regarding the Board’s periodic self-assessments and making recommendations to the Board concerning that process; and (viii) making recommendations to the Board concerning all other matters pertaining to the functioning of the Board and committees of the Board and pertaining generally to the governance of the Trust. Messrs. McCarville (Chair), Colehour, Keller and Lydon serve as members of the Governance Committee. The Governance Committee met four (4) times during the fiscal year ended March 31, 2016.

Investment and Performance Committee. The Board has a standing Investment and Performance Committee that operates under a written charter approved by the Board. The responsibilities of the Investment and Performance Committee include, among others the: (i) review of the investment performance of the Funds; (ii) review of the Funds’ use of derivatives and other complex financial instruments, including valuation issues and any other matters related to derivatives; (iii) review of any proposed material changes to the Funds’ derivatives policies; and (iv) review any changes to the Funds’ sub-adviser(s) proposed by the Adviser, including hiring of new sub-advisers and termination of sub-advisers. Messrs. Demaret (Chair), Colehour and Keller serve as members of the Investment and Performance Committee. The Investment and Performance Committee met four (4) times during the fiscal year ended March 31, 2016.

Nominating Committee. The Board has a separate standing Nominating Committee that operates under a written charter approved by the Board. The role of the Nominating Committee is to identify, evaluate and nominate individuals to serve as trustees of the Trust including, shareholder recommendations for nominations to fill vacancies on the Board. The Nominating Committee does not currently have specific procedures in place to consider nominees recommended by shareholders, but would consider such nominees if submitted in accordance with Rule 14a-8 of the 1934 Act in conjunction with a shareholder meeting to consider the election of Board members. Messrs. McCarville (Chair), Demaret, Keller and Lydon serve as members of the Nominating Committee. The Nominating Committee met ten (10) times during the fiscal year ended March 31, 2016.

Individual Trustee Qualifications. The Board has concluded that each of the Trustees should serve on the Board because of their ability to review and understand information about the Trust and the Funds provided to them by management; to identify and request other information they may deem relevant to the performance of their duties; to question management and other service providers regarding material factors bearing on the management and administration of the Funds; and to exercise their business judgment in a manner that serves the best interests of the Funds’ shareholders. The Board has concluded that each of the Trustees should serve as a Trustee based on their own experience, qualifications, attributes and skills as described below.

The Board has concluded that Angela Brock-Kyle should serve as Trustee because of her significant experience working in the financial services industry for over twenty-five years. Through her prior positions, including with TIAA, Ms. Brock-Kyle has gained experience in multiple facets of the financial operations services industry, including institutional investment and portfolio management, enterprise-wide risk management, and liaising with various financial services regulators. Ms. Brock-Kyle also has extensive experience serving on the boards of both public and non-profit companies, including service as Audit Committee chair and as a member of Nominating and Governance Committees. Ms. Brock-Kyle's extensive experience in the financial services industry, knowledge of the asset management industry, and

experience serving on other boards complements the experience of the existing Trustees and qualifies her to serve as Trustee of the Funds.

The Board has concluded that Donald C. Cacciapaglia should serve as Trustee because of his prior experience working in the investment banking and financial services industries. He is President and Chief Executive Officer of the Advisor and Vice Chairman of Guggenheim Investments. Most recently he was Chairman and Chief Executive Officer of Channel Capital Group Inc. and its subsidiary broker-dealer Channel Capital Group LLC, a Guggenheim affiliated company. From 1996 until 2002 when he joined Channel Capital Group, Mr. Cacciapaglia held the position of Managing Director and Chief Operating Officer of the Investment Banking Group at PaineWebber. Additionally, in 1998, he started PaineWebber’s Private Equity Group and assumed responsibility for the coverage of Leveraged Buyout firms and the Investment Bank’s Business Development Group. Before that, Mr. Cacciapaglia was Chief Operating Officer of the Short and Intermediate Trading Group at CS First Boston (1995-1996). From 1977 to 1995, he held numerous positions at Merrill Lynch & Co., including Chief Operating Officer and Senior Managing Director of Investment Banking, Senior Managing Director of Global Fixed Income Research and Analytics and Managing Director of the Western Institutional Region for sales and trading in San Francisco. Mr. Cacciapaglia was a Senior Analyst with the Federal Reserve Bank of New York from 1973-1977. Licenses: Series 7, 63, 8, 3 and 24.

The Board has concluded that Corey A. Colehour should serve as Trustee because of the experience he has gained as a Trustee of the Trust since 1993 and his prior experience working in the financial services industry. In addition to his service as Trustee, Mr. Colehour has served as a member of the Audit Committee since 1994 and as a member of the Governance Committee and Investment and Performance Committee since 2014. In addition to his experience as a Trustee of, and his extensive institutional knowledge of, Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust, Mr. Colehour acquired valuable knowledge about the operations of a registered investment adviser in his role as President and Senior Vice President of Schield Management Company, an SEC registered investment adviser. Mr. Colehour’s significant tenure as a Trustee and his extensive knowledge of the financial services industry qualify Mr. Colehour to serve as Trustee of the Funds.

The Board has concluded that J. Kenneth Dalton should serve as Trustee because of his role as a Trustee of the Trust since 1995 and his extensive knowledge of the banking and financial services industry. In addition to his service as Trustee, Mr. Dalton has served as a member and Chairman of the Audit Committee since 1997 and as a member of the Compliance and Risk Oversight Committee since 2010. The expertise Mr. Dalton developed during his more than twenty-nine (29) years in the mortgage and banking industries, including positions as President of CRAM Mortgage Service, Inc. and as the founder of the Dalton Group, a mortgage banking consulting firm, serves as a valuable resource for the Board when evaluating certain of the Funds’ investments and the conditions of the banking and mortgage industries in general, and complements the other Trustees’ areas of expertise. Mr. Dalton’s service as a trustee for another mutual fund company also provides invaluable experience and perspective to the Board and has contributed to Mr. Dalton’s knowledge of the mutual fund business.

The Board has concluded that John O. Demaret should serve as Trustee and Vice Chairman of the Board because of the experience he has gained as a Trustee of the Trust since 1997 and his experience as Chairman of the Board from 2006 to 2014. In addition to his service as Trustee, Mr. Demaret has served as a member of the Audit Committee since 1997, Compliance and Risk Oversight Committee since 2010, and Nominating Committee and Investment and Performance Committee since 2014. Since 2014, he has served as Chairman of the Compliance and Risk Oversight Committee and the Investment and Performance Committee. As current Vice Chairman and former Chairman of the Board, Mr. Demaret has experience working with all of the Trustees, Officers and management to effectively lead and communicate with the Board. In addition to his experience as a Trustee for Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust, Mr. Demaret also was Founder and CEO of Health Costs Controls America and served as General Counsel of the Chicago Transit Authority, and as a senior partner in a private legal practice. Based on his prior work experience and his experience serving as a Trustee and Chairman of the Board, Mr. Demaret has extensive knowledge of the mutual fund business and financial services industry.

The Board has concluded that Werner E. Keller, CFA should serve as Trustee and Chairman of the Board because of the experience he has gained as a Trustee of the Trust since 2005 and his prior experience working in the financial services industry. In addition to his service as Trustee, Mr. Keller has served as a member of the Audit Committee since 2005, the Investment and Performance Committee since 2014, and the Compliance and Risk Oversight Committee, Governance Committee and Nominating Committee since 2015. He previously served as a member of the Nominating Committee from 2005 to 2014 and as a member of the Governance Committee from 2007 to 2014. In addition, Mr. Keller served as the Chairman of the Compliance and Risk Oversight Committee from 2010 to 2014. Mr. Keller serves as the Financial Expert of the Audit Committee. Mr. Keller served as Vice Chairman of the Board from 2010 to 2014, when he assumed

his role as Chairman of the Board. As current Chairman and former Vice Chairman of the Board, Mr. Keller has experience working with all of the Trustees, Officers and management to effectively lead and communicate with the Board. In addition to his experience as a Trustee for Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust, Mr. Keller acquired understanding about the operations of a registered investment adviser during his tenure as Founder and President of Centurion Capital Management, an SEC-registered investment adviser. He also held the position of Director of Research for three NYSE member firms and taught courses in portfolio management and investment analysis at UCLA Extension. In addition, he has published several academic articles on quantitative investment topics. Mr. Keller’s service as a Trustee, specialized prior work experience, and knowledge of the financial services industry and mutual fund business qualify Mr. Keller to serve as a Trustee of the Funds.

The Board has concluded that Thomas F. Lydon should serve as Trustee because of the experience he has gained as a Trustee of the Trust since 2005 and his prior work experience in the financial services industry. In addition to his service as Trustee, Mr. Lydon has served as a member of the Audit Committee and Nominating Committee since 2005 and as a member of the Governance Committee since 2007. In addition to his experience as a Trustee of Rydex Series Funds, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust, Mr. Lydon is currently President of Global Trends Investments, an SEC registered investment adviser, where he has served since 1996. Mr. Lydon has also served on the board of U.S. Global Investors, Inc. (GROW), the investment adviser and transfer agent to thirteen open-end investment companies, since April 1995, and is the editor of ETF Trends, a website specializing in daily news and commentary about the ETF industry. He has also authored two books about ETFs. Based on his experience as a Trustee, his experience serving on another board, and his related work experience, Mr. Lydon has extensive knowledge of the mutual fund business and the financial services industry.

The Board has concluded that Patrick T. McCarville should serve as Trustee because of the experience and institutional knowledge he has gained in his role as Trustee of the Trust since 1997. In addition to his service as Trustee, Mr. McCarville has served as a member of the Audit Committee since 1997, as Chairman and member of the Nominating Committee since 2005, and as Chairman and member of the Governance Committee since 2007. He also has served as a member of the Compliance & Risk Oversight Committee since 2014. Mr. McCarville contributes a wealth of business and management experience to the Board having founded Par Industries, Inc., a well-established equipment leasing business, and serving as its Chief Executive Officer for more than thirty years. Mr. McCarville continues to be active in the manufacturing industry and serves as a Director of Tomco Equipment Co., a manufacturer of cylinders for CO2 distribution. Based on his extensive business experience and experience serving as a Trustee, Mr. McCarville has extensive knowledge of the financial services industry.

The Board has concluded that Sandra Sponem should serve as Trustee because of the experience she has gained working in various leadership positions in the accounting and finance industry for thirty six years and the financial services industry for sixteen years. Ms. Sponem gained significant knowledge of the institutional and retail brokerage, securities trading, investment research, investment banking and asset management industries during her tenure as the Chief Financial Officer of Piper Jaffray Companies, Inc. and its predecessor, U.S. Bancorp Piper Jaffray, Inc. Ms. Sponem also previously held several securities licenses and is a certified public accountant. Ms. Sponem’s extensive knowledge of accounting and finance and the financial services industry complements the other Trustees' experience and qualifies her to serve as Trustee of the Funds.

Fund Shares Owned by Board Members. The following table shows the dollar amount range of each Trustee’s “beneficial ownership” of shares of the Funds and each other series of the Trust, Rydex Dynamic Funds, Rydex Variable Trust and Rydex ETF Trust as of the end of the most recently completed calendar year. Dollar amount ranges disclosed are established by the SEC. “Beneficial ownership” is determined in accordance with Rule 16a-1(a)(2) under the 1934 Act. As of the date of this SAI, the Trustees and the officers of the Trust own less than 1% of the outstanding shares of the Trust.



Name	Fund Name	Dollar Range of Fund Shares¹	Aggregate Dollar Range of Shares in Fund Complex Overseen by Trustee^1,2
Interested Trustee
Donald C. Cacciapaglia	None	None	None
Independent Trustees
Angela Brock-Kyle	None	None	None
Corey A. Colehour	None	None	Over $100,000
J. Kenneth Dalton	None	None	$50,001 - $100,000
John O. Demaret	None	None	Over $100,000
Thomas F. Lydon, Jr.	None	None	None
Werner E. Keller	U.S. Government Money Market Fund	$10,001 - $50,000	Over $100,000
Werner E. Keller	Precious Metals Fund	$1 - $10,000	Over $100,000
Patrick T. McCarville	Long Short Equity Fund	$50,001 - $100,000	Over $100,000
	NASDAQ-100^® Fund	$1 - $10,000
	Nova Fund	$10,001 - $50,000
Sandra G. Sponem	None	None	None


¹	Information provided for each Trustee (with the exception of Mses. Brock-Kyle and Sponem) is as of December 31, 2015. Information provided for Mses. Brock-Kyle and Sponem is as of May 20, 2016.

² Includes shares held in the Trust, Rydex Dynamic Funds, Rydex Variable Trust and Rydex ETF Trust.

Board Compensation. The following table sets forth compensation paid by the Trust for the fiscal year ended March 31, 2016:



Name of Trustee	Aggregate Compensation From Trust	Pension or Retirement Benefits Accrued as Part of Trust’s Expenses	Estimated Annual Benefits Upon Retirement	Total Compensation from Fund Complex¹
Interested Trustee
Donald C. Cacciapaglia	$0	$0	$0	$0
Independent Trustees
Angela Brock-Kyle²	$0	$0	$0	$0
Corey A. Colehour	$55,100	$0	$0	$225,000
J. Kenneth Dalton	$60,000	$0	$0	$245,000
John O. Demaret	$64,200	$0	$0	$265,000
Werner E. Keller	$69,800	$0	$0	$285,000
Thomas F. Lydon, Jr.	$55,100	$0	$0	$225,000
Patrick T. McCarville	$60,000	$0	$0	$245,000
Sandra G. Sponem²	$0	$0	$0	$0


¹	Represents total compensation for service as Trustee of the Trust, Rydex Dynamic Funds, Rydex Variable Trust, and Rydex ETF Trust.


²	Mses. Brock-Kyle and Sponem will serve as Trustees effective August 18, 2016 and, therefore, did not receive compensation from the Trust for the fiscal year ended March 31, 2016.

Code of Ethics

The Trust has adopted a Combined Code of Ethics pursuant to Rule 17j-1 under the 1940 Act. The Advisor, the Servicer and the Distributor, as well as certain other affiliated entities, are also covered by the Combined Code of Ethics adopted by the Trust. The Code of Ethics applies to the personal investing activities of the trustees, directors, officers and certain employees (“access persons”) of the Trust, Advisor, Servicer and Distributor, as applicable. Rule 17j-1 and the Code of

Ethics are designed to prevent unlawful practices in connection with the purchase or sale of securities by access persons. Under the Code of Ethics, access persons are permitted to engage in personal securities transactions, but are required to report their personal securities transactions for monitoring purposes. In addition, certain access persons are required to obtain approval before investing in private placements and are prohibited from investing in initial public offerings. The Code of Ethics is on file with the SEC and is available to the public.

Proxy Voting

The Board has delegated responsibility for decisions regarding proxy voting for securities held by each Fund to the Advisor. When voting proxies, the Advisor seeks to act solely in the best interest of each Fund and has adopted proxy policies, procedures and voting guidelines to assist in this endeavor. The Advisor’s proxy voting policies, procedures and voting guidelines are summarized below.

The Advisor utilizes the services of an unaffiliated proxy voting firm, Institutional Shareholder Services, Inc. (“ISS”), to vote proxies and generally act as agent for the proxy process, to maintain proxy voting records, and to provide independent research on corporate governance, proxy and corporate responsibility issues. With certain exceptions, ISS will vote proxies on behalf of the Advisor and the Funds in accordance with the Advisor’s proxy voting guidelines. The Advisor periodically reviews its proxy voting guidelines and updates them as necessary to reflect new issues and any changes in its policies on specific issues.

A proxy may not be voted in accordance with the proxy voting guidelines if (i) it concerns a proposal that is not addressed by the proxy voting guidelines or (ii) it is a proposal for which the Advisor has indicated that a decision will be made on a case-by-case basis. Any such proposal will be referred to the investment team responsible for the management of the affected Fund. If the investment team determines that the proposal does not pose a material conflict of interest, the proposal will be voted in accordance with the investment team’s recommendation. If it is determined that a conflict of interest may exist, the investment team will consult with a committee composed of persons from the investment teams, compliance and legal, as necessary, to determine how best to vote the proxy. In such instances, the Advisor may vote the proxy in any of the following manners: (i) by referring the proxy proposal to the client, (ii) by disclosing to the client any potential conflict of interest and obtaining client ratification of the proxy vote, (iii) by using an independent third party to vote the proxy proposal, and (iv) by abstaining. The method selected by the Advisor to resolve any potential conflict may vary from one instance to another depending upon the facts and circumstances of the situation, but in each case, consistent with its duty of loyalty and care.

Where a proxy proposal pertains to a security on loan pursuant to a Fund’s securities lending arrangement, the Advisor will refrain from voting such securities where the costs to the Fund or administrative inconvenience of retrieving securities then on loan outweighs the benefit of voting. Additionally, for any Fund structured as a fund of funds, the Advisor will vote the Fund’s shares in the underlying fund in the same proportion as the vote of all other shareholders in that underlying fund (also called “mirror” or “echo” voting). With regard to voting proxies of foreign companies, the Advisor may weigh the cost of voting and potential inability to sell the securities (which may occur during the voting process) against the benefit of voting the proxies to determine whether or not to vote.

The Trust annually discloses its complete proxy voting record on Form N-PX. A complete copy of the Advisor’s Proxy Voting Policy and the Trust’s most recent Form N-PX are available, without charge, upon request by calling 800.820.0888 or 301.296.5100 or by writing to the Trust at 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850. The Trust’s Form N-PX is also available on the SEC’s website at www.sec.gov.

The Advisor and the Advisory Agreement

Security Investors, LLC, located at 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850, is a registered investment adviser and provides portfolio management services to each Fund pursuant to an advisory contract with the Trust. The Advisor is also registered as a CPO with the CFTC and National Futures Association with respect to certain of the Funds. The Advisor is a Kansas limited liability company, doing business since November 27, 1961, and has been a federal registered investment adviser since 1971. The Advisor does business as Guggenheim Investments. The Advisor is an indirect wholly-owned subsidiary of Guggenheim Capital, LLC, an affiliate of Guggenheim Partners, LLC, a global, diversified financial services firm. Guggenheim Investments represents the investment management division of Guggenheim Partners, LLC.

Pursuant to an investment advisory agreement between the Trust and the Advisor dated March 1, 2012, as amended from time to time (the “Advisory Agreement”), the Advisor serves as the investment adviser for each series of the Trust and provides investment advice to the Funds, in accordance with the investment objectives, policies and limitations of

the Funds, and oversees the day-to-day operations of the Funds, subject to the general supervision and control of the Board and the officers of the Trust. The Advisor bears all costs associated with providing these advisory services and the expenses of the Board members who are affiliated with or interested persons of the Advisor. Pursuant to the Advisory Agreement, the Funds pay the Advisor at an annual rate based on the average daily net assets for each respective Fund, as set forth below.

For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following advisory fees to the Advisor:



Fund	Fund Inception Date	Advisory Fee	Advisory Fees Paid During the Fiscal Year Ended March 31, 2016	Advisory Fees Paid During the Fiscal Year Ended March 31, 2015	Advisory Fees Paid During the Fiscal Year Ended March 31, 2014
Inverse Mid-Cap Strategy Fund	2/20/2004	0.90%	$40,078	$34,349	$35,106
Inverse NASDAQ-100^® Strategy Fund	9/3/1998	0.90%	$312,302	$102,138	$102,187
Inverse Russell 2000^® Strategy Fund	2/20/2004	0.90%	$328,717	$222,645	$157,001
Inverse S&P 500^® Strategy Fund	1/7/1994	0.90%	$1,174,542	$789,769	$1,446,049
Mid-Cap 1.5x Strategy Fund	8/16/2001	0.90%	$458,305	$431,170	$434,190
Dow Jones Industrial Average^® Fund	12/1/2015	0.75%	$38,886*	**	**
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	11/28/2014	0.90%	$828,561	$509,467	**
Nova Fund	7/12/1993	0.75%	$1,053,833	$1,107,899	$666,881
NASDAQ-100^® Fund	2/14/1994	0.75%	$7,154,507	$6,621,043	$4,668,452
Russell 2000^® Fund	5/31/2006	0.75%	$264,456	$381,261	$598,518
Russell 2000^® 1.5x Strategy Fund	11/1/2000	0.90%	$200,185	$192,284	$331,091
S&P 500^® Fund	5/31/2006	0.75%	$1,939,381	$2,452,479	$2,450,873
S&P 500^® Pure Growth Fund	2/20/2004	0.75%	$1,200,896	$1,232,114	$837,114
S&P 500^® Pure Value Fund	2/20/2004	0.75%	$546,694	$1,247,388	$609,767
S&P MidCap 400^® Pure Growth Fund	2/20/2004	0.75%	$1,366,558	$1,697,897	$2,143,613
S&P MidCap 400^® Pure Value Fund	2/20/2004	0.75%	$112,326	$147,546	$215,470
S&P SmallCap 600^® Pure Growth Fund	2/20/2004	0.75%	$386,651	$194,023	$365,936
S&P SmallCap 600^® Pure Value Fund	2/20/2004	0.75%	$126,094	$137,892	$256,420
Banking Fund	4/1/1998	0.85%	$271,370	$148,278	$149,043
Basic Materials Fund	4/1/1998	0.85%	$264,956	$449,417	$381,625
Biotechnology Fund	4/1/1998	0.85%	$5,566,841	$4,096,238	$3,145,637
Consumer Products Fund	7/6/1998	0.85%	$2,690,660	$2,214,869	$1,576,131
Electronics Fund	4/1/1998	0.85%	$215,311	$221,570	$74,819
Energy Fund	4/21/1998	0.85%	$370,264	$538,595	$529,453
Energy Services Fund	4/1/1998	0.85%	$187,201	$374,777	$395,193
Financial Services Fund	4/2/1998	0.85%	$406,657	$352,283	$202,648
Health Care Fund	4/17/1998	0.85%	$1,488,583	$1,486,151	$999,042
Internet Fund	4/6/2000	0.85%	$328,626	$174,201	$277,315
Leisure Fund	4/1/1998	0.85%	$374,990	$301,172	$285,220
Precious Metals Fund	12/1/1993	0.75%	$296,433	$432,300	$559,642
Retailing Fund	4/1/1998	0.85%	$419,737	$251,067	$295,849
Technology Fund	4/14/1998	0.85%	$328,674	$305,477	$257,373
Telecommunications Fund	4/1/1998	0.85%	$91,748	$51,014	$39,896



Fund	Fund Inception Date	Advisory Fee	Advisory Fees Paid During the Fiscal Year Ended March 31, 2016	Advisory Fees Paid During the Fiscal Year Ended March 31, 2015	Advisory Fees Paid During the Fiscal Year Ended March 31, 2014
Transportation Fund	4/2/1998	0.85%	$281,247	$755,304	$578,629
Utilities Fund	4/3/2000	0.85%	$459,134	$799,938	$447,824
Europe 1.25x Strategy Fund	5/8/2000	0.90%	$95,605	$110,994	$184,985
Japan 2x Strategy Fund	2/22/2008	0.75%	$63,037	$39,214	$66,950
Emerging Markets 2x Strategy Fund	10/29/2010	0.90%	$89,690	$332,566	$50,630
Inverse Emerging Markets 2x Strategy Fund	10/29/2010	0.90%	$169,344	$108,972	$76,314
Government Long Bond 1.2x Strategy Fund	1/3/1994	0.50%	$655,574	$860,992	$978,385
Inverse Government Long Bond Strategy Fund	3/3/1995	0.90%	$1,845,903	$2,625,582	$3,740,344
High Yield Strategy Fund	4/16/2007	0.75%	$2,021,278	$1,478,728	$1,171,173
Inverse High Yield Strategy Fund	4/16/2007	0.75%	$322,909	$125,702	$221,233
Emerging Markets Bond Strategy Fund	10/8/2013	0.75%	$17,219	$40,426	$19,647
Strengthening Dollar 2x Strategy Fund	5/25/2005	0.90%	$639,403	$797,847	$192,199
Weakening Dollar 2x Strategy Fund	5/25/2005	0.90%	$69,983	$61,980	$92,167
Real Estate Fund	2/20/2004	0.85%	$221,491	$370,479	$145,005
Long Short Equity Fund	3/22/2002	0.90%	$463,036	$432,133	$522,080
Event Driven and Distressed Strategies Fund	6/30/2010	0.90%	$79,189	$107,721	$102,147
U.S. Government Money Market Fund ***	12/1/1993	0.50%	$0	$0	$0


*	From commencement of operations on December 1, 2015.


**	Not in operation for the period indicated.

***

The Advisor may reimburse expenses or waive fees for the U.S. Government Money Market Fund to the extent necessary to maintain the U.S. Government Money Market Fund’s net yield at a certain level as determined by the Advisor. The advisory fees paid by the U.S., Government Money Market Fund reflected in the above chart, are net of any such waiver or reimbursement. For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Advisor reimbursed expenses and/or waived fees of the Fund in the amounts of $4,720,543, $4,674,256, and $5,325,766, respectively. Any such fee waiver or expense reimbursement would be voluntary and could be discontinued at any time. There is no guarantee that the U.S. Government Money Market Fund will be able to avoid a negative yield.

After the initial two-year term, the continuance of the Advisory Agreement must be specifically approved at least annually (i) by the vote of the Board or by a vote of the shareholders of the Funds and (ii) by the vote of a majority of the Board members who are not parties to the Advisory Agreement or “interested persons” of any party thereto, cast in person at a meeting called for the purpose of voting on such approval. The Advisory Agreement will terminate automatically in the event of its assignment, and is terminable at any time without penalty by the Board or, with respect to a Fund, by a majority of the outstanding shares of the Fund, on not less than 60 days’ written notice to the Advisor, or by the Advisor on 60 days’ written notice to the Trust. The Advisory Agreement provides that the Advisor shall not be protected against any liability to the Trust or its shareholders by reason of willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or from reckless disregard of its obligations or duties thereunder.

Portfolio Managers

This section includes information about the Funds' portfolio managers, including information about other accounts they manage, the dollar range of Fund shares they own and how they are compensated.

Other Accounts Managed by Portfolio Managers. Including the Funds, the portfolio managers are responsible for the day-to-day management of certain other accounts, as follows:



Name	Registered Investment Companies^*		Other Pooled Investment Vehicles^*		Other Accounts^*
Name	Number of Accounts	Total Assets (in millions)	Number of Accounts	Total Assets (in millions)	Number of Accounts	Total Assets (in millions)
Michael P. Byrum	175	$32,098.7	0	$0	0	$0
Ryan Harder	135	$23,177.5	0	$0	0	$0
Larry Shank	3	$202.8	0	$0	0	$0


*	Information provided is as of March 31, 2016. None of the accounts managed by the portfolio managers are subject to performance based advisory fees.

Conflicts of Interest. The portfolio managers’ management of “other accounts” may give rise to potential conflicts of interest in connection with their management of a Fund’s investments, on the one hand, and the investments of the other accounts, on the other. The other accounts may have the same investment objective as one of the Funds. Therefore, a potential conflict of interest may arise as a result of the identical investment objectives, whereby the portfolio managers could favor one account over another. Another potential conflict could include the portfolio managers’ knowledge about the size, timing and possible market impact of Fund trades, whereby a portfolio manager could use this information to the advantage of other accounts and to the disadvantage of a Fund. However, the Advisor has established policies and procedures to ensure that the purchase and sale of securities among all accounts it manages are fairly and equitably allocated.

Portfolio Manager Compensation. The Advisor compensates portfolio management staff for their management of each Fund’s portfolio. Compensation is evaluated qualitatively based on their contribution to investment performance and factors such as teamwork and client service efforts. The Advisor’s staff incentives may include: a competitive base salary, bonus determined by individual and firm wide performance, equity participation, co-investment options, and participation opportunities in various investments. The Advisor’s deferred compensation program includes equity that vests over a period of years. All employees of the Advisor are also eligible to participate in a 401(k) plan to which a discretionary match may be made after the completion of each plan year.

Fund Shares Owned by Portfolio Managers. The following table shows the dollar amount range of each portfolio manager’s “beneficial ownership” of shares of each Fund he manages as of the most recently completed fiscal year end. Unless noted below, the portfolio managers did not own shares of any Fund as of March 31, 2016. Dollar amount ranges disclosed are established by the SEC. “Beneficial ownership” is determined in accordance with Rule 16a-1(a)(2) under the 1934 Act.



Portfolio Manager	Fund Name	Dollar Range of Shares Owned
Michael P. Byrum	None	None
Ryan Harder	NASDAQ-100^® Fund	$1 - $10,000
	Russell 2000^® Fund	$1 - $10,000
	S&P 500^® Fund	$1 - $10,000
	Emerging Markets Bond Strategy Fund	$1 - $10,000
	High Yield Strategy Fund	$1 - $10,000
	U.S. Government Money Market Fund	$100,001 - $500,000
Larry Shank	None	None

The Administrator and the Administrative Services and Accounting Service Agreements

General administrative, shareholder, dividend disbursement, transfer agent, and registrar services are provided to the Trust and the Funds by Rydex Fund Services, LLC, 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850, subject to the general supervision and control of the Board and the officers of the Trust, pursuant to a Service Agreement between the Trust and the Servicer.

Under the Service Agreement, the Servicer provides the Trust and each Fund with all required general administrative services, including, without limitation, office space, equipment, and personnel; clerical and general back office services; bookkeeping, internal accounting, and secretarial services; and the preparation and filing of all reports, registration statements, proxy statements, and all other materials required to be filed or furnished by the Trust and each Fund under

federal and state securities laws. The Servicer also maintains the shareholder account records for each Fund, disburses dividends and distributions payable by each Fund, and produces statements with respect to account activity for each Fund and each Fund’s shareholders. The Servicer pays all fees and expenses that are directly related to the services provided by the Servicer to each Fund; each Fund reimburses the Servicer for all fees and expenses incurred by the Servicer which are not directly related to the services the Servicer provides to each Fund under the service agreement.

In consideration for its services, the Servicer is entitled to a fee, which is calculated daily and paid monthly, at an annual rate of 0.25% of the average daily net assets of each Fund, except for the Government Long Bond 1.2x Strategy Fund and U.S. Government Money Market Fund, which pay the Servicer at an annual rate of 0.20% of the average daily net assets of each Fund.

For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following service fees to the Servicer:



Fund	Fund Inception Date	Administrative Service Fees Paid During the Fiscal Year Ended March 31, 2016	Administrative Service Fees Paid During the Fiscal Year Ended March 31, 2015	Administrative Service Fees Paid During the Fiscal Year Ended March 31, 2014
Inverse Mid-Cap Strategy Fund	2/20/2004	$11,133	$9,541	$9,752
Inverse NASDAQ-100^® Strategy Fund	9/3/1998	$86,751	$28,372	$28,385
Inverse Russell 2000^® Strategy Fund	2/20/2004	$91,310	$61,846	$43,611
Inverse S&P 500^® Strategy Fund	1/7/1994	$326,261	$219,380	$401,680
Dow Jones Industrial Average^® Fund	12/1/2015	$12,962*	**	**
Mid-Cap 1.5x Strategy Fund	8/16/2001	$127,307	$119,770	$120,608
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	11/28/2014	$352,849	$141,519	**
Nova Fund	7/12/1993	$351,278	$369,300	$222,293
NASDAQ-100^® Fund	2/14/1994	$2,384,836	$2,207,014	$1,556,150
Russell 2000^® Fund	5/31/2006	$88,153	$127,088	$199,507
Russell 2000^® 1.5x Strategy Fund	11/1/2000	$55,607	$53,412	$91,970
S&P 500^® Fund	5/31/2006	$646,461	$817,494	$816,954
S&P 500^® Pure Growth Fund	2/20/2004	$400,299	$410,705	$279,038
S&P 500^® Pure Value Fund	2/20/2004	$182,232	$415,796	$203,256
S&P MidCap 400^® Pure Growth Fund	2/20/2004	$455,519	$565,966	$714,538
S&P MidCap 400^® Pure Value Fund	2/20/2004	$37,442	$49,182	$71,823
S&P SmallCap 600^® Pure Growth Fund	2/20/2004	$128,884	$64,675	$121,979
S&P SmallCap 600^® Pure Value Fund	2/20/2004	$42,031	$45,964	$85,474
Banking Fund	4/1/1998	$79,815	$43,611	$43,836
Basic Materials Fund	4/1/1998	$77,928	$132,181	$112,242
Biotechnology Fund	4/1/1998	$1,637,302	$1,204,772	$925,184
Consumer Products Fund	7/6/1998	$791,369	$651,430	$463,566
Electronics Fund	4/1/1998	$63,327	$65,167	$22,005
Energy Fund	4/21/1998	$108,901	$158,410	$155,721
Energy Services Fund	4/1/1998	$55,059	$110,228	$116,233
Financial Services Fund	4/2/1998	$119,605	$103,612	$59,602
Health Care Fund	4/17/1998	$437,817	$437,102	$293,835
Internet Fund	4/6/2000	$96,654	$51,236	$81,563
Leisure Fund	4/1/1998	$110,291	$88,580	$83,888
Precious Metals Fund	12/1/1993	$98,811	$144,100	$186,547



Fund	Fund Inception Date	Administrative Service Fees Paid During the Fiscal Year Ended March 31, 2016	Administrative Service Fees Paid During the Fiscal Year Ended March 31, 2015	Administrative Service Fees Paid During the Fiscal Year Ended March 31, 2014
Retailing Fund	4/1/1998	$123,451	$73,843	$87,014
Technology Fund	4/14/1998	$96,669	$89,946	$75,698
Telecommunications Fund	4/1/1998	$26,985	$15,004	$11,734
Transportation Fund	4/2/1998	$82,719	$222,148	$170,184
Utilities Fund	4/3/2000	$135,039	$235,275	$131,712
Europe 1.25x Strategy Fund	5/8/2000	$26,557	$30,832	$51,383
Japan 2x Strategy Fund	2/22/2008	$21,012	$13,071	$22,317
Emerging Markets 2x Strategy Fund	10/29/2010	$24,916	$92,381	$14,065
Inverse Emerging Markets 2x Strategy Fund	10/29/2010	$47,041	$30,272	$21,193
Government Long Bond 1.2x Strategy Fund	1/3/1994	$262,232	$344,401	$391,358
Inverse Government Long Bond Strategy Fund	3/3/1995	$512,750	$729,328	$1,038,984
High Yield Strategy Fund	4/16/2007	$673,760	$492,909	$390,391
Inverse High Yield Strategy Fund	4/16/2007	$107,636	$41,901	$73,744
Emerging Markets Bond Strategy Fund	10/8/2013	$5,741	$13,477	$6,550
Strengthening Dollar 2x Strategy Fund	5/25/2005	$177,612	$221,624	$53,389
Weakening Dollar 2x Strategy Fund	5/25/2005	$19,440	$17,217	$25,602
Real Estate Fund	2/20/2004	$65,144	$108,964	$42,648
Long Short Equity Fund	3/22/2002	$128,621	$120,037	$145,022
Event Driven and Distressed Strategies Fund	6/30/2010	$21,997	$29,922	$28,374
U.S. Government Money Market Fund ***	12/1/1993	$466,834	$971	$356

* From commencement of operations on December 1, 2015.

** Not in operation for the period indicated.

***

The Servicer may reimburse expenses or waive fees for the Fund to the extent necessary to maintain the U.S. Government Money Market Fund’s net yield at a certain level as determined by Rydex Fund Services, LLC. The administrative fees paid by the U.S. Government Money Market Fund reflected in the above chart, are net of any such waiver or reimbursement. For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Servicer reimbursed expenses and/or waived fees of the U.S. Government Money Market Fund in the amounts of $1,402,681, $1,643,182, and $1,836,178, respectively. Any such fee waiver or expense reimbursement would be voluntary and could be discontinued at any time. There is no guarantee that the U.S. Government Money Market Fund will be able to avoid a negative yield.

Pursuant to an Accounting Services Agreement, the Servicer serves as Accounting Services Agent and performs certain record keeping and accounting functions, including the determination of NAVs. For its services, each Fund (with the exception of 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) pays the Servicer a fee calculated at an annual percentage rate of one-tenth of one percent (0.10%) on the first $250 million of the average daily net assets, seventy-five-thousandths of one percent (0.075%) on the next $250 million of the average daily net assets, one- twentieth of one percent (0.05%) on the next $250 million of the average daily net assets, and one- thirty-third of one percent (0.03%) on the average daily net assets over $750 million of the Funds. 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, each Fund pays the Servicer a fee calculated at an annual percentage rate of one-fifteenth of one percent (0.15%) on the average daily net assets of the Fund. Certain officers and members of the Board of the Trust are also officers and directors of the Servicer.

For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Funds paid the following accounting service fees to the Servicer:



Fund	Fund Inception Date	Accounting Service Fees Paid During the Fiscal Year Ended March 31, 2016	Accounting Service Fees Paid During the Fiscal Year Ended March 31, 2015	Accounting Service Fees Paid During the Fiscal Year Ended March 31, 2014
Inverse Mid-Cap Strategy Fund	2/20/2004	$4,453	$3,816	$3,900
Inverse NASDAQ-100^® Strategy Fund	9/3/1998	$34,700	$11,349	$11,354
Inverse Russell 2000^® Strategy Fund	2/20/2004	$36,524	$24,738	$17,444
Inverse S&P 500^® Strategy Fund	1/7/1994	$130,503	$87,752	$160,671
Mid-Cap 1.5x Strategy Fund	8/16/2001	$49,948	$47,907	$48,243
Dow Jones Industrial Average^® Fund	12/1/2015	$5,185*	**	**
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	11/28/2014	$131,975	$53,834	**
Nova Fund	7/12/1993	$140,510	$147,719	$88,917
NASDAQ-100^® Fund	2/14/1994	$624,247	$601,265	$498,189
Russell 2000^® Fund	5/31/2006	$52,893	$76,254	$100,941
Russell 2000^® 1.5x Strategy Fund	11/1/2000	$22,243	$21,365	$36,788
S&P 500^® Fund	5/31/2006	$387,880	$490,500	$433,991
S&P 500^® Pure Growth Fund	2/20/2004	$160,118	$164,281	$111,614
S&P 500^® Pure Value Fund	2/20/2004	$72,892	$166,132	$81,302
S&P MidCap 400^® Pure Growth Fund	2/20/2004	$182,206	$226,152	$276,808
S&P MidCap 400^® Pure Value Fund	2/20/2004	$14,977	$19,673	$28,729
S&P SmallCap 600^® Pure Growth Fund	2/20/2004	$51,553	$25,870	$48,791
S&P SmallCap 600^® Pure Value Fund	2/20/2004	$16,812	$18,385	$34,189
Banking Fund	4/1/1998	$31,926	$17,444	$17,534
Basic Materials Fund	4/1/1998	$31,171	$52,872	$44,897
Biotechnology Fund	4/1/1998	$504,699	$414,558	$339,360
Consumer Products Fund	7/6/1998	$300,026	$252,145	$185,425
Electronics Fund	4/1/1998	$25,330	$26,067	$8,802
Energy Fund	4/21/1998	$43,560	$63,363	$62,288
Energy Services Fund	4/1/1998	$22,024	$44,091	$46,493
Financial Services Fund	4/2/1998	$47,842	$41,445	$23,841
Health Care Fund	4/17/1998	$171,550	$174,319	$117,533
Internet Fund	4/6/2000	$38,661	$20,494	$32,625
Leisure Fund	4/1/1998	$44,116	$35,431	$33,555
Precious Metals Fund	12/1/1993	$39,524	$57,640	$74,616
Retailing Fund	4/1/1998	$49,380	$29,537	$34,805
Technology Fund	4/14/1998	$38,667	$35,938	$30,279
Telecommunications Fund	4/1/1998	$10,794	$6,002	$4,694
Transportation Fund	4/2/1998	$33,088	$88,858	$68,073
Utilities Fund	4/3/2000	$54,015	$94,110	$52,685
Europe 1.25x Strategy Fund	5/8/2000	$10,623	$12,332	$20,553
Japan 2x Strategy Fund	2/22/2008	$8,405	$5,229	$8,926
Emerging Markets 2x Strategy Fund	10/29/2010	$14,950	$55,430	$7,828
Inverse Emerging Markets 2x Strategy Fund	10/29/2010	$28,226	$18,164	$12,224



Fund	Fund Inception Date	Accounting Service Fees Paid During the Fiscal Year Ended March 31, 2016	Accounting Service Fees Paid During the Fiscal Year Ended March 31, 2015	Accounting Service Fees Paid During the Fiscal Year Ended March 31, 2014
Government Long Bond 1.2x Strategy Fund	1/3/1994	$130,468	$170,961	$187,560
Inverse Government Long Bond Strategy Fund	3/3/1995	$203,832	$277,630	$369,278
High Yield Strategy Fund	4/16/2007	$227,931	$178,891	$147,003
Inverse High Yield Strategy Fund	4/16/2007	$43,054	$16,760	$29,497
Emerging Markets Bond Strategy Fund	10/8/2013	$3,446	$8,087	$3,930
Strengthening Dollar 2x Strategy Fund	5/25/2005	$71,044	$88,627	$21,355
Weakening Dollar 2x Strategy Fund	5/25/2005	$7,776	$6,887	$10,241
Real Estate Fund	2/20/2004	$26,057	$43,586	$17,059
Long Short Equity Fund	3/22/2002	$51,448	$48,014	$58,009
Event Driven and Distressed Strategies Fund	6/30/2010	$8,799	$11,969	$11,350
U.S. Government Money Market Fund ***	12/1/1993	$246,315	$2,450	$2,212

* From commencement of operations on December 1, 2015.


**	Not in operation for the period indicated.

***

The Servicer may reimburse expenses or waive fees for the U.S. Government Money Market Fund to the extent necessary to maintain the U.S. Government Money Market Fund’s net yield at a certain level as determined by Rydex Fund Services, LLC. The accounting service fees paid by the U.S. Government Money Market Fund reflected in the above chart are net of any such waiver or reimbursement. For the fiscal years ended March 31, 2016, March 31, 2015, and March 31, 2014, the Servicer reimbursed expenses and/or waived fees of the Fund in the amounts of $370,380, $580,031, and $609,786, respectively. Any such fee waiver or expense reimbursement would be voluntary and could be discontinued at any time. There is no guarantee that the U.S. Government Money Market Fund will be able to avoid a negative yield.

The Distributor and the Distribution Agreement

Pursuant to a distribution agreement between the Trust and the Distributor dated March 1, 2012 (the “Distribution Agreement”), Guggenheim Funds Distributors, LLC, located at 227 West Monroe Street, Chicago, Illinois 60606, serves as distributor for the shares of each Fund under the general supervision and control of the Board and the officers of the Trust. The Distribution Agreement grants the Distributor the exclusive right to distribute the shares of the Funds. The Distributor is an affiliate of the Advisor.

The Distribution Agreement grants the Distributor the exclusive right to distribute the shares of the Funds. In addition, the Distribution Agreement permits the Distributor to receive as compensation any front-end sales load or contingent deferred sales charge collected by the Funds or other asset-based sales charges collected pursuant to any distribution or shareholder services plans adopted by the Funds on behalf of the various classes of shares. Each of the Fund’s current distribution and shareholder services plans, as well as a description of the services performed under each, are described below.

Class A Distribution Plan—Each Fund that offers Class A shares has adopted a Distribution Plan applicable to Class A shares (the “Class A Plan”). The Class A Plan allows each Fund to pay distribution fees to the Distributor and other firms that provide distribution 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, pursuant to Rule 12b-1 under the 1940 Act. The Distributor generally will, in turn, pay the Service Providers out of its fees. 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 Distribution and Shareholder Servicing Plan—Each Fund that offers Class C shares has adopted a Distribution and Shareholder Services Plan for Class C shares (the “Class C Plan”). Under the Class C Plan, the Distributor, or designated Service Providers, may receive up to a total of 1.00% of each Fund’s assets attributable to Class C shares as compensation

for distribution and shareholder services pursuant to Rule 12b-1 under the 1940 Act. The Class C Plan allows for payment of up to 0.75% of each Fund’s assets attributable to Class C shares as compensation for distribution services and up to 0.25% of each Fund’s assets attributable to Class C shares as compensation for shareholder services.

Class H Distribution Plan and Shareholder Services Plan—Each Fund that offers Class H shares has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the “Class H Plan”) and a Shareholder Services Plan applicable to Class H shares. Under the Class H Plan, the Distributor, or designated Service Providers, may receive up to 0.25% of each Fund’s assets attributable to Class H shares as compensation for distribution services provided to that Fund. The Shareholder Services Plan permits the payment of up to 0.25% of each Fund’s assets attributable to Class H shares to designated Service Providers as compensation for providing shareholder services, which are not primarily intended to result in the sale of the shares of the Funds.

Class P Distribution Plan—Each Fund that offers Class P shares has adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act (the “Class P Plan”) applicable to Class P shares. Under the Class P Plan, the Distributor, or designated Service Providers, may receive up to 0.25% of each Fund’s assets attributable to Class P shares as compensation for distribution services provided to the Fund.

Description of Distribution Services and Shareholder Services—Distribution services may include: (i) services in connection with distribution assistance, or (ii) payments to financial institutions and other financial intermediaries, such as banks, savings and loan associations, insurance companies, investment counselors, broker‑dealers, mutual fund “supermarkets” and the Distributor’s affiliates and subsidiaries, as compensation for services or reimbursement of expenses incurred in connection with distribution assistance. The Distributor may, at its discretion, retain a portion of such payments to compensate itself for distribution services and distribution related expenses such as the costs of preparation, printing, mailing or otherwise disseminating sales literature, advertising, and prospectuses (other than those furnished to current shareholders of the Funds), promotional and incentive programs, and such other marketing expenses that the Distributor may incur.

Shareholder services may include: (i) maintaining accounts relating to clients that invest in shares; (ii) arranging for bank wires; (iii) responding to client inquiries relating to the services performed by the Service Providers; (iv) responding to inquiries from clients concerning their investment in shares; (v) assisting clients in changing dividend options, account designations and addresses; (vi) providing information periodically to clients showing their position in shares; (vii) forwarding shareholder communications from the Funds such as proxies, shareholder reports, annual reports, and dividend distribution and tax notices to clients; and (viii) processing dividend payments from the Funds on behalf of clients.

For the fiscal year ended March 31, 2016, the Funds paid the following fees pursuant to the plans described above:



Fund	Fund Inception Date	Class A (0.25% 12b-1 Fee)	Class C (1.00% 12b-1 Fee)	Class H (0.25% 12b-1 Fee)	Class P (0.25% 12b-1 Fee)
Inverse Mid-Cap Strategy Fund	2/20/2004	$181	$2,451	$10,339	*
Inverse NASDAQ-100^® Strategy Fund	9/3/1998	$38,340	$14,877	$11,574¹	*
Inverse Russell 2000^® Strategy Fund	2/20/2004	$3,204	$16,908	$64,364	*
Inverse S&P 500^® Strategy Fund	1/7/1994	$20,626	$65,056	$88,741¹	*
Dow Jones Industrial Average^® Fund	12/1/2015	$6,335³	$1,785³	$6,181³	*
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	11/28/2014	$2,535	$279	$350,244	*
Mid-Cap 1.5x Strategy Fund	8/16/2001	$10,905	$47,077	$104,632	*
Nova Fund	7/12/1993	$18,508	$117,044	$29,141¹	*
NASDAQ-100^® Fund	2/14/1994	$215,059	$363,298	$273,029¹	*
Russell 2000^® Fund	5/31/2006	$15,413	$33,517	$64,364	*
Russell 2000^® 1.5x Strategy Fund	11/1/2000	$1,433	$15,563	$50,283	*
S&P 500^® Fund	5/31/2006	$67,806	$187,350	$531,821	*
S&P 500^® Pure Growth Fund	2/20/2004	$73,576	$216,438	$272,613	*
S&P 500^® Pure Value Fund	2/20/2004	$38,439	$51,741	$130,857	*



Fund	Fund Inception Date	Class A (0.25% 12b-1 Fee)	Class C (1.00% 12b-1 Fee)	Class H (0.25% 12b-1 Fee)	Class P (0.25% 12b-1 Fee)
S&P MidCap 400^® Pure Growth Fund	2/20/2004	$96,935	$248,778	$296,390	*
S&P MidCap 400^® Pure Value Fund	2/20/2004	$4,301	$20,577	$27,997	*
S&P SmallCap 600^® Pure Growth Fund	2/20/2004	$10,063	$47,403	$106,970	*
S&P SmallCap 600^® Pure Value Fund	2/20/2004	$3,964	$22,958	$32,328	*
Banking Fund	4/1/1998	$6,285	$36,747	$16,961²	*
Basic Materials Fund	4/1/1998	$12,257	$24,655	$14,199²	*
Biotechnology Fund	4/1/1998	$211,750	$398,336	$198,769²	*
Consumer Products Fund	7/6/1998	$95,675	$186,977	$160,650²	*
Electronics Fund	4/1/1998	$3,693	$11,847	$36,758²	*
Energy Fund	4/21/1998	$12,532	$54,081	$16,088²	*
Energy Services Fund	4/1/1998	$7,042	$31,982	$11,003²	*
Financial Services Fund	4/2/1998	$10,164	$15,231	$24,131²	*
Health Care Fund	4/17/1998	$49,642	$114,137	$160,615²	*
Internet Fund	4/6/2000	$10,725	$28,144	$33,821²	*
Leisure Fund	4/1/1998	$25,357	$15,371	$22,897²	*
Precious Metals Fund	12/1/1993	$6,982	$47,546	$10,941²	*
Retailing Fund	4/1/1998	$18,482	$32,549	$39,362²	*
Technology Fund	4/14/1998	$13,790	$26,415	$17,450²	*
Telecommunications Fund	4/1/1998	$3,097	$4,240	$4,977²	*
Transportation Fund	4/2/1998	$18,700	$36,147	$9,348²	*
Utilities Fund	4/3/2000	$29,121	$73,307	$24,071²	*
Europe 1.25x Strategy Fund	5/8/2000	$3,417	$8,666	$20,974	*
Japan 2x Strategy Fund	2/22/2008	$3,675	$1,855	$16,873	*
Emerging Markets 2x Strategy Fund	10/29/2010	$1,848	$6,022	$21,564	*
Inverse Emerging Markets 2x Strategy Fund	10/29/2010	$877	$7,780	$44,222	*
Government Long Bond 1.2x Strategy Fund	1/3/1994	$8,862	$29,085	$186,371¹	*
Inverse Government Long Bond Strategy Fund	3/3/1995	$57,327	$348,297	$91,228¹	*
High Yield Strategy Fund	4/16/2007	$25,581	$23,802	$642,228	*
Inverse High Yield Strategy Fund	4/16/2007	$22,693	$13,052	$81,680	*
Emerging Markets Bond Strategy Fund	10/8/2013	$4,765	$511	$851	*
Strengthening Dollar 2x Strategy Fund	5/25/2005	$12,572	$22,898	$159,315	*
Weakening Dollar 2x Strategy Fund	5/25/2005	$2,792	$4,977	$15,403	*
Real Estate Fund	2/20/2004	$13,436	$22,443	$46,097	*
Long Short Equity Fund	3/22/2002	$27,093	$183,304	**	$54,731
Event Driven and Distressed Strategies Fund	6/30/2010	$2,595	$10,161	**	$6,707


*	The Fund does not offer Class P shares.


**	The Fund does not offer Class H shares.


¹	Effective September 30, 2015, outstanding Advisor Class shares of the Fund were combined with Class H shares of the Fund, and the Fund ceased offering Advisor Class shares.


²	Effective September 30, 2015, Advisor Class shares of the Fund were re-designated as Class H shares.


³	From commencement of operations on December 1, 2015.

Other Distribution or Service Arrangements — The Advisor, the Distributor or their affiliates, out of their own resources and not out of Fund assets (i.e., without additional cost to the Funds or their shareholders), may provide additional cash payments or non‑cash compensation to some, but not all, broker/dealers and other financial intermediaries (including

payments to affiliates of the Advisor or Distributor) who sell shares of the Funds or render investor services to Fund shareholders (directly or indirectly via sales of variable insurance contracts or the provision of services in connection with retirement plans). Such payments and compensation are in addition to any sales charges paid by investors or Rule 12b-1 plan fees, service fees and other fees paid, directly or indirectly, by the Funds to such brokers and other financial intermediaries. These arrangements are sometimes referred to as “revenue sharing” arrangements. Revenue sharing arrangements are not financed by the Funds, and thus, do not result in increased Fund expenses. They are not reflected in the fees and expenses listed in the fees and expenses sections of the Funds’ Prospectuses, and they do not change the price paid by investors for the purchase of a Fund’s shares or the amount received by a shareholder as proceeds from the redemption of Fund shares.

Such compensation may be paid to financial intermediaries that provide services to the Funds and/or shareholders in the Funds, including (without limitation) shareholder servicing, marketing support and/or access to sales meetings, sales representatives and management representatives of the intermediary. Such compensation may also be paid to financial intermediaries for inclusion of the Funds 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 intermediary provides services to shareholders. To the extent permitted by applicable law, the Distributor and other parties may pay or allow other incentives and compensation to such financial intermediaries. The Distributor generally periodically assesses the advisability of continuing to make these payments.

These payments may take a variety of forms, including (without limitation) compensation for sales, “trail” fees for shareholder servicing and maintenance of investor accounts, and finder’s fees. Revenue sharing payments may be structured: (i) as a percentage of net sales; (ii) as a percentage of net assets; and/or (iii) as a fixed dollar amount.

As of the date of this SAI, the Distributor and/or the Advisor have revenue sharing arrangements with the following financial intermediaries, pursuant to which the Distributor and/or the Advisor pay the following fees, based on the assets invested in the Funds, for services provided to the Trust, which includes series and classes of shares not offered in this SAI:



Financial Intermediary	Payments During Last Fiscal Year
Charles Schwab & Co., Inc. (Schwab)	$3,278,557
Fidelity Investments	$3,222,381
Pershing LLC	$940,147
Wells Fargo Investments LLC	$655,700
LPL Financial Corporation	$637,406
TD Ameritrade	$394,568
Morgan Stanley & Co., Incorporated	$299,907
TCA Advisors	$287,208
Ceros Financial Services, Inc.	$285,738
UBS Financial	$131,337
Merrill Lynch & Co, Inc.	$119,517
E*Trade	$110,126
RBC	$88,825
Ameriprise	$81,802
Vanguard	$62,329
Nationwide	$45,271
Raymond James Financial, Inc.	$27,364
JP Morgan	$25,089
Security Benefit Corporation*	$5,542
Citigroup	$3,803
Great West	$3,269
Lincoln Investment Planning	$2,996
Oppenheimer & Co.	$1,952
Mass Mutual	$1,684
Legend Equities	$344
Wells Fargo Bank	$91
Davenport & Co.	$36
New York Life	$24

* Denotes a financial intermediary that is an affiliate of the Advisor and/or the Distributor.

The Distributor may enter into revenue sharing arrangements with other financial intermediaries and may modify existing revenue sharing arrangements with the intermediaries indicated above.

In addition, while the Distributor typically pays most of the sales charge applicable to the sale of Fund shares to brokers and other financial intermediaries through which purchases are made, the Distributor may, on occasion, pay the entire sales charge.

From time to time, the Distributor and its affiliates may also pay non-cash compensation to brokers and other financial intermediaries in the form of, for example: (i) occasional gifts; (ii) occasional meals, tickets or other entertainment; and/or (iii) sponsorship support of regional or national events. For example, representatives of the Distributor visit brokers and other financial intermediaries on a regular basis to educate them about the Funds and to encourage the sale of Fund shares to their clients. The costs and expenses associated with these efforts may include travel, lodging, sponsorship at educational seminars and conferences, entertainment and meals to the extent permitted by law.

The compensation or reimbursement received by brokers and other financial intermediaries through sales charges, fees payable from the Funds, and/or revenue sharing arrangements for selling shares of the Funds may be more or less than the overall compensation or reimbursement on similar or other products and may influence your broker or other financial intermediary to present and recommend the Funds over other investment options available in the marketplace. In

addition, depending on the arrangements in place at any particular time, your broker or other financial intermediary may have a financial incentive for recommending a particular class of Fund shares over other share classes.

Shareholders may obtain more information about these arrangements, including the conflicts of interests that such arrangements may create, from their brokers and other financial intermediaries and should so inquire if they would like additional information. A shareholder may ask his or her broker or financial intermediary how he or she will be compensated for investments made in the Funds.

Although the Funds may use financial firms that sell Fund shares to effect transactions for each Fund’s portfolio, the Advisor will not consider the sale of Fund shares as a factor when choosing financial firms to effect those transactions.

Costs and Expenses

Each Fund bears all expenses of its operations other than those assumed by the Advisor or the Servicer. Fund expenses include: the management fee; the servicing fee (including administrative, transfer agent, and shareholder servicing fees); custodian and accounting fees and expenses; legal and auditing fees; securities valuation expenses; fidelity bonds and other insurance premiums; expenses of preparing and printing prospectuses, confirmations, proxy statements, and shareholder reports and notices; registration fees and expenses; proxy and annual meeting expenses, if any; all federal, state, and local taxes (including, without limitation, stamp, excise, income, and franchise taxes); organizational costs; the costs and expenses of redeeming shares of a Fund; fees and expenses paid to any securities pricing organization; dues and expenses associated with membership in any mutual fund organization; and costs for incoming telephone WATTS lines. In addition, each of the Funds pays an equal portion of the trustee fees and expenses for attendance at Board meetings for the Board members who are not affiliated with, or interested persons of, the Advisor.

Business Continuity and Disaster Recovery

The Advisor, the Distributor and the Servicer have developed a joint Business Continuity and Disaster Recovery Program (the “Program”) that is designed to minimize the disruption of normal business operations in the event of a disaster. While the Advisor, Distributor and Servicer believe that the Program is comprehensive and should enable them to survive a disaster and reestablish normal business operations in a timely manner, under certain unusual or unexpected circumstances the Advisor, Distributor and/or Servicer could be prevented or hindered from providing services to the Funds for extended periods of time. These circumstances may include, without limitation, acts of God, acts of government in its sovereign or contractual capacity, any act of declared or undeclared war or of a public enemy (including acts of terrorism), power shortages or failures, utility or communication failure or delays, labor disputes, strikes, shortages, supply shortages, system failures or malfunctions. Under each of the Advisor’s, Distributor’s and Servicer’s agreement with the Trust, absent willful misfeasance, bad faith or gross negligence on the part of each of the Advisor, Distributor or Servicer, or the reckless disregard of their respective obligations, the Advisor, Distributor and Servicer generally will not be liable for any related losses to the Funds or to the Funds’ shareholders as a result of such an occurrence.

CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES

For a list of the control persons and principal holders of securities of each Fund as of July 5, 2016, please see Appendix B to this SAI.

DETERMINATION OF NET ASSET VALUE

The following information supplements and should be read in conjunction with the section in the Prospectuses entitled “Calculating Net Asset Value.” The NAV of a Fund serves as the basis for the purchase and redemption price of that Fund’s shares. The NAV of a Fund is calculated by dividing the market value of the Fund’s securities, plus the value of the Fund’s other assets, less all liabilities, by the number of outstanding shares of the Fund. If market quotations are not readily available for any security in a Fund’s portfolio, the security will be valued at fair value by the Advisor using methods established or ratified by the Board.

Equity securities traded on a domestic securities exchange (including ETFs) are usually valued at the last sale price on that exchange on the day the valuation is made. If no sale is reported, the last current bid price is usually used. OTC securities held by a Fund are typically valued at the NASDAQ Official Closing Price (“NOCP”) on the valuation date or, if no NOCP is reported, the last reported bid price is used. The portfolio securities of a Fund that are usually valued on multiple exchanges or markets are taken at the last sales price of such securities on the principal exchange or market on which they are traded.

Funds that are party to a structured note, will regularly value their investments in such structured notes at fair value and other investments at market prices. The International Equity Funds will generally value their assets at fair value 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. Such valuation will attempt to reflect the U.S. financial markets’ perceptions and trading activity related to the Funds’ assets since the calculation of the closing level of the International Equity Funds’ respective underlying indices. The Nikkei 225 Stock Average is determined in the early morning (2:00 a.m., Eastern Time) prior to the opening of the NYSE. The STOXX Europe 50^® Index is determined in the mid-morning (approximately 10:30 a.m., Eastern Time) prior to the closing of the NYSE. Under fair value pricing, the values assigned to a Fund’s securities may not be the quoted or published prices of those securities on their primary markets or exchanges.

Debt securities with a remaining maturity greater than 60 days will be generally valued based on independent pricing services, except as specified below. A Fund will utilize the amortized cost method in valuing its commercial paper and discount notes with maturities of 60 days or less for purposes of determining the NAV of its shares even though the portfolio securities may increase or decrease in market value, generally, in connection with changes in interest rates. The amortized cost method of valuation involves valuing a security at its cost adjusted by a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the instrument. While this method provides certainty in valuation, this method may result in periods during which value, as determined by amortized cost, is higher or lower than the price that a Fund would receive if the Fund sold the instrument.

For investments in an underlying open-end mutual fund, a Fund usually values its investment in the underlying fund at its NAV. The NAV of each underlying fund is calculated by dividing the market value of the underlying fund’s securities plus the value of its other assets, less all liabilities, by the number of outstanding shares of the underlying fund.

Options on securities and indices purchased by a Fund generally are valued at their last sales price on the exchange in the case of exchange-traded options; in the case of options traded in the OTC market, the Fund will seek a quote from broker-dealers and the option generally will be valued at the average of prices unless there is only one dealer, in which case that dealer’s price may be used. An exchange-traded futures contract will be valued based upon the first tick after the close of regular trading on the NYSE. Options on futures contracts traded on an exchange will be valued at the last trade price prior to the close of regular trading on the NYSE.

The value of total return index swaps will usually be computed based on the current index value as of the close of regular trading on the NYSE, with the swap value being adjusted to include dividends accrued, financing charges and/or interest associated with the swap agreement. The value of credit default swaps will be marked to the price at which orders are then being filled (or, if the orders are being filled at different prices, the average of such prices). If no comparable trade has occurred, the Fund will seek a quote from three broker-dealers, and the swap will be valued at the average of the three prices so provided, unless it is concluded that any such quote does not represent fair value, in which case the swap will be valued at the average of the remaining prices.

The loans (including syndicated bank loans) in which a Fund may invest are not usually listed on any securities exchange or board of trade. Typically, such loans are valued using information provided by an independent third party pricing service.

For valuation purposes, assets initially expressed in foreign currency values will be converted into U.S. dollar values at the rate at which local currencies can be sold to buy U.S. dollars as obtained from a third-party pricing service/vendor as set forth in the Funds’ procedures.

Illiquid securities, securities for which reliable quotations or pricing services are not readily available, and all other assets will be valued either at the average of the last bid price of the securities obtained from two or more dealers or otherwise at their respective fair value as determined in good faith by, or under procedures established by the Board. The Board has adopted fair valuation procedures for the Funds and has delegated responsibility for fair value determinations to the Fair Valuation Committee which consists of members of the Advisor and the Servicer. The members of the Fair Valuation Committee report, as necessary, to the Board regarding portfolio valuation determination. The Board, from time to time, will review these methods of valuation and will recommend changes which may be necessary to assure that the investments of the Funds are valued at fair value.

The U.S. Government Money Market Fund will utilize the amortized cost method in valuing its portfolio securities for purposes of determining the NAV of its shares even though the portfolio securities may increase or decrease in market value, generally, in connection with changes in interest rates. The amortized cost method of valuation involves valuing a security at its cost adjusted by a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the instrument while this method provides certainty in valuation, this method may result in periods during which value, as determined by amortized cost, is higher or lower than the price the U.S. Government Money Market Fund would receive if this Fund sold the instrument. During such periods, the yield to investors in the U.S. Government Money Market Fund may differ somewhat from that obtained in a similar company which uses mark-to-market values for all its portfolio securities. For example, if the use of amortized cost resulted in a lower (higher) aggregate portfolio value on a particular day, a prospective investor in the U.S. Government Money Market Fund would be able to obtain a somewhat higher (lower) yield than would result from investment in such a similar company and existing investors would receive less (more) investment income. The purpose of this method of calculation is to facilitate the maintenance of a constant NAV of $1.00.

The U.S. Government Money Market Fund’s use of the amortized cost method is permitted pursuant to Rule 2a‑7 under the 1940 Act (the “Rule”). The Rule requires that the U.S. Government Money Market Fund limit its investments to U.S. dollar-denominated instruments that meet the Rule’s quality, maturity and diversification requirements. The Rule also requires the U.S. Government Money Market Fund to maintain a dollar-weighted average portfolio maturity of not more than sixty days and precludes the purchase of any instrument with a remaining maturity of more than 397 days (about 13 months).

The U.S. Government Money Market Fund may only purchase “Eligible Securities.” Eligible Securities are securities which: (a) have remaining maturities of 397 days (about 13 months) or less; (b) are issued by a registered investment company that is a money market fund; (c) are government securities; and (d) the Fund's Board determines present minimal credit risks to the Fund.

As permitted by the Rule, the Board has delegated to the Advisor, subject to the Board’s oversight pursuant to guidelines and procedures adopted by the Board, the authority to determine which securities present minimal credit risks and which unrated securities are comparable in quality to rated securities.

If the Board determines that it is no longer in the best interests of the U.S. Government Money Market Fund and its shareholders to maintain a stable price of $1.00 per share, or if the Board believes that maintaining such price no longer reflects a market-based NAV, the Board has the right to change from an amortized cost basis of valuation to valuation based on market quotations. The U.S. Government Money Market Fund will notify shareholders of any such change.

PURCHASE, EXCHANGE AND REDEMPTION OF SHARES

For information on how to purchase, exchange and redeem shares of each share class, please see each Fund's Prospectus(es), as applicable. The information below supplements the information contained in the Prospectuses.

Minimum Investment Requirements

For information regarding the minimum investment requirements for purchases of Investor Class, Class A, Class C, Class H, Class P, Institutional Class and Money Market Fund shares of the Funds, as applicable, please see each Fund's Prospectus. Each Fund reserves the right to modify its minimum investment requirements at any time, with or without prior notice to you. The Trust may redeem an account whose balance (due in whole or in part to redemptions since the time of last purchase) has fallen below the minimum investment amount applicable at the time of the shareholder’s most recent purchase of Fund shares. However, a Fund 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. The Trust may also charge an annual maintenance fee to an account whose balance has fallen below the minimum investment amount without prior notification.

Retirement Account Fees

check. If the annual maintenance fee is not paid separately prior to December, it will be deducted automatically from your account.

Guggenheim Investments EIP and Employee Accounts are not subject to IRA maintenance or liquidation fees.

Tax Consequences

Note that in the case of tax-qualified retirement plans, a redemption from such a plan may have adverse tax consequences. A shareholder contemplating such a redemption should consult his or her own tax adviser. Other shareholders should consider the tax consequences of any redemption.

Suspension of the Right of Redemption

The Funds may suspend the right of redemption or the date of payment: (i) for any period during which the NYSE is closed (other than customary weekend or holiday closings), or trading is restricted; (ii) for any period during which an emergency exists so that disposal of Fund investments or the determination of its NAV is not reasonably practicable; or (iii) for such other periods as the SEC, by order, may permit for the protection of Fund investors. In cases where Nasdaq, the CME, Chicago Board Options Exchange (“CBOE”), CBOT, or any foreign market where the Funds’ securities trade, as appropriate, is closed or trading is restricted, a Fund may ask the SEC to permit the right to redemption to be suspended. On any day that any of the securities exchanges on which the Funds’ securities trade close early (such as on days in advance of holidays generally observed by participants in these markets), or as permitted by the SEC, the right is reserved to advance the time on that day by which purchase and redemption orders must be received. Any order received after that time will receive the next business day’s NAV. In addition, the U.S. Government Money Market Fund may rely on Rule 22e-3 of the 1940 Act to suspend redemptions and postpone payment of redemption proceeds in order to facilitate an orderly liquidation of the Fund.

Holidays

The NYSE, the Federal Reserve Bank of New York, the Nasdaq, the CME, the CBOT, and other U.S. exchanges are closed on weekends and on the following holidays: (i) New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day; and (ii) the preceding Friday if any of these holidays falls on a Saturday, or the subsequent Monday if any of these holidays falls on a Sunday. Although the Trust expects the same holiday schedules to be observed in the future, each of the aforementioned exchanges may modify its holiday schedule at any time. In addition, the U.S. Government Bond Market is closed on Columbus Day and Veterans’ Day and will likely close early the business day before New Year’s Day, Good Friday, Memorial Day, Thanksgiving (day after), and Christmas, as recommended by the Bond Market Association.

The national Japanese holidays affecting the relevant securities markets in Japan are as follows: New Year’s Day; Coming-of-Age Day; National Foundation Day; Vernal Equinox Day; Greenery Day; Constitution Memorial Day; Children’s Day; Marine Day; Respect-of-the-Aged Day; Autumnal Equinox Day; Health-Sports Day; Culture Day; Labor Thanksgiving Day; and Emperor’s Birthday. Although the Trust expects this same holiday schedule to be observed in the future, the Japanese exchange may modify its holiday schedule at any time.

National holidays in the various European countries will also affect the relevant European securities markets. Due to the variety of holidays in each EU country as well as Switzerland, those holidays are not listed here.

Redemptions In-Kind

The Trust intends to pay your redemption proceeds in cash. However, under unusual conditions that make the payment in cash unwise or impractical (and for the protection of the remaining shareholders of a Fund) the Trust reserves the right to pay all, or part, of your redemption proceeds in liquid securities with a market value equal to the redemption price (redemption in-kind). The Trust has elected to be governed by Rule 18f-1 under the 1940 Act under which the Trust is obligated to redeem shares for any one shareholder in cash only up to the lesser of $250,000 or 1% of a

Fund’s NAV during any 90-day period. Although it is highly unlikely that your shares would ever actually be redeemed in kind, you would probably have to pay brokerage costs to sell the securities distributed to you.

SALES CHARGES, REDUCTIONS AND WAIVERS

Initial Sales Charges/Dealer Reallowances. Class A shares of the Funds are sold subject to a front-end sales charge as described in the Class A Prospectuses. The sales charge is used to compensate the Distributor and participating securities dealers for their expenses incurred in connection with the distribution of the Funds’ shares. You may also be charged a transaction or other fee by the financial institution managing your account.

Selling dealers are normally reallowed a portion of the sales charge by the Distributor. The following table shows the amount of the front-end sales charge that is reallowed to dealers as a percentage of the offering price of Class A shares.



Amount of Investment	Authorized Dealer Commission as % of Offering Price
Less than $100,000	4.00%
$100,000 but less than $250,000	3.00%
$250,000 but less than $500,000	2.25%
$500,000 but less than 1,000,000	1.75%
Greater than $1,000,000	1.00%

Reduced Sales Charges. You may qualify for reduced sales charges or sales charge exceptions. To qualify for these reductions or exceptions, you or your securities dealer are responsible for providing sufficient information at the time of purchase to verify that your purchase qualifies for such treatment.

Rights of Accumulation

You may qualify for reduced initial sales charges based upon your existing investment in shares of any Fund at the time of the proposed purchase. To determine whether or not a reduced initial sales charge applies to a proposed purchase, the Distributor takes into account not only the money which is invested upon such proposed purchase, but also the value of all Class A shares and Class C shares of the Funds that you own.

If you qualify for a reduced sales charge, the reduced sales charge applies to the total amount of money being invested, even if only a portion of that amount exceeds the breakpoint for the reduced sales charge. For example, if you already own qualifying Class A shares or Class C shares of any Fund with a value of $80,000 and wish to invest an additional $40,000 in Class A shares of a Fund, the reduced initial sales charge of 4.75% will apply to the full $40,000 purchase and not just to the $20,000 in excess of the $100,000 breakpoint.

To qualify for obtaining the discount applicable to a particular purchase, you or your securities dealer must furnish the Servicer with a list of the account numbers and the names in which your Fund accounts are registered at the time the purchase is made.

Aggregating Accounts (Group Purchases)


1.	To receive a reduced sales charge on Class A shares, investments in any Class A shares or Class C shares made by you, your spouse and your children under the age of 21 may be aggregated if made for your/their own account(s) and:


•	trust accounts established by the above individuals. However, if the person(s) who established the trust is/are deceased, the trust account may be aggregated with accounts of the person who is the primary beneficiary of the trust;


•	solely controlled business accounts;


•	single participant retirement plans; or


•	endowments or foundations established and controlled by you or your immediate family.


2.	Investments made by a trustee or other fiduciary for a single trust estate or fiduciary account and multiple-employee benefit plans of a single employer or affiliated employers – provided they are not aggregated with individual accounts – may also be aggregated.

Similarly, investments made for participant accounts of a 403(b) plan that is treated like an employer-sponsored plan, or multiple 403(b) plans of a single employer or affiliated employers, may be aggregated. In addition, investments made for non-profit, charitable or educational organizations (or any employer-sponsored retirement plan for such an endowment or foundation) or any endowments or foundations established and controlled by the organization may be aggregated. Finally, investments made by a common trust fund or other diversified pooled accounts not specifically formed for the purpose of accumulating fund shares may be aggregated.

Some accounts cannot be aggregated. At the request of certain investment firms, some accounts are set up as “street name” or “nominee” accounts. This means that the investment firm has sole access, and that the Funds have limited access, to the investment firm’s clients’ account information. Since the Servicer has little or no access to certain nominee or street name account information, these accounts generally may not be aggregated for the purpose of receiving reduced sales charges. Check with your securities dealer to determine if this applies to your account.

Letters of Intent

You may also pay reduced initial sales charges by indicating on the account application that you intend to provide a Letter of Intent (“LOI”), and then fulfilling the conditions of that LOI.

The LOI confirms the total investment in shares of the Funds that you intend to make within the next 13 months. By marking the LOI section on the account application and by signing the account application, you indicate that you understand and agree to the terms of the LOI and that you are bound by the provisions described below:

Calculating the Initial Sales Charge:


•	Each purchase of Fund shares normally subject to an initial sales charge made during the 13-month period will be made at the public offering price applicable to a single transaction of the total dollar amount indicated by the LOI (to determine what the applicable public offering price is, look at the sales charge table in the section on “Initial Sales Charges” in the Prospectuses).


•	It is your responsibility at the time of purchase to specify the account numbers that should be considered in determining the appropriate sales charge.


•	The offering price may be further reduced as described below above under “Rights of Accumulation” if the Servicer is advised of all other accounts at the time of the investment.


•	Shares acquired through reinvestment of dividends and capital gains distributions will not be applied to the LOI.

Calculating the Number of Shares to be Purchased


•	Purchases made within 90 days before signing an LOI will be applied toward completion of the LOI. The LOI effective date will be the date of the first purchase within the 90-day period.


•	Purchases made more than 90 days before signing an LOI will be applied toward the completion of the LOI based on the value of the shares purchased that is calculated at the public offering price on the effective date of the LOI.


•	If you meet the original obligation at any time during the 13-month period, you may revise the intended investment amount upward by submitting a written and signed request. This revision will not change the original expiration date.


•	The Servicer will process necessary adjustments upon the expiration or completion date of the LOI.

Fulfilling the Intended Investment


•	By signing an LOI, you are not making a binding commitment to purchase additional shares, but if purchases made within the 13-month period do not total the amount specified, you will have to pay the increased amount of sales charge.

•

To assure compliance with the provisions of the 1940 Act, the Servicer will escrow in the form of shares an appropriate dollar amount (computed to the nearest full share) out of the initial purchase (or subsequent purchases if necessary). All dividends and any capital gain distributions on the escrowed shares will be credited to you. All shares purchased, including those escrowed, will be registered in your name. If the total investment specified under this LOI is completed within the 13-month period, the escrowed shares will be promptly released.

•

If the intended investment is not completed, you will pay the Servicer the difference between the sales charge on the specified amount and the sales charge on the amount actually purchased. If you do not pay such difference within 20 days of the expiration date, you irrevocably appoint the Servicer as your attorney-in-fact to surrender for redemption any or all shares, to make up such difference within 60 days of the expiration date.

Canceling the LOI


•	If at any time before completing the LOI Program you wish to cancel the agreement, you must give written notice to the Distributor.

•

If at any time before completion the LOI Program you request the Servicer to liquidate or transfer beneficial ownership of your total shares, the LOI will be automatically canceled. If the total amount purchased is less than the amount specified in the LOI, the Servicer will redeem an appropriate number of escrowed shares equal to the difference between the sales charge actually paid and the sales charge that would have been paid if the total purchases had been made at a single time.

Sales Charge Waivers. The Class A shares' initial sales charges will be waived for certain types of investors, as described in the Prospectuses.

Calculation and Waiver of Contingent Deferred Sales Charges. Any contingent deferred sales charge imposed upon redemption of Class A shares (purchased in amounts of $1,000,000 or more) or Class C shares is a percentage of the lesser of (1) the NAV of the shares redeemed or (2) the net cost of such shares. No contingent deferred sales charge is imposed upon redemption of amounts derived from (1) increases in the value above the net cost of such shares due to increases in the NAV per share of a Fund; (2) shares acquired through reinvestment of income dividends and capital gain distributions; or (3) Class A shares or Class C shares held for more than one year. Upon request for redemption, shares not subject to the contingent deferred sales charge will be redeemed first. Thereafter, shares held the longest will be the first to be redeemed.

The contingent deferred sales charge is waived: (1) following the death or disability of a shareholder; (2) when the 1.00% sales commission was not paid to the intermediary at the time of purchase; (3) upon the redemption of the first 10% of shares sold within 12 months of purchase; (4) in connection with required minimum distributions in the case of an IRA, SARSEP or Keogh or any other retirement plan qualified under Section 401(a), 401(k) or 403(b) of the Internal Revenue Code; and (5) in the case of distributions from retirement plans qualified under Section 401(a) or 401(k) of the Internal Revenue Code due to (i) returns of excess contributions to the plan, (ii) retirement of a participant in the plan, (iii) a loan from the plan (repayment of loans, however, will constitute new sales for purposes of assessing the contingent deferred sales charge), (iv) “financial hardship” of a participant in the plan, as that term is defined in Treasury Regulation Section 1.401(k)-1(d)(2), as amended from time to time, (v) termination of employment of a participant in the plan, (vi) any other permissible withdrawal under the terms of the plan.

Systematic Withdrawal Plan

A Systematic Withdrawal Plan may be established by shareholders (except for Class P shareholders) who wish to receive regularly scheduled payments. Please refer to the Systematic Withdrawal Plan Request form for additional

payment options. The form can be found within the Customer Service section of the www.guggenheiminvestments.com website. There is no service charge on the Plan.

Sufficient shares will be liquidated at NAV to meet the specified withdrawals. Liquidation of shares may deplete or possibly use up the investment, particularly in the event of a market decline. Payments cannot be considered as actual yield or income since part of such payments is a return of capital. Withdrawals under a Withdrawal Plan will generally be considered taxable events. The maintenance of a Withdrawal Plan concurrently with purchases of additional shares of the Fund would be disadvantageous because of the sales commission payable in respect to such purchases. During the withdrawal period, no payments will be accepted under an Automatic Investment Plan. Income dividends and capital gains distributions are automatically reinvested at NAV.

The shareholder receives confirmation of each transaction showing the source of the payment and the share balance remaining in the Plan. A Plan may be terminated on written notice by the shareholder or by the Fund, and it will terminate automatically if all shares are liquidated or withdrawn from the account.

DIVIDENDS, DISTRIBUTIONS AND TAXES

Dividends and Distributions

Dividends from net investment income and any distributions of net realized capital gains from each Fund will be distributed as described in the Fund’s Prospectuses under “Dividends and Distributions.” Normally, unless a shareholder elects otherwise, all such distributions of a Fund will automatically be reinvested without charge in additional shares of the same Fund.

The Government Long Bond 1.2x Strategy Fund and U.S. Government Money Market Fund intend to declare dividends daily from net investment income (and net short-term capital gains, if any) and distribute such dividends monthly. Net income, for dividend purposes, includes accrued interest and accretion of original issue and market discount, plus or minus any short-term gains or losses realized on sales of portfolio securities, less the amortization of market premium and the estimated expenses of the Funds. Net income will be calculated immediately prior to the determination of NAV of the Government Long Bond 1.2x Strategy Fund and U.S. Government Money Market Fund.

The Board may revise the dividend policy, or postpone the payment of dividends, if the U.S. Government Money Market Fund should have or anticipate any large unexpected expense, loss, or fluctuation in net assets which, in the opinion of the Board, might have a significant adverse effect on shareholders of the U.S. Government Money Market Fund. On occasion, in order to maintain a constant $1.00 NAV for the U.S. Government Money Market Fund, the Board may direct that the number of outstanding shares of the U.S. Government Money Market Fund be reduced in each shareholder’s account. Such reduction may result in taxable income to a shareholder of the U.S. Government Money Market Fund in excess of the net increase (i.e., dividends, less such reduction), if any, in the shareholder’s account for a period of time. Furthermore, such reduction may be realized as a capital loss when the shares are liquidated.

A Fund may make additional distributions to avoid imposition of income and excise taxes imposed by the Internal Revenue Code.

Federal Tax Treatment of Dividends and Distributions

The following is only a summary of certain U.S. federal income tax considerations generally affecting the Funds and their shareholders. No attempt is made herein to present a comprehensive and detailed explanation of the federal, state, local or foreign tax treatment of the Funds or their shareholders, and the discussion in this SAI and in the Prospectuses is not intended to be a substitute for careful tax planning.

The following general discussion of certain federal income tax consequences is based on the Internal Revenue Code and the regulations issued thereunder as in effect on the date of this SAI. New legislation, as well as administrative changes or court decisions, may significantly change the conclusions expressed herein, and may have a retroactive effect with respect to the transactions contemplated herein.

Shareholders are urged to consult their own tax advisers regarding the application of the provisions of tax law described in this SAI in light of their particular tax situations and regarding specific questions as to federal, state, or local taxes.

Regulated Investment Company Status

A fund that qualifies as a RIC under Subchapter M of the Internal Revenue Code will not be subject to federal income taxes on the net investment income and net realized capital gains that the fund timely distributes to the fund’s shareholders. Each Fund will seek to qualify for treatment as a RIC under the Internal Revenue Code. Provided that for each tax year, a Fund (i) meets the requirements to be treated as a RIC (as discussed below) and (ii) distributes an amount at least equal to the sum of 90% of the Fund’s net investment income for such year (including, for this purpose, the excess of net realized short-term capital gains over net long-term capital losses) and 90% of its net tax-exempt income for such year (the “Distribution Requirement”), the Fund itself will not be subject to federal income taxes to the extent the Fund’s net investment income and the Fund’s net realized capital gains, if any, are distributed to the Fund’s shareholders. One of several requirements for RIC qualification is that the Fund must receive at least 90% of the Fund’s gross income each year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, other income derived with respect to the Fund’s business of investing in stock, securities, and foreign currencies, and net income derived from interests in qualified publicly traded partnerships (the “90% Test”). Income and gains from transactions in commodities such as precious metals and minerals will not qualify as income from “securities” for purposes of the 90% Test. A second requirement for qualification as a RIC is that a Fund must diversify its holdings so that, at the end of each quarter of the Fund’s taxable year: (a) at least 50% of the market value of the Fund’s total assets is represented by cash and cash items, U.S. government securities, securities of other RICs, and other securities, with these other securities limited, in respect to any one issuer, to an amount not greater than 5% of the value of the Fund’s total assets or 10% of the outstanding voting securities of such issuer; and (b) not more than 25% of the value of its total assets is invested in the securities (other than U.S. government securities or securities of other RICs) of any one issuer, the securities (other than securities of other RICs) of two or more issuers which the Fund controls and which are engaged in the same, similar, or related trades or businesses, or the securities of one or more qualified publicly traded partnerships (the “Asset Test”). While the Precious Metals Fund does not currently invest in actual precious metals and minerals, if it does so in the future it intends to restrict its investment in such commodities to avoid a violation of the 90% Test.

If a Fund fails to satisfy the 90% Test or the Asset Test, the Fund may be eligible for relief provisions if the failure is due to reasonable cause and not willful neglect and if a penalty tax is paid with respect to the failure to satisfy the applicable requirements. Additionally, relief is provided for certain de minimis failures of the Asset Test where a Fund corrects the failure within a specified period of time. In order to be eligible for the relief provisions with respect to a failure to meet the Asset Test, a Fund may be required to dispose of certain assets. If these relief provisions were not available to a Fund and it were to fail to qualify for treatment as a RIC for a taxable year, all of its taxable income would be subject to tax at regular corporate rates without any deduction for distributions to shareholders, and its distributions (including capital gains distributions) generally would be taxable as ordinary income dividends to its shareholders, subject if certain requirements are met to the dividends-received deduction for corporate shareholders and lower tax rates on qualified dividend income received by noncorporate shareholders. To requalify for treatment as a RIC in a subsequent taxable year, the Fund would be required to satisfy the RIC qualification requirements for that year and to distribute any earnings and profits from any year in which the Fund failed to qualify for tax treatment as a RIC. If a Fund fails to qualify as a RIC for a period longer than two taxable years, it would generally be required to pay a Fund-level tax on certain net built-in gains recognized with respect to certain of its assets upon a disposition of such assets within ten years of qualifying as a RIC in a subsequent year. The Board reserves the right not to maintain the qualification of a Fund as a RIC if it determines such course of action to be beneficial to shareholders. If a Fund determines that it will not qualify as a RIC under Subchapter M of the Internal Revenue Code, the Fund will establish procedures to reflect the anticipated tax liability in the Fund’s NAV.

If a Fund meets the Distribution Requirement but retains some or all of its income or gains, it will be subject to federal income tax to the extent any such income or gains are not distributed. The Fund may designate certain amounts retained as undistributed net capital gain in a notice to its shareholders, who (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their proportionate shares of the undistributed amount so designated, (ii) will be entitled to credit their proportionate shares of the income tax paid by the Fund on that undistributed amount against their federal income tax liabilities and to claim refunds to the extent such credits exceed their liabilities and (iii) will be entitled to increase their tax basis, for federal income tax purposes, in their shares in the Fund by an amount equal to the excess of the amount of undistributed net capital gain included in their respective income over their respective income tax credits.

Each Fund will be subject to a nondeductible 4% federal excise tax on certain undistributed income if it does not distribute to its shareholders in each calendar year an amount at least equal to 98% of its ordinary income for the calendar year plus 98.2% of its capital gain net income for the one-year period ending on October 31 of such year, plus certain other amounts. Each Fund intends to make sufficient distributions, or deemed distributions, to avoid imposition of the excise tax but can make no assurances that all such tax liability will be eliminated.

Capital losses in excess of capital gains (“net capital losses”) are not permitted to be deducted against a RIC’s net investment income. Instead, for U.S. federal income tax purposes, potentially subject to certain limitations, a Fund may carry net capital losses from any taxable year forward to offset capital gains in future years. Unused net capital loss carryforwards that arose in tax years that began on or before December 22, 2010 (“Pre-2011 Losses”) are available to be applied against future capital gains, if any, realized by the Fund prior to the expiration of the carryforwards. If a Fund has a net capital loss for a taxable year beginning after December 22, 2010 (a “Post-2010 Loss”), the excess of the Fund’s net short-term capital losses over its net long-term capital gains is treated as a short-term capital loss arising on the first day of such Fund’s next taxable year, and the excess (if any) of the Fund’s net long-term capital losses over its net short-term capital gains is treated as a long-term capital loss arising on the first day of the Fund’s next taxable year. Post-2010 Losses can be carried forward indefinitely to offset capital gains, if any, in years following the year of the loss, and such carryforwards must be utilized before the Fund can utilize carryforwards of Pre-2011 Losses. Generally, the Fund may not carry forward any losses other than net capital losses. Under certain circumstances, the Fund may elect to treat certain losses as though they were incurred on the first day of the taxable year immediately following the taxable year in which they were actually incurred.

Each Fund intends to distribute to shareholders substantially all its net investment income and net realized capital gains to shareholders, at least annually. The distribution of net investment income and net realized capital gains will be taxable to Fund shareholders regardless of whether the shareholder elects to receive these distributions in cash or in additional shares.

If a Fund receives qualified dividend income, a portion of the dividends paid by the Fund may be treated as qualified dividend income, which for noncorporate shareholders is subject to tax at reduced rates. Qualified dividend income is, in general, dividend income from taxable domestic corporations and certain foreign corporations (i.e., foreign corporations incorporated in a possession of the United States or in countries with comprehensive tax treaties with the United States, and certain other foreign corporations if the stock with respect to which the dividend was paid is readily tradeable on an established securities market in the United States).

In order for some portion of the dividends received by a Fund’s shareholders to be qualified dividend income, a Fund must meet holding period and other requirements with respect to the underlying dividend paying stock, and the shareholder must meet holding period and other requirements with respect to the Fund’s shares. Distributions received by a Fund from another RIC (including an ETF) that is taxable as a RIC) or REIT will be treated as qualified dividend income to the extent so reported by such other RIC or REIT. If 95% or more of a Fund’s gross income (ignoring gains attributable to the sale of stocks and securities except to the extent net short-term capital gain from such sales exceeds net long-term capital loss from such sales) in a taxable year is attributable to qualified dividend income, that Fund may report 100% of its distributions of such income as qualified dividend income. Certain Funds’ investment strategies may significantly limit their ability to distribute dividends eligible for treatment as qualified dividend income.

Distributions reported to Fund shareholders as capital gain dividends will be taxable as long-term capital gains, regardless of how long the shareholder has owned the shares. Distributions of net short-term capital gains will be taxable to shareholders as ordinary income. Fund shareholders will be notified annually by the Fund as to the federal tax status of all distributions made by the Fund. Distributions may be subject to state and local taxes.

Although dividends generally will be treated as distributed when paid, any dividend declared by a Fund in October, November or December and payable to shareholders of record in such a month that is paid during the following January will be treated for U.S. federal income tax purposes as received by shareholders on December 31 of the calendar year in which it was declared.

Shareholders who have not held Fund shares for a full year should be aware that a Fund may report and distribute to a shareholder, as ordinary dividends or capital gain dividends, a percentage of income that is not equal to the

percentage of the Fund’s ordinary income or net capital gain, respectively, actually earned during the shareholder’s period of investment in the Fund.

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 capital gains (including capital gains realized on the sale or exchange of shares). 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.

If a Fund’s distributions exceed its earnings and profits, all or a portion of the distributions made in the taxable year may be treated as a return of capital to shareholders. A return of capital distribution will generally not be taxable, but will reduce each shareholder’s cost basis and result in a higher capital gain or lower capital loss when the shares on which the distribution was received are sold. After a shareholder’s basis has been reduced to zero, distributions in excess of earnings and profits will be treated as gain from the sale of the shareholder’s shares.

A dividend or distribution received shortly after the purchase of shares reduces the net asset value of the shares by the amount of the dividend or distribution and, although in effect a return of capital, will be taxable to the shareholder. If the net asset value of shares were reduced below the shareholder's cost by dividends or distributions representing gains realized on sales of securities, such dividends or distributions would be a return of investment though taxable to the shareholder in the same manner as other dividends or distributions.

Sales, redemptions and exchanges of Fund shares are generally taxable transactions for federal and state income tax purposes. In general, if you hold your shares as a capital asset, gain or loss realized on a sale, redemption or exchange will be capital gain or loss and will be classified as long-term or short-term, depending on the length of time shares have been held. Because the U.S. Government Money Market Fund intends to maintain a stable $1.00 NAV, shareholders of that Fund should not expect to realize any gain or loss on the sale, redemption or exchange of such shares.

All or a portion of any loss realized by an investor upon a redemption of Fund shares will be disallowed to the extent the investor purchases (or enters into a contract or option to purchase) shares within a period of 61 days (beginning 30 days before and ending 30 days after the redemption). This loss disallowance rule will apply if shares are purchased through the reinvestment of dividends during the 61-day period. Any loss disallowed under these rules will be added to the tax basis in the newly purchased shares. In addition, any loss realized by a shareholder on the disposition of shares held for six months or less is treated as a long-term capital loss to the extent of any distributions of any amounts treated as distributions to the shareholder of long-term capital gain with respect to such shares (including any amounts credited to the shareholder as undistributed capital gains).

Special Considerations Applicable to Certain Funds

Certain Funds may invest in complex securities such as equity options, index options, repurchase agreements, foreign currency contracts, hedges and swaps, transactions treated as straddles for U.S. federal income tax purposes, and futures contracts. These investments may be subject to numerous special and complex tax rules. These rules could affect a Fund's ability to qualify as a RIC, affect whether gains and losses recognized by a Fund are treated as ordinary income or capital gain, and accelerate the recognition of income to a Fund and/or defer a Fund’s ability to recognize losses. In turn, those rules may affect the amount, timing or character of the income distributed by a Fund.

As described above, 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 generally are included as qualifying income in applying the 90% Test. It should be noted, however, that for purposes of the 90% Test, the Secretary of the Treasury is authorized to issue regulations that would exclude from qualifying income foreign currency gains which are not directly related to the RIC’s principal business of investing in stock or securities (or options and futures with respect to stock or securities). No regulations have been issued pursuant to this authorization. It is possible, however, that such regulations may be issued in the future. If such future regulations were issued and applied to certain Funds, such as the Strengthening Dollar 2x Strategy and Weakening Dollar 2x Strategy Funds, it is possible that the amount of their qualifying income would no longer satisfy the 90% Test and that those Funds would fail to qualify as RICs.

It is also possible that a Fund's strategy of investing in derivatives such as swaps, futures contracts, options and other related financial instruments might cause the Funds to fail to satisfy the Asset Test, resulting in their failure to qualify

as RICs. Failure of the Asset Test might result from a determination by the Internal Revenue Service (the "IRS") that financial instruments in which the Funds invest are not securities. Moreover, even if the financial instruments are treated as securities, a determination by the IRS regarding the identity of the issuers of the securities or the fair market values of the securities that differs from the determinations made by the Funds could result in the failure by the Funds to diversify their investments in a manner necessary to satisfy the Asset Test. The tax treatment of a Fund and its shareholders in the event the Fund fails to qualify as a RIC is described above under “Regulated Investment Company Status.”

In general, gains from “foreign currencies” and from foreign currency options, foreign currency futures, and forward foreign exchange contracts (“forward contracts”) relating to investments in stock, securities, or foreign currencies will be qualifying income for purposes of determining qualification as a RIC. It is currently unclear, however, who will be treated as the issuer of a foreign currency instrument for purposes of the RIC diversification requirements applicable to a Fund.

Under the Internal Revenue Code, special rules are provided for certain transactions in a foreign currency other than the taxpayer’s functional currency (i.e., unless certain special rules apply, currencies other than the U.S. dollar). In general, foreign currency gains or losses from forward contracts, from futures contracts that are not “regulated futures contracts,” and from unlisted options will be treated as ordinary income or loss under the Internal Revenue Code. Also, certain foreign exchange gains derived with respect to foreign fixed-income securities are subject to special treatment. In general, any such gains or losses will increase or decrease the amount of a Fund’s taxable income available to be distributed to shareholders as ordinary income, rather than increasing or decreasing the amount of the Fund’s net capital gain.

With respect to investments in zero coupon securities which are sold at original issue discount and thus do not make periodic cash interest payments, a Fund will be required to include as part of its current income the imputed interest on such obligations even though the Fund has not received any interest payments on such obligations during that period. Because each Fund is required to distribute all of its net investment income to its shareholders, a Fund may have to sell Fund securities to distribute such imputed income. Those sales may occur at a time when the Advisor would not otherwise have chosen to sell such securities and will generally result in taxable gain or loss.

Any market discount recognized on a market discount bond is taxable as ordinary income. A market discount bond is a bond acquired in the secondary market at a price below redemption value, or below adjusted issue price if the bond was issued with original issue discount. Absent an election to include the market discount in income as it accrues, gain on a Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of the accrued market discount.

The Sector Funds, International Equity Funds, and the Alternative Funds may incur a liability for foreign withholding taxes as a result of investment in stock or securities of foreign corporations. If, at any year-end, more than 50% of the assets of a Fund are comprised of stock or securities of foreign corporations, the Fund may elect, for U.S. federal income tax purposes, to treat foreign income or withholding taxes paid by the Fund as paid by its shareholders. For any year that a Fund is eligible for and makes such an election, each shareholder of the Fund will be required to include in income an amount equal to his or her allocable share of qualified foreign income taxes paid by the fund, and shareholders will be entitled, subject to certain holding period requirements and other limitations, to credit their portions of these amounts against their United States federal income tax due, if any, or to deduct their portions from their United States taxable income, if any. No deductions for foreign taxes paid by the Fund may be claimed, however, by noncorporate shareholders who do not itemize deductions. A Fund will make this election only if it deems the election to be in the best interests of its shareholders. If a Fund does not qualify to make this election or does qualify, but does not choose to do so, the imposition of such foreign taxes would directly reduce the return to an investor from an investment in that Fund.

Foreign tax credits, if any, received by a Fund as a result of an investment in another RIC (including an ETF which is taxable as a RIC) will not be passed through to you unless the Fund qualifies as a “qualified fund-of-funds” under the Code. If a Fund is a “qualified fund-of-funds” it will be eligible to file an election with the IRS that will enable the Fund to pass along these foreign tax credits to its shareholders. A Fund will be treated as a “qualified fund-of-funds” under the Code if at least 50% of the value of the Fund’s total assets (at the close of each quarter of the Fund’s taxable year) is represented by interests in other RICs.

If a Fund owns shares in certain foreign investment entities, referred to as “passive foreign investment companies” or “PFICs”, the Fund will generally be subject to one of the following special tax regimes: (i) the Fund may be liable for U.S. federal income tax, and an additional interest charge, on a portion of any “excess distribution” from such foreign entity or any gain from the disposition of such shares, even if the entire distribution or gain is paid out by the Fund as a dividend to its shareholders; (ii) if the Fund were able and elected to treat a PFIC as a “qualified electing fund” or “QEF,” the Fund would be required each year to include in income, and distribute to shareholders in accordance with the distribution requirements set forth above, the Fund's pro rata share of the ordinary earnings and net capital gains of the PFIC, whether or not such earnings or gains are distributed to the Fund; or (iii) the Fund may be entitled to mark-to-market annually shares of the PFIC, and in such event would be required to distribute to shareholders any such mark-to-market gains in accordance with the distribution requirements set forth above. Such Fund intends to make the appropriate tax elections, if possible, and take any additional steps that are necessary to mitigate the effect of these rules.

In general, for purposes of the 90% Test described above, income derived from a partnership will be treated as qualifying income only to the extent such income is attributable to items of income of the partnership that would be qualifying income if realized directly by a Fund. However, 100% of the net income derived from an interest in a “qualified publicly traded partnership” (generally, a partnership (i) interests in which are traded on an established securities market or are readily tradable on a secondary market or the substantial equivalent thereof, (ii) that derives at least 90% of its income from the passive income sources specified in Internal Revenue Code section 7704(d), and (iii) that derives less than 90% of its income from the qualifying income described in the 90% Test) will be treated as qualifying income. In addition, although in general the passive loss rules of the Internal Revenue Code do not apply to RICs, such rules do apply to a RIC with respect to items attributable to an interest in a qualified publicly traded partnership.

A Fund may invest in certain MLPs which may be treated as “qualified publicly traded partnerships.” Income from qualified publicly traded partnerships is qualifying income for purposes of the 90% Test, but a Fund’s investment in one or more of such “qualified publicly traded partnerships” is limited under the Asset Test to no more than 25% of the value of the Fund’s assets. The Funds will monitor their investments in such qualified publicly traded partnerships in order to ensure compliance with the 90% Test and the Asset Test. MLPs and other partnerships that the Funds may invest in will deliver Form K-1s to the Funds to report their share of income, gains, losses, deductions and credits of the MLP or other partnership. These Form K-1s may be delayed and may not be received until after the time that a Fund issues its tax reporting statements. As a result, a Fund may at times find it necessary to reclassify the amount and character of its distributions to you after it issues you your tax reporting statement.

A Fund may invest in REITs. Investments in REIT equity securities may require a Fund to accrue and distribute income not yet received. To generate sufficient cash to make the requisite distributions, a Fund may be required to sell securities in its portfolio (including when it is not advantageous to do so) that it otherwise would have continued to hold. A Fund’s investments in REIT equity securities may at other times result in a Fund’s receipt of cash in excess of the REIT’s earnings; if a Fund distributes these amounts, these distributions could constitute a return of capital to such Fund’s shareholders for federal income tax purposes. Dividends paid by a REIT, other than capital gain distributions, will be taxable as ordinary income up to the amount of the REIT’s current and accumulated earnings and profits. Capital gain dividends paid by a REIT to a Fund will be treated as long-term capital gains by the Fund and, in turn, may be distributed by the Fund to its shareholders as a capital gain distribution. Dividends received by a Fund from a REIT generally will not constitute qualified dividend income or qualify for the dividends received deduction. If a REIT is operated in a manner such that it fails to qualify as a REIT, an investment in the REIT would become subject to double taxation, meaning the taxable income of the REIT would be subject to federal income tax at regular corporate rates without any deduction for dividends paid to shareholders and the dividends would be taxable to shareholders as ordinary income (or possibly as qualified dividend income) to the extent of the REIT’s current and accumulated earnings and profits. REITs in which a Fund invests often do not provide complete and final tax information to the Funds until after the time that the Funds issue a tax reporting statement. As a result, a Fund may at times find it necessary to reclassify the amount and character of its distributions to you after it issues your tax reporting statement. When such reclassification is necessary, you will be sent a corrected, final Form 1099-DIV to reflect the reclassified information. If you receive a corrected Form 1099-DIV, use the information on this corrected form, and not the information on the previously issued tax reporting statement, in completing your tax returns.

Options Transactions by the Funds

If a call option written by a Fund expires, the amount of the premium received by a Fund for the option will be short-term capital gain to the Fund. If such an option is closed by a Fund, any gain or loss realized by a Fund as a result of the closing purchase transaction will be short-term capital gain or loss. If the holder of a call option exercises the holder’s right under the option, any gain or loss realized by a Fund upon the sale of the underlying security or underlying futures contract pursuant to such exercise will be short-term or long-term capital gain or loss to a Fund depending on the Fund’s holding period for the underlying security or underlying futures contract.

With respect to call options purchased by a Fund, a Fund will realize short-term or long-term capital gain or loss if such option is sold and will realize short-term or long-term capital loss if the option is allowed to expire depending on the Fund’s holding period for the call option. If such a call option is exercised, the amount paid by the Fund for the option will be added to the basis of the stock or futures contract so acquired.

Certain Funds, in their operations, may utilize options on securities indices. Options on “broad based” securities indices are classified as “non-equity options” under the Internal Revenue Code. Gains and losses resulting from the expiration, exercise, or closing of such non-equity options, as well as gains and losses resulting from futures contract transactions, will be treated as 60% long-term capital gain or loss and 40% short-term capital gain or loss (hereinafter, “blended gain or loss”). In addition, any non-equity option and futures contract held by a Fund on the last day of a fiscal year will be treated as sold for market value on that date, and gain or loss recognized as a result of such deemed sale will be blended gain or loss.

The trading strategies of each of the Domestic Equity Funds, Sector Funds, International Equity Funds, Specialty Funds, and Alternative Funds, involving nonequity options on securities indices may constitute “straddle” transactions. “Straddles” may affect the taxation of such instruments and may cause the postponement of recognition of losses incurred in certain closing transactions. Each Fund will also have available a number of elections under the Internal Revenue Code concerning the treatment of option transactions for tax purposes. Each such Fund will utilize the tax treatment that, in the Fund’s judgment, will be most favorable to a majority of investors in the Fund. Taxation of these transactions will vary according to the elections made by a Fund. These tax considerations may have an impact on investment decisions made by a Fund.

Backup Withholding

In certain cases a Fund will be required to withhold (as “backup withholding”) and remit to the U.S. Treasury an amount equal to the applicable backup withholding rate applied to reportable taxable dividends and distributions, as well as the proceeds of any redemptions of Fund shares, paid to a shareholder who: (1) has failed to provide a correct taxpayer identification number (usually the shareholder’s social security number); (2) is subject to backup withholding by the IRS; (3) has failed to provide the Fund with the certifications required by the IRS to document that the shareholder is not subject to backup withholding; or (4) has failed to certify that he or she is a U.S. person (including a U.S. resident alien). The backup withholding rate is currently 28%.

Other Issues

Ordinary dividends and certain other payments made by a Fund to non-U.S. shareholders are generally subject to withholding tax at a 30% rate (or such lower rate as may be determined in accordance with any applicable treaty). A Fund may, under certain circumstances, report all or a portion of a dividend as an “interest-related dividend” or a “short-term capital gain dividend,” which would generally be exempt from this 30% U.S. withholding tax, provided certain other requirements are met. In order to obtain a reduced rate of withholding, a non-U.S. shareholder will be required to provide an IRS Form W-8BEN certifying its entitlement to benefits under a treaty. The withholding tax does not apply to regular dividends paid to a non-U.S. shareholder who provides an IRS Form W-8ECI, certifying that the dividends are effectively connected with the non-U.S. shareholder’s conduct of a trade or business within the United States. Instead, the effectively connected dividends will be subject to regular U.S. income tax as if the non-U.S. shareholder were a U.S. shareholder. A non-U.S. corporation receiving effectively connected dividends may also be subject to additional “branch profits tax” imposed at a rate of 30% (or a lower treaty rate). A non-U.S. shareholder who fails to provide an IRS Form W-8BEN or W-8BEN-E or other applicable form may be subject to backup withholding at the appropriate rate. This 30% withholding tax generally will not apply to net capital gains distributions or to redemption proceeds.

Ordinary dividends, redemption payments and certain capital gain dividends paid after June 30, 2014 (or, in certain cases, later dates) to a non-U.S. shareholder that fails to make certain required certifications, or that is a “foreign

financial institution” as defined in Section 1471 of the Internal Revenue Code and that does not meet the requirements imposed on foreign financial institutions by Section 1471, are generally subject to withholding tax at a 30% rate. Withholding on such payments will begin at different times depending on the type of payment, the type of payee, and when the shareholder’s account is or was opened. In general, withholding with respect to ordinary dividends began on July 1, 2014, although in many cases, withholding on ordinary dividends will begin on a later date. Withholding on redemption payments and certain capital gain dividends is currently scheduled to begin on January 1, 2017. The extent, if any, to which such withholding tax may be reduced or eliminated by an applicable tax treaty is unclear. A non-U.S. shareholder may be exempt from the withholding described in this paragraph under an applicable agreement between the U.S. and a foreign government, provided that the shareholder and the applicable intergovernmental foreign government comply with the terms of such agreement.

If the Real Estate Fund meets the definition of a “United States real property holding corporation” as that term is defined in the Internal Revenue Code, or if it would meet that definition, were it not for certain exceptions, then certain distributions by the Real Estate Fund to certain foreign shareholders may be subject to U.S. federal withholding tax at a rate of 35%, and certain foreign shareholders may be required to file U.S. federal income tax returns to report distributions received from the Real Estate Fund.

Certain tax-exempt shareholders, including qualified pension plans, individual retirement accounts, salary deferral arrangements, 401(k)s, and other tax-exempt entities, generally are exempt from federal income taxation except with respect to their unrelated business taxable income (“UBTI”). Under current law, the Funds generally serve to block UBTI from being realized by their tax-exempt shareholders. However, notwithstanding the foregoing, the tax-exempt shareholder could realize UBTI by virtue of an investment in a Fund where, for example: (i) the Fund invests in residual interests of Real Estate Mortgage Investment Conduits (“REMICs”), (ii) the Fund invests in a REIT that is a taxable mortgage pool (“TMP”) or that has a subsidiary that is a TMP or that invests in the residual interest of a REMIC, or (iii) shares in the Fund constitute debt-financed property in the hands of the tax-exempt shareholder within the meaning of section 514(b) of the Internal Revenue Code. Charitable remainder trusts are subject to special rules and should consult their tax advisor. The IRS has issued guidance with respect to these issues and prospective shareholders, especially charitable remainder trusts, are strongly encouraged to consult their tax advisors regarding these issues.

If a shareholder recognizes a loss of $2 million or more for an individual shareholder or $10 million or more for a corporate shareholder, the shareholder must file with the IRS a disclosure statement on IRS Form 8886. Direct shareholders of portfolio securities are in many cases excepted from this reporting requirement, but under current guidance, shareholders of a RIC, such as a Fund, are not excepted. Significant penalties may be imposed for the failure to comply with reporting requirements. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their individual circumstances.

Each Fund may be subject to tax or taxes in certain states where the Fund does business. Furthermore, in those states which have income tax laws, the tax treatment of a Fund and of Fund shareholders with respect to distributions by the Fund may differ from federal tax treatment. In some states ownership of fund shares may also be subject to state and local taxation. In some states, distributions attributable to interest earned on direct obligations of the U.S. government may be exempt from personal income tax. Investment in Government National Mortgage Association or Fannie Mae securities, banker’s acceptances, commercial paper and repurchase agreements collateralized by U.S. government securities do not generally qualify for such state tax exemptions. You should consult your tax adviser concerning the possible qualification of Fund distributions for any exemption in your state.

Shareholders are urged to consult their own tax advisers regarding the application of the provisions of tax law described in this SAI in light of the particular tax situations of the shareholders and regarding specific questions as to federal, state, or local taxes.

OTHER INFORMATION

Portfolio Holdings

The Board has approved portfolio holdings disclosure policies that govern the timing and circumstances of disclosure to shareholders and third parties of information regarding the portfolio investments held by the Funds. These policies and procedures, as described below, are designed to ensure that disclosure of portfolio holdings is in the best interests of shareholders, and address conflicts of interest between the interests of shareholders and those of the Advisor, Distributor, or any affiliated person of the Funds, the Advisor, or the Distributor.

Information concerning the Funds’ portfolio holdings may be disclosed in the ordinary course of business and as frequently as daily, but no earlier than one business day following the date of the information, to (i) certain personnel of those Service Providers that are involved in portfolio management and providing administrative, operational, risk management, or other support to portfolio management, including affiliated broker-dealers, and (ii) other personnel of the Advisor and other Service Providers, such as the Funds’ administrator, custodian and fund accountant, who deal directly with, or assist in, functions related to investment management, administration, custody and fund accounting, as may be necessary to conduct business in the ordinary course in a manner consistent with agreements with the Funds and the terms of the Funds’ current registration statement. As of March 31, 2016, the Funds disclose portfolio holdings information to the following entities as part of ongoing arrangements that serve legitimate business purposes:



Individual/Entity	Frequency	Time Lag
Morningstar	Monthly	1-10 calendar days
Lipper	Monthly	1-10 calendar days
Bloomberg	Monthly	1-10 calendar days
Thompson Financial	Quarterly	1-10 calendar days
Vickers Stock Research	Quarterly	1-10 calendar days
Institutional Shareholder Services	Daily	1-5 business days
FactSet	Monthly	1-10 calendar days

The Funds’ Chief Compliance Officer, or a Compliance Manager designated by the Chief Compliance Officer, may also grant exceptions to permit additional disclosure of Fund portfolio holdings information at differing times and with different lag times (i.e., the period from the date of the information to the date the information is made available), if any, in instances where the Funds have legitimate business purposes for doing so, it is in the best interests of shareholders, and the recipients are subject to a duty of confidentiality, including a duty not to trade on the nonpublic information and are required to execute an agreement to that effect. The Board will be informed of any such disclosures at its next regularly scheduled meeting or as soon as is reasonably practicable thereafter. In no event shall the Funds, the Advisor, or any other party receive any direct or indirect compensation in connection with the disclosure of information about the Funds’ portfolio holdings.

The Board exercises continuing oversight of the disclosure of the Funds’ portfolio holdings by (1) overseeing the implementation and enforcement of the Portfolio Holdings Disclosure Policies and Procedures, the Code of Ethics, and the Protection of Non-Public Information Policies and Procedures (collectively, the “portfolio holdings governing policies”) by the Funds’ Chief Compliance Officer and the Funds, (2) considering reports and recommendations by the Chief Compliance Officer concerning any material compliance matters (as defined in Rule 38a-1 under the 1940 Act and Rule 206(4)-7 under the Investment Advisers Act of 1940) that may arise in connection with any portfolio holdings governing policies, and (3) considering whether to approve or ratify any amendment to any portfolio holdings governing policies. The Board and the Funds reserve the right to amend the portfolio holdings governing policies at any time and from time to time without prior notice in their sole discretion. For purposes of the portfolio holdings governing policies, the term “portfolio holdings” means the equity and debt securities (e.g., stocks and bonds) held by the Funds and does not mean the cash investments, derivatives, and other investment positions (collectively, other investment positions) held by the Funds.

In addition to the permitted disclosures described above, the Funds must disclose their complete holdings quarterly within 60 days of the end of each fiscal quarter in the Annual Report and Semi-Annual Report to shareholders and in the quarterly holdings report on Form N-Q. The Funds will also publish a complete list of their quarter-end portfolio

holdings on their website at www.guggenheiminvestments.com generally within 60 days of the quarter-end. Such information will remain online for approximately 12 months, or as otherwise required by law. The NASDAQ-100^® Fund, Russell 2000^® Fund, S&P 500^® Fund, Dow Jones Industrial Average^® 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, each Sector Fund, and the Real Estate Fund will also disclose their portfolio holdings each day they are open for business at www.guggenheiminvestments.com. As required, the U.S. Government Money Market Fund provides and reports on Form N-MFP a full list of monthly holdings as of the last business day of the previous month on the Fund’s website. This information will be provided five business days after the period end, and will remain available for at least six months. Forms N-Q and N-MFP are available, free of charge, on the EDGAR database on the SEC’s web site at www.sec.gov.

Voting Rights

Each share has one vote with respect to matters upon which a shareholder vote is required consistent with the requirements of the 1940 Act and the rules promulgated thereunder. Shareholders will receive one vote for every full Fund share owned. Each Fund or class of a Fund, as applicable, will vote separately on matters relating solely to that Fund or class. Each Fund’s shares are freely transferable.

As a Delaware statutory trust, the Trust is not required to hold annual shareholder meetings unless otherwise required by the 1940 Act. However, a meeting may be called by shareholders owning at least 10% of the outstanding shares of the Trust. If a meeting is requested by shareholders, the Trust will provide appropriate assistance and information to the shareholders who requested the meeting. Shareholder inquiries can be made by calling 800.820.0888 or 301.296.5100, or by writing to the Trust at 805 King Farm Boulevard, Suite 600, Rockville, Maryland 20850.

Reporting

As a shareholder of a Fund, you will receive the unaudited financial information and audited financial statements for that Fund. In addition, the Trust will send you proxy statements and other reports related to the Fund in which you own shares. If you are a customer of a financial institution that has purchased shares of a Fund for your account, you may, depending upon the nature of your account, receive all or a portion of this information directly from your financial institution.

Shareholder Inquiries

Shareholders may visit the Trust’s web site at www.guggenheiminvestments.com or call 800.820.0888 or 301.296.5100 to obtain information on account statements, procedures, and other related information.

INDEX PUBLISHERS INFORMATION

The Bank of New York Mellon

“BNY Mellon”, “BNY Mellon ADR Index” and “BNY Mellon Emerging Markets 50 ADR Index”, a sub-index of “BNY Mellon ADR Index” are service marks of The Bank of New York Mellon and have been licensed for use for certain purposes by Guggenheim Investments. The Emerging Markets 2x Strategy Fund and Inverse Emerging Markets 2x Strategy Fund (the “Guggenheim Emerging Markets Funds”) are based on the BNY Mellon Emerging Markets 50 ADR Index (the “BNY Mellon Index”) and are not sponsored, endorsed, sold, recommended or promoted by The Bank of New York Mellon or any of its subsidiaries or affiliates, and The Bank of New York Mellon nor any of its subsidiaries or affiliates makes any representation or warranty, express or implied, to the purchasers or owners of the Guggenheim Emerging Markets Funds or any member of the public regarding the advisability of investing in financial products generally or in these products particularly, the ability of the BNY Mellon Index to track market performance or the suitability or appropriateness of the products for such purchasers, owners or such member of the public. The relationship between The Bank of New York Mellon, on one hand, and Guggenheim Investments, on the other, is limited to the licensing of certain trademarks and trade names of The Bank of New York Mellon and the BNY Mellon Index, which is determined, composed and calculated by The Bank of New York Mellon without regard to Guggenheim Investments or their products. Neither The Bank of New York Mellon nor any of its subsidiaries or affiliates has any obligation to take the needs of Guggenheim Investments or the purchasers or owners of their products into consideration in determining, composing or calculating the BNY Mellon Index. Neither The Bank of New York Mellon nor any of its subsidiaries or affiliates is responsible for, or has participated in, the determination of the timing of, prices at, or quantities of the products to be issued or in the determination or calculation of the equation by which the products are to be converted into cash. Neither The Bank of New York Mellon nor any of its subsidiaries or affiliates has any obligation or liability in connection with the administration, marketing or trading of the products. NEITHER

THE BANK OF NEW YORK MELLON NOR ANY OF ITS SUBSIDIARIES OR AFFILIATES GUARANTEES THE ACCURACY OR COMPLETENESS OF THE BNY MELLON INDEX OR ANY DATA INCLUDED THEREIN, AND NEITHER THE BANK OF NEW YORK MELLON NOR ANY OF ITS SUBSIDIARIES OR AFFILIATES SHALL HAVE ANY LIABILITY FOR ANY ERRORS, OMISSIONS OR INTERRUPTIONS THEREIN. NEITHER THE BANK OF NEW YORK MELLON NOR ANY OF ITS SUBSIDIARIES OR AFFILIATES MAKES ANY WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE GUGGENHEIM EMERGING MARKETS FUNDS, PURCHASERS OR OWNERS OF THE GUGGENHEIM EMERGING MARKETS FUNDS OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BNY MELLON INDEX OR ANY DATA INCLUDED THEREIN. NEITHER THE BANK OF NEW YORK MELLON NOR ANY OF ITS SUBSIDIARIES OR AFFILIATES MAKES ANY EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BNY MELLON INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE BANK OF NEW YORK MELLON OR ANY OF ITS SUBSIDIARIES OR AFFILIATES HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

Credit Suisse Group AG and/or its affiliates

THE “CREDIT SUISSE EVENT DRIVEN LIQUID INDEX” IS A TRADEMARK OF CREDIT SUISSE ALTERNATIVE CAPITAL, INC. OR ONE OF ITS AFFILIATES (COLLECTIVELY, “CREDIT SUISSE”), AND HAS BEEN LICENSED FOR USE FOR CERTAIN PURPOSES BY THE EVENT DRIVEN AND DISTRESSED STRATEGIES FUND. THE EVENT DRIVEN AND DISTRESSED STRATEGIES FUND IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY CREDIT SUISSE, AND CREDIT SUISSE MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, REGARDING THE ADVISABILITY OF INVESTING OR TRADING IN SUCH PRODUCTS OR IN SECURITIES GENERALLY, THE RESULTS TO BE OBTAINED FROM THE USE OF THE CREDIT SUISSE EVENT DRIVEN LIQUID INDEX, THE FIGURE AT WHICH THE SAID INDEX STANDS AT ANY PARTICULAR TIME ON ANY PARTICULAR DAY OR OTHERWISE. CREDIT SUISSE MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE CREDIT SUISSE EVENT DRIVEN LIQUID INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL CREDIT SUISSE HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN CREDIT SUISSE AND GUGGENHEIM INVESTMENTS.

The Credit Suisse Event Driven Liquid Index is the exclusive property of Credit Suisse. Neither Credit Suisse nor any service provider shall be liable (whether in negligence or otherwise) to any person for any error or omission in the Credit Suisse Event Driven Liquid Index or the calculation thereof and neither Credit Suisse nor any service provider shall be under any obligation to advise any person of any error therein.

Neither Credit Suisse nor its Index service provider has any obligation to take the needs of any person into consideration in composing, modifying, determining or calculating the Credit Suisse Event Driven Liquid Index (or causing the index to be calculated). Credit Suisse may modify the Credit Suisse Event Driven Liquid Index in its sole discretion at any time without the obligation to notify any party.

Credit Suisse has not published or approved this document and accepts no responsibility for its contents or use. Credit Suisse is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Event Driven and Distressed Strategies Fund to be issued, sold, purchased, written or entered into by Licensee or in the determination or calculation of the equation by which the Event Driven and Distressed Strategies Fund are to be converted into cash. Credit Suisse has no obligation or liability in connection with the administration, marketing or trading of the Event Driven and Distressed Strategies Fund.

Frank Russell Company

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 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 nay 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.

The NASDAQ OMX Group, Inc.

The Monthly Rebalance NASDAQ-100^® 2x Strategy Fund, 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 Group, Inc., 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 Nasdaq 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 NASDQ-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 “Nikkei”) does not sponsor, endorse, sell or promote the Japan 2x Strategy 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.

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 the Nikkei knows that they might occur.

S&P Dow Jones Indices LLC

general market performance. S&P Dow Jones Indices’ only relationship to Security Investors, LLC with respect to the Dow Jones Industrial Average is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices or its licensors. The Dow Jones Industrial Average is determined, composed and calculated by S&P Dow Jones Indices without regard to Security Investors, LLC or the Dow Jones Industrial Average^® Fund. S&P Dow Jones Indices have no obligation to take the needs of Security Investors, LLC or the owners of the Dow Jones Industrial Average^® Fund into consideration in determining, composing or calculating the Dow Jones Industrial Average. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the Dow Jones Industrial Average^® Fund or the timing of the issuance or sale of the Dow Jones Industrial Average^® Fund or in the determination or calculation of the equation by which the Dow Jones Industrial Average^®Fund is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the Dow Jones Industrial Average^® Fund. There is no assurance that investment products based on the Dow Jones Industrial Average will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice. Notwithstanding the foregoing, CME Group Inc., a shareholder of S&P Dow Jones Indices, and its affiliates may independently issue and/or sponsor financial products unrelated to the Dow Jones Industrial Average^® Fund currently being issued by Security Investors, LLC, but which may be similar to and competitive with the Dow Jones Industrial Average® Fund. In addition, CME Group Inc. and its affiliates may trade financial products which are linked to the performance of the Dow Jones Industrial Average.

Standard & Poor’s

The Inverse S&P 500^® Strategy Fund, Mid-Cap 1.5x 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 does not make any 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 the S&P SmallCap 600 Pure Value Index (the “S&P Indices”) to track general stock market 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.

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.

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Trust's independent registered public accounting firm, Ernst & Young LLP, 8484 Westpark Drive, McLean, Virginia 22102, audits and reports on the Funds' annual financial statements, reviews certain regulatory reports, prepares the Funds' federal income tax returns, and performs other attestation, auditing and tax services when engaged to do so by the Trust.

CUSTODIAN

U.S. Bank, N.A. (the “Custodian”), 425 Walnut Street, Cincinnati, Ohio 45202, serves as custodian for the Trust and the Funds under a custody agreement between the Trust and the Custodian. Under the custody agreement, the Custodian holds the portfolio securities of each Fund and maintains all necessary related accounts and records.

FINANCIAL STATEMENTS

The Funds’ audited financial statements for the fiscal year ended March 31, 2016, including notes thereto and the reports of Ernst & Young LLP, are incorporated by reference into this SAI. A copy of the Funds’ 2016 Annual Reports to Shareholders must accompany the delivery of this SAI.

APPENDIX A

DESCRIPTION OF RATINGS

Bond Ratings

Below is a description of S&P Global Ratings (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) bond rating categories.

S&P Ratings

Long-Term Issue Credit Ratings*

AAA—An obligation rated "AA"' has the highest rating assigned by S&P. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

AA—An obligation rated "AA" differs from the highest-rated obligations only to a small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.

A—An obligation rated "A" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.

BBB—An obligation rated "BBB" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

BB, B, CCC, CC, and C—Obligations rated "BB", "B", "CCC", "CC", and "C" are regarded as having significant speculative characteristics. "BB" indicates the least degree of speculation and "C" the highest. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major exposures to adverse conditions.

BB—An obligation rated "BB" is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

B—An obligation rated "B" is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

CCC—An obligation rated "CCC" is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

CC—An obligation rated "CC" is currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yet occurred, but S&P expects default to be a virtual certainty, regardless of the anticipated time to default.

C—An obligation rated "C" is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared to obligations that are rated higher.

D—An obligation rated "D" is in default or in breach of an imputed promise. For non-hybrid capital instruments, the "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The "D" rating also will be used upon the filing of a bankruptcy petition

A-1

or the taking of similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation's rating is lowered to 'D' if it is subject to a distressed exchange offer.

NR—This indicates that no rating has been requested, or that there is insufficient information on which to base a rating, or that S&P does not rate a particular obligation as a matter of policy.


*	The ratings from "AA" to "CCC" may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

Short-Term Issue Credit Ratings

A-1—A short-term obligation rated "A-1" is rated in the highest category by S&P. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.

A-2—A short-term obligation rated "A-2" is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.

A-3—A short-term obligation rated "A-3" exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

B—A short-term obligation rated "B" is regarded as vulnerable and has significant speculative characteristics. The obligor currently has the capacity to meet its financial commitments; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitments.

C—A short-term obligation rated "C" is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation.

D—A short-term obligation rated "D" is in default or in breach of an imputed promise. For non-hybrid capital instruments, the "D" rating category is used when payments on an obligation are not made on the date due, unless S&P believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The "D" rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action and where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation's rating is lowered to "D" if it is subject to a distressed exchange offer.

For more information on S&P's ratings, please visit S&P's website at www.standardandpoors.com.

Moody’s Investors Service, Inc.

Corporate Bond Ratings

Aaa

Obligations rated "Aaa" are judged to be of the highest quality, subject to the lowest level of credit risk.

Obligations rated “Aa” are judged to be of high quality and are subject to very low credit risk.

Obligations rated “A” are judged to be upper-medium grade and are subject to low credit risk.

A-2

Baa

Obligations rated “Baa” are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics

Obligations rated “Ba” are judged to be speculative and are subject to substantial credit risk.

Obligations rated “B” are considered speculative and are subject to high credit risk.

Caa

Obligations rated “Caa” are judged to be speculative of poor standing and are subject to very high credit risk.

Obligations rated “Ca” are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.

Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.

Note: Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms.

By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with that security.

For more information on long-term ratings assigned to obligations in default, please visit Moody’s website at www.moodys.com.

A-3

APPENDIX B

CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES

As of July 5, 2016 the following persons were the only persons who were record owners (or to the knowledge of the Trust, beneficial owners) of 5% or more of the shares of the Funds. Persons owing of record or beneficially more than 25% of a Fund’s outstanding shares may be deemed to “control” the Fund within the meaning of the 1940 Act.

B-1

Investor Class Shares



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Banking Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	53.90%
	Vincent E. Estes Trust TTEE Michael Estes	[Address Omitted]	6.19%
	Merrill Lynch, Pierce, Fenner & Smith, Inc. For the Sole Benefit of its Customers	4800 Deer Lake Drive E 3rd Floor Jacksonville, FL 32246	5.76%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	5.70%
Basic Materials Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	25.58%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	24.05%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.55%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	13.35%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	7.46%
Biotechnology Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	35.66%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	30.96%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	6.02%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.19%
Consumer Products Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	35.40%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	31.95%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.61%

B-2



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Electronics Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	49.12%
	FOLIOfn Investments, Inc.	8180 Greensboro Drive 8th Floor McLean, VA 22102	19.47%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	7.48%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	7.06%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.41%
Energy Services Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	37.85%
Energy Services Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	17.94%
Energy Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	31.24%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	24.93%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	21.49%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.77%
Financial Services Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	63.35%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.02%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	9.65%
Government Long Bond 1.2x Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	57.26%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	17.88%
	Trust Company of America FBO 249	P.O. Box 6503 Englewood, CO 80155	5.49%

B-3



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Health Care Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	37.56%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	15.52%
	Trust Company of America FBO #120	P.O. Box 6503 Englewood, CO 80155-6503	6.43%
	Trust Company of America FBO #415	P.O. Box 6503 Englewood, CO 80155-6503	5.55%
Internet Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	56.07%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	17.57%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	12.33%
Inverse Government Long Bond Strategy Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	21.71%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	16.06%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	9.61%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	9.58%
	Peter S. Proll (RIRA)	[Address Omitted]	7.55%
	Maril & Co. FBO JD c/o BMO Harris Bank NA Attn: MF	480 Pilgrim Way Suite 1000 Green Bay, WI 54304	7.11%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.22%
Inverse NASDAQ-100^® Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	23.85%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	17.26%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.17%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	15.21%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	6.43%

B-4



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Inverse S&P 500^® Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	53.50%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	18.21%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	8.41%
Leisure Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	56.84%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	17.63%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.05%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	5.24%
NASDAQ-100^® Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	33.28%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	23.67%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	5.63%
Nova Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	39.53%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	25.10%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	9.06%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.33%
Precious Metals Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	29.03%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	25.18%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	7.50%

B-5



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Retailing Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	45.53%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	18.63%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.87%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	6.75%
Technology Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	36.50%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	21.32%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	15.31%
	Trust Company of America FBO #120	P.O. Box 6503 Englewood, CO 80155-6503	7.35%
	Trust Company of America FBO #339	P.O. Box 6503 Englewood, CO 80155-6503	5.01%
Telecommunications Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	60.98%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	13.24%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	9.73%
Transportation Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	38.38%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	18.54%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	15.27%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	8.02%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.74%

B-6



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Utilities Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	28.24%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	27.59%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	18.02%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.67%

B-7

Class A Shares



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Banking Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	34.88%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	16.02%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.69%
Basic Materials Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	19.32%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	18.31%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	11.55%
Biotechnology Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	16.69%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	11.36%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	8.81%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	7.46%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	5.36%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.25%
Consumer Products Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	11.40%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	9.60%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	8.68%
Dow Jones Industrial Average^® Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	40.14%
	Trust Company of America FBO #120	P.O. Box 6503 Englewood, CO 80155-6503	22.51%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	19.84%
	Trust Company of America FBO #339	P.O. Box 6503 Englewood, CO 80155-6503	14.84%
Electronics Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	59.25%
Electronics Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	26.74%

B-8



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Emerging Markets Bond Strategy Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	81.29%
Emerging Markets Bond Strategy Fund	Trust Company of America FBO #75	P.O. Box 6503 Englewood, CO 80155-6503	15.44%
Energy Services Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	24.74%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	16.00%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.75%
Energy Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	26.71%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	8.09%
	NFS LLC FEBO James P. Kellner	[Address Omitted]	7.06%
Europe 1.25x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	59.78%
	StockCross Financial Services Ranza Boggess Jr. Rev. Trust Ranza Boggess & Barbara Sanborn	[Address Omitted]	6.31%
	Oppenheimer & Co. Inc. FBO Steve Chiu IRA PAS Flex	[Address Omitted]	5.31%
Event Driven and Distressed Strategies Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	28.21%
	NFS LLC FEBO James F. O'Connell and Christine O'Connell	[Address Omitted]	12.27%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	9.72%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.51%
	JP Morgan Clearing Corp. Omnibus Account For the Exclusive Benefit of Customers	3 Chase Metrotech Center Brooklyn, NY 11201	8.33%
Financial Services Fund	NFS LLC FEBO James P. Kellner	[Address Omitted]	18.99%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	16.64%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	15.31%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	15.16%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	6.35%
	Gary J. Aten or Caroline J. Aten	[Address Omitted]	6.18%

B-9



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Government Long Bond 1.2x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	31.18%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	16.56%
	Trust Company of America FBO #75	P.O. Box 6503 Englewood, CO 80155-6503	13.87%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	12.48%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	7.73%
Health Care Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.86%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	8.94%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	8.15%
High Yield Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	19.27%
Internet Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.06%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	15.48%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	7.29%
	Gerlach & Co., LLC Non US Citizens	3800 CitiGroup Center Building B3-14 Tampa, FL 33610	6.12%
	American Enterprise Investor Services	707 2nd Avenue South Minneapolis, MN 55402	6.11%
Inverse Government Long Bond Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	31.86%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	25.05%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	11.57%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	10.46%
Inverse High Yield Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	25.19%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	13.87%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.44%

B-10



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Inverse Mid-Cap Strategy Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	67.18%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.52%
	NFS LLC FEBO NFS/FMTC Rollover IRA FBO Robert A. Golden	[Address Omitted]	12.01%
Inverse NASDAQ-100^® Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	23.47%
Inverse Russell 2000^® Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	11.70%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.83%
	NFS LLC FEBO NFS/FMTC Rollover IRA FBO Russell D. Larosa	[Address Omitted]	8.98%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	8.57%
	Pentegra Trust Company as Custodian FBO Sam Houston State University Orp.	c/o Pentegra Retirement Services 2 Enterprise Drive Suite 408 Shelton, CT 06484	6.93%
Inverse S&P 500^® Strategy Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	59.20%
Inverse S&P 500^® Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.40%
Japan 2x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.87%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	16.37%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	13.20%
	NFS LLC FEBO On File TTEE Rubio R. Punzalan MD Inc. Defnd. Benefit Pension Plan	[Address Omitted]	12.54%
	NFS LLC FEBO On File TTEE Veritas Polska Inc. 401(k) PSP FBO Edna Z. Dorda	[Address Omitted]	6.58%
	NFS LLC FEBO Artur Henke MD TTEE Placer Dermatology & Skin Care Center 401(k) PSP	[Address Omitted]	5.58%
Leisure Fund	Matrix Trust Company Custodian FBO Kades-Margolis IRA MBD	717 17th Street Suite 1300 Denver, CO 80202	9.08%
	Matrix Trust Company Custodian FBO Kades-Margolis 403(b) MBD	717 17th Street Suite 1300 Denver, CO 80202	7.84%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	5.39%

B-11



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Long Short Equity Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	20.85%
	JP Morgan Clearing Corp. Omnibus Account For the Exclusive Benefit of Customers	3 Chase Metrotech Center Brooklyn, NY 11201	19.40%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	17.49%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.87%
Mid-Cap 1.5x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	21.61%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	18.58%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	17.97%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.72%
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	85.22%
NASDAQ-100^® Fund	Trust Company of America FBO #324	P.O. Box 6503 Englewood, CO 80155-6503	47.24%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	7.40%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.60%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	5.12%
Precious Metals Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	71.11%
Precious Metals Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.45%
Real Estate Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	13.80%
Real Estate Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.30%
Retailing Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	32.51%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	9.68%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	8.09%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	7.63%
	American Enterprise Investor Services	707 2nd Avenue South Minneapolis, MN 55402	7.48%

B-12



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Russell 2000^® 1.5x Strategy Fund	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	34.63%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	24.14%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.63%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	10.48%
	Diane Beblowski (ROTH)	[Address Omitted]	7.74%
S&P 500^® Pure Growth Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	51.00%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	10.85%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	10.62%
S&P 500^® Pure Value Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	26.72%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	18.68%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.22%
S&P MidCap 400^® Pure Growth Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	23.72%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	21.30%
	TD Ameritrade Trust Company	P.O. Box 17748 Denver, CO 80217-0748	12.43%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	11.21%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	7.65%
S&P MidCap 400^® Pure Value Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	40.53%
	Mid Atlantic Trust Company FBO Various Longbridge Wealth Advisors	1251 Waterfront Place Suite 525 Pittsburgh, PA 15222	13.46%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	7.99%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	7.11%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	6.58%

B-13



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
S&P SmallCap 600^® Pure Growth Fund	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	41.61%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	22.30%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	9.61%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.18%
S&P SmallCap 600^® Pure Value Fund	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	35.48%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	15.86%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	10.60%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	6.93%
Strengthening Dollar 2x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	32.32%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	29.73%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	16.81%
Technology Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	35.45%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	13.52%
	Edward D. Jones & Co. Custodian FBO Paul J. McDaniel Jr. IRA	[Address Omitted]	13.02%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	6.63%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.20%
Telecommunications Fund	Trust Company of America FBO #83	P.O. Box 6503 Englewood, CO 80155-6503	24.30%
Transportation Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	24.54%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	22.55%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	13.45%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	10.59%

B-14



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Utilities Fund	Trust Company of America FBO #83	P.O. Box 6503 Englewood, CO 80155-6503	20.94%
	Mid Atlantic Trust Company FBO Various Longbridge Wealth Advisors	1251 Waterfront Place Suite 525 Pittsburgh, PA 15222	5.60%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.02%
Weakening Dollar 2x Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	45.12%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	13.87%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	6.52%
	Marjorie J. White (IRA)	[Address Omitted]	5.10%

B-15

Class C Shares



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Banking Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	37.98%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	20.11%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	15.76%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.55%
Basic Materials Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	15.68%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	15.52%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.08%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	8.52%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.48%
Biotechnology Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	20.25%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	18.23%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	11.88%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	11.65%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	6.90%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.33%
Consumer Products Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	27.08%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	18.44%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	6.93%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	6.76%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	6.44%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.24%

B-16



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Dow Jones Industrial Average^® Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	79.87%
	Guggenheim Funds Distributors LLC	805 King Farm Boulevard Suite 600 Rockville, MD 20850	10.90%
	NFS LLC FEBO FMT Co. Cust. IRA Rollover FBO Ellyn B. O'Riordan	[Address Omitted]	5.59%
Electronics Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	34.01%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	12.11%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	6.84%
	Raymond James Omnibus for Mutual Funds House Account Attn: Courtney Waller	880 Carillon Parkway Saint Petersburg, FL 33716	5.66%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	5.60%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.58%
Emerging Markets Bond Strategy Fund	NFL LLC FEBO John Hetterich and Michelle Hetterich	[Address Omitted]	47.13%
	Gary M. Rusinovich or Sharon Rusinovich JTWROS	[Address Omitted]	13.99%
	NFS LLC FEBO Clarice Adamchak TOD On File	[Address Omitted]	9.19%
	Guggenheim Funds Distributors LLC	805 King Farm Boulevard Suite 600 Rockville, MD 20850	6.56%
	TD Ameritrade Inc. FBO Michael P. Cusick IRA TD Ameritrade Clearing, Custodian	[Address Omitted]	5.87%
Energy Services Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	26.55%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	18.46%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.93%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	12.80%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	5.99%

B-17



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Energy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	25.92%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	18.41%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	11.44%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.75%
Europe 1.25x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	52.82%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	13.31%
	NFS LLC FEBO NFS/FMTC SEP IRA FBO Edward F. Gogin, Jr.	[Address Omitted]	9.25%
Event Driven and Distressed Strategies Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	43.84%
	NFS LLC FEBO Leslie L. Rifkin and Alan M. Rifkin TOD Bene on File	[Address Omitted]	10.67%
	Oppenheimer & Co. Inc. FBO Dennis R. Gaynor IRA	[Address Omitted]	5.69%
	Oppenheimer & Co. Inc. FBO Kathy L. Sierminski IRA	[Address Omitted]	5.54%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	5.41%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	5.22%
Financial Services Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	27.91%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	25.01%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	8.87%
	William Erickson (ROTH)	[Address Omitted]	6.31%
Government Long Bond 1.2x Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	12.34%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.74%
	NFS LLC FEBO Robert Kunz and Theresa Cooper M. Kunz TTEE R W Kunz Associates Inc. Attn: Theresa Cooper	[Address Omitted]	5.53%

B-18



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Health Care Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	24.02%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	11.16%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.25%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	10.19%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	9.57%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	8.11%
High Yield Strategy Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	15.65%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	7.75%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.06%
Internet Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	48.69%
Internet Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.97%
Inverse Government Long Bond Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	26.39%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	15.86%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	11.31%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	6.33%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.84%
Inverse High Yield Strategy Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	56.55%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	15.15%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	14.10%
Inverse Mid-Cap Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	91.00%
Inverse NASDAQ-100^® Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	44.41%
Inverse NASDAQ-100^® Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	24.27%

B-19



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Inverse Russell 2000^® Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	19.39%
Inverse Russell 2000^® Strategy Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	9.14%
Inverse S&P 500^® Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	32.70%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	19.00%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.57%
	NFS LLC FEBO Thomas L. Carter and Jill Lea Carter	[Address Omitted]	5.29%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.15%
Japan 2x Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	32.20%
	Charles Schwab & Co. Inc. Special Custody A/C FBO Customers Attn: Mutual Funds	101 Montgomery Street San Francisco, CA 94104-4122	23.26%
	JP Morgan Clearing Corp. Omnibus Account For the Exclusive Benefit of Customers	3 Chase Metrotech Center Brooklyn, NY 11201	17.08%
	Patrick J. Arbucci (RIRA)	[Address Omitted]	6.20%
Leisure Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	36.03%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	13.99%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	12.85%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	11.49%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	5.65%

B-20



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Long Short Equity Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	24.33%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	16.16%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.19%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	7.12%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	6.43%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	5.67%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	5.64%
Mid-Cap 1.5x Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	69.89%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.24%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	6.78%
Monthly Rebalance NASDAQ-100^®2x Strategy Fund	Security Investors, LLC	805 King Farm Boulevard Suite 500 Rockville, MD 20850	47.07%
	Kevin Riney (RIRA)	[Address Omitted]	19.43%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.29%
	Patrick J. Arbucci (RIRA)	[Address Omitted]	16.21%
NASDAQ-100^® Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	21.63%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	16.01%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	15.32%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	11.13%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.21%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.20%
Nova Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	33.88%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	21.67%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	14.43%

B-21



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Precious Metals Fund	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	37.62%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	13.35%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	12.11%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	8.59%
Real Estate Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	16.66%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	14.84%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	12.52%
Retailing Fund	NFS LLC FEBO Jackson Family Trust M. Chehebar, I Shehebar TTEE	[Address Omitted]	41.27%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.41%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	7.70%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	7.62%
	NSF LLC FEBO Isaac J. & Gabriel Chehebar TTEE The 2005 Elliot J. Chehebar GRNTR Trust	[Address Omitted]	6.19%
	NFS LLC FEBO Isaac J. Chehebar and Gabriel J. Chehebar TTEE 2011 Reuben J. Chehebar GRNTR Trust	[Address Omitted]	6.19%
Russell 2000^® 1.5x Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	37.77%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	14.95%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	14.46%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.48%
S&P 500^® Pure Growth Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	55.45%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.31%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	7.36%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	6.60%

B-22



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
S&P 500^® Pure Value Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	24.38%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	15.01%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.01%
	NFS LLC FEBO H. Cullen Talton III DDS PC 401 H. Cullen Talton III P/ADM FBO H. Cullen Talton	[Address omitted]	7.40%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.54%
S&P MidCap 400^® Pure Growth Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	33.12%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	21.27%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	11.73%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	7.77%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.73%
S&P MidCap 400^® Pure Value Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	26.98%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	9.45%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	7.63%
S&P SmallCap 600^® Pure Growth Fund	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	21.64%
	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	15.04%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	13.73%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	13.34%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.23%
S&P SmallCap 600^® Pure Value Fund	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	22.42%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	16.38%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	11.05%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	6.21%

B-23



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Strengthening Dollar 2x Strategy Fund	TD Ameritrade FBO Wells Fargo Bank NA Trustee Mass Def. Comp. Smart Plan FBO Mona Fong	[Address Omitted]	31.84%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	10.52%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	8.45%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	6.23%
Technology Fund	RBC Capital Markets LLC Mutual Fund Omnibus Processing Attn: Mutual Fund Ops Manager	60 South Sixth Street - P08 Minneapolis, MN 55402-4400	33.03%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	13.31%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.32%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.49%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.07%
Telecommunications Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	83.09%
Telecommunications Fund	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	5.18%
Transportation Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	34.56%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	33.59%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	6.05%
Utilities Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	24.77%
	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	18.74%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	13.66%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.44%
Weakening Dollar 2x Strategy Fund	NFS LLC FEBO FMT Co. Custodian IRA FBO Robert M. Everitt	[Address Omitted]	43.93%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	30.51%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	6.78%
	Morgan Stanley Smith Barney	Harborside Financial Center Plaza 2, 3rd Floor Jersey City, NJ 07311	5.79%

B-24

Class H Shares



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Banking Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	39.87%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	31.56%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	7.98%
Basic Materials Fund	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	76.28%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	13.32%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.32%
Biotechnology Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	24.44%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	22.78%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	18.04%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	12.36%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.35%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.91%
Consumer Products Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	50.92%
	TD Ameritrade Trust Company	P.O. Box 17748 Denver, CO 80217-0748	10.93%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.91%
	Trust Company of America FBO #443	P.O. Box 6503 Englewood, CO 80155-6503	8.57%

B-25



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Dow Jones Industrial Average^® Fund	Trust Company of America FBO #75	P.O. Box 6503 Englewood, CO 80155-6503	20.35%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	19.18%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	16.98%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	15.51%
	Security Investors, LLC	805 King Farm Boulevard Suite 500 Rockville, MD 20850	12.55%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	8.71%
Electronics Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	56.42%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	21.11%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	10.06%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	5.72%
Emerging Markets Bond Strategy Fund	Trust Company of America FBO #494	P.O. Box 6503 Englewood, CO 80155-6503	47.22%
Emerging Markets Bond Strategy Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	44.16%
Energy Services Fund	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	88.54%
Energy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	36.31%
	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	13.25%
	Matrix Trust Company Trustee Houston Firefighters Relief	717 17th Street Suite 1300 Denver, CO 80202	12.19%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	10.63%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	9.85%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	7.69%

B-26



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Europe 1.25x Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	35.45%
	Vincent E. Estes Trust TTEE Michael Estes	[Address Omitted]	7.90%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	6.81%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	6.55%
Financial Services Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	28.51%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	23.52%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	21.61%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.39%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	5.36%
Government Long Bond 1.2x Strategy Fund	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	75.31%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	10.46%
	Trust Company of America FBO #324	P.O. Box 6503 Englewood, CO 80155-6503	6.26%
Health Care Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	36.58%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	14.04%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	12.97%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	10.75%
	TD Ameritrade Trust Company	P.O. Box 17748 Denver, CO 80217-0748	9.10%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	7.71%

B-27



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
High Yield Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	41.20%
	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	23.84%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	11.19%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	9.91%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.85%
Internet Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	36.57%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	32.85%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	12.86%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.04%
Inverse Government Long Bond Strategy Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	66.07%
	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	11.96%
	Piper Jaffray	800 Nicollet Mall 8th Street Minneapolis, MN 55402	5.08%
	Piper Jaffray	800 Nicollet Mall 8th Street Minneapolis, MN 55402	5.05%
Inverse High Yield Strategy Fund	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	90.36%
Inverse Mid-Cap Strategy Fund	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	70.47%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	8.42%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	7.61%

B-28



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Inverse NASDAQ-100^® Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	30.41%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	24.00%
	Interactive Brokers LLC	2 Pickwick Plaza Greenwich, CT 06830	16.03%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	12.46%
	Counsel Trust DBA MATC FBO Odyssey Information Services 401(k) Profit Sharing Plan & Trust	1251 Waterfront Place Suite 525 Pittsburgh, PA 15222	10.28%
Inverse Russell 2000^® Strategy Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	40.62%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	17.23%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	13.89%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	9.43%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	9.25%
Inverse S&P 500^® Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	46.40%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	28.24%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	8.07%
Japan 2x Strategy Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	19.64%
	Christopher Michael Melville TOD James L. Melville, Maureen A. Lee, Eileen L. Melville, and William J. Melville	[Address Omitted]	13.17%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	12.27%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	9.77%

B-29



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Leisure Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	41.10%
	Trust Company of America FBO: #253	P.O. Box 6503 Englewood, CO 80155-6503	40.30%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	6.62%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	5.22%
Mid-Cap 1.5x Strategy Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	21.58%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	18.43%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	13.82%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	10.21%
	Luxor Investments, LP Attn: Dr. Atef Eltoukhy, GP	84 West Santa Clara Street Suite 490 San Jose, CA 95113	5.14%
Monthly Rebalance NASDAQ-100^® 2x Strategy Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	67.26%
	Security Investors, LLC	805 King Farm Boulevard Suite 500 Rockville, MD 20850	17.14%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	8.28%
NASDAQ-100^® Fund	Trust Company of America FBO: #337	P.O. Box 6503 Englewood, CO 80155-6503	19.57%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	14.48%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	12.31%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	11.27%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	10.35%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	8.63%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	6.83%
	Nationwide Insurance Co., QPVA c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	5.17%

B-30



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Nova Fund	Trust Company of America FBO: #75	P.O. Box 6503 Englewood, CO 80155-6503	67.83%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	9.05%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	8.07%
Precious Metals Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	28.91%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	25.04%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	12.60%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	12.47%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.21%
Real Estate Fund	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	34.48%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	31.11%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	11.89%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	7.13%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	6.10%
Retailing Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	29.55%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	15.02%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	12.99%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	9.72%
	MG Trust Company Custodian FBO Mt. Vernon CSD (NY) 403B	717 17th Street Suite 1300 Denver, CO 80202	8.70%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	6.91%
	Raymond James Omnibus for Mutual Funds House Account Attn: Courtney Waller	880 Carillon Parkway Saint Petersburg, FL 33716	5.46%

B-31



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Russell 2000^® 1.5x Strategy Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	26.79%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	20.41%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	13.31%
	leon B. Bastajian or Deanna A. Bastajian	[Address Omitted]	5.90%
S&P 500^® Pure Growth Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	18.48%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	15.26%
	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	12.85%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	11.53%
	Trust Company of America FBO #509	P.O. Box 6503 Englewood, CO 80155-6503	7.57%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	5.24%
S&P 500^® Pure Value Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	22.72%
	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	21.53%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	13.71%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	13.03%
	Trust Company of America FBO #509	P.O. Box 6503 Englewood, CO 80155-6503	11.07%
S&P MidCap 400^® Pure Growth Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	36.34%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	25.83%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	7.89%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	5.34%

B-32



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
S&P MidCap 400^® Pure Value Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	22.71%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	14.35%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	13.75%
	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	12.09%
	Trust Company of America FBO #509	P.O. Box 6503 Englewood, CO 80155-6503	9.30%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	6.25%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.81%
	Trust Company of America FBO #534	P.O. Box 6503 Englewood, CO 80155-6503	5.02%
S&P SmallCap 600^® Pure Growth Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	64.46%
	Trust Company of America FBO #509	P.O. Box 6503 Englewood, CO 80155-6503	9.85%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	8.54%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	5.05%
S&P SmallCap 600^® Pure Value Fund	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	29.11%
	Trust Company of America FBO #509	P.O. Box 6503 Englewood, CO 80155-6503	10.76%
	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	10.32%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	9.62%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	9.48%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	6.59%
	Trust Company of America FBO #534	P.O. Box 6503 Englewood, CO 80155-6503	6.33%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	5.15%

B-33



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Strengthening Dollar 2x Strategy Fund	Trust Company of America FBO #75	P.O. Box 6503 Englewood, CO 80155-6503	33.11%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	18.62%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	18.58%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	15.34%
Technology Fund	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	57.07%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	19.45%
	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	12.14%
Telecommunications Fund	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	98.43%
Transportation Fund	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	40.97%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	15.53%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	12.32%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	10.78%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	8.08%
Utilities Fund	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	59.04%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	26.09%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	5.44%
Weakening Dollar 2x Strategy Fund	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	46.95%
	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	9.96%
	First Clearing, LLC	2801 Market Street Saint Louis, MO 63103	5.79%

B-34

Class P Shares



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Event Driven and Distressed Strategies Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	33.74%
	LPL Financial Omnibus Customer Account Attn: Mutual Fund Trading	4707 Executive Drive San Diego, CA 92121	32.94%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	22.19%
	Raymond James Omnibus for Mutual Funds House Account Attn: Courtney Waller	880 Carillon Parkway Saint Petersburg, FL 33716	5.27%
Long Short Equity Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	24.34%
	UMB Bank N.A. FBO Fiduciary For Tax Deferred Account	One Security Place Topeka, KS 66636-0001	18.73%
	Schwab Special Custody Account - Reinvest for Benefit of Customers	211 Main Street San Francisco, CA 94105	16.66%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	7.14%
	First Clearing LLC	2801 Market Street Saint Louis, MO 63103	6.52%

B-35

Institutional Class Shares



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
Event Driven and Distressed Strategies Fund	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	86.68%
Event Driven and Distressed Strategies Fund	Nationwide Trust Company, FSB c/o IPO Portfolio Accounting	P.O. Box 182029 Columbus, OH 43218-2029	12.18%
Long Short Equity Fund	UBS Financial Services Inc. FBO UBS WM USA Omni Account M/F	1000 Harbor Boulevard Weehawken, NJ 07086-6761	70.60%
	Pershing LLC	1 Pershing Plaza Jersey City, NJ 07399-0002	13.78%
	TD Ameritrade Inc. For the Exclusive Benefit of Our Clients	P.O. Box 2226 Omaha, NE 68103-2226	8.81%

B-36

Money Market Class Shares



FUND	NAME	ADDRESS	PERCENTAGE OF OWNERSHIP
U.S. Government Money Market Fund	National Financial Services Corp. For Exclusive Benefit of Our Customers	Attn: Mutual Funds Department 4th Floor 499 Washington Boulevard Jersey City, NJ 07310	25.62%
U.S. Government Money Market Fund	Trust Company of America FBO: 75	P.O. Box 6503 Englewood, CO 80112	19.12%

B-37