Guggenheim Alpha Opportunity Fund Class C (SAOCX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01136

SECURITY EQUITY FUND

(Exact name of registrant as specified in charter)

ONE SECURITY BENEFIT PLACE, TOPEKA, KANSAS 66636-0001

(Address of principal executive offices) (Zip code)

RICHARD M. GOLDMAN, PRESIDENT

SECURITY EQUITY FUND

ONE SECURITY BENEFIT PLACE

TOPEKA, KANSAS 66636-0001

(Name and address of agent for service)

Registrant’s telephone number, including area code: (785) 438-3000

Date of fiscal year end: September 30

Date of reporting period: March 31, 2010

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

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

Item 1. Reports to Stockholders.

Rydex | SGI Equity Fund

Rydex | SGI Large Cap Value Fund

Rydex | SGI Mid Cap Growth Fund

March 31, 2010

Semi-Annual Report

Table of Contents

Chairman’s Letter	2
Information About Your Fund Expenses	3
Rydex | SGI Equity Fund
All Cap Value Fund	6
Alpha Opportunity Fund	14
Large Cap Core Fund	27
Global Fund	34
Global Institutional Fund	42
Mid Cap Value Fund	49
Mid Cap Value Institutional Fund	57
Large Cap Concentrated Growth Fund	64
Small Cap Growth Fund	70
Small Cap Value Fund	77
Rydex | SGI Large Cap Value Fund
Large Cap Value Fund	84
Large Cap Value Institutional Fund	91
Rydex | SGI Mid Cap Growth Fund	97
Notes to Financial Statements	104
Directors and Officers	121
Rydex | SGI Privacy Policies	126

1

Chairman’s Letter

May 17, 2010

To Our Shareholders:

The six-month period ended March 31, 2010 has been marked by strong equity market performance brought on by an increased appetite for risk. In anticipation of an improving economic environment, many portfolio managers added higher “beta” and more cyclical names to their portfolios. Better than expected earnings also fueled equity returns during the last six months.

Actions taken by the U.S. Treasury and Federal Reserve to unlock what were once frozen credit markets played a large role in bolstering corporate profits. At the height of the credit freeze, investors were nervous that impending corporate debt maturities would go unpaid for fear of companies’ inability to roll over debt. Through a variety of programs and security purchases, the U.S. Treasury, FDIC and Federal Reserve enabled corporations to once again issue debt and meet near term obligations. As a result of a reduction in implied default rates, corporations were able to tender for other debt and amend covenants and reduced near-term maturities.

A brightening U.S. employment picture also led to investor optimism over the last six months. Compared to the latter part of 2008 and early 2009 when job losses measured by the change in non-farm payrolls averaged -500,000 to -780,000 per month, consensus expectations as of March 31, 2010 showed a job gain of approximately 185,000 per month. Although job gains will need to exceed 200,000 per month over an extended period of time to substantially lower the nation’s unemployment rate, the March report proved a positive sign for the U.S. economy.

Despite strong equity market performance and increased investor optimism, challenges remain. Demand continues to be soft which will make it difficult for companies to continue to increase earnings. Consequently, earnings expectations for 2010 may be too high as it is not yet evident that consumers have changed their restrictive behavior and companies continue to be reluctant to hire. Additionally, an already historically steep Treasury yield curve steepened further during the first quarter of 2010. Against the backdrop of an improving U.S. economy and the federal government’s need to continue issuing debt as a means of funding various social and monetary programs, we can eventually expect to see interest rates climb. Higher interest rates will ultimately result in limited P/E expansion in the equity markets.

Amid a changing economic landscape, our portfolio managers remain resolute in pursuing their investment objectives. Our commitment to providing competitive risk-adjusted returns entails a rigorous fundamental investment process to identify strong companies, a focus on risk management, as well as flexibility to employ an opportunistic approach.

At Rydex | SGI we seek to offer investors a greater potential to successfully navigate diverse market conditions through a broad lineup of quality mutual funds. We appreciate the trust you have placed in us, and will endeavor to continue to provide high quality investment management solutions.

Sincerely,

Richard M. Goldman

President and Chairman, Rydex | SGI Funds

Securities offered through Rydex Distributors, Inc. (RDI) Security Global lnvestors^SM (SGI) is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc. SGI and RDI are all subsidiaries of Security Benefit.

2

Information About Your Fund Expenses

March 31, 2010 (unaudited)

Calculating your ongoing Fund expenses

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments; contingent deferred sales charges on redemptions; and redemption fees, if any; and (2) ongoing costs, including management fees; distribution and/or service fees (12b-l); and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period September 30, 2009 through March 31, 2010.

Actual Expenses

The first table provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second table provides information about hypothetical account values and hypothetical expenses based on the Fund actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.

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

3

Information About Your Fund Expenses (continued)

March 31, 2010 (unaudited)

		Expense Ratio2		Fund Return		Beginning Account Value 9/30/2009		Ending Account Value 3/31/2010		Expenses Paid During the  Period3
Table 1. Based on actual Fund return1
All Cap Value Fund
A Class		1.31	%	11.23	%	$	1,000.00	$	1,112.26	$	7.11
C Class		2.06	%	10.86	%		1,000.00		1,108.59		11.04
Institutional Class		2.03	%	11.29	%		1,000.00		1,112.87		5.79
Alpha Opportunity Fund
A Class		2.01	%	12.03	%		1,000.00		1,120.33		10.31
B Class		2.67	%	11.44	%		1,000.00		1,114.43		14.23
C Class		2.67	%	11.72	%		1,000.00		1,117.21		14.25
Institutional Class		1.65	%	12.28	%		1,000.00		1,122.76		9.00
Global Fund
A Class		1.84	%	6.22	%		1,000.00		1,062.19		9.46
B Class		1.59	%	6.21	%		1,000.00		1,062.14		8.17
C Class		2.59	%	5.66	%		1,000.00		1,056.58		13.28
Global Institutional Fund		0.97	%	6.37	%		1,000.00		1,063.75		5.92
Large Cap Concentrated Growth Fund
A Class	��	1.35	%	12.95	%		1,000.00		1,129.50		7.17
B Class		2.10	%	12.52	%		1,000.00		1,125.20		11.13
C Class		2.10	%	12.64	%		1,000.00		1,126.36		11.13
Large Cap Core Fund
A Class		1.41	%	12.35	%		1,000.00		1,123.46		7.68
B Class		2.16	%	11.98	%		1,000.00		1,119.76		11.63
C Class		2.16	%	11.88	%		1,000.00		1,118.78		11.62
Large Cap Value Fund
A Class		1.22	%	10.96	%		1,000.00		1,109.59		6.57
B Class		0.97	%	11.20	%		1,000.00		1,112.05		5.27
C Class		1.97	%	10.56	%		1,000.00		1,105.62		10.50
Large Cap Value Institutional Fund		0.97	%	11.19	%		1,000.00		1,111.93		5.16
Mid Cap Growth Fund
A Class		1.62	%	11.47	%		1,000.00		1,114.68		9.07
B Class		2.37	%	11.16	%		1,000.00		1,111.56		12.95
C Class		2.37	%	10.90	%		1,000.00		1,108.96		12.99
Mid Cap Value Fund
A Class		1.39	%	9.63	%		1,000.00		1,096.29		7.53
B Class		2.14	%	9.17	%		1,000.00		1,091.75		11.42
C Class		2.14	%	9.20	%		1,000.00		1,092.03		11.42
Mid Cap Value Institutional Fund		0.90	%	9.99	%		1,000.00		1,099.87		4.71
Small Cap Growth Fund
A Class		2.27	%	13.35	%		1,000.00		1,133.52		14.26
B Class		3.03	%	12.94	%		1,000.00		1,129.37		18.10
C Class		3.03	%	12.90	%		1,000.00		1,129.03		17.99
Small Cap Value Fund
A Class		1.30	%	9.89	%		1,000.00		1,098.95		8.11
C Class		2.05	%	9.76	%		1,000.00		1,097.64		12.03
Institutional Class		1.04	%	10.02	%		1,000.00		1,100.16		6.81

4

Information About Your Fund Expenses (concluded)

March 31, 2010 (unaudited)

	Expense Ratio2		Fund Return		Beginning Account Value 9/30/2009		Ending Account Value 3/31/2010		Expenses Paid During the  Period3
Table 2. Based on hypothetical 5% return (before expenses)
All Cap Value Fund
A Class	1.31	%	5.00	%	$	1,000.00	$	1,018.20	$	6.79
C Class	2.06	%	5.00	%		1,000.00		1,014.46		10.55
Institutional Class	2.03	%	5.00	%		1,000.00		1,019.45		5.54
Alpha Opportunity Fund
A Class	2.01	%	5.00	%		1,000.00		1,015.21		9.80
B Class	2.67	%	5.00	%		1,000.00		1,011.47		13.54
C Class	2.67	%	5.00	%		1,000.00		1,011.47		13.54
Institutional Class	1.65	%	5.00	%		1,000.00		1,016.45		8.55
Global Fund
A Class	1.84	%	5.00	%		1,000.00		1,015.76		9.25
B Class	1.59	%	5.00	%		1,000.00		1,017.00		8.00
C Class	2.59	%	5.00	%		1,000.00		1,012.02		12.99
Global Institutional Fund	0.97	%	5.00	%		1,000.00		1,019.20		5.79
Large Cap Concentrated Growth Fund
A Class	1.35	%	5.00	%		1,000.00		1,018.20		6.79
B Class	2.10	%	5.00	%		1,000.00		1,014.46		10.55
C Class	2.10	%	5.00	%		1,000.00		1,014.46		10.55
Large Cap Core Fund
A Class	1.41	%	5.00	%		1,000.00		1,017.70		7.29
B Class	2.16	%	5.00	%		1,000.00		1,013.96		11.05
C Class	2.16	%	5.00	%		1,000.00		1,013.96		11.05
Large Cap Value Fund
A Class	1.22	%	5.00	%		1,000.00		1,018.70		6.29
B Class	0.97	%	5.00	%		1,000.00		1,019.95		5.04
C Class	1.97	%	5.00	%		1,000.00		1,014.96		10.05
Large Cap Value Institutional Fund	0.97	%	5.00	%		1,000.00		1,020.04		4.94
Mid Cap Growth Fund
A Class	1.62	%	5.00	%		1,000.00		1,016.36		8.65
B Class	2.37	%	5.00	%		1,000.00		1,012.67		12.34
C Class	2.37	%	5.00	%		1,000.00		1,012.62		12.39
Mid Cap Value Fund
A Class	1.39	%	5.00	%		1,000.00		1,017.75		7.24
B Class	2.14	%	5.00	%		1,000.00		1,014.01		11.00
C Class	2.14	%	5.00	%		1,000.00		1,014.01		11.00
Mid Cap Value Institutional Fund	0.90	%	5.00	%		1,000.00		1,020.44		4.53
Small Cap Growth Fund
A Class	2.27	%	5.00	%		1,000.00		1,011.57		13.44
B Class	3.03	%	5.00	%		1,000.00		1,007.93		17.07
C Class	3.03	%	5.00	%		1,000.00		1,008.03		16.97
Small Cap Value Fund
A Class	1.30	%	5.00	%		1,000.00		1,017.20		7.80
C Class	2.05	%	5.00	%		1,000.00		1,013.46		11.55
Institutional Class	1.04	%	5.00	%		1,000.00		1,018.45		6.54

¹ Actual cumulative return at net asset value for the period September 30, 2009 to March 31, 2010.

² Annualized

³ Expenses are equal to the Fund’s annualized expense net of any applicable fee waivers or earnings credits, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period).

5

	Rydex | SGI Equity Fund
Performance Summary	All Cap Value Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Since Inception

This chart assumes a $10,000 investment in Class A shares of All Cap Value Fund on October 3, 2008 (date of inception), reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 3000 Value Index is an unmanaged index that measures the performance of the broad value segment of the U.S. equity universe. It includes those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values.

Average Annual Returns

Periods Ended 3-31-10	1 Year		Since Inception (10-03-08)
A Shares	54.72	%	8.91	%
A Shares with sales charge	45.78	%	4.67	%
C Shares	53.42	%	8.09	%
C Shares with CDSC	52.42	%	8.09	%
Institutional Class	55.05	%	9.16	%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	10.38	%
Consumer Staples	7.86
Energy	10.64
Financials	15.13
Health Care	5.34
Industrials	20.39
Information Technology	11.87
Materials	2.48
Telecommunication Services	0.90
Utilities	5.12
Exchange Traded Funds	5.82
Cash & Other Assets, Less Liabilities	4.07
Total Net Assets	100.00	%

6 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	All Cap Value Fund

	Shares	Value
COMMON STOCKS - 95.9%
Aerospace & Defense - 2.9%
GeoEye, Inc. *	600	$	17,700
Orbital Sciences Corporation *	645		12,261
United Technologies Corporation	620		45,639
			75,600
Air Freight & Logistics - 2.2%
FedEx Corporation	617		57,628
Apparel Retail - 1.2%
Brown Shoe Company, Inc.	721		11,161
Chico’s FAS, Inc.	1,200		17,304
Talbots, Inc. *	223		2,890
			31,355
Apparel, Accessories & Luxury Goods - 0.4%
Columbia Sportswear Company	7		368
Maidenform Brands, Inc. *	517		11,296
			11,664
Application Software - 1.0%
Synopsys, Inc. *	1,200		26,844
Asset Management & Custody Banks - 1.7%
Bank of New York Mellon Corporation	1,107		34,184
Fifth Street Finance Corporation	1,000		11,610
			45,794
Building Products - 2.3%
Trex Company, Inc. *	289		6,153
USG Corporation *	3,204		54,980
			61,133
Casinos & Gaming - 0.4%
Penn National Gaming, Inc. *	400		11,120
Coal & Consumable Fuels - 0.2%
USEC, Inc. *	835		4,818
Communications Equipment - 0.4%
Symmetricom, Inc. *2	1,745		10,173
Computer & Electronics Retail - 0.1%
Conn’s, Inc. *	289		2,263
Computer Hardware - 1.5%
Hewlett-Packard Company	733		38,959
Construction & Engineering - 1.8%
Insituform Technologies, Inc. *	649		17,270
Quanta Services, Inc. *	1,150		22,034
URS Corporation *	183		9,079
			48,383
Construction & Farm Machinery & Heavy Trucks - 0.3%
Force Protection, Inc. *	1,511		9,096
Construction Materials - 0.2%
Eagle Materials, Inc.	188		4,990
Consumer Finance - 0.2%
First Marblehead Corporation *	1,699		4,825

	Shares	Value
COMMON STOCKS - 95.9% (continued)
Data Processing & Outsourced Services - 5.1%
Computer Sciences Corporation *	1,023	$	55,743
Western Union Company	4,500		76,321
			132,064
Department Stores - 1.7%
JC Penney Company, Inc.	1,421		45,714
Diversified Banks - 1.3%
U.S. Bancorp	477		12,345
Wells Fargo & Company	726		22,593
			34,938
Diversified Chemicals - 0.6%
Dow Chemical Company	546		16,145
Diversified REITs - 0.3%
Investors Real Estate Trust	900		8,118
Drug Retail - 1.5%
CVS Caremark Corporation	1,088		39,777
Electric Utilities - 3.1%
Allete, Inc.	263		8,805
Edison International	1,560		53,305
Great Plains Energy, Inc.	507		9,415
Northeast Utilities	212		5,860
Westar Energy, Inc.	190		4,237
			81,622
Electrical Components & Equipment - 0.4%
General Cable Corporation *	400		10,800
Electronic Components - 0.5%
Power-One, Inc. *	3,300		13,926
Electronic Manufacturing Services - 2.4%
Maxwell Technologies, Inc. *	839		10,395
Tyco Electronics, Ltd.	1,922		52,817
			63,212
Environmental & Facilities Services - 0.5%
Covanta Holding Corporation *	750		12,495
Exchange Traded Funds - 5.8%
iShares Russell 1000 Value Index Fund	1,260		76,948
iShares S&P 500 Value Index Fund	1,350		76,221
			153,169
Forest Products - 0.5%
Louisiana-Pacific Corporation *	1,560		14,118
Gas Utilities - 0.2%
Atmos Energy Corporation	216		6,171
Health Care Equipment - 2.3%
Covidien plc	328		16,492
Hologic, Inc. *	409		7,583
Hospira, Inc. *	609		34,499
			58,574

7 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	All Cap Value Fund

	Shares	Value
COMMON STOCKS - 95.9% (continued)
Health Care Services - 1.0%
Amedisys, Inc. *	15	$	828
Medco Health Solutions, Inc. *	244		15,754
Mednax, Inc. *	149		8,670
RehabCare Group, Inc. *	72		1,963
			27,215
Home Furnishings - 0.5%
Leggett & Platt, Inc.	567		12,270
Home Improvement Retail - 2.8%
Lowe’s Companies, Inc.	2,919		70,756
Human Resources & Employment Services - 0.4%
Administaff, Inc.	460		9,816
Hypermarkets & Super Centers - 2.1%
Wal-Mart Stores, Inc.	980		54,488
Independent Power Producers & Energy Traders - 0.7%
NRG Energy, Inc. *	880		18,392
Industrial Conglomerates - 2.1%
McDermott International, Inc. *	2,038		54,863
Industrial Machinery - 2.1%
Dover Corporation	357		16,690
Harsco Corporation	349		11,147
Parker Hannifin Corporation	442		28,615
			56,452
Insurance Brokers - 1.5%
AON Corporation	834		35,620
Arthur J Gallagher & Company	107		2,627
			38,247
Integrated Oil & Gas - 4.6%
Chevron Corporation	650		49,289
ConocoPhillips	940		48,100
Exxon Mobil Corporation	390		26,122
			123,511
Integrated Telecommunication Services - 0.9%
Windstream Corporation	2,172		23,653
IT Consulting & Other Services - 0.2%
Satyam Computer Services, Ltd. ADR	894		4,667
Managed Health Care - 1.6%
Aetna, Inc.	1,229		43,150
Movies & Entertainment - 2.0%
Time Warner, Inc.	1,667		52,127
Multi-Line Insurance - 0.7%
American Financial Group, Inc.	610		17,355
Multi-Utilities - 1.1%
Alliant Energy Corporation	389		12,939
Black Hills Corporation	300		9,105

	Shares	Value
COMMON STOCKS - 95.9% (continued)
Multi-Utilities - 1.1% (continued)
SCANA Corporation	172	$	6,465
			28,509
Office Services & Supplies - 0.1%
United Stationers, Inc. *	47		2,766
Oil & Gas Equipment & Services - 2.3%
Complete Production Services, Inc. *	300		3,465
Global Industries, Ltd. *	2,584		16,589
Halliburton Company	1,349		40,646
			60,700
Oil & Gas Exploration & Production - 1.3%
Chesapeake Energy Corporation	569		13,451
Goodrich Petroleum Corporation *	183		2,862
Gulfport Energy Corporation *	240		2,698
Petrohawk Energy Corporation *	750		15,210
			34,221
Oil & Gas Storage & Transportation - 2.2%
Southern Union Company	483		12,254
Williams Companies, Inc.	1,930		44,583
			56,837
Other Diversified Financial Services - 1.0%
JPMorgan Chase & Company	610		27,298
Packaged Foods & Meats - 2.6%
Del Monte Foods Company	900		13,140
Hormel Foods Corporation	629		26,425
JM Smucker Company	381		22,959
Ralcorp Holdings, Inc. *	100		6,778
			69,302
Paper Packaging - 0.9%
Bemis Company, Inc.	574		16,485
Sonoco Products Company	221		6,805
			23,290
Personal Products - 0.6%
Elizabeth Arden, Inc. *	859		15,462
Pharmaceuticals - 0.4%
Merck & Company, Inc.	310		11,579
Property & Casualty Insurance - 4.9%
Alleghany Corporation *	34		9,853
Berkshire Hathaway, Inc. *	850		69,079
Employers Holdings, Inc.	439		6,519
Hanover Insurance Group, Inc.	544		23,724
W.R. Berkley Corporation	816		21,289
			130,464
Railroads - 1.4%
Union Pacific Corporation	510		37,383
Regional Banks - 3.5%
Associated Banc-Corporation	814		11,233
BB&T Corporation	800		25,912
Fifth Third Bancorp	500		6,795
First Horizon National Corporation *	370		5,203

8 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	All Cap Value Fund

	Shares	Value
COMMON STOCKS - 95.9% (continued)
Regional Banks - 3.5% (continued)
Old National Bancorp	713	$	8,520
Regions Financial Corporation	4,250		33,363
			91,026
Research & Consulting Services - 3.7%
Equifax, Inc.	2,335		83,592
ICF International, Inc. *	149		3,701
Navigant Consulting, Inc. *	715		8,673
			95,966
Restaurants - 0.6%
Burger King Holdings, Inc.	578		12,288
Jack in the Box, Inc. *	200		4,710
			16,998
Semiconductor Equipment - 0.0%
FEI Company *	54		1,237
Semiconductors - 0.8%
IXYS Corporation *2	2,484		21,213
Specialty Chemicals - 0.3%
HB Fuller Company	200		4,642
Zoltek Companies, Inc. *	214		2,063
			6,705
Specialty Stores - 0.7%
Cabela’s, Inc. *	1,079		18,872
Tobacco - 1.1%
Philip Morris International, Inc.	532		27,749
Trucking - 0.2%
Saia, Inc. *	302		4,192
TOTAL COMMON STOCKS (cost $2,161,084)		$	2,524,219
Total Investments - 95.9% 1 (cost $2,161,084)		$	2,524,219
Cash & Other Assets, Less Liabilities - 4.1%			107,015
Total Net Assets - 100.0%		$	2,631,234

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $2,162,111.

ADR American Depositary Receipt

plc Public Limited Company

* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

² Security is deemed illiquid. The total market value of illiquid securities is $31,386 (cost $30,396), or 1.2% of total net assets.

9 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

All Cap Value Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments, at value *	$	2,524,219
Cash		194,809
Receivables:
Fund shares sold		6,600
Dividends		2,885
Security Investors		4,263
Prepaid expenses		13,620
Total assets		2,746,396
Liabilities:
Payable for:
Securities purchased		99,342
Fund shares redeemed		2
Management fees		1,511
Custodian fees		1,235
Transfer agent/maintenance fees		1,062
Administration fees		505
Professional fees		6,274
12b-l distribution plan fees		815
Directors’ fees		71
Other		4,345
Total liabilities		115,162
Net assets	$	2,631,234
Net assets consist of:
Paid in capital	$	2,257,159
Undistributed net investment income		1,427
Undistributed net realized gain on sale of investments		9,513
Net unrealized appreciation in value of investments		363,135
Net assets	$	2,631,234
Class A:
Capital shares outstanding (unlimited number of shares authorized)		155,264
Net assets	$	1,760,031
Net asset value and redemption price per share	$	11.34
Maximum offering price per share (net asset value divided by 94.25%)	$	12.03
Class C:
Capital shares outstanding (unlimited number of shares authorized)		48,692
Net assets	$	546,749
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	11.23
Institutional Class:
Capital shares outstanding (unlimited number of shares authorized)		28,629
Net assets	$	324,454
Net asset value, offering and redemption price per share	$	11.33
*Investments, at cost	$	2.161.084

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends	$	17,761
Interest		27
Total investment income		17,788
Expenses:
Management fees		7,857
Transfer agent/maintenance fees		2,586
Administration fees		1,448
Custodian fees		5,310
Directors’ fees		103
Professional fees		4,415
Reports to shareholders		2,016
Registration fees		14,023
Other expenses		577
12b-l distribution fees - Class A		1,792
12b-l distribution fees - Class C		2,556
Total expenses		42,683
Less:
Reimbursement of expenses - Class A		(16,847	)
Reimbursement of expenses - Class C		(5,993	)
Reimbursement of expenses - Institutional Class		(3,616	)
Net expenses		16,227
Net investment income		1,561
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		31,218
Options written		2,078
Net realized gain		33,296
Net unrealized appreciation (depreciation) during the period on:
Investments		215,047
Options written		(623	)
Net unrealized appreciation		214,424
Net realized and unrealized gain		247,720
Net increase in net assets resulting from operations	$	249,281

10 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	All Cap Value Fund

	Six Months Ended March 31, 2010 (unaudited)			Period Ended September 30, 2009*
Increase (decrease) in net assets from operations:
Net investment income	$	1,561		$	3,576
Net realized gain (loss) during the period on investments		33,296			(23,783	)
Net unrealized appreciation during the period on investments		214,424			148,711
Net increase in net assets resulting from operations		249,281			128,504
Distributions to shareholders from:
Net investment income
Class A		(1,974	)		—
Institutional Class		(1,736	)		—
Total distributions to shareholders		(3,710	)		—
Capital share transactions:
Proceeds from sale of shares
Class A		376,674			1,271,992
Class C		129,100			418,597
Institutional Class		—			284,637
Distributions reinvested
Class A		1,960			—
Institutional Class		1,736			—
Cost of shares redeemed
Class A		(97,619	)		(56,559	)
Class C		(72,404	)		(955	)
Net increase from capital share transactions		339,447			1,917,712
Net increase in net assets		585,018			2,046,216
Net assets:
Beginning of period		2,046,216			—
End of period	$	2,631,234		$	2,046,216
Undistributed net investment income at end of period	$	1,427		$	3,576
Capital share activity:
Shares sold
Class A		35,245			134,995
Class C		12,414			43,096
Institutional Class		—			28,464
Shares reinvested
Class A		186			—
Institutional Class		165			—
Shares redeemed
Class A		(9,423	)		(5,739	)
Class C		(6,704	)		(114	)

* For the period October 3, 2008 (commencement of operations) to September 30, 2009.

11 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	All Cap Value Fund

Class A	Six Months Ended March  31, 2010a			Year Ended September  30, 2009b
Per Share Data
Net asset value, beginning of period	$	10.21		$	10.00
Income (loss) from investment operations:
Net investment income c		0.01			0.04
Net gain on securities (realized and unrealized)		1.14			0.17
Total from investment operations		1.15			0.21
Less distributions:
Dividends from net investment income		(0.02	)		—
Total distributions		(0.02	)		—
Net asset value, end of period	$	11.34		$	10.21
Total Return d		11.23	%		2.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,760		$	1,319
Ratios to average net assets:
Net investment income		0.28	%		0.51	%
Total expenses e		3.66	%		6.65	%
Net expenses f		1.31	%		1.33	%
Net expenses prior to custodian earning credits and net of expense waivers		1.31	%		1.33	%
Portfolio turnover rate		18	%		17	%
Class C	Six Months Ended March  31, 2010a			Year Ended September  30, 2009b
Per Share Data
Net asset value, beginning of period	$	10.13		$	10.00
Income (loss) from investment operations:
Net investment loss c		(0.03	)		(0.02	)
Net gain on securities (realized and unrealized)		1.13			0.15
Total from investment operations		1.10			0.13
Net asset value, end of period	$	11.23		$	10.13
Total Return d		10.86	%		1.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	547		$	436
Ratios to average net assets:
Net investment loss		(0.48	)%		(0.18	)%
Total expenses e		4.40	%		8.77	%
Net expenses f		2.06	%		2.07	%
Net expenses prior to custodian earning credits and net of expense waivers		2.06	%		2.07	%
Portfolio turnover rate		18	%		17	%

12 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	All Cap Value Fund

Institutional Class	Six Months Ended March  31, 2010a			Year Ended September 30, 2009b
Per Share Date
Net asset value, beginning of period	$	10.24		$	10.00
Income (loss) from investment operations:
Net investment income c		0.03			0.07
Net gain on securities (realized and unrealized)		1.12			0.17
Total from investment operations		1.15			0.24
Less distributions:
Dividends from net investment income		(0.06	)		—
Total distributions		(0.06	)		—
Net asset value, end of period	$	11.33		$	10.24
Total Return d		11.29	%		2.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	324		$	291
Ratios to average net assets:
Net investment income		0.54	%		0.81	%
Total expenses e		3.44	%		8.08	%
Net expenses f		1.03	%		1.09	%
Net expenses prior to custodian earning credits and net of expense waivers		1.03	%		1.09	%
Portfolio turnover rate		18	%		17	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

^b Security All Cap Value Fund was initially capitalized on October 3, 2008 with a net asset value of $10 per share. Percentage amounts for the period, except total return, have been annualized.

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

^d Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class C shares.

^e Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^f Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

13 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Alpha Opportunity Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Since Inception

This chart assumes a $10,000 investment in Class A shares of Alpha Opportunity Fund on July 7, 2003 (date of inception), reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The S&P 500 Index is a capitalization weighted index composed of 500 selected common stocks that represent the broad domestic economy and is a widely recognized unmanaged index of market performance.

Average Annual Returns

Periods Ended 3-31-10	1 Year		5 Years		Since Inception
A Shares	48.91	%	4.18	%	7.48% (7-07-03)
A Shares with sales charge	40.41	%	2.95	%	6.54% (7-07-03)
B Shares	47.61	%	3.36	%	6.65% (7-07-03)
B Shares with CDSC	42.61	%	3.09	%	6.65% (7-07-03)
C Shares	47.85	%	3.36	%	6.65% (7-07-03)
C Shares with CDSC	46.85	%	3.36	%	6.65% (7-07-03)
Institutional Shares	49.32	%	—		21.83% (11-07-08)

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10*

Consumer Discretionary	(2.95	)%
Consumer Staples	8.88
Energy	2.06
Financials	(1.95	)
Health Care	2.08
Industrials	7.29
Information Technology	13.35
Materials	4.98
Telecommunication Services	0.20
Utilities	(0.53	)
Exchange Traded Funds	3.54
U.S. Government Sponsored Agencies	9.65
Repurchase Agreement	10.79
Short Term Investments	15.83
Cash & Other Assets, Less Liabilities	26.78
Total Net Assets	100.00	%

* Securities sold short are netted with long positions in common stocks in the appropriate sectors.

14 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Alpha Opportunity Fund

	Shares	Value
COMMON STOCKS - 86.4%
Aerospace & Defense - 3.3%
Goodrich Corporation 8	820	$	57,826
ITT Corporation	656		35,168
Lockheed Martin Corporation 1,7	3,753		312,325
Northrop Grumman Corporation 1,7	1,100		72,127
			477,446
Airlines - 0.0%
US Airways Group, Inc. *	656		4,822
Aluminum - 0.8%
Alcoa, Inc. 8	4,258		60,634
Century Aluminum Company *	3,605		49,605
			110,239
Apparel Retail - 4.7%
Gap, Inc. 1,7	6,000		138,660
Gymboree Corporation 1,7*	3,000		154,890
Ltd. Brands, Inc. 1,7	5,100		125,562
Ross Stores, Inc. 1,7	2,100		112,287
TJX Companies, Inc. 1,7	3,600		153,072
			684,471
Apparel, Accessories & Luxury Goods - 0.3%
Phillips-Van Heusen Corporation 1,7	800		45,888
Application Software - 0.4%
Bottomline Technologies, Inc. *	655		11,024
JDA Software Group, Inc. *	1,650		45,903
			56,927
Auto Parts & Equipment - 0.3%
BorgWarner, Inc. *	820		31,307
Gentex Corporation	328		6,370
			37,677
Automotive Retail - 0.0%
Advance Auto Parts, Inc.	164		6,875
Biotechnology - 1.4%
Amgen, Inc. 1,7*	1,800		107,568
Celgene Corporation *	164		10,161
Gilead Sciences, Inc. 8*	1,475		67,083
United Therapeutics Corporation *	233		12,892
			197,704
Building Products - 0.1%
Lennox International, Inc.	328		14,537
Coal & Consumable Fuels - 0.1%
International Coal Group, Inc. *	772		3,528
Massey Energy Company	117		6,118
			9,646
Communications Equipment - 0.6%
DG FastChannel, Inc. *	618		19,745
Harmonic, Inc. 1,7*	11,000		69,410
Motorola, Inc. *	327		2,296
			91,451
Computer & Electronics Retail - 0.8%
RadioShack Corporation 1,7	5,100		115,413
Computer Hardware - 1.3%
International Business Machines Corporation 8	1,463		187,630

	Shares	Value
COMMON STOCKS - 86.4% (continued)
Computer Storage & Peripherals - 0.6%
EMC Corporation *	328	$	5,917
Hypercom Corporation *	1,966		7,589
Seagate Technology	2,293		41,870
Western Digital Corporation *	669		26,084
			81,460
Construction & Engineering - 0.2%
Michael Baker Corporation *	803		27,687
Construction & Farm Machinery & Heavy Trucks - 5.5%
Joy Global, Inc. 1,7	9,080		513,928
Kubota Corporation ADR *	781		35,606
Terex Corporation *	1,311		29,773
Titan International, Inc.	1,802		15,731
Trinity Industries, Inc. 1,7	10,200		203,592
			798,630
Data Processing & Outsourced Services - 1.2%
Visa, Inc. 8	1,967		179,056
Diversified Chemicals - 0.3%
Dow Chemical Company	1,475		43,616
Diversified Metals & Mining - 0.8%
Brush Engineered Materials, Inc. *	328		7,403
Freeport-McMoRan Copper & Gold, Inc. (CI.B) 8	819		68,418
General Moly, Inc. *	2,458		8,161
Southern Copper Corporation	656		20,776
Thompson Creek Metals Company, Inc. *	1,170		15,830
			120,588
Electrical Components & Equipment - 2.1%
AO Smith Corporation 1,7	2,800		147,196
Cooper Industries plc 8	1,476		70,759
Rockwell Automation, Inc. 8	1,474		83,075
			301,030
Electronic Components - 0.1%
Vishay Intertechnology, Inc. *	1,039		10,629
Environmental & Facilities Services - 0.1%
Metalico, Inc. *	2,458		14,723
Exchange Traded Funds - 2.8%
Health Care Select Sector SPDR Fund	489		15,687
iPath Dow Jones-UBS Coffee Subindex Total Return ETN *	194		7,403
iPATH S&P 500 VIX Mid-Term Futures ETN *	713		48,149
iPATH S&P 500 VIX Short-Term Futures ETN *	664		13,951
iShares MSCI Taiwan Index Fund	2,925		36,709
Market Vectors - Agribusiness ETF 8	4,347		196,441
Market Vectors - Coal ETF	1,147		43,253
PowerShares DB Agriculture Fund *	1,146		27,779

15 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Alpha Opportunity Fund

	Shares	Value
COMMON STOCKS - 86.4% (continued)
Exchange Traded Funds - 2.8% (continued)
United States Natural Gas Fund, LP *	2,888	$	19,956
			409,328
Food Distributors - 0.5%
Sysco Corporation	1,474		43,483
United Natural Foods, Inc. *	984		27,680
			71,163
Food Retail - 0.7%
Safeway, Inc. 1,7	3,900		96,954
Forest Products - 0.6%
Louisiana-Pacific Corporation *	2,948		26,679
Weyerhaeuser Company 8	1,311		59,349
			86,028
General Merchandise Stores - 0.9%
Family Dollar Stores, Inc. 1,7	3,700		135,457
Gold - 1.3%
IAMGOLD Corporation 8	6,128		81,013
New Gold, Inc. *	5,265		22,955
Newmont Mining Corporation 8	1,638		83,423
			187,391
Health Care Distributors - 1.1%
AmerisourceBergen Corporation	1,107		32,014
Owens & Minor, Inc. 1,7	2,700		125,253
			157,267
Health Care Equipment - 2.9%
Baxter International, Inc. 1,7	5,242		305,084
Covidien plc	1,147		57,671
Medtronic, Inc.	1,231		55,432
			418,187
Health Care Facilities - 0.8%
Community Health Systems, Inc. *	1,147		42,359
Kindred Healthcare, Inc. 1,7*	3,900		70,395
Tenet Healthcare Corporation *	1,147		6,561
			119,315
Health Care Services - 1.5%
DaVita, Inc. *	819		51,925
Lincare Holdings, Inc. 1,7*	3,800		170,544
			222,469
Home Entertainment Software - 4.5%
Shanda Interactive Entertainment, Ltd. ADR 1,7*	15,100		658,209
Homebuilding - 0.2%
Pulte Group, Inc. *	2,153		24,221
Human Resources & Employment Services - 0.7%
Towers Watson & Company 1,7	2,200		104,500
Hypermarkets & Super Centers - 0.8%
Wal-Mart Stores, Inc. 1,7	2,200		122,320

	Shares	Value
COMMON STOCKS - 86.4% (continued)
Independent Power Producers & Energy Traders - 1.2%
Constellation Energy Group, Inc. 1,7	5,100	$	179,061
Industrial Conglomerates - 1.8%
3M Company 8	1,473		123,099
General Electric Company 1,7	4,200		76,440
Tyco International, Ltd.	1,474		56,381
			255,920
Industrial Machinery - 2.0%
Dover Corporation	1,148		53,669
Illinois Tool Works, Inc.	984		46,602
Ingersoll-Rand plc	1,148		40,031
Snap-On, Inc. 8	1,417		61,413
Watts Water Technologies, Inc. 1,7	2,800		86,968
			288,683
Integrated Oil & Gas - 2.9%
ConocoPhillips 1,7	1,500		76,755
Hess Corporation	819		51,228
Occidental Petroleum Corporation 8	3,391		286,676
			414,659
Integrated Telecommunication Services - 1.9%
AT&T, Inc. 1,7	10,600		273,904
Internet Software & Services - 0.1%
LivePerson, Inc. *	1,368		10,493
Life Sciences Tools & Services - 2.9%
Charles River Laboratories International, Inc. 1,7*	2,000		78,620
Life Technologies Corporation 1,7*	2,800		146,356
Millipore Corporation 1,7*	1,800		190,080
PerkinElmer, Inc.	328		7,839
			422,895
Managed Health Care - 0.8%
CIGNA Corporation	1,310		47,920
WellCare Health Plans, Inc. 1,7*	2,300		68,494
			116,414
Metal & Glass Containers - 0.2%
Greif, Inc.	656		36,028
Movies & Entertainment - 1.0%
LodgeNet Interactive Corporation *	1,147		7,995
Walt Disney Company 8	4,024		140,477
			148,472
Multi-Line Insurance - 0.5%
Genworth Financial, Inc. 1,7*	4,000		73,360
Oil & Gas Equipment & Services - 0.5%
Basic Energy Services, Inc. *	808		6,230
Dresser-Rand Group, Inc. *	656		20,612
RPC, Inc.	2,176		24,218
Willbros Group, Inc. *	1,198		14,388
			65,448
Oil & Gas Exploration & Production - 1.8%
Anadarko Petroleum Corporation 1,7	2,755		200,646

16 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Alpha Opportunity Fund

	Shares	Value
COMMON STOCKS - 86.4% (continued)
Oil & Gas Exploration & Production - 1.8% (continued)
Berry Petroleum Company	2,130	$	59,981
			260,627
Packaged Foods & Meats - 0.1%
Kraft Foods, Inc.	655		19,807
Paper Packaging - 0.2%
Rock-Tenn Company	656		29,894
Paper Products - 0.4%
International Paper Company	2,131		52,444
Personal Products - 0.8%
Herbalife, Ltd. 1,7	2,500		115,300
Pharmaceuticals - 5.0%
Abbott Laboratories 8	1,639		86,343
Forest Laboratories, Inc. 1,7*	4,711		147,737
Johnson & Johnson 1, 7	5,000		325,999
Merck & Company, Inc.	819		30,590
Viropharma, Inc. 1,7*	9,900		134,937
			725,606
Property & Casualty Insurance - 0.6%
Amtrust Financial Services, Inc. 1, 7	6,000		83,700
Real Estate Development - 0.0%
Forestar Group, Inc. *	328		6,193
Reinsurance - 0.8%
Endurance Specialty Holdings, Ltd. 1,7	3,000		111,450
Restaurants - 0.7%
Jack in the Box, Inc. 1, 7*	4,000		94,200
Semiconductor Equipment - 0.8%
Amkor Technology, Inc. 1,7*	9,200		65,044
Brooks Automation, Inc. *	1,212		10,690
KLA-Tencor Corporation	873		26,993
Lam Research Corporation *	385		14,368
Entegris, Inc. *	960		4,838
			121,933
Semiconductors - 2.2%
Analog Devices, Inc.	1,564		45,074
Entropic Communications, Inc. *	178		904
Fairchild Semiconductor International, Inc. *	3,523		37,520
National Semiconductor Corporation	1,311		18,944
ON Semiconductor Corporation *	4,470		35,760
RF Micro Devices, Inc. *	795		3,959
Skyworks Solutions, Inc. *	2,300		35,880
Texas Instruments, Inc. 8	4,235		103,631
TriQuint Semiconductor, Inc. *	4,402		30,814
			312,486
Soft Drinks - 0.2%
Coca-Cola Company	655		36,025

	Shares		Value
COMMON STOCKS - 86.4% (continued)
Specialized REIT’s - 0.2%
Plum Creek Timber Company, Inc.		656	$	25,525
Specialty Chemicals - 0.2%
OM Group, Inc. *		819		27,748
Steel - 0.7%
Schnitzer Steel Industries, Inc. 8		1,958		102,854
Systems Software - 4.1%
CA, Inc. 1,7		20,018		469,822
Oracle Corporation		656		16,853
Symantec Corporation 1, 7*		5,900		99,828
				586,503
Technology Distributors - 1.2%
Arrow Electronics, Inc. 1, 7*		2,600		78,338
Avnet, Inc. 1,7*		3,100		93,000
				171,338
Tobacco - 5.9%
Altria Group, Inc. 1,7		16,700		342,684
Philip Morris International, Inc.  1, 7		9,800		511,169
				853,853
Trucking - 0.4%
Con-Way, Inc. 1,7		1,700		59,704
TOTAL COMMON STOCKS (cost $12,837,503)			$	12,513,481
	Principal Amount		Value
U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES - 15.9%
Federal Home Loan Mortgage Corporation 0.90%, 4/1/2010 1,2	$	900,000	$	900,000
Federal National Mortgage Association 0.15%, 5/3/2010 2,8		1,400,000		1,399,813
TOTAL U.S. GOVERNMENT SPONSORED AGENCY BONDS & NOTES (cost $2,299,813)			$	2,299,813
	Principal Amount		Value
SHORT TERM INVESTMENTS - 5.7%
State Street General Account U.S. Government Fund 2	$	827,114	$	827,114
TOTAL SHORT TERM INVESTMENTS (cost $827,114)			$	827,114
	Principal Amount		Value
REPURCHASE AGREEMENT - 13.2%
State Street, 0.01%, dated 3/31/10, matures 4/01/10; repurchase amount $1,910,272 (Collateralized by FHLB, 9/17/10 with a value of $1,954,258) 2	$	1,910,272	$	1,910,272
TOTAL REPURCHASE AGREEMENT (cost $1,910,272)			$	1,910,272

17 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Alpha Opportunity Fund

	Value
Total Investments - 145.4% 3 (cost $17,874,702)	$	17,550,680
Liabilities, Less Cash & Other Assets - (45.4)%		(3,078,652	)
Total Net Assets - 100.0%	$	14,472,028

Schedule of Securities Sold Short

	Shares		Value
COMMON STOCKS - (29.5)%
Advertising - (0.4)%
Focus Media Holding, Ltd. ADR 4,6*	(2,130	)	$	(63,900	)
Air Freight & Logistics - 0.0%
CH Robinson Worldwide, Inc.	(128	)		(7,149	)
Airlines - 0.0%
Continental Airlines, Inc. *	(127	)		(2,790	)
UAL Corporation *	(30	)		(587	)
				(3,377	)
Alternative Carriers - (0.2)%
Global Crossing, Ltd. 4,6*	(1,800	)		(28,746	)
Apparel Retail - (0.1)%
Abercrombie & Fitch Company	(362	)		(16,522	)
Rue21, Inc. *	(35	)		(1,213	)
				(17,735	)
Biotechnology - (4.4)%
Acorda Therapeutics, Inc. 4,6*	(2,800	)		(74,900	)
Alnylam Pharmaceuticals, Inc. 4,6*	(2,900	)		(85,288	)
AMAG Pharmaceuticals, Inc. 4,6*	(1,900	)		(82,954	)
Cepheid, Inc. 4,6*	(5,300	)		(81,620	)
Exelixis, Inc. 4,6*	(4,500	)		(28,845	)
Regeneron Pharmaceuticals, Inc. 4,6*	(3,180	)		(69,038	)
Rigel Pharmaceuticals, Inc. 4,6*	(3,050	)		(78,324	)
Savient Pharmaceuticals, Inc. 4,6*	(2,420	)		(48,013	)
Vertex Pharmaceuticals, Inc. 4,6*	(2,600	)		(71,942	)
				(620,924	)
Building Products - (1.0)%
USG Corporation 4,6*	(4,940	)		(141,877	)
Casinos & Gaming - 0.0%
Churchill Downs, Inc.	(51	)		(1,913	)
Communications Equipment - (0.3)%
Riverbed Technology, Inc. 4,6*	(3,280	)		(43,624	)
Computer Storage & Peripherals - (0.5)%
Intermec, Inc. 4,6*	(2,740	)		(54,307	)
Consumer Electronics - (0.2)%
Garmin, Ltd.	(566	)		(21,780	)
Consumer Finance - 0.0%
Ezcorp, Inc. *	(259	)		(5,335	)

	Shares		Value
COMMON STOCKS - (29.5)% (continued)
Department Stores - (0.3)%
Sears Holdings Corporation *	(419	)	$	(45,432	)
Diversified Banks - (3.8)%
Wells Fargo & Company 4,6	(12,384	)		(539,689	)
Diversified Metals & Mining - (0.3)%
Ivanhoe Mines, Ltd. 4,6*	(4,440	)		(37,030	)
Electric Utilities - (1.7)%
Korea Electric Power Corporation ADR 4,6	(18,310	)		(247,734	)
Electronic Equipment & Instruments - (0.1)%
Agilent Technologies, Inc. *	(255	)		(8,769	)
Electronic Manufacturing Services - 0.0%
Benchmark Electronics, Inc. *	(151	)		(3,132	)
Exchange Traded Funds - (0.9)%
Consumer Discretionary Select Sector SPDR Fund *	(777	)		(25,517	)
iShares Barclays 20+ Year Treasury Bond Fund	(1,030	)		(92,144	)
iShares Russell 2000 Index Fund	(130	)		(8,815	)
SPDR S&P Retail ETF *	(259	)		(10,702	)
				(137,178	)
Food Retail - 0.0%
Whole Foods Market, Inc. *	(128	)		(4,627	)
Footwear - (0.1)%
K-Swiss, Inc. *	(760	)		(7,950	)
Health Care Equipment - (0.5)%
Intuitive Surgical, Inc. 4,6*	(200	)		(56,100	)
Health Care Facilities - 0.0%
Kindred Healthcare, Inc. *	(128	)		(2,310	)
Health Care Supplies - (0.5)%
Align Technology, Inc. 4,6*	(6,100	)		(74,420	)
Health Care Technology - (0.6)%
athenahealth, Inc. 4,6*	(2,500	)		(89,625	)
Home Entertainment Software - (0.3)%
Electronic Arts, Inc. 4,6*	(900	)		(36,720	)
Home Furnishings - 0.0%
Mohawk Industries, Inc. *	(128	)		(6,961	)
Integrated Telecommunication Services - 0.0%
Qwest Communications International, Inc.	(518	)		(2,704	)

18 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Alpha Opportunity Fund

	Shares		Value
COMMON STOCKS - (29.5)% (continued)
Internet Retail - 0.0%
PetMed Express, Inc.	(235	)	$	(5,210	)
Internet Software & Services - (2.4)%
Baidu, Inc. ADR 4,6*	(200	)		(53,725	)
Digital River, Inc. *	(510	)		(15,453	)
Equinix, Inc. 4,6*	(1,000	)		(79,940	)
SAVVIS, Inc. 4,6*	(5,700	)		(84,018	)
VeriSign, Inc. 4,6*	(1,200	)		(30,756	)
WebMD Health Corporation *	(130	)		(6,029	)
				(269,921	)
IT Consulting & Other Services - 0.0%
RightNow Technologies, Inc. *	(227	)		(4,054	)
Leisure Products - (2.1)%
Brunswick Corporation	(128	)		(2,044	)
Pool Corporation 4,6	(11,639	)		(288,065	)
				(290,109	)
Life Sciences Tools & Services - (1.0)%
Luminex Corporation 4,6*	(2,500	)		(63,725	)
Sequenom, Inc. 4,6*	(3,810	)		(78,524	)
				(142,249	)
Oil & Gas Exploration & Production - (0.7)%
BPZ Resources, Inc. 4,6*	(5,700	)		(107,160	)
Oil & Gas Refining & Marketing - (0.1)%
Valero Energy Corporation	(566	)		(11,150	)
Pharmaceuticals - (1.0)%
Auxilium Pharmaceuticals, Inc. 4,6*	(1,540	)		(56,703	)
Perrigo Company	(104	)		(6,107	)
Sepracor, Inc. 4,6*	(1,400	)		(24,500	)
XenoPort, Inc. 4,6*	(1,376	)		(63,062	)
				(150,372	)
Photographic Products - 0.0%
Eastman Kodak Company	(451	)		(2,611	)
Regional Banks - (0.7)%
PrivateBancorp, Inc. 4,6	(2,390	)		(102,770	)
Residential REIT’s - 0.0%
Mid-America Apartment Communities, Inc.	(122	)		(6,318	)
Restaurants - (0.3)%
Cheesecake Factory, Inc. *	(666	)		(18,022	)
PF Chang’s China Bistro, Inc. *	(284	)		(12,533	)
Ruby Tuesday, Inc. *	(259	)		(2,738	)
Sonic Corporation *	(259	)		(2,862	)
Texas Roadhouse, Inc. *	(388	)		(5,389	)
				(41,544	)
Security & Alarm Services - (0.2)%
Brink’s Company	(777	)		(21,935	)

	Shares		Value
COMMON STOCKS - (29.5)% (continued)
Semiconductor Equipment - (0.2)%
Varian Semiconductor Equipment Associates, Inc. 4,6*	(1,260	)	$	(33,037	)
Semiconductors - (1.1)%
Cree, Inc. 4,6*	(4,000	)		(109,840	)
Rambus, Inc. 4,6*	(3,600	)		(55,224	)
				(165,064	)
Sort Drinks - (0.7)%
Dr Pepper Snapple Group, Inc.	(255	)		(8,968	)
Hansen Natural Corporation 4,6*	(3,250	)		(96,233	)
				(105,201	)
Specialized Finance - (0.2)%
Moody’s Corporation	(763	)		(22,699	)
NASDAQ OMX Group, Inc. *	(259	)		(5,470	)
				(28,169	)
Specialized REIT’s - (0.1)%
Healthcare Realty Trust, Inc.	(399	)		(9,293	)
Specialty Chemicals - (0.3)%
Zoltek Companies, Inc. 4,6*	(2,700	)		(49,221	)
Specialty Stores - 0.0%
Books-A-Million, Inc.	(770	)		(5,575	)
Steel - (0.1)%
Allegheny Technologies, Inc.	(283	)		(15,279	)
Systems Software - (0.8)%
Red Hat, Inc. 4,6*	(2,610	)		(46,589	)
VMware, Inc. 4,6*	(2,400	)		(68,592	)
				(115,181	)
Trading Companies & Distributors - 0.0%
Beacon Roofing Supply, Inc. *	(140	)		(2,678	)
Watsco, Inc.	(26	)		(1,479	)
				(4,157	)
Wireless Telecommunication Services - (1.3)%
Clearwire Corporation 4,6*	(2,530	)		(28,665	)
Leap Wireless International, Inc. 4,6*	(1,500	)		(65,100	)
SBA Communications Corporation 4,6*	(2,400	)		(69,095	)
Telephone & Data Systems, Inc.	(130	)		(4,401	)
				(167,261	)
TOTAL COMMON STOCKS SOLD SHORT (proceeds $4,086,626)			$	(4,163,889	)
	Shares		Value
FOREIGN STOCKS - (25.1)%
Airlines - (0.2)%
Ryanair Holdings plc 4,6*	(9,600	)	$	(35,971	)
Airport Services - (1.3)%
Beijing Capital International Airport Company, Ltd. 4,6	(218,000	)		(188,550	)
Apparel, Accessories & Luxury Goods - (0.1)%
C C Land Holdings, Ltd. 4,6	(50,000	)		(13,945	)

19 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Alpha Opportunity Fund

	Shares		Value
FOREIGN STOCKS - (25.1)% (continued)
Automobile Manufacturers - (3.7)%
Volkswagen AG 4,6	(1,300	)	$	(538,567	)
Biotechnology - (1.5)%
Basilea Pharmaceutica 4,6*	(500	)		(83,364	)
Intercell AG 4,6*	(1,900	)		(74,840	)
Zeltia S.A. 4,6	(8,000	)		(54,559	)
				(212,763	)
Broadcasting - (0.2)%
Tokyo Broadcasting System Holdings, Inc. 4,6	(1,300	)		(21,836	)
Cable & Satellite - (0.5)%
Sky Deutschland AG 4,6*	(4,000	)		(65,668	)
Casinos & Gaming - (1.4)%
bwin Interactive Entertainment AG 4,6*	(1,600	)		(45,582	)
Genting Singapore plc 4,6*	(124,900	)		(41,123	)
PartyGaming plc 4,6	(15,200	)		(57,210	)
				(143,915	)
Coal & Consumable Fuels - (0.5)%
Aquila Resources, Ltd. 4,6*	(2,750	)		(21,907	)
Riversdale Mining, Ltd. 4,6*	(6,700	)		(50,985	)
				(72,892	)
Construction & Engineering - (0.3)%
Ausenco, Ltd. 4,6	(2,100	)		(22,659	)
China Communications Construction Company, Ltd. 4,6	(15,000	)		(15,536	)
				(38,195	)
Construction & Farm Machinery & Heavy Trucks - (0.1)%
China National Materials Company, Ltd. 4,6	(34,400	)		(17,537	)
Construction Materials - (0.3)%
Anhui Conch Cement Company, Ltd. 4,6	(4,500	)		(20,259	)
China National Building Material Company, Ltd. 4,6	(14,700	)		(19,910	)
				(40,169	)
Department Stores - (1.4)%
Marui Group Company, Ltd. 4,6	(29,100	)		(219,528	)
Diversified Banks - (2.7)%
Aozora Bank, Ltd. 4,6*	(16,300	)		(26,250	)
Erste Group Bank AG 4,6	(5,200	)		(319,536	)
Mizuho Financial Group, Inc. 4,6*	(11,000	)		(45,462	)
Mizuho Trust & Banking Company, Ltd. 4,6*	(17,700	)		(24,682	)
				(415,930	)
Diversified Metals & Mining - (0.4)%
Fushan International Energy Group, Ltd. 4,6	(66,000	)		(23,727	)
Western Areas NL 4,6	(6,200	)		(44,456	)
				(68,183	)

	Shares		Value
FOREIGN STOCKS - (25.1)% (continued)
Diversified Real Estate Activities - (0.2)%
Franshion Properties China, Ltd. 4,6	(79,400	)	$	(22,104	)
Electrical Components & Equipment - (0.6)%
Toyo Tanso Company, Ltd. 4,6	(500	)		(27,007	)
Electronic Manufacturing Services - (0.5)%
IEC Electronics Corporation 4,6*	(3,900	)		(77,681	)
Gold - (0.8)%
Agnico-Eagle Mines, Ltd. 4,5,6*	(1,800	)		(119,001	)
Sino Gold Mining, Ltd. 4,6*	(8,600	)		(35,368	)
				(154,369	)
Highways & Railtracks - (3.2)%
Brisa Auto-Estradas de Portugal S.A. 4,6	(44,400	)		(461,804	)
Household Appliances - (2.7)%
Electrolux AB 4,6	(30,100	)		(395,761	)
Industrial Machinery - (0.1)%
Japan Steel Works, Ltd. 4,6	(1,500	)		(20,809	)
Meyer Burger Technology AG 4,6*	(200	)		(49,879	)
				(70,688	)
Internet Software & Services - (0.2)%
Access Company, Ltd. 4,6	(17	)		(32,755	)
Investment Banking & Brokerage - (0.2)%
Monex Group, Inc. 4,6	(78	)		(27,384	)
Marine Ports & Services - (0.1)%
China Merchants Holdings International Company, Ltd. 4,6	(3,100	)		(11,047	)
Oil & Gas Equipment & Services - (0.6)%
Modec, Inc. 4,6	(900	)		(23,195	)
Sevan Marine ASA 4,6*	(5,900	)		(30,951	)
Trican Well Service, Ltd. 4,6	(2,000	)		(34,043	)
				(88,189	)
Oil & Gas Exploration & Production - (0.6)%
Arrow Energy, Ltd. 4,6 *	(8,900	)		(22,965	)
Queensland Gas Company, Ltd. 4,6*	(12,800	)		(49,787	)
				(72,752	)
Precious Metals & Minerals - (0.7)%
Silver Wheaton Corporation 4,6*	(6,100	)		(64,046	)
Real Estate Operating Companies - (0.4)%
Aeon Mall Company, Ltd. 4,6	(1,700	)		(52,093	)
TOTAL FOREIGN STOCKS SOLD SHORT (proceeds $3,493,322)			$	(3,651,329	)

20 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Alpha Opportunity Fund

	Shares		Value
RIGHTS - (0.0)%
Automobile Manufacturers - (0.0)%
Volkswagen AG Expires 04/13/10	(1,300	)	$	(808	)
TOTAL RIGHTS (proceeds $2,258)			$	(808	)
TOTAL SECURITIES SOLD SHORT - (55.0%) (proceeds $7,582,206)			$	(7,816,026	)

INVESTMENT CONCENTRATION

At March 31, 2010, the investment diversification of the Fund was as follows:

Country	% of Net Assets		Value
United States	110.3	%	$	15,961,902
Cayman Islands	4.2			610,299
Ireland	1.0			132,490
Bermuda	0.5			68,759
US	0.2			35,168
Switzerland	(0.2	)		(26,983	)
Norway	(0.2	)		(30,951	)
Singapore	(0.3	)		(41,123	)
Spain	(0.4	)		(54,559	)
Hong Kong	(0.4	)		(56,878	)
Gibraltar	(0.4	)		(57,210	)
United Kingdom	(0.5	)		(77,681	)
Canada	(1.0	)		(139,450	)
Australia	(1.4	)		(198,340	)
Republic of Korea	(1.7	)		(247,734	)
China	(1.8	)		(261,792	)
Sweden	(2.7	)		(395,761	)
Portugal	(3.2	)		(461,804	)
Austria	(3.4	)		(488,494	)
Japan	(3.6	)		(518,057	)
Germany	(4.2	)		(605,851	)
Total Investments	90.8		$	13,145,950

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $17,926,965.

ADR	American Depositary Receipt
plc	Public Limited Company

^* Non-income producing security

¹ Security is segregated as collateral for open short positions.

² Value determined based on Level 2 inputs.

³ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

⁴ Value determined based on Level 3 inputs.

⁵ Security was acquired through a private placement.

⁶ Security is fair valued by the Valuation Committee at March 31, 2010. The total market value of fair valued securities amounts to $(7,341,377) (cost $(7,166,693)), or (50.7%) of total net assets.

⁷ All or a portion of the security is deemed illiquid. The total market value of illiquid securities is $7,602,323 (cost $7,961,773), or 52.5% of total net assets. The security was deemed liquid at the time of purchase. The security is deemed illiquid due to the Fund’s exposure to Lehman Brothers International Europe (“LBIE”) prime brokerage services. See Note 9 in Notes to Financial Statements for additional information.

⁸ Security is segregated as collateral for open futures contracts.

21 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Alpha Opportunity Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments. at value *	$	15,640,408
Repurchase agreement, at value *		1,910,272
Cash		620,241
Restricted cash		708,516
Restricted cash denominated in a foreign currency, at value ***		3,431,132
Receivables:
Fund shares sold		521
Securities sold		947,147
Dividends		23,969
Foreign taxes recoverable		537
Prepaid expenses		48,890
Total assets		23,331,633
Liabilities:
Securities sold short, at value **		7,816,026
Foreign Cash Overdraft		709
Payable for:
Securities purchased		945,035
Fund shares redeemed		651
Variation margin		12,600
Dividends on short sales		4,180
Management fees		15,158
Custodian fees		24,000
Transfer agent/maintenance fees		3,182
Administration fees		6,619
Professional fees		20,365
12b-l distribution plan fees		4,573
Directors’ fees		609
Other		5,898
Total liabilities		8,859,605
Net assets	$	14,472,028
Net assets consist of:
Paid in capital	$	27,596,976
Accumulated net investment loss		(97,831	)
Accumulated net realized loss on sale of investments and foreign currency transactions		(12,571,635	)
Net unrealized depreciation in value of investments and translation of assets and liabilities in foreign currencies		(455,482	)
Net assets	$	14,472,028
Class A:
Capital shares outstanding (unlimited number of shares authorized)		1,013,086
Net assets	$	9,720,774
Net asset value and redemption price per share	$	9.59
Maximum offering price per share (net asset value divided by 94.25%)	$	10.18
Class B:
Capital shares outstanding (unlimited number of shares authorized)		157,589
Net assets	$	1,411,813
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	8.96
Class C:
Capital shares outstanding (unlimited number of shares authorized)		180,097
Net assets	$	1,613,052
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	8.96
Class Institutional:
Capital shares outstanding (unlimited number of shares authorized)		131,095
Net assets	$	1,726,389
Net asset value, offering and redemption price per share	$	13.17
*Investments, at cost	$	17,874,702
**Securities sold short, proceeds		7,582,206
***Restricted cash denominated in a foreign currency, at cost		3,383,563

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $159)	$	92,972
Interest		752
Total investment income		93,724
Expenses:
Management fees		90,638
Transfer agent/maintenance fees		23,432
Administration fees		19,040
Custodian fees		41,722
Directors’ fees		463
Professional fees		30,304
Reports to shareholders		1,934
Registration fees		23,335
Other expenses		2,156
Dividends on short sales		8,657
12b-l distribution fees - Class A		11,805
12b-l distribution fees - Class B		7,477
12b-l distribution fees - Class C		8,927
Total expenses		269,890
Less:
Reimbursement of expenses - Class A		(68,469	)
Reimbursement of expenses - Class B		(11,519	)
Reimbursement of expenses - Class C		(13,874	)
Reimbursement of expenses - Institutional Class		(13,900	)
Net expenses		162,128
Net investment loss		(68,404	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		679,953
Securities sold short		(8,069	)
Foreign currency transactions		301
Futures		442,780
Net realized gain		1,114,965
Net unrealized appreciation (depreciation) during the period on:
Investments		751,251
Securities sold short		(35,641	)
Futures		20,273
Translation of assets and liabilities in foreign currencies		(137,954	)
Net unrealized appreciation		597,929
Net realized and unrealized gain		1,712,894
Net increase in net assets resulting from operations	$	1,644,490

22 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Alpha Opportunity Fund

	Six Months Ended March 31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment loss	$	(68,404	)	$	(123,718	)
Net realized gain (loss) during the period on investments and foreign currency transactions		1,114,965			(10,496,580	)
Net unrealized appreciation during the period on investments and translation of assets and liabilities in foreign currencies		597,929			3,498,389
Net increase (decrease) in net assets resulting from operations		1,644,490			(7,121,909	)
Capital share transactions:
Proceeds from sale of shares
Class A		167,029			1,524,278
Class B		129			4,268
Class C		832			7,933
Institutional Class		515			4,980,476
Cost of shares redeemed
Class A		(1,284,145	)		(16,913,028	)
Class B		(383,693	)		(2,762,142	)
Class C		(575,045	)		(2,096,985	)
Institutional Class		(635,582	)		(3,025,562	)
Net decrease from capital share transactions		(2,709,960	)		(18,280,762	)
Net decrease in net assets		(1,065,470	)		(25,402,671	)
Net assets:
Beginning of period		15,537,498			40,940,169
End of period	$	14,472,028		$	15,537,498
Accumulated net investment loss at end of period	$	(97,831	)	$	(29,427	)
Capital share activity:
Shares sold
Class A		18,435			208,127
Class B		—			292
Class C		92			796
Institutional Class		41			502,702
Shares redeemed
Class A		(145,068	)		(2,335,782	)
Class B		(45,851	)		(404,666	)
Class C		(68,917	)		(308,317	)
Institutional Class		(52,690	)		(318,958	)

23 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Alpha Opportunity Fund

Class A	Six Months Ended March  31, 2010a			2009			2008b			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	8.56		$	9.37		$	13.94		$	12.23		$	12.37		$	11.79
Income (loss) from investment operations:
Net investment income (loss) c		(0.03	)		(0.04	)		(0.16	)		(0.01	)		(0.06	)		(0.10	)
Net gain (loss) on securities (realized and unrealized)		1.06			(0.77	)		(1.68	)		2.99			0.93			1.50
Total from investment operations		1.03			(0.81	)		(1.84	)		2.98			0.87			1.40
Less distributions:
Distributions from realized gains		—			—			(2.57	)		(1.27	)		(1.01	)		(0.82	)
Return of capital		—			—			(0.16	)		—			—			—
Total distributions		—			—			(2.73	)		(1.27	)		(1.01	)		(0.82	)
Net asset value, end of period	$	9.59		$	8.56		$	9.37		$	13.94		$	12.23		$	12.37
Total Return d		12.03	%		(8.55	)%		(15.99	)%		26.10	%		7.39	%		12.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,721		$	9,752		$	30,615		$	25,072		$	20,595		$	14,622
Ratios to average net assets:
Net investment income (loss)		(0.71	)%		(0.52	)%		(1.44	)%		(0.08	)%		(0.50	)%		(0.83	)%
Total expenses e		3.58	%		3.84	%		3.41	%f		2.88	%		3.20	%		2.94	%
Net expenses g		2.01	%		1.98	%		3.16	%h		2.68	%		3.01	%		2.86	%
Net expenses prior to custodian earning credits and net of expense waivers		2.01	%		2.01	%		3.32	%i		2.88	%		3.10	%		2.86	%
Net expenses prior to performance fee adjustment		2.01	%		1.98	%		2.75	%j		2.77	%		2.82	%		2.78	%
Portfolio turnover rate		507	%		422	%		1,248	%		1,697	%		1,302	%		1,502	%
Class B	Six Months Ended March  31, 2010a			2009			2008b			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	8.04		$	8.87		$	13.42		$	11.90		$	12.15		$	11.68
Income (loss) from investment operations:
Net investment income (loss) c		(0.06	)		(0.09	)		(0.23	)		(0.09	)		(0.15	)		(0.18	)
Net gain (loss) on securities (realized and unrealized)		0.98			(0.74	)		(1.59	)		2.88			0.91			1.47
Total from investment operations		0.92			(0.83	)		(1.82	)		2.79			0.76			1.29
Less distributions:
Distributions from realized gains		—			—			(2.57	)		(1.27	)		(1.01	)		(0.82	)
Return of capital		—			—			(0.16	)		—			—			—
Total distributions		—			—			(2.73	)		(1.27	)		(1.01	)		(0.82	)
Net asset value, end of period	$	8.96		$	8.04		$	8.87		$	13.42		$	11.90		$	12.15
Total Return d		11.44	%		(9.15	)%		(16.66	)%		25.14	%		6.56	%		11.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,412		$	1,635		$	5,391		$	3,154		$	4,846		$	4,106
Ratios to average net assets:
Net investment income (loss)		(1.39	)%		(1.27	)%		(2.18	)%		(0.77	)%		(1.24	)%		(1.60	)%
Total expenses e		4.33	%		4.59	%		4.16	%f		3.59	%		3.95	%		3.69	%
Net expenses g		2.67	%		2.73	%		3.89	%h		3.39	%		3.76	%		3.61	%
Net expenses prior to custodian earning credits and net of expense waivers		2.67	%		2.76	%		4.04	%i		3.59	%		3.85	%		3.61	%
Net expenses prior to performance fee adjustment		2.67	%		2.73	%		3.49	%j		3.51	%		3.57	%		3.53	%
Portfolio turnover rate		507	%		422	%		1,248	%		1,697	%		1,302	%		1,502	%

24 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Alpha Opportunity Fund

Class C	Six Months Ended March  31, 2010a			2009			2008b			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	8.02		$	8.87		$	13.43		$	11.90		$	12.15		$	11.68
Income (loss) from investment operations:
Net investment income (loss) c		(0.06	)		(0.09	)		(0.23	)		(0.10	)		(0.15	)		(0.18	)
Net gain (loss) on securities (realized and unrealized)		1.00			(0.76	)		(1.60	)		2.90			0.91			1.47
Total from investment operations		0.94			(0.85	)		(1.83	)		2.80			0.76			1.29
Less distributions:
Distributions from realized gains		—			—			(2.57	)		(1.27	)		(1.01	)		(0.82	)
Return of capital		—			—			(0.16	)		—			—			—
Total distributions		—			—			(2.73	)		(1.27	)		(1.01	)		(0.82	)
Net asset value, end of period	$	8.96		$	8.02		$	8.87		$	13.43		$	11.90		$	12.15
Total Return d		11.72	%		(9.48	)%		(16.63	)%		25.24	%		6.56	%		11.39	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,613		$	1,996		$	4,935		$	4,216		$	5,576		$	7,813
Ratios to average net assets:
Net investment income (loss)		(1.39	)%		(1.26	)%		(2.21	)%		(0.77	)%		(1.18	)%		(1.58	)%
Total expenses e		4.34	%		4.69	%		4.16	%f		3.60	%		3.95	%		3.68	%
Net expenses g		2.67	%		2.72	%		3.93	%h		3.40	%		3.75	%		3.61	%
Net expenses prior to custodian earning credits and net of expense waivers		2.67	%		2.76	%		4.09	%i		3.60	%		3.83	%		3.61	%
Net expenses prior to performance fee adjustment		2.67	%		2.72	%		3.51	%j		3.51	%		3.57	%		3.53	%
Portfolio turnover rate		507	%		422	%		1,248	%		1,697	%		1,302	%		1,502	%

Institutional Class	Six Months Ended March  31, 2010a			Year Ended September 30, 2009k
Per Share Data
Net asset value, beginning of period	$	11.73		$	10.00
Income (loss) from investment operations:
Net investment income (loss) c		(0.02	)		(0.01	)
Net loss on securities (realized and unrealized)		1.46			1.74
Total from investment operations		1.44			1.73
Net asset value, end of period	$	13.17		$	11.73
Total Return		12.28	%		17.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,726		$	2,155
Ratios to average net assets:
Net investment income (loss)		(0.37	)%		(0.07	)%
Total expenses e		3.33	%		3.94	%
Net expenses g		1.65	%		1.70	%
Net expenses prior to custodian earning credits and net of expense waivers		1.65	%		1.73	%
Net expenses prior to performance fee adjustment		1.65	%		N/A
Portfolio turnover rate		507	%		422	%

25 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Alpha Opportunity Fund

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

^b Security Global Investors, LLC (SGI) became the sub-adviser of 37.5% of the assets of the Alpha Opportunity Fund effective August 18, 2008. Also effective August 18, 2008, Mainstream Investment Advisers, LLC (Mainstream) sub-advises 37.5% of the assets and Security Investors, LLC (SI) manages 25% of the assets. Prior to August 18, 2008, SI paid Mainstream sub-advisory fees for 60% of the assets. SI managed the remaining 40% of the assets.

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

^d Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares.

^e Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^f The Fund has restated its financial highlights in order to properly present the Fund’ total expense ratios. The effect of this restatement was to increase the ratios of total expenses to average net assets by 0.45% for Class A, 1.03% for Class B and 0.14% for Class C.

^g Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

^h The Fund has restated this ratio in order to properly present the Fund’ net expense ratios. The effect of this restatement was to increase the ratios of net expenses to average net assets by 0.41% for Class A, 0.96% for Class B and 0.13% for Class C.

ⁱ The Fund has restated this ratio in order to properly present the Fund’ net expense ratios prior to custodian earning credits and net of expense waivers. The effect of this restatement was to increase the ratios of net expenses prior to custodian earning credits and net of expense waivers to average net assets by 0.44% for Class A, 1.00% for Class B and 0.14% for Class C.

^j The Fund has restated this ratio in order to properly present the Fund’ net expense ratios prior to performance fee adjustment. The effect of this restatement was to increase the ratios of net expenses prior to performance fee adjustment to average net assets by 0.36% for Class A, 0.87% for Class B and 0.11% for Class C.

^k The Institutional Class of Alpha Opportunity Fund was initially capitalized on November 7, 2008 with a net asset value of $10 per share. Percentage amounts for the period, except total return, have been annualized.

26 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Large cap core Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Over Ten Years

This chart assumes a $10,000 investment in Class A shares of Large Cap Core Fund on March 31, 2000, reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The S&P 500 Index is a capitalization weighted index composed of 500 selected common stocks that represent the broad domestic economy and is a widely recognized unmanaged index on market performance.

Average Annual Returns

Periods Ended 3-31-10	l Year		5 Years		10 Years
A Shares	51.16	%	(0.38	)%	(3.22	)%
A Shares with sales charge	42.63	%	(1.56	)%	(3.79	)%
B Shares	50.20	%	(1.09	)%	(3.86	)%
B Shares with CDSC	45.20	%	(1.37	)%	(3.86	)%
C Shares	50.56	%	(1.06	)%	(3.99	)%
C Shares with CDSC	49.56	%	(1.06	)%	(3.99	)%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	13.10	%
Consumer Staples	9.95
Energy	9.99
Financials	9.44
Health Care	10.94
Industrials	16.47
Information Technology	20.80
Materials	2.65
Telecommunication Services	0.53
Utilities	1.88
Exchange Traded Funds	1.70
Cash & Other Assets, Less Liabilities	2.55
Total Net Assets	100.00	%

27 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Large Cap Core Fund

	Shares	Value
COMMON STOCKS - 97.5%
Aerospace & Defense - 3.0%
Precision Castparts Corporation	28,390	$	3,597,297
United Technologies Corporation	33,600		2,473,296
			6,070,593
Air Freight & Logistics - 1.5%
FedEx Corporation	33,600		3,138,240
Apparel Retail - 1.6%
TJX Companies, Inc.	78,780		3,349,726
Application Software - 0.5%
Synopsys, Inc. *	44,500		995,465
Asset Management & Custody Banks - 0.8%
Bank of New York Mellon Corporation	50,000		1,544,000
Auto Parts & Equipment - 1.7%
Johnson Controls, Inc.	103,100		3,401,269
Biotechnology - 1.6%
Amgen, Inc. *	55,250		3,301,740
Building Products - 1.4%
USG Corporation *	167,100		2,867,436
Coal & Consumable Fuels - 1.1%
Peabody Energy Corporation	49,980		2,284,086
Communications Equipment - 3.4%
Cisco Systems, Inc. *	162,960		4,241,849
Motorola, Inc. *	366,215		2,570,829
			6,812,678
Computer Hardware - 5.5%
Apple, Inc. *	19,255		4,523,578
Hewlett-Packard Company	122,500		6,510,875
			11,034,453
Computer Storage & Peripherals - 2.1%
EMC Corporation *	239,570		4,321,843
Consumer Finance - 0.1%
First Marblehead Corporation *	97,760		277,638
Data Processing & Outsourced Services - 4.0%
Computer Sciences Corporation *	13,500		735,615
Visa, Inc.	38,200		3,477,346
Western Union Company	232,200		3,938,112
			8,151,073
Department Stores - 2.6%
JC Penney Company, Inc.	62,900		2,023,493
Kohl’s Corporation *	57,740		3,162,997
			5,186,490
Diversified Banks - 2.1%
U.S. Bancorp	87,775		2,271,617
Wells Fargo & Company	66,764		2,077,696
			4,349,313
Diversified Chemicals - 2.4%
Dow Chemical Company	159,130		4,705,474

	Shares	Value
COMMON STOCKS - 97.5% (continued)
Drug Retail - 1.0%
CVS Caremark Corporation	57,600	$	2,105,856
Electric Utilities - 1.5%
Edison International	86,500		2,955,705
Electrical Components & Equipment - 3.3%
Cooper Industries plc	69,280		3,321,283
Emerson Electric Company	66,190		3,332,004
			6,653,287
Electronic Manufacturing Services - 1.2%
Tyco Electronics, Ltd.	85,600		2,352,288
Exchange Traded Funds - 1.7%
iShares Russell 1000 Value Index Fund	23,600		1,441,252
iShares S&P 500 Value Index Fund	35,800		2,021,268
			3,462,520
Food Distributors - 1.6%
Sysco Corporation	109,500		3,230,250
Health Care Equipment - 3.8%
Covidien plc	100,760		5,066,213
Hospira, Inc. *	49,500		2,804,175
			7,870,388
Health Care Services - 0.6%
Medco Health Solutions, Inc. *	18,200		1,174,992
Home Improvement Retail - 3.0%
Home Depot, Inc.	100,675		3,256,836
Lowe’s Companies, Inc.	118,200		2,865,168
			6,122,004
Hotels, Resorts & Cruise Lines - 1.6%
Carnival Corporation	85,550		3,326,184
Hypermarkets & Super Centers - 2.4%
Costco Wholesale Corporation	42,500		2,537,675
Wal-Mart Stores, Inc.	43,600		2,424,160
			4,961,835
Independent Power Producers & Energy Traders - 0.4%
NRG Energy, Inc. *	41,500		867,350
Industrial Conglomerates - 3.2%
3M Company	40,810		3,410,492
McDermott International, Inc. *	117,100		3,152,332
			6,562,824
Industrial Machinery - 1.0%
Parker Hannifin Corporation	31,400		2,032,836
Insurance Brokers - 1.1%
AON Corporation	54,400		2,323,424
Integrated Oil & Gas - 4.7%
Chevron Corporation	29,900		2,267,317
ConocoPhillips	14,400		736,848
Exxon Mobil Corporation	45,700		3,060,986

28 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Large Cap Core Fund

	Shares	Value
COMMON STOCKS - 97.5% (continued)
Integrated Oil & Gas - 4.7% (continued)
Occidental Petroleum Corporation	38,940	$	3,291,988
			9,357,139
Integrated Telecommunication Services - 0.5%
Windstream Corporation	98,400		1,071,576
Managed Health Care - 1.2%
Aetna, Inc.	68,300		2,398,013
Movies & Entertainment - 2.6%
Time Warner, Inc.	61,700		1,929,359
Walt Disney Company	94,100		3,285,031
			5,214,390
Oil & Gas Equipment & Services - 2.4%
Halliburton Company	74,300		2,238,659
Schlumberger, Ltd.	42,800		2,716,088
			4,954,747
Oil & Gas Exploration & Production - 0.7%
Chesapeake Energy Corporation	64,400		1,522,416
Oil & Gas Storage & Transportation - 1.1%
Williams Companies, Inc.	93,900		2,169,090
Other Diversified Financial Services - 2.5%
JPMorgan Chase & Company	110,635		4,950,916
Packaged Foods & Meats - 1.6%
Kraft Foods, Inc.	105,250		3,182,760
Paper Packaging - 0.3%
Bemis Company, Inc.	24,000		689,280
Pharmaceuticals - 3.7%
Merck & Company, Inc.	17,762		663,411
Pfizer, Inc.	175,590		3,011,369
Teva Pharmaceutical Industries, Ltd. ADR	60,165		3,795,207
			7,469,987
Property & Casualty Insurance - 1.4%
Berkshire Hathaway, Inc.*	23		2,801,400
Railroads - 1.4%
Union Pacific Corporation	38,000		2,785,400
Regional Banks - 1.4%
BB&T Corporation	34,600		1,120,694
Fifth Third Bancorp	41,000		557,190
Regions Financial Corporation	159,600		1,252,860
			2,930,744
Research & Consulting Services - 1.7%
Equifax, Inc.	93,700		3,354,460

	Shares	Value
COMMON STOCKS - 97.5% (continued)
Semiconductors - 2.1%
Intel Corporation	192,190	$	4,278,149
Soft Drinks - 2.2%
PepsiCo, Inc.	66,870		4,424,119
Systems Software - 2.1%
Oracle Corporation	167,400		4,300,506
Tobacco - 1.1%
Altria Group, Inc.	34,500		707,940
Philip Morris International, Inc.	30,600		1,596,096
			2,304,036
TOTAL COMMON STOCKS
(cost $179,035,600)		$	197,952,388
Total Investments - 97.5% 1
(cost $179,035,600)		$	197,952,388
Cash & Other Assets, Less Liabilities - 2.5%			5,178,392
Total Net Assets - 100.0%		$	203,130,780

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $179,860,746.

ADR American Depositary Receipt

plc     Public Limited Company

* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

29 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Large Cap Core Fund (unaudited)

Statement of Assets & Liabilities

March 31, 2010

Assets:
Investments, at value *	$	197,952,388
Cash		3,814,655
Receivables:
Fund shares sold		240
Securities sold		1,513,476
Dividends		250,329
Prepaid expenses		26,456
Total assets		203,557,544
Liabilities:
Payable for:
Fund shares redeemed		100,743
Management fees		129,189
Custodian fees		818
Transfer agent/maintenance fees		24,673
Administration fees		16,524
Professional fees		23,614
12b-l distribution plan fees		50,383
Directors’ fees		1,971
Other		78,849
Total liabilities		426,764
Net assets	$	203,130,780
Net assets consist of:
Paid in capital	$	220,527,334
Accumulated net investment loss		(23,469	)
Accumulated net realized loss on sale of investments		(36,289,873	)
Net unrealized appreciation in value of investments		18,916,788
Net assets	$	203,130,780
Class A:
Capital shares outstanding (unlimited number of shares authorized)		42,152,575
Net assets	$	191,839,619
Net asset value and redemption price per share	$	4.55
Maximum offering price per share (net asset value divided by 94.25%)	$	4.83
Class B:
Capital shares outstanding (unlimited number of shares authorized)		2,391,527
Net assets	$	8,946,584
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	3.74
Class C:
Capital shares outstanding (unlimited number of shares authorized)		579,319
Net assets	$	2,344,577
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	4.05
* Investments, at cost	$	179,035,600

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $426)	$	1,384, 474
Interest		974
Total investment income		1,385,448
Expenses:
Management fees		726,025
Transfer agent/maintenance fees		227,882
Administration fees		92 186
Custodian fees		3,807
Directors’ fees		9,363
Professional fees		19,559
Reports to shareholders		22,175
Registration fees		18,815
Other expenses		5,915
12b-l distribution fees - Class A		228,281
12b-l distribution fees - Class B		43,505
12b-l distribution fees - Class C		11,404
Total expenses		1,408,917
Net investment loss		(23,469	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		5,054,437
Net realized gain		5,054,437
Net unrealized appreciation (depreciation) during the period on:
Investments		17,686,678
Net unrealized appreciation		17,686,678
Net realized and unrealized gain		22,741,115
Net increase in net assets resulting from operations	$	22,717,646

30 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Large Cap Core Fund

	Six Months Ended March 31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	(23,469	)	$	392,434
Net realized gain (loss) during the period on investments		5 054 437			(39,927,753	)
Net unrealized appreciation during the period on investments		17,686,678			25,674,075
Net increase (decrease) in net assets resulting from operations		22,717,646			(13,861,244	)
Distributions to shareholders from:
Net investment income
Class A		—			(423,903	)
Return of capital
Class A		—			(565,163	)
Class B		—			(33,423	)
Class C		—			(9,223	)
Total distributions to shareholders		—			(1,031,712	)
Capital share transactions:
Proceeds from sale of shares
Class A		9,174,592			5,175,096
Class B		2,263,146			913,069
Class C		152,388			584,733
Distributions reinvested
Class A		—			906,902
Class B		—			32,949
Class C		—			9,093
Cost of shares redeemed
Class A		(14,196,509	)		(22,903,493	)
Class B		(2,100,853	)		(2,826,140	)
Class C		(311,715	)		(1,012,475	)
Net decrease from capital share transactions		(5,018,951	)		(19,120,266	)
Net increase (decrease) in net assets		17,698,695			(34,013,222	)
Net assets:
Beginning of period		185,432,085			219,445,307
End of period	$	203,130,780		$	185,432,085
Accumulated net investment loss at end of period	$	(23,469	)	$	—
Capital share activity:
Shares sold
Class A		2,166,785			1,556,038
Class B		652,161			331,911
Class C		40,514			194,316
Shares reinvested
Class A		—			279,047
Class B		—			12,204
Class C		—			3,114
Shares redeemed
Class A		(3,302,238	)		(6,925,030	)
Class B		(588,842	)		(1,023,385	)
Class C		(81,637	)		(341,567	)

31 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Large Cap Core Fund

Class A	Six Months Ended March  31, 2010a,g			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	4.05		$	4.26		$	6.84		$	6.85		$	6.58		$	6.50
Income (loss) from investment operations:
Net investment income (loss) b		—			0.01			0.01			—			(0.01	)		0.04
Net gain (loss) on securities (realized and unrealized)		0.50			(0.20	)		(1.61	)		0.69			0.52			0.49
Total from investment operations		0.50			(0.19	)		(1.60	)		0.69			0.51			0.53
Less distributions:
Dividends from net investment income		—			(0.01	)		—			—			(0.04	)		—
Distributions from realized gains		—			(0.01	)		(0.97	)		(0.70	)		(0.20	)		(0.45	)
Return of capital		—			—			(0.01	)		—			—			—
Total distributions		—			(0.02	)		(0.98	)		(0.70	)		(0.24	)		(0.45	)
Net asset value, end of period	$	4.55		$	4.05		$	4.26		$	6.84		$	6.85		$	6.58
Total Return c		12.35	%		(4.32	)%		(26.12	)%		10.33	%		7.88	%		8.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	191,840		$	175,404		$	205,908		$	322,850		$	371,006		$	375,280
Ratios to average net assets:
Net investment income (loss)		0.02	%		0.28	%		0.15	%		0.02	%		(0.08	)%		0.57	%
Total expenses d		1.41	%		1.49	%		1.36	%		1.34	%		1.34	%		1.30	%
Net expenses e		1.41	%		1.49	%		1.36	%		1.34	%		1.34	%		1.30	%
Net expenses prior to custodian earning credits and net of expense waivers		1.41	%		1.49	%		1.36	%		1.34	%		1.34	%		1.30	%
Portfolio turnover rate		103	%		69	%		111	%f		20	%		34	%		32	%

Class B	Six Months Ended March  31, 2010a,g			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	3.34		$	3.53		$	5.89		$	6.04		$	5.83		$	5.85
Income (loss) from investment operations:
Net investment loss b		(0.01	)		(0.01	)		(0.03	)		(0.04	)		(0.05	)		(0.01	)
Net gain (loss) on securities (realized and unrealized)		0.41			(0.17	)		(1.35	)		0.59			0.46			0.44
Total from investment operations		0.40			(0.18	)		(1.38	)		0.55			0.41			0.43
Less distributions:
Distributions from realized gains		—			(0.01	)		(0.97	)		(0.70	)		(0.20	)		(0.45	)
Return of capital		—			—			(0.01	)		—			—			—
Total distributions		—			(0.01	)		(0.98	)		(0.70	)		(0.20	)		(0.45	)
Net asset value, end of period	$	3.74		$	3.34		$	3.53		$	5.89		$	6.04		$	5.83
Total Return c		11.98	%		(4.96	)%		(26.69	)%		9.33	%		7.16	%		7.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,947		$	7,784		$	10,621		$	19,928		$	27,842		$	39,962
Ratios to average net assets:
Net investment loss		(0.73	)%		(0.46	)%		(0.61	)%		(0.74	)%		(0.83	)%		(0.16	)%
Total expenses d		2.16	%		2.24	%		2.11	%		2.09	%		2.09	%		2.05	%
Net expenses e		2.16	%		2.24	%		2.11	%		2.09	%		2.09	%		2.05	%
Net expenses prior to custodian earning credits and net of expense waivers		2.16	%		2.24	%		2.11	%		2.09	%		2.09	%		2.05	%
Portfolio turnover rate		103	%		69	%		111	%f		20	%		34	%		32	%

32 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Large Cap Core Fund

Class C	Six Months Ended March  31, 2010a,g			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	3.62		$	3.81		$	6.28		$	6.39		$	6.16		$	6.16
Income (loss) from investment operations:
Net investment loss b		(0.01	)		(0.01	)		(0.03	)		(0.05	)		(0.05	)		(0.01	)
Net gain (loss) on securities (realized and unrealized)		0.44			(0.17	)		(1.46	)		0.64			0.48			0.46
Total from investment operations		0.43			(0.18	)		(1.49	)		0.59			0.43			0.45
Less distributions:
Distributions from realized gains		—			(0.01	)		(0.97	)		(0.70	)		(0.20	)		(0.45	)
Return of capital		—			—			(0.01	)		—			—			—
Total distributions		—			(0.01	)		(0.98	)		(0.70	)		(0.20	)		(0.45	)
Net asset value, end of period	$	4.05		$	3.62		$	3.81		$	6.28		$	6.39		$	6.16
Total Return c		11.88	%		(4.60	)%		(26.79	)%		9.45	%		7.10	%		7.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,345		$	2,244		$	2,915		$	5,048		$	5,794		$	5,706
Ratios to average net assets:
Net investment loss		(0.73	)%		(0.47	)%		(0.60	)%		(0.73	)%		(0.83	)%		(0.18	)%
Total expenses d		2.16	%		2.24	%		2.11	%		2.09	%		2.09	%		2.05	%
Net expenses e		2.16	%		2.24	%		2.11	%		2.09	%		2.09	%		2.05	%
Net expenses prior to custodian earning credits and net of expense waivers		2.16	%		2.24	%		2.11	%		2.09	%		2.09	%		2.05	%
Portfolio turnover rate		103	%		69	%		111	%f		20	%		34	%		32	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

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

^c Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares.

^d Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^e Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

^f Significant variation in the portfolio turnover rate is due to the Investment Manager’s appointment of new portfolio managers for the Fund.

^g Effective February 1, 2010, the Fund’s name became Large Cap Core Fund. Prior to February 1, 2010, the Fund was known as the Equity Fund.

33 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Global Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Over Ten Years

This chart assumes a $10,000 investment in Class A shares of Global Fund on March 31, 2000, reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The MSCI World Index is an unmanaged capitalization-weighted index that is designed to measure global developed market equity performance.

Average Annual Returns

Periods Ended 3-31-10	1 Year		5 Years		10 Years
A Shares	39.89	%	3.21	%	1.22	%
A Shares with sales charge	31.88	%	2.00	%	0.63	%
B Shares	40.06	%	3.38	%	1.06	%
B Shares with CDSC	35.06	%	3.15	%	1.06	%
C Shares	38.64	%	2.42	%	0.44	%
C Shares with CDSC	37.64	%	2.42	%	0.44	%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	9.38	%
Consumer Staples	9.42
Energy	10.44
Financials	18.29
Health Care	13.32
Industrials	10.62
Information Technology	14.53
Materials	4.94
Utilities	7.88
Cash & Other Assets, Less Liabilities	1.18
Total Net Assets	100.00	%

34 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Global Fund

	Shares	Value
COMMON STOCKS - 48.1%
Airlines - 0.8%
Alaska Air Group, Inc. *	18,500	$	762,755
Cable & Satellite - 2.1%
Time Warner Cable, Inc.	37,729		2,011,333
Computer Hardware - 2.1%
Apple, Inc. *	8,888		2,088,058
Construction & Farm Machinery & Heavy Trucks - 0.8%
Oshkosh Corporation	18,900		762,426
Education Services - 1.6%
Corinthian Colleges, Inc. *	33,400		587,506
ITT Educational Services, Inc. *	8,730		981,950
			1 569,456
Electric Utilities - 1.4%
FPL Group, Inc.	15,800		763,614
Northeast Utilities	21,875		604,625
			1,368,239
Gas Utilities - 2.5%
UGI Corporation	91,600		2,431,064
Health Care Facilities - 0.8%
Healthsouth Corporation *	42,100		787,270
Health Care Services - 4.3%
Express Scripts, Inc. *	23,016		2,342,107
Medco Health Solutions, Inc. *	29,420		1,899,355
			4,241,462
Home Improvement Retail - 0.7%
Home Depot, Inc.	20,600		666,410
Independent Power Producers & Energy Traders - 0.5%
Constellation Energy Group, Inc.	13,500		473,985
Integrated Oil & Gas - 3.5%
Occidental Petroleum Corporation	22,625		1,912,718
Petroleo Brasileiro S.A. ADR	33,100		1,472,619
			3,385,337
Life & Health Insurance - 0.7%
Protective Life Corporation	29,500		648,705
Life Sciences Tools & Services - 2.3%
Life Technologies Corporation *	42,682		2,230,988
Managed Health Care - 0.7%
Humana, Inc. *	15,400		720,258
Multi-Line Insurance - 0.6%
Hartford Financial Services Group, Inc.	21,100		599,662
Multi-Utilities - 0.7%
Xcel Energy, Inc.	32,600		691,120

	Shares	Value
COMMON STOCKS - 48.1% (continued)
Office Electronics - 2.3%
Xerox Corporation	228,700	$	2,229,825
Office Services & Supplies - 0.5%
Pitney Bowes, Inc.	21,400		523,230
Oil & Gas Equipment & Services - 0.2%
Helix Energy Solutions Group, Inc. *	13,200		171,996
Oil & Gas Exploration & Production - 1.6%
Forest Oil Corporation *	59,283		1,530,687
Oil & Gas Refining & Marketing - 0.6%
World Fuel Services Corporation	21,300		567,432
Other Diversified Financial Services - 2.4%
JPMorgan Chase & Company	52,557		2,351,926
Packaged Foods & Meats - 0.8%
Smithfield Foods, Inc. *	39,100		810,934
Paper Packaging - 0.7%
Rock-Tenn Company	14,500		660,765
Personal Products - 0.8%
Herbalife, Ltd.	17,400		802,488
Pharmaceuticals - 1.6%
Eli Lilly & Company	21,000		760,620
Endo Pharmaceuticals Holdings, Inc. *	32,500		769,925
			1,530,545
Property & Casualty Insurance - 3.1%
ACE, Ltd.	42,220		2,208,106
W.R. Berkley Corporation	30,400		793,136
			3,001,242
Security & Alarm Services - 0.6%
Brink’s Company	19,000		536,370
Specialty Stores - 0.7%
Tractor Supply Company	11,300		655,965
Systems Software - 2.4%
Check Point Software Technologies *	67,960		2,382,678
Thrifts & Mortgage Finance - 2.0%
Washington Federal, Inc.	95,100		1,932,432

35 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Global Fund

	Shares	Value
COMMON STOCKS - 48.1% (continued)
Tobacco - 1.7%
Altria Group, Inc.	80,680	$	1,655,554
TOTAL COMMON STOCKS (cost $40,400,109)		$	46,782,597
	Shares	Value
FOREIGN STOCKS - 50.7%
Airlines - 0.8%
British Airways plc	214,323	$	790,561
Asset Management & Custody Banks - 2.8%
Julius Baer Group, Ltd.	73,326		2,660,015
Automobile Manufacturers - 4.3%
Honda Motor Company, Ltd.	49,200		1,736,563
Renault S.A.	42,546		1,994,119
Volkswagen AG	5,138		496,207
			4,226,889
Construction & Farm Machinery & Heavy Trucks - 0.7%
SembCorp Marine, Ltd.	234,000		700,854
Diversified Banks - 3.1%
DBS Group Holdings, Ltd.	200,000		2,044,391
Standard Chartered plc	37,416		1,020,772
			3,065,163
Electrical Components & Equipment - 4.1%
Nexans S.A.	19,399		1,653,638
Prysmian SpA	117,882		2,316,719
			3,970,357
Electronic Equipment & Instruments - 1.5%
Hitachi, Ltd.	386,000		1,440,869
Fertilizers & Agricultural Chemicals - 1 7%
Syngenta AG	6,017		1,670,882
Food Retail - 1.2%
Empire Company, Ltd.	11,098		575,606
Metro, Inc.	13,739		569,606
			1,145,212
Health Care Services - 1.6%
Fresenius Medical Care AG & Company KGaA	27,910		1,574,850
Integrated Oil & Gas - 1.7%
BG Group plc	94,031		1,627,226
Internet Software & Services - 2.3%
Gree, Inc.	36,210		2,211,446
Life & Health Insurance - 2.3%
Sony Financial Holdings, Inc.	686		2,252,548
Multi-Utilities - 2.8%
Veolia Environnement	77,952		2,703,867

	Shares		Value
FOREIGN STOCKS - 50.7% (continued)
Oil & Gas Exploration & Production - 3.0%
CNOOC, Ltd.	1,335,087		$	2,197,575
EnCana Corporation	21,700			675,121
				2,872,696
Packaged Foods & Meats - 2.8%
Marine Harvest ASA *	1,541,641			1,369,679
Toyo Suisan Kaisha, Ltd.	51,188			1,323,842
				2,693,521
Pharmaceuticals - 1.9%
Novartis AG 1	34,637			1,870,805
Property & Casualty Insurance - 1.3%
Lancashire Holdings, Ltd.	175,275			1,280,288
Semiconductor Equipment - 1.8%
Tokyo Electron, Ltd.	25,900			1,717,525
Semiconductors - 2.1%
Samsung Electronics Company, Ltd.	2,850			2,062,002
Specialty Chemicals - 0.7%
Johnson Matthey plc	25,374	��		672,610
Steel - 1.9%
Voestalpine AG	44,581			1,803,473
Tobacco - 2.1%
Imperial Tobacco Group plc	67,417			2,056,114
Trading Companies & Distributors - 2.2%
Mitsui & Company, Ltd.	135,900			2,283,532
TOTAL FOREIGN STOCKS (cost $46,274,312)			$	49,353,305
	Shares		Value
RIGHT - 0.0%
Germany - 0.00%
Volkswagen AG Expires 04/13/10	5,138		$	3,192
TOTAL RIGHT (cost $2,957)			$	3,192
Total Investments - 98.8% 1 (cost $86,677,378)			$	96,139,094
Cash & Other Assets, Less Liabilities - 1.2%				1,153,597
Total Net Assets - 100.0%			$	97,292,691

INVESTMENT CONCENTRATION

At March 31, 2010, the investment diversification of the Fund was as follows:

Country	% of Net Assets		Value
United States	41.1	%	$	39,916,706
Japan	13.3			12,966,325
Switzerland	8.7			8,409,808
France	6.5			6,351,624
United Kingdom	6.3			6,167,283

36 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Global Fund

INVESTMENT CONCENTRATION (continued)

Country	% of Net Assets		Value
Singapore	2.8	%	$2,745,245
Israel	2.4		2,382,678
Italy	2.4		2,316,719
Hong Kong	2.3		2,197,575
Germany	2.1		2,074,249
Republic of Korea	2.1		2,062,002
Canada	1.9		1,820,333
Austria	1.9		1,803,473
Brazil	1.5		1,472,619
Norway	1.4		1,369,679
Bermuda	1.3		1,280,288
Cayman Islands	0.8		802,488
Total Investments	98.8		$96,139,094

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $87,010,230.

ADR American Depositary Receipt

plc Public Limited Company

* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

37 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Global Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments at value *	$	96,139,094
Cash		673,390
Cash denominated in a foreign currency, at value ***		2
Receivables:
Fund shares sold		24,857
Securities sold		6,333,345
Dividends		163,429
Foreign taxes recoverable		48,451
Prepaid expenses		35,028
Total assets		103,417,596
Liabilities:
Payable for:
Securities purchased		5,815,995
Fund shares redeemed		125,929
Management fees		83,824
Custodian fees		15,000
Transfer agent/maintenance fees		13,811
Administration fees		14,674
Professional fees		9,894
12b-l distribution plan fees		21,997
Directors’ fees		899
Other		22,882
Total liabilities		6,124,905
Net assets	$	97,292,691
Net assets consist of:
Paid in capital	$	132,786,799
Accumulated net investment loss		(324,012	)
Accumulated net realized loss on sale of investments and foreign currency transactions		(44,667,169	)
Net unrealized appreciation in value of investments and translation of assets and liabilities in foreign currencies		9,497,073
Net assets	$	97,292,691
Class A:
Capital shares outstanding (unlimited number of shares authorized)		7,891,478
Net assets	$	83,543,590
Net asset value and redemption price per share	$	10.59
Maximum offering price per share (net asset value divided by 94.25%)	$	11.24
Class B:
Capital shares outstanding (unlimited number of shares authorized)		970,340
Net assets	$	8,960,138
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	9.23
Class C:
Capital shares outstanding (unlimited number of shares authorized)		523,183
Net assets	$	4,788,963
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	9.15
*Investments, at cost	$	86,677,378
***Cash denominated in a foreign currency, at cost		2

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $35,132)	$	963,648
Total investment income		963,648
Expenses:
Management fees		529,375
Transfer agent/maintenance fees		133,669
Administration fees		82,939
Custodian fees		30,533
Directors’ fees		4,642
Professional fees		19,882
Reports to shareholders		11,771
Registration fees		20,516
Other expenses		8,113
12b-l distribution fees - Class A		113,874
12b-l distribution fees - Class C		23,579
Total expenses		978,893
Net investment loss		(15,245	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		11,172,119
Foreign currency transactions		(162,716	)
Net realized gain		11,009,403
Net unrealized appreciation (depreciation) during the period on:
Investments		(4,761,406	)
Translation of assets and liabilities in foreign currencies		26,434
Net unrealized depreciation		(4,734,972	)
Net realized and unrealized gain		6,274,431
Net increase in net assets resulting from operations	$	6,259,186

38 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Global Fund

	Six Months Ended March 31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment income (loss)	$	(15,245	)	$	588,726
Net realized gain (loss) during the period on investments and foreign currency transactions		11,009,403			(32,306,831	)
Net unrealized appreciation (depreciation) during the period on investments and translation of assets and liabilities		(4,734,972	)		30,228,428
Net increase (decrease) in net assets resulting from operations		6,259,186			(1,489,677	)
Distributions to shareholders from:
Net investment income
Class A		—			(163,957	)
Class B		—			(75,171	)
Return of capital
Class A		—			(535,384	)
Class B		—			(101,453	)
Class C		—			(46,236	)
Total distributions to shareholders		—			(922,201	)
Capital share transactions:
Proceeds from sale of shares
Class A		10,081,224			34,945,358
Class B		697,823			2,542,896
Class C		223,820			988,149
Distributions reinvested
Class A		—			692,086
Class B		—			175,483
Class C		—			45,624
Cost of shares redeemed
Class A		(29,161,586	)		(26,643,873	)
Class B		(3,469,125	)		(5,753,043	)
Class C		(536,650	)		(3,334,066	)
Net increase (decrease) from capital share transactions		(22,164,494	)		3,658,614
Net increase (decrease) in net assets		(15,905,308	)		1,246,736
Net assets:
Beginning of period		113,197,999			111,951,263
End of period	$	97,292,691		$	113,197,999
Accumulated net investment loss at end of period	$	(324,012	)	$	(286,682	)
Capital share activity:
Shares sold
Class A		997,051			4,245,498
Class B		79,543			355,824
Class C		25,521			136,231
Shares reinvested
Class A		—			84,093
Class B		—			24,543
Class C		—			6,354
Shares redeemed
Class A		(2,851,168	)		(3,160,197	)
Class B		(393,063	)		(787,666	)
Class C		(61,288	)		(453,603	)

39 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Global Fund

Class A	Six Months Ended March  31, 2010a			2009			2008			2007b			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	9.97		$	10.35		$	20.69		$	19.65		$	17.47		$	13.93
Income (loss) from investment operations:
Net investment income (loss) c		—			0.05			0.05			0.06			(0.03	)		(0.02	)
Net gain (loss) on securities (realized and unrealized)		0.62			(0.35	)		(3.63	)		3.60			2.21			3.56
Total from investment operations		0.62			(0.30	)		(3.58	)		3.66			2.18			3.54
Less distributions:
Dividends from net investment income		—			(0.02	)		(0.04	)		—			—			—
Distributions from realized gains		—			(0.06	)		(6.72	)		(2.62	)		—			—
Total distributions		—			(0.08	)		(6.76	)		(2.62	)		—			—
Net asset value, end of period	$	10.59		$	9.97		$	10.35		$	20.69		$	19.65		$	17.47
Total Return d		6.22	%		(2.71	)%		(25.16	)%		20.07	%		12.48	%		25.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	83,544		$	97,205		$	88,782		$	145,158		$	119,176		$	127,970
Ratios to average net assets:
Net investment income (loss)		(0.02	)%		0.63	%		0.33	%		0.29	%		(0.17	)%		(0.14	)%
Total expenses e		1.84	%		1.89	%		1.73	%		1.69	%		1.75	%		1.73	%
Net expenses f		1.84	%		1.89	%		1.72	%		1.69	%		1.75	%		1.73	%
Net expenses prior to custodian earning credits and net of expense waivers		1.84	%		1.89	%		1.73	%		1.69	%		1.75	%		1.73	%
Portfolio turnover rate		252	%		368	%		280	%g		162	%g		28	%		31	%
Class B	Six Months Ended March  31, 2010a,h			2009h			2008h			2007b,h			2006h			Year Ended September  30, 2005h
Per Share Data
Net asset value, beginning of period	$	8.69		$	9.05		$	18.96		$	18.17		$	16.12		$	12.93
Income (loss) from investment operations:
Net investment income (loss) c		0.01			0.07			0.07			0.09			0.02			(0.12	)
Net gain (loss) on securities (realized and unrealized)		0.53			(0.32	)		(3.17	)		3.32			2.03			3.31
Total from investment operations		0.54			(0.25	)		(3.10	)		3.41			2.05			3.19
Less distributions:
Dividends from net investment income		—			(0.05	)		(0.09	)		—			—			—
Distributions from realized gains		—			(0.06	)		(6.72	)		(2.62	)		—			—
Total distributions		—			(0.11	)		(6.81	)		(2.62	)		—			—
Net asset value, end of period	$	9.23		$	8.69		$	9.05		$	18.96		$	18.17		$	16.12
Total Return d		6.21	%		(2.45	)%		(24.91	)%		20.36	%		12.72	%		24.67	%

Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,960		$	11,155		$	15,303		$	29,659		$	27,494		$	28,999
Ratios to average net assets:
Net investment income (loss)		0.23	%		0.90	%		0.55	%		0.50	%		0.11	%		(0.80	)%
Total expenses e		1.59	%		1.65	%		1.48	%		1.44	%		1.50	%		2.38	%
Net expenses f		1.59	%		1.65	%		1.47	%		1.44	%		1.50	%		2.38	%
Net expenses prior to custodian earning credits and net of expense waivers		1.59	%		1.65	%		1.48	%		1.44	%		1.50	%		2.38	%
Portfolio turnover rate		252	%		368	%		280	%g		162	%g		28	%		31	%

40 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Global Fund

Class C	Six Months Ended March  31, 2010a			2009			2008			2007b			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	8.66		$	9.04		$	19.00		$	18.37		$	16.46		$	13.22
Income (loss) from investment operations:
Net investment loss c		(0.03	)		(0.01	)		(0.05	)		(0.09	)		(0.15	)		(0.13	)
Net gain (loss) on securities (realized and unrealized)		0.52			(0.31	)		(3.18	)		3.34			2.06			3.37
Total from investment operations		0.49			(0.32	)		(3.23	)		3.25			1.91			3.24
Less distributions:
Distributions from realized gains		—			(0.06	)		(6.73	)		(2.62	)		—			—
Total distributions		—			(0.06	)		(6.73	)		(2.62	)		—			—
Net asset value, end of period	$	9.15		$	8.66		$	9.04		$	19.00		$	18.37		$	16.46
Total Return d		5.66	%		(3.39	)%		(25.69	)%		19.14	%		11.60	%		24.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,789		$	4,838		$	7,866		$	12,449		$	10,361		$	8,841
Ratios to average net assets:
Net investment loss		(0.79	)%		(0.11	)%		(0.44	)%		(0.48	)%		(0.87	)%		(0.90	)%
Total expenses e		2.59	%		2.65	%		2.49	%		2.44	%		2.51	%		2.48	%
Net expenses f		2.59	%		2.65	%		2.47	%		2.44	%		2.50	%		2.48	%
Net expenses prior to custodian earning credits and net of expense waivers		2.59	%		2.65	%		2.49	%		2.44	%		2.51	%		2.48	%
Portfolio turnover rate		252	%		368	%		280	%g		162	%g		28	%		31	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

^b Security Global Investors, LLC (SGI) became the sub-advisor of the Global Fund effective August 1, 2007. Prior to August 1, 2007, Security Investors (SI) paid Oppenheimer Funds for sub-advisory services.

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

^d Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares.

^e Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^f Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

^g Significant variation in the portfolio turnover rate is due to the re-alignment of the Fund¹ portfolio following the appointment of SGI as sub-advisor.

^h Effective August 25, 2005, Class B shares ceased charging 12b-l fees in accordance with FINRA sales cap regulations. Per share information reflects this change. This fee will be reinstated when sales exceed the sales cap limit.

41 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Global Institutional Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Since Inception

This chart assumes a $10,000 investment in shares of Global Institutional Fund on July 11, 2008 (date of inception), and reflects the fees and expenses of the Fund and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The MSCI World Index is an unmanaged capitalization-weighted index that is designed to measure global developed market equity performance.

Average Annual Returns

Periods Ended 3-31-10	l Year		Since Inception (7-11-08)
Global Institutional Fund	41.61	%	(5.09	)%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	9.41	%
Consumer Staples	9.19
Energy	10.72
Financials	18.26
Health Care	13.30
Industrials	10.63
Information Technology	14.56
Materials	4.95
Utilities	7.76
Cash & Other Assets, Less Liabilities	1.22
Total Net Assets	100.00	%

42 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Global Institutional Fund

	Shares	Value
COMMON STOCKS - 48.1%
Airlines - 0 8%
Alaska Air Group, Inc. *	800	$	32,984
Cable & Satellite - 2.1%
Time Warner Cable, Inc.	1,648		87,855
Computer Hardware - 2.2%
Apple, Inc. *	403		94,677
Construction & Farm Machinery & Heavy Trucks - 0.8%
Oshkosh Corporation	800		32,272
Education Services - 1.6%
Corinthian Colleges, Inc. *	1,500		26,385
ITT Educational Services, Inc. *	385		43,305
			69,690
Electric Utilities - 1.4%
FPL Group, Inc.	700		33,831
Northeast Utilities	997		27,557
			61,388
Gas Utilities - 2.4%
UGI Corporation	4,000		106,160
Health Care Facilities - 0.8%
Healthsouth Corporation *	1,900		35,530
Health Care Services - 4.3%
Express Scripts, Inc. *	1,031		104,914
Medco Health Solutions, Inc. *	1,279		82,572
			187,486
Home Improvement Retail - 0.7%
Home Depot, Inc.	895		28,953
Independent Power Producers & Energy Traders - 0.5%
Constellation Energy Group, Inc.	600		21,066
Integrated Oil & Gas - 3.6%
Occidental Petroleum Corporation	1,024		86,569
Petroleo Brasileiro S.A. ADR	1,500		66,735
			153,304
Life & Health Insurance - 0.7%
Protective Life Corporation	1,300		28,587
Life Sciences Tools & Services - 2.3%
Life Technologies Corporation *	1,894		98,999
Managed Health Care - 0.8%
Humana, Inc. *	700		32,739
Multi-Line Insurance - 0.6%
Hartford Financial Services Group, Inc.	920		26,146
Multi-Utilities - 0.7%
Xcel Energy, Inc.	1,400		29,680

	Shares	Value
COMMON STOCKS - 48.1% (continued)
Office Electronics - 2.3%
Xerox Corporation	10,100	$	98,475
Office Services & Supplies - 0.6%
Pitney Bowes, Inc.	1,000		24,450
Oil & Gas Equipment & Services - 0.2%
Helix Energy Solutions Group, Inc. *	600		7,818
Oil & Gas Exploration & Production - 1.6%
Forest Oil Corporation *	2,596		67,029
Oil & Gas Refining & Marketing - 0.6%
World Fuel Services Corporation	990		26,374
Other Diversified Financial Services - 2.4%
JPMorgan Chase & Company	2,314		103,552
Packaged Foods & Meats - 0.8%
Smithfield Foods, Inc. *	1,700		35,258
Paper Packaging - 0.6%
Rock-Tenn Company	600		27,342
Personal Products - 0.8%
Herbalife, Ltd.	700		32,284
Pharmaceuticals - 1.5%
Eli Lilly & Company	900		32,598
Endo Pharmaceuticals Holdings, Inc. *	1,400		33,166
			65,764
Property & Casualty Insurance - 3.1%
ACE, Ltd.	1,846		96,546
W.R. Berkley Corporation	1,300		33,917
			130,463
Security & Alarm Services - 0.5%
Brink’s Company	800		22,584
Specialty Stores - 0.7%
Tractor Supply Company	500		29,025
Systems Software - 2.4%
Check Point Software Technologies *	2,976		104,339
Thrifts & Mortgage Finance - 2.0%
Washington Federal, Inc.	4,200		85,344

43 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Global Institutional Fund

	Shares	Value
COMMON STOCKS - 48.1% (continued)
Tobacco - 1.7%
Altria Group, Inc.	3,520	$	72,230
TOTAL COMMON STOCKS (cost $1,777, 747)		$	2,059,847
	Shares	Value
FOREIGN STOCKS - 50.7%
Airlines - 0.8%
British Airways plc	9,552	$	35,234
Asset Management & Custody Banks - 2.8%
Julius Baer Group, Ltd.	3,268		118,552
Automobile Manufacturers - 4.4%
Honda Motor Company, Ltd.	2,200		77,651
Renault S.A.	1,876		87,928
Volkswagen AG	229		22,116
			187,695
Construction & Farm Machinery & Heavy Trucks - 0.7%
SembCorp Marine, Ltd.	10,000		29,951
Diversified Banks - 3.2%
DBS Group Holdings, Ltd.	8,600		87,909
Standard Chartered plc	1,694		46,215
			134,124
Electrical Components & Equipment - 4.1%
Nexans S.A.	865		73,736
Prysmian SpA	5,254		103,256
			176,992
Electronic Equipment & Instruments - 1.5%
Hitachi, Ltd.	17,000		63,458
Fertilizers & Agricultural Chemicals - 1.7%
Syngenta AG	268		74,422
Food Retail - 1.2%
Empire Company, Ltd.	520		26,970
Metro, Inc.	606		25,124
			52,094
Health Care Services - 1.7%
Fresenius Medical Care AG & Company KGaA	1,244		70,194
Integrated Oil & Gas - 1.7%
BG Group plc	4,191		72,526
Internet Software & Services - 2.3%
Gree, Inc.	1,593		97,289
Life & Health Insurance - 2.3%
Sony Financial Holdings, Inc.	30		98,508
Multi-Utilities - 2.6%
Veolia Environnement	3,294		114,256

	Shares	Value
FOREIGN STOCKS - 50.7% (continued)
Oil & Gas Exploration & Production - 3.1%
CNOOC, Ltd.	61,501	$	101,232
EnCana Corporation	1,000		31,112
			132,344
Packaged Foods & Meats - 2.6%
Marine Harvest ASA *	62,648		55,660
Toyo Suisan Kaisha, Ltd.	2,101		54,337
			109,997
Pharmaceuticals - 1.8%
NovartisAG l	1,460		78,857
Property & Casualty Insurance - 1.3%
Lancashire Holdings, Ltd.	7,811		57,055
Semiconductor Equipment - 1.7%
Tokyo Electron, Ltd.	1,100		72,945
Semiconductors - 2.2%
Samsung Electronics Company, Ltd.	128		92,609
Specialty Chemicals - 0.7%
Johnson Matthey plc	1,131		29,980
Steel - 1.9%
Voestalpine AG	1,987		80,382
Tobacco - 2.1%
Imperial Tobacco Group plc	3,005		91,648
Trading Companies & Distributors - 2.3%
Mitsui & Company, Ltd.	6,000		100,818
TOTAL FOREIGN STOCKS (cost $2,041,795)		$	2,171,930
	Shares	Value
RIGHT - 0.0%
Germany - 0.00%
Volkswagen AG Expires 04/13/10	229	$	142
TOTAL RIGHT (cost $132)		$	142
Total Investments - 98.8%  1(cost $3,819,674)		$	4,231,919
Cash & Other Assets, Less Liabilities - 1.2%			52,437
Total Net Assets- 100.0%		$	4,284,356

INVESTMENT CONCENTRATION

At March 31, 2010, the investment diversification of the Fund was as follows:

Country	% of Net Assets		Value
United States	41.0	%	$	1,759,943
Japan	13.2			565,006
Switzerland	8.6			368,377
France	6.4			275,920
United Kingdom	6.4			275,603

44 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Global Institutional Fund

INVESTMENT CONCENTRATION (continued)

Country	% of Net Assets		Value
Singapore	2.8	%	$	117,860
Israel	2.4			104,339
Italy	2.4			103,256
Hong Kong	2.4			101,232
Republic of Korea	2.2			92,609
Germany	2.2			92,452
Canada	1.9			83,206
Austria	1.9			80,382
Brazil	1.6			66,735
Bermuda	1.3			57,055
Norway	1.3			55,660
Cayman Islands	0.8			32,284
Total Investments	98.8		$	4,231,919

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $3,848,222.

ADR American Depositary Receipt

plc Public Limited Company

* Non-income producing security

¹ Unless otherwise indicated, the values of the portfolio are determined based on Level 1 inputs.

45 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Global Institutional Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments, at value *	$	4,231,919
Cash denominated in a foreign currency, at value **		40
Receivables:
Securities sold		318,603
Dividends		7,620
Security investors		10,629
Foreign taxes recoverable		1,881
Prepaid expenses		6,115
Total assets		4,576,807
Liabilities:
Cash overdraft		8,484
Payable for:
Fund shares redeemed		1,569
Securities purchased		256,866
Management fees		3,741
Administration fees		2,161
Transfer agent/maintenance fees		2,083
Custodian fees		6,500
Directors’ fees		131
Professional fees		5,910
Other fees		5,006
Total liabilities		292,451
Net assets	$	4,284,356
Net assets consist of:
Paid in capital	$	5,756,753
Accumulated net investment loss		(35,736	)
Accumulated net realized loss on sale of investments and foreign currency transactions		(1,850,440	)
Net unrealized appreciation in value of investments and translation of assets and liabilities in foreign currencies		413,779
Net assets	$	4,284,356
Capital shares authorized		unlimited
Capital shares outstanding		480,920
Net asset value per share (net assets divided by shares outstanding)	$	8.91
* Investments, at cost	$	3,819,674
**Cash denominated in a foreign currency, at cost		39

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends (net of foreign withholding tax $1,662)	$	42,019
Total investment income		42,019
Expenses:
Management fees		22,808
Administration fees		9,635
Transfer agent/maintenance fees		4,418
Custodian fees		11,374
Directors’ fees		224
Professional fees		4,342
Reports to shareholders		2,252
Registration fees		7,073
Other		435
Total expenses		62,561
Reimbursement of expenses		(40,357	)
Net expenses		22,204
Net investment income		19,815
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		458,018
Foreign currency transactions		(8,164	)
Net realized gain		449,854
Net unrealized appreciation (depreciation) during the period on:
Investments		(190,592	)
Translation of assets and liabilities in foreign currencies		1,431
Net unrealized depreciation		(189,161	)
Net realized and unrealized gain		260,693
Net increase in net assets resulting from operations	$	280,508

46 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Global Institutional Fund

	Six Months Ended March 31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment income	$	19,815		$	77,330
Net realized gain (loss) during the period on investments and foreign currency transactions		449,854			(1,936,023	)
Net unrealized appreciation (depreciation) during the period on investments and translation of assets and liabilities in foreign currencies		(189,161	)		1,376,356
Net increase (decrease) in net assets resulting from operations		280,508			(482,337	)
Distributions to shareholders from:
Net investment income		(97,135	)		(21,309	)
Total distributions to shareholders		(97,135	)		(21,309	)
Capital share transactions:
Proceeds from sale of shares		374,600			1,489,252
Dividends reinvested		97,135			20,899
Cost of shares redeemed		(1,281,114	)		(3,478,142	)
Net decrease from capital share transactions		(809,379	)		(1,967,991	)
Net decrease in net assets		(626,006	)		(2,471,637	)
Net assets:
Beginning of period		4,910,362			7,381,999
End of period	$	4,284,356		$	4,910,362
Undistributed net investment income at end of period	$	(35,736	)	$	41,584
Capital share activity:
Shares sold		43,753			214,539
Shares reinvested		11,468			2,998
Shares redeemed		(148,206	)		(495,421	)
Total capital share activity		(92,985	)		(277,884	)

47 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Global Institutional Fund

	Six Months Ended March  31, 2010a			2009			Year Ended September  30, 2008b
Per Share Data
Net asset value, beginning of period	$	8.56		$	8.67		$	10.00
Income (loss) from investment operations:
Net investment income c		0.04			0.17			0.02
Net gain (loss) on securities (realized and unrealized)		0.50			(0.25	)		(1.35	)
Total from investment operations		0.54			(0.08	)		(1.33	)
Less distributions:
Dividends from net investment income		(0.19	)		(0.03	)		—
Total distributions		(0.19	)		(0.03	)		—
Net asset value, end of period	$	8.91		$	8.56		$	8.67
Total Return		6.37	%		(0.90	)%		(13.30	)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,284		$	4,910		$	7,382
Ratios to average net assets:
Net investment income		0.87	%		2.34	%		0.87	%
Total expenses d		2.74	%		2.76	%		1.97	%
Net expenses e		0.97	%		1.15	%		1.15	%
Net expenses prior to custodian earnings credits and net of expense waivers		0.97	%		1.15	%		1.15	%
Portfolio turnover rate		265	%		379	%		325	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts, except total return, have been annualized.

^b Security Global Institutional Fund was initially capitalized on July 11, 2008 with a net asset value of $10 per share. Percentage amounts for the period, except total return, have been annualized.

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

^d Total expense information reflects the expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^e Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

48 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Mid Cap Value Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Over 10 Years

This chart assumes a $10,000 investment in Class A shares of Mid Cap Value Fund on March 31, 2000, reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 2500 Value Index is an unmanaged index that measures the performance of securities of small-to-mid cap U.S. companies with greater-than-average value orientation.

Average Annual Returns

Periods Ended 3-31-10	1 Year		5 Years		10 Years
A Shares	60.02	%	7.55	%	11.59	%
A Shares with sales charge	50.82	%	6.29	%	10.93	%
B Shares	58.81	%	6.75	%	10.86	%
B Shares with CDSC	53.81	%	6.50	%	10.86	%
C Shares	58.90	%	6.75	%	10.69	%
C Shares with CDSC	57.90	%	6.75	%	10.69	%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	12.21	%
Consumer Staples	4.88
Energy	7.04
Financials	14.13
Health Care	3.56
Industrials	20.58
Information Technology	10.79
Materials	6.91
Utilities	12.77
Exchange Traded Funds	1.32
Convertible Bonds	0.52
Commercial Paper	4.87
Cash & Other Assets, Less Liabilities	0.42
Total Net Assets	100.00	%

49 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Mid Cap Value Fund

	Shares	Value
COMMON STOCKS - 94.2%
Aerospace & Defense - 3.7%
GeoEye, Inc. *	844,500	$	24,912,749
Orbital Sciences Corporation *	961,080		18,270,131
			43,182,880
Apparel Retail - 4.2%
Brown Shoe Company, Inc.	1,069,950		16,562,826
Chico’s FAS, Inc.	1,790,100		25,813,242
Talbots, Inc. *	446,395		5,785,279
			48,161,347
Apparel, Accessories & Luxury Goods - 1.2%
Columbia Sportswear Company	6,728		353,422
Maidenform Brands, Inc. *	655,900		14,331,415
			14,684,837
Asset Management & Custody Banks - 1.0%
Fifth Street Finance Corporation	1,011,932		11,748,531
Auto Parts & Equipment - 0.0%
HydroGen Corporation *4,6	1,265,700		30,377
Building Products - 0.7%
Trex Company, Inc. *	359,900		7,662,271
Casinos & Gaming - 1.1%
Penn National Gaming, Inc. *	480,000		13,344,000
Coal & Consumable Fuels - 0.6%
USEC, Inc. *	1,214,730		7,008,992
Communications Equipment -1.0%
EF Johnson Technologies, Inc. *6	870,000		811,101
Symmetricom, Inc. *6	1,910,270		11,136,874
			11,947,975
Construction & Engineering - 5.3%
Insituform Technologies, Inc. *	984,300		26,192,222
Quanta Services, Inc. *	1,032,600		19,784,616
URS Corporation *	338,300		16,783,063
			62,759,901
Construction & Farm Machinery & Heavy Trucks - 1.0%
Force Protection, Inc. *	2,043,525		12,302,021
Construction Materials - 0.3%
Eagle Materials, Inc.	117,115		3,108,232
Consumer Finance - 0.3%
First Marblehead Corporation *	1,117,473		3,173,623
Data Processing & Outsourced Services - 3.5%
Computer Sciences Corporation *	761,000		41,466,889
Diversified REIT’s - 0.8%
Investors Real Estate Trust	1,025,492		9,249,938
Electric Utilities - 6.1%
Allete, Inc.	424,757		14,220,864
Great Plains Energy, Inc.	953,117		17,699,383
Northeast Utilities	562,060		15,535,338
Pepco Holdings, Inc.	408,400		7,004,060

	Shares	Value
COMMON STOCKS - 94.2% (continued)
Electric Utilities - 6.1% (continued)
Westar Energy, Inc.	739,800	$	16,497,540
			70,957,185
Electrical Components & Equipment - 1.5%
General Cable Corporation *	565,900		15,279,300
UQM Technologies, Inc. *	517,722		2,179,610
			17,458,910
Electronic Components - 1.8%
Power-One, Inc. *4	5,122,200		21,615,684
Electronic Manufacturing Services - 1.6%
Maxwell Technologies, Inc. *4	1,477,200		18,302,508
Environmental & Facilities Services - 1.4%
Covanta Holding Corporation *	973,000		16,210,180
Exchange Traded Funds - 1.3%
iShares Russell Midcap Value Index Fund	300,000		12,099,000
iShares S&P Mid Cap 400	48,395		3,452,015
			15,551,015
Forest Products - 1.6%
Louisiana-Pacific Corporation *	2,079,300		18,817,665
Gas Utilities - 2.1%
Atmos Energy Corporation	508,000		14,513,560
UGI Corporation	386,242		10,250,863
			24,764,423
Health Care Equipment - 1.2%
Hologic, Inc. *	737,801		13,678,831
Health Care Services - 2.4%
Mednax, Inc. *	345,500		20,104,645
RehabCare Group, Inc. *	293,530		8,004,563
			28,109,208
Home Furnishings - 1.2%
Leggett & Platt, Inc.	668,800		14,472,832
Human Resources & Employment Services - 1.1%
Administaff, Inc.	595,000		12,697,300
Industrial Conglomerates - 2.1%
McDermott International, Inc. *	921,300		24,801,396
Industrial Machinery - 0.9%
Harsco Corporation	315,300		10,070,682
Thermoenergy Corporation *4,6	2,701,839		756,515
			10,827,197
Insurance Brokers - 0.4%
Arthur J Gallagher & Company	189,000		4,639,950
IT Consulting & Other Services - 0.7%
Satyam Computer Services, Ltd. ADR	1,482,112		7,736,625
Mortgage REIT’s - 0.4%
Bimini Capital Management, Inc. *6	473,362		468,155

50 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Mid Cap Value Fund

	Shares	Value
COMMON STOCKS - 94.2% (continued)
Mortgage REIT’s - 0.4% (continued)
Redwood Trust, Inc.	285,027	$	4,395,116
			4,863,271
Multi-Line Insurance - 1.5%
American Financial Group, Inc. 5	629,400		17,906,430
Multi-Utilities - 4.6%
Alliant Energy Corporation	547,300		18,203,198
Black Hills Corporation	397,000		12,048,950
Northwestern Corporation	603,100		16,169,111
SCANA Corporation	210,000		7,893,900
			54,315,159
Office REIT’s - 0.5%
Lexington Realty Trust	968,000		6,301,680
Office Services & Supplies - 0.4%
United Stationers, Inc. *	77,729		4,574,352
Oil & Gas Drilling - 0.5%
Helmerich & Payne, Inc.	148,600		5,658,688
Oil & Gas Equipment & Services - 2.3%
Complete Production Services, Inc. *	261,400		3,019,170
Global Industries, Ltd. *	3,973,500		25,509,870
			28,529,040
Oil & Gas Exploration & Production - 1.7%
Goodrich Petroleum Corporation *	159,569		2,495,659
Gulfport Energy Corporation *	664,000		7,463,360
Petrohawk Energy Corporation *	473,300		9,598,524
			19,557,543
Oil & Gas Storage & Transportation - 1.9%
Southern Union Company	866,360		21,979,553
Packaged Foods & Meats - 4.9%
Del Monte Foods Company	688,300		10,049,180
Hormel Foods Corporation 5	376,600		15,820,966
JM Smucker Company	395,300		23,820,778
Ralcorp Holdings, Inc. *	113,200		7,672,696
			57,363,620
Paper Packaging - 3.6%
Bemis Company, Inc.	940,800		27,019,776
Sonoco Products Company	517,200		15,924,588
			42,944,364
Property & Casualty Insurance - 6.0%
Allegheny Corporation *	60,021		17,568,712
Employers Holdings, Inc.	382,300		5,677,155
Hanover Insurance Group, Inc.	607,000		26,471,270
W.R. Berkley Corporation	776,100		20,248,449
			69,965,586
Regional Banks - 3.2%
Associated Banc-Corporation	1,067,807		14,735,737
Commerce Bancshares, Inc.	207,532		8,537,866
First Horizon National Corporation *	192,624		2,706,366
Old National Bancorp	1,015,822		12,139,073
			38,119,042

	Shares		Value
COMMON STOCKS - 94.2% (continued)
Research & Consulting Services - 1.8%
ICF International, Inc. *		355,700	$	8,835,588
Navigant Consulting, Inc. *		1,057,500		12,827,475
				21,663,063
Restaurants - 2.3%
Burger King Holdings, Inc.		838,651		17,829,720
Jack in the Box, Inc. *		375,000		8,831,250
				26,660,970
Semiconductor Equipment - 0.5%
FEI Company *		59,927		1,372,928
Ultratech, Inc. *		316,200		4,300,320
				5,673,248
Semiconductors - 1.7%
IXYS Corporation *4,6		2,340,000		19,983,600
Specialty Chemicals - 1.4%
HB Fuller Company		250,000		5,802,500
Landec Corporation *6		861,716		5,713,177
Zoltek Companies, Inc. *		501,000		4,829,640
				16,345,317
Specialty Stores - 2.2%
Cabela’s, Inc. *		1,489,693		26,054,731
Trucking - 0.7%
Saia, Inc. *		551,770		7,658,568
TOTAL COMMON STOCKS (cost $974,499,030)			$	1,106,590,548
	Shares		Value
WARRANTS - 0.0%
Nova Biosource Fuels, Inc. $2.40, 7/5/2011 1		677,450	$	1,571
TOTAL WARRANTS (cost $699,774)			$	1,571
	Principal Amount		Value
CONVERTIBLE BONDS - 0.5%
Metals & Minerals - 0.5%
USEC, Inc. 3.00%, 2014 1	$	7,600,000	$	6,137,000
TOTAL CONVERTIBLE BONDS (cost $7,600,000)			$	6,137,000
	Principal Amount		Value
COMMERCIAL PAPER - 4.9%
Diversified Manufacturing - 0.8%
General Electric Company 0.11%, 04/15/2010 1	$	9,000,000	$	8,999,615
Food & Beverage - 2.4%
Nestle Capital Corporation 0.11%, 04/01/2010 1,2		6,000,000		6,000,000
0.12%, 04/06/2010 1,2		7,780,000		7,779,870
0.14%, 04/07/2010 1,2		6,000,000		5,999,860
PepsiCo, Inc. 0.11%, 04/05/2010 1		8,000,000		7,999,903
				27,779,633
Non U.S. Banking - 1.7%
Barclays Funding LLC 0.13%, 04/08/2010 1		8,000,000		7,999,798

51 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Mid Cap Value Fund

	Principal Amount		Value
COMMERCIAL PAPER - 4.9% (continued)
Non U.S. Banking - 1.7% (continued)
BNP Paribas Finance, Inc, 0.13%, 04/07/2010 1	$	9,000,000	$	8,999,804
Societe Generale 0.15%, 04/07/2010 1		3,500,000		3,499,913
				20,499,515
TOTAL COMMERCIAL PAPER (cost $57,278,763)			$	57,278,763
Total Investments - 99.6% 3 (cost $1,040,077,567)			$	1,170,007,882
Cash & Other Assets, Less Liabilities - 0.4%				4,967,665
Total Net Assets - 100.0%			$	1,174,975,547

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $1,050,298,359.

ADR American Depositary Receipt

* Non-income producing security

¹ Value determined based on Level 2 inputs.

² Security is a 144A or Section 4(2) security. The total market value of 144A or Section 4(2) securities is $19,779,730 (cost $19,779,730), or 1.7% of total net assets.

³ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

⁴ Investment in an affiliated issuer. See Note 8 in the Notes to Financial Statements.

⁵ Security is segregated as collateral for open written option contracts.

⁶ Security is deemed illiquid. The total market value of illiquid securities is $38,899,799 (cost $61,110,833), or 3.3% or total net assets.

52 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Mid Cap Value Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments in unaffiliated issues, at value *	$	1,109,319,198
Investments in affiliated issues, at value **		60,688,684
Total investments		1,170,007,882
Cash		2,924,943
Receivables:
Fund shares sold		4,733,561
Securities sold		181,902
Interest		114,000
Dividends		1,247,761
Prepaid expenses		97,716
Total assets		1,179,307,765
Liabilities:
Payable for:
Securities purchased		801,408
Fund shares redeemed		1,511,787
Written options, at value (premiums received, $305,623)		21,120
Management fees		774,975
Transfer agent/maintenance fees		109,195
Administration fees		93,183
Professional fees		54,250
12b-l distribution plan fees		386,944
Other		579,356
Total liabilities		4,332,218
Net assets	$	1,174,975,547
Net assets consist of:
Paid in capital	$	1,132,716,580
Undistributed net investment income		1,453,901
Accumulated net realized loss on sale of investments		(89,409,753	)
Net unrealized appreciation in value of investments		130,214,819
Net assets	$	1,174,975,547
Class A:
Capital shares outstanding (unlimited number of shares authorized)		32,522,973
Net assets	$	946,300,731
Net asset value and redemption price per share	$	29.10
Maximum offering price per share (net asset value divided by 94.25%)	$	30.88
Class B:
Capital shares outstanding (unlimited number of shares authorized)		2,135,382
Net assets	$	53,113,794
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	24.87
Class C:
Capital shares outstanding (unlimited number of shares authorized)		6,850,361
Net assets	$	175,561,022
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	25.63
*Investments in unaffiliated issues, at cost	$	974,132,665
**lnvestments in affiliated issues, at cost		65,944,902
Total cost	$	1,040,077,567

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends from securities of unaffiliated issuers	$	9,596,258
Interest		134,494
Total investment income		9,730,752
Expenses:
Management fees		4,252,854
Transfer agent/maintenance fees		1,008,707
Administration fees		507,899
Custodian fees		20,633
Directors’ fees		51,366
Professional fees		78,615
Reports to shareholders		91,149
Registration fees		50,910
Other expenses		26,400
12b-l distribution fees - Class A		1,074,343
12b-l distribution fees - Class B		273,427
12b-l distribution fees - Class C		767,253
Total expenses		8,203,556
Net investment income		1,527,196
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		3,362,207
Investment transactions of affiliated issuers		(9,930,929	)
Options written		2,579,834
Net realized loss		(3,988,888	)
Net unrealized appreciation (depreciation) during the period on:
Investments		103,573,076
Options written		(282,461	)
Net unrealized appreciation		103,290,615
Net realized and unrealized gain		99,301,727
Net increase in net assets resulting from operations	$	100,828,923

53 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Mid Cap Value Fund

	Six Months Ended March 31,  2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment income	$	1,527,196		$	1,892,720
Net realized loss during the period on investments		(3,988,888	)		(84,154,831	)
Net unrealized appreciation during the period on investments		103,290,615			155,944,161
Net increase in net assets resulting from operations		100,828,923			73,682,050
Distributions to shareholders from:
Net investment income
Class A		(1,178,918	)		(3,569,957	)
Net realized gain
Class A		—			(68,549,175	)
Class B		—			(6,651,443	)
Class C		—			(11,126,589	)
Total distributions to shareholders		(1,178,918	)		(89,897,164	)
Capital share transactions:
Proceeds from sale of shares
Class A		249,496,229			388,375,263
Class B		1,888,664			7,862,714
Class C		32,729,637			46,299,086
Distributions reinvested
Class A		1,064,400			67,810,290
Class B		—			6,316,674
Class C		—			10,539,574
Cost of shares redeemed
Class A		(166,857,444	)		(325,079,843	)
Class B		(11,729,101	)		(16,824,893	)
Class C		(10,491,968	)		(25,735,329	)
Net increase from capital share transactions		96,100,417			159,563,536
Net increase in net assets		195,750,422			143,348,422
Net assets:
Beginning of period		979,225,125			835,876,703
End of period	$	1,174,975,547		$	979,225,125
Undistributed net investment income at end of period	$	1,453,901		$	1,105,623
Capital share activity:
Shares sold
Class A		9,172,033			18,036,421
Class B		81,213			420,635
Class C		1,360,119			2,271,053
Shares reinvested
Class A		38,861			3,546,564
Class B		—			383,293
Class C		—			620,705
Shares redeemed
Class A		(6,099,099	)		(15,264,008	)
Class B		(501,833	)		(931,362	)
Class C		(437,650	)		(1,403,785	)

54 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Mid Cap Value Fund

Class A	Six Months Ended March  31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	26.58		$	28.41		$	40.79		$	38.27		$	36.34		$	30.45
Income (loss) from investment operations:
Net investment income b		0.06			0.08			0.25			0.25			0.04			0.01
Net gain (loss) on securities (realized and unrealized)		2.50			0.82			(4.77	)		4.59			3.96			8.16
Total from investment operations		2.56			0.90			(4.52	)		4.84			4.00			8.17
Less distributions:
Dividends from net investment income		(0.04	)		(0.14	)		(0.14	)		(0.23	)		—			—
Distributions from realized gains		—			(2.59	)		(7.72	)		(2.09	)		(2.07	)		(2.28	)
Total distributions		(0.04	)		(2.73	)		(7.86	)		(2.32	)		(2.07	)		(2.28	)
Net asset value, end of period	$	29.10		$	26.58		$	28.41		$	40.79		$	38.27		$	36.34
Total Return c		9.63	%		6.90	%		(12.48	)%		12.96	%		11.44	%		27.77	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	946,301		$	781,883		$	656,044		$	687,484		$	596,074		$	373,031
Ratios to average net assets:
Net investment income		0.43	%		0.39	%		0.79	%		0.61	%		0.10	%		0.04	%
Total expenses d		1.39	%		1.48	%		1.37	%		1.32	%		1.36	%		1.41	%
Net expenses e		1.39	%		1.48	%		1.37	%		1.32	%		1.36	%		1.41	%
Net expenses prior to custodian earning credits and net of expense waivers		1.39	%		1.48	%		1.37	%		1.32	%		1.36	%		1.41	%
Portfolio turnover rate		28	%		31	%		68	%		44	%		33	%		19	%
Class B	Six Months Ended March  31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	22.78		$	24.83		$	36.78		$	34.76		$	33.43		$	28.37
Income (loss) from investment operations:
Net investment loss b		(0.04	)		(0.06	)		—			(0.04	)		(0.23	)		(0.22	)
Net gain (loss) on securities (realized and unrealized)		2.13			0.60			(4.23	)		4.15			3.63			7.56
Total from investment operations		2.09			0.54			(4.23	)		4.11			3.40			7.34
Less distributions:
Distributions from realized gains		—			(2.59	)		(7.72	)		(2.09	)		(2.07	)		(2.28	)
Total distributions		—			(2.59	)		(7.72	)		(2.09	)		(2.07	)		(2.28	)
Net asset value, end of period	$	24.87		$	22.78		$	24.83		$	36.78		$	34.76		$	33.43
Total Return c		9.17	%		6.17	%		(13.14	)%		12.10	%		10.60	%		26.83	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53,114		$	58,221		$	66,641		$	106,179		$	108,784		$	97,664
Ratios to average net assets:
Net investment loss		(0.35	)%		(0.34	)%		(0.01	)%		(0.10	)%		(0.68	)%		(0.72	)%
Total expenses d		2.14	%		2.23	%		2.12	%		2.07	%		2.11	%		2.16	%
Net expenses e		2.14	%		2.23	%		2.12	%		2.07	%		2.11	%		2.16	%
Net expenses prior to custodian earning credits and net of expense waivers		2.14	%		2.23	%		2.12	%		2.07	%		2.11	%		2.16	%
Portfolio turnover rate		28	%		31	%		68	%		44	%		33	%		19	%

55 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Mid Cap Value Fund

Class C	Six Months Ended March 31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	23.47		$	25.49		$	37.54		$	35.43		$	34.03		$	28.85
Income (loss) from investment operations:
Net investment loss b		(0.04	)		(0.07	)		—			(0.05	)		(0.22	)		(0.21	)
Net gain (loss) on securities (realized and unrealized)		2.20			0.64			(4.33	)		4.25			3.69			7.67
Total from investment operations		2.16			0.57			(4.33	)		4.20			3.47			7.46
Less distributions:
Distributions from realized gains		—			(2.59	)		(7.72	)		(2.09	)		(2.07	)		(2.28	)
Total distributions		—			(2.59	)		(7.72	)		(2.09	)		(2.07	)		(2.28	)
Net asset value, end of period	$	25.63		$	23.47		$	25.49		$	37.54		$	35.43		$	34.03
Total Return c		9.20	%		6.13	%		(13.15	)%		12.13	%		10.62	%		26.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	175,561		$	139,121		$	113,192		$	176,746		$	152,579		$	93,887
Ratios to average net assets:
Net investment loss		(0.31	)%		(0.35	)%		(0.01	)%		(0.12	)%		(0.65	)%		(0.71	)%
Total expenses d		2.14	%		2.22	%		2.12	%		2.07	%		2.11	%		2.16	%
Net expenses e		2.14	%		2.22	%		2.12	%		2.07	%		2.11	%		2.16	%
Net expenses prior to custodian earning credits and net of expense waivers		2.14	%		2.22	%		2.12	%		2.07	%		2.11	%		2.16	%
Portfolio turnover rate		28	%		31	%		68	%		44	%		33	%		19	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

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

^c Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares.

^d Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^e Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

56 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Mid Cap Value Institutional Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Since Inception

This chart assumes a $10,000 investment in shares of Mid Cap Value Institutional Fund on July 11, 2008 (date of Inception) and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 2500 Value Index is an unmanaged index that measures the performance of securities of small-to-mid cap U.S. companies with greater-than-average value orientation.

Average Annual Returns

Periods Ended 3-31-10	1 Year		Since Inception (7-11-08)
Mid Cap Value Institutional Fund	59.14	%	13.15	%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	11.40	%
Consumer Staples	4.76
Energy	6.94
Financials	14.25
Health Care	3.48
Industrials	20.14
Information Technology	10.07
Materials	6.93
Utilities	12.49
Exchange Traded Funds	4.77
Commercial Paper	5.78
Liabilities, Less Cash & Other Assets	(1.01	)
Total Net Assets	100.00	%

57 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Mid Cap Value Institutional Fund

	Shares	Value
COMMON STOCKS - 95.2%
Aerospace & Defense - 3.5%
GeoEye, Inc. *	271,600	$	8,012,200
Orbital Sciences Corporation *	311,558		5,922,718
			13,934,918
Apparel Retail - 3.6%
Brown Shoe Company, Inc.	341,300		5,283,324
Chico’s FAS, Inc.	579,400		8,354,948
Talbots, Inc. *	55,987		725,592
			14,363,864
Apparel, Accessories & Luxury Goods - 1.2%
Columbia Sportswear Company	2,140		112,414
Maidenform Brands, Inc. *	209,900		4,586,315
			4,698,729
Asset Management & Custody Banks - 0.9%
Fifth Street Finance Corporation	321,227		3,729,445
Building Products - 0.7%
Trex Company, Inc. *	129,200		2,750,668
Casinos & Gaming - 1.1%
Penn National Gaming, Inc. *	159,000		4,420,200
Coal & Consumable Fuels - 0.6%
USEC, Inc. *	435,800		2,514,566
Communications Equipment - 0.7%
EF Johnson Technologies, Inc. *5	120,000		111,876
Symmetricom, Inc. *5	467,900		2,727,857
			2,839,733
Construction & Engineering - 5.1%
Insituform Technologies, Inc. *	309,100		8,225,151
Quanta Services, Inc. *	346,900		6,646,604
URS Corporation *	113,600		5,635,696
			20,507,451
Construction & Farm Machinery & Heavy Trucks - 1.0%
Force Protection, Inc. *	669,103		4,028,000
Construction Materials - 0.3%
Eagle Materials, Inc.	38,554		1,023,223
Consumer Finance - 0.2%
First Marblehead Corporation *	254,984		724,155
Data Processing & Outsourced Services - 3.5%
Computer Sciences Corporation *	255,700		13,933,092
Diversified REIT’s - 0.8%
Investors Real Estate Trust	370,112		3,338,410
Electric Utilities - 6.0%
Allete, Inc.	147,854		4,950,152
Great Plains Energy, Inc.	326,735		6,067,469
Northeast Utilities	179,100		4,950,324
Pepco Holdings, Inc.	135,500		2,323,825
Westar Energy, Inc.	246,100		5,488,030
			23,779,800

	Shares	Value
COMMON STOCKS - 95.2% (contiued)
Electrical Components & Equipment - 1.4%
General Cable Corporation *	180,400	$	4,870,800
UQM Technologies, Inc. *	153,200		644,972
			5,515,772
Electronic Components - 1.8%
Power-One, Inc. *	1,675,400		7,070,188
Electronic Manufacturing Services - 1.3%
Maxwell Technologies, Inc. *	411,381		5,097,011
Environmental & Facilities Services - 1.3%
Covanta Holding Corporation *	318,800		5,311,208
Exchange Traded Funds - 4.8%
iShares Russell Midcap Value Index Fund	325,570		13,130,238
iShares S&P MidCap 400	82,000		5,849,060
			18,979,298
Forest Products - 1.6%
Louisiana-Pacific Corporation *	694,200		6,282,510
Gas Utilities - 2.0%
Atmos Energy Corporation	161,800		4,622,626
UGI Corporation	123,357		3,273,895
			7,896,521
Health Care Equipment - 1.1%
Hologic, Inc. *	235,282		4,362,128
Health Care Services - 2.4%
Mednax, Inc. *	110,500		6,429,995
RehabCare Group, Inc. *	113,100		3,084,237
			9,514,232
Home Furnishings - 1.2%
Leggett & Platt, Inc.	216,200		4,678,568
Human Resources & Employment Services - 1.0%
Administaff, Inc.	195,000		4,161,300
Industrial Conglomerates - 2.0%
McDermott International, Inc. *	294,200		7,919,864
Industrial Machinery - 0.8%
Harsco Corporation	102,000		3,257,880
Insurance Brokers - 0.4%
Arthur J Gallagher & Company	62,400		1,531,920
IT Consulting & Other Services - 0.6%
Satyam Computer Services, Ltd. ADR	489,680		2,556,130
Mortgage REIT’s - 0.4%
Redwood Trust, Inc.	93,900		1,447,938
Multi-Line Insurance - 1.6%
American Financial Group, Inc. 4	223,000		6,344,350

58 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Mid Cap Value Institutional Fund

	Shares	Value
COMMON STOCKS - 95.2% (continued)
Multi-Utilities - 4.5%
Alliant Energy Corporation	182,500	$	6,069,950
Black Hills Corporation	128,800		3,909,080
Northwestern Corporation	203,200		5,447,792
SCANA Corporation	69,700		2,620,023
			18,046,845
Office REIT’s - 0.5%
Lexington Realty Trust	304,000		1,979,040
Office Services & Supplies - 0.5%
United Stationers, Inc. *	33,678		1,981,950
Oil & Gas Drilling - 0.5%
Helmerich & Payne, Inc.	50,400		1,919,232
Oil & Gas Equipment & Services - 2.4%
Complete Production Services, Inc. *	84,600		977,130
Global Industries, Ltd. *	1,366,359		8,772,025
			9,749,155
Oil & Gas Exploration & Production - 1.6%
Goodrich Petroleum Corporation *	53,100		830,484
Gulfport Energy Corporation *	237,688		2,671,613
Petrohawk Energy Corporation *	144,900		2,938,572
			6,440,669
Oil & Gas Storage & Transportation - 1.8%
Southern Union Company	276,900		7,024,953
Packaged Foods & Meats - 4.8%
Del Monte Foods Company	226,100		3,301,060
Hormel Foods Corporation 4	120,100		5,045,401
JM Smucker Company	134,500		8,104,970
Ralcorp Holdings, Inc. *	37,200		2,521,416
			18,972,847
Paper Packaging - 3.6%
Bemis Company, Inc.	331,900		9,532,168
Sonoco Products Company	174,100		5,360,539
			14,892,707
Property & Casualty Insurance - 5.9%
Allegheny Corporation *	19,376		5,671,526
Employers Holdings, Inc.	125,700		1,866,645
Hanover Insurance Group, Inc.	204,000		8,896,440
W.R. Berkley Corporation	258,200		6,736,438
			23,171,049
Regional Banks - 3.6%
Associated Banc-Corporation	344,905		4,759,689
Commerce Bancshares, Inc.	96,746		3,980,130
First Horizon National Corporation *	130,341		1,831,297
Old National Bancorp	328,645		3,927,308
			14,498,424
Research & Consulting Services - 2.2%
ICF International, Inc. *	123,494		3,067,591
Navigant Consulting, Inc. *	476,600		5,781,158
			8,848,749
Restaurants - 2.2%
Burger King Holdings, Inc.	276,900		5,886,894

	Shares		Value
COMMON STOCKS - 95.2% (continued)
Restaurants - 2.2% (continued)
Jack in the Box, Inc. *		125,700	$	2,960,235
				8,847,129
Semiconductor Equipment - 0.5%
FEI Company *		19,575		448,463
Ultratech, Inc. *		104,900		1,426,640
				1,875,103
Semiconductors - 1.7%
IXYS Corporation *5		787,900		6,728,666
Specialty Chemicals - 1.4%
HB Fuller Company		77,700		1,803,417
Landec Corporation *5		304,600		2,019,498
Zoltek Companies, Inc. *		164,200		1,582,888
				5,405,803
Specialty Stores - 2.1%
Cabela’s, Inc. *		481,001		8,412,707
Trucking - 0.5%
Saia, Inc. *		142,500		1,977,900
TOTAL COMMON STOCKS (cost $319,579,376)			$	379,286,000
	Principal Amount		Value
COMMERCIAL PAPER - 5.8%
Diversified Manufacturing - 1.0%
General Electric Company 0.11%, 04/15/2010 1	$	4,000,000	$	3,999,829
Food & Beverage - 2.0%
Nestle Capital Corporation 0.11%, 04/01/2010 1,2		4,000,000		4,000,000
PepsiCo, Inc. 0.11%, 04/05/2010 1		4,000,000		3,999,951
				7,999,951
Non U.S. Banking -2.8%
Barclay’s Funding LLC 0.13%, 04/08/2010 1		4,000,000		3,999,899
BNP Paribas Finance, Inc. 0.13%, 04/07/2010 1		4,000,000		3,999,913
Societe Generale 0.15%, 04/07/2010 1		3,000,000		2,999,925
				10,999,737
TOTAL COMMERCIAL PAPER (cost $22,999,517)			$	22,999,517
Total Investments - 101.0% 3
(cost $342,578,893)			$	402,285,517
Liabilities, Less Cash & Other Assets - (1.0)%				(4,031,670	)
Total Net Assets - 100.0%			$	398,253,847

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $342,829,128.

ADR American Depositary Receipt

* Non-income producing security

¹ Value determined based on Level 2 inputs.

² Security is a 144A or Section 4(2) security. The total market value of 144A or Section 4(2) securities is $4,000,000 (cost $4,000,000), or 1.0% of total net assets.

59 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Mid Cap Value Institutional Fund

³ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

⁴ Security is segregated as collateral for open written option contracts.

⁵ Security is deemed illiquid. The total market value of illiquid securities is $11,587,897 (cost $11,919,044), or 2.9% of total net assets.

60 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Mid Cap Value Institutional Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments, at value *	$	402,285,517
Cash		936,183
Receivables:
Fund shares sold		3,555,151
Dividends		405,204
Security Investors		27,329
Prepaid expenses		29,866
Total assets		407,239,250
Liabilities:
Payable for:
Fund shares redeemed		232,802
Securities purchased		8,435,888
Written options, at value (premiums received $98,402)		6,800
Management fees		244,414
Administration fees		31,259
Transfer agent/maintenance fees		4,207
Custodian fees		3,018
Professional fees		6,960
Other fees		20,055
Total liabilities		8,985,403
Net assets	$	398,253,847
Net assets consist of:
Paid in capital	$	329,598,308
Undistributed net investment income		1,684,745
Undistributed net realized gain on sale of investments		7,172,568
Net unrealized appreciation in value of investments		59,798,226
Net assets	$	398,253,847
Capital shares authorized		unlimited
Capital shares outstanding		35,670,708
Net asset value per share (net assets divided by shares outstanding)	$	11.16
* Investments, at cost	$	342,578,893

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends	$	2,899,360
Interest		6,071
Total investment income		2,905,431
Expenses:
Management fees		1,303,183
Administration fees		165,473
Transfer agent/maintenance fees		188,009
Custodian fees		14,217
Directors’ fees		12,705
Professional fees		11,331
Reports to shareholders		4,533
Registration fees		13,149
Other		4,856
Total expenses		1,717,456
Reimbursement of expenses		(147,699	)
Net expenses		1,569,757
Net investment income		1,335,674
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		9,998,380
Options written		642,212
Net realized gain		10,640,592
Net unrealized appreciation (depreciation) during the period on:
Investments		22,551,698
Options written		72,855
Net unrealized appreciation		22,624,553
Net realized and unrealized gain		33,265,145
Net increase in net assets resulting from operations	$	34,600,819

61 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Mid Cap Value Institutional Fund

	Six Months Ended March  31, 2010			Year Ended September 30, 2009
	(unaudited)
Increase (decrease) in net assets from operations:
Net investment income	$	1,335,674		$	721,069
Net realized gain during the period on investments		10,640,592			7,639,819
Net unrealized appreciation during the period on investments		22,624,553			37,041,254
Net increase in net assets resulting from operations		34,600,819			45,402,142
Distributions to shareholders from:
Net investment income		(326,335	)		(116,483	)
Net realized gain		(11,082,828	)		(966,008	)
Total distributions to shareholders		(11,409,163	)		(1,082,491	)
Capital share transactions:
Proceeds from sale of shares		93,319,417			285,643,830
Dividends reinvested		5,348,897			946,155
Cost of shares redeemed		(41,061,439	)		(30,890,230	)
Net increase from capital share transactions		57,606,875			255,699,755
Net increase in net assets		80,798,531			300,019,406
Net assets:
Beginning of period		317,455,316			17,435,910
End of period	$	398,253,847		$	317,455,316
Undistributed net investment income at end of period	$	1,684,745		$	675,406
Capital share activity:
Shares sold		8,785,115			31,844,224
Shares reinvested		509,904			126,492
Shares redeemed		(3,882,617	)		(3,344,963	)
Total capital share activity		5,412,402			28,625,753

62 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Mid Cap Value Institutional Fund

	Six Months Ended March  31, 2010 a			2009			Year Ended September 30, 2008 b
Per Share Data
Net asset value, beginning of period	$	10.49		$	10.68		$	10.00
Income (loss) from investment operations:
Net investment income c		0.04			0.08			0.04
Net gain on securities (realized and unrealized)		0.99			0.27			0.64
Total from investment operations		1.03			0.35			0.68
Less distributions:
Dividends from net investment income		(0.01	)		(0.06	)		—
Distributions from realized gains		(0.35	)		(0.48	)		—
Total distributions		(0.36	)		(0.54	)		—
Net asset value, end of period	$	11.16		$	10.49		$	10.68
Total Return		9.99	%		5.30	%		6.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	398,254		$	317,455		$	17,436
Ratios to average net assets:
Net investment income		0.77	%		0.81	%		1.81	%
Total expenses d		0.99	%		0.97	%		1.19	%
Net expenses e		0.90	%		0.90	%		1.10	%
Net expenses prior to custodian earnings credits and net of expense waivers		0.90	%		0.90	%		1.10	%
Portfolio turnover rate		27	%		76	%		63	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts, except total return, have been annualized.

^b Security Mid Cap Value Institutional Fund was initially capitalized on July 11, 2008 with a net asset value of $10 per share. Percentage amounts for the period, except total return, have been annualized.

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

^d Total expense information reflects the expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^e Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

63 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Large Cap Concentrated Growth Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Over 10 Years

This chart assumes a $10,000 investment in Class A shares of Large Cap Concentrated Growth Fund on March 31, 2000 reflects deduction of the 5.75% sales load and assumes all dividends are reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 1000 Growth Index is an unmanaged capitalization index which includes stocks incorporated in the United States and its territories and measures the performance of the Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Average Annual Returns

Periods Ended 3-31-10	1 Year		5 Years		10 Years
A Shares	50.10	%	0.41	%	(3.48	)%
A Shares with sales charge	41.44	%	(0.76	)%	(4.05	)%
B Shares	49.17	%	(0.34	)%	(4.06	)%
B Shares with CDSC	44.17	%	(0.70	)%	(4.06	)%
C Shares	49.17	%	(0.31	)%	(4.19	)%
C Shares with CDSC	48.17	%	(0.31	)%	(4.19	)%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The above do not reflect the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	18.35	%
Consumer Staples	10.08
Energy	7.72
Financials	3.09
Health Care	12.70
Industrials	12.72
Information Technology	29.82
Materials	3.01
Cash & Other Assets, Less Liabilities	2.51
Total Net Assets	100.00	%

64 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Large Cap Concentrated Growth Fund

	Shares	Value
COMMON STOCKS - 97.5%
Aerospace & Defense - 3.4%
Precision Castparts Corporation	11,410	$	1,445,761
Apparel Retail - 3.1%
TJX Companies, Inc.	31,540		1,341,081
Auto Parts & Equipment - 3.2%
Johnson Controls, Inc.	41,100		1,355,888
Biotechnology - 3.1%
Amgen, Inc. *	22,120		1,321,891
Coal & Consumable Fuels - 2.1%
Peabody Energy Corporation	20,070		917,199
Communications Equipment - 6.3%
Cisco Systems, Inc. *	65,120		1,695,073
Motorola, Inc. *	146,895		1,031,203
			2,726,276
Computer Hardware - 8.3%
Apple, Inc. *	7,690		1,806,611
Hewlett-Packard Company	32,800		1,743,320
			3,549,931
Computer Storage & Peripherals - 4.0%
EMC Corporation *	96,590		1,742,484
Data Processing & Outsourced Services - 3.3%
Visa, Inc.	15,400		1,401,862
Department Stores - 2.9%
Kohl’s Corporation *	23,110		1,265,966
Diversified Chemicals - 3.0%
Dow Chemical Company	43,845		1,296,497
Electrical Components & Equipment - 6.1%
Cooper Industries plc	27,780		1,331,773
Emerson Electric Company	26,570		1,337,534
			2,669,307
Food Distributors - 3.0%
Sysco Corporation	44,100		1,300,950
Health Care Equipment - 3.3%
Covidien plc	28,440		1,429,963
Home Improvement Retail - 3.0%
Home Depot, Inc.	40,250		1,302,088
Hotels, Resorts & Cruise Lines - 3.1%
Carnival Corporation	34,250		1,331,640
Industrial Conglomerates - 3.2%
3M Company	16,340		1,365,534
Integrated Oil & Gas - 3.1%
Occidental Petroleum Corporation	15,590		1,317,979

	Shares	Value
COMMON STOCKS - 97.5% (continued)
Movies & Entertainment - 3.0%
Walt Disney Company	37,550	$	1,310,871
Oil & Gas Equipment & Services - 2.5%
Schlumberger, Ltd.	17,200		1,091,512
Other Diversified Financial Services - 3.1%
JPMorgan Chase & Company	29,725		1,330,194
Packaged Foods & Meats - 3.0%
Kraft Foods, Inc.	42,100		1,273,104
Pharmaceuticals - 6.3%
Pfizer, Inc.	70,290		1,205,474
Teva Pharmaceutical Industries, Ltd. ADR	24,035		1,516,128
			2,721,602
Semiconductors - 4.0%
Intel Corporation	76,840		1,710,458
Soft Drinks - 4.1%
PepsiCo, Inc.	26,770		1,771,103
Systems Software - 4.0%
Oracle Corporation	66,900		1,718,661
TOTAL COMMON STOCKS (cost $36,725,268)		$	42,009,802
Total Investments - 97.5% 1 (cost $36,725,268)		$	42,009,802
Cash & Other Assets, Less Liabilities - 2.5%			1,083,823
Total Net Assets - 100.0%		$	43,093,625

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $37,428,343.

ADR	American Depositary Receipt
plc	Public Limited Company

* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

65 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Large Cap Concentrated Growth Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments, at value*	$	42,009,802
Cash		1,079,900
Receivables:
Fund shares sold		22,998
Dividends		45,080
Security Investors		7,576
Prepaid expenses		25,965
Total assets		43,191,321
Liabilities:
Payable for:
Fund shares redeemed		20,641
Management fees		27,330
Custodian fees		525
Transfer agent/maintenance fees		9,842
Administration fees		3,522
Professional fees		11,066
12b-1 distribution plan fees		15,557
Directors’ fees		23
Other		9,190
Total liabilities		97,696
Net assets	$	43,093,625
Net assets consist of:
Paid in capital	$	54,763,740
Accumulated net investment loss		(45,799	)
Accumulated net realized loss on sale of investments		(16,908,850	)
Net unrealized appreciation in value of investments		5,284,534
Net assets	$	43,093,625
Class A:
Capital shares outstanding (unlimited number of shares authorized)		4,220,022
Net assets	$	33,129,662
Net asset value and redemption price per share	$	7.85
Maximum offering price per share (net asset value divided by 94.25%)	$	8.33
Class B:
Capital shares outstanding (unlimited number of shares authorized)		887,681
Net assets	$	6,382,000
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	7.19
Class C:
Capital shares outstanding (unlimited number of shares authorized)		496,299
Net assets	$	3,581,963
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	7.22
*Investments, at cost	$	36,725,268

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends (net of foreign withholding tax of $172)	$	261,498
Interest		203
Total investment income		261,701
Expenses:
Management fees		150,177
Transfer agent/maintenance fees		100,195
Administration fees		19,116
Custodian fees		1,037
Directors’ fees		1,902
Professional fees		2,719
Reports to shareholders		1,154
Registration fees		16,290
Other expenses		1,888
12b-1 distribution fees - Class A		37,661
12b-1 distribution fees - Class B		31,413
12b-1 distribution fees - Class C		18,181
Total expenses		381,733
Less:
Reimbursement of expenses - Class A		(56,065	)
Reimbursement of expenses - Class B		(11,488	)
Reimbursement of expenses - Class C		(6,680	)
Net expenses		307,500
Net investment loss		(45,799	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		3,790,791
Net realized gain		3,790,791
Net unrealized appreciation (depreciation) during the period on:
Investments		1,287,571
Net unrealized appreciation		1,287,571
Net realized and unrealized gain		5,078,362
Net increase in net assets resulting from operations	$	5,032,563

66 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Large Cap Concentrated Growth Fund

	Six Months Ended March 31, 2010			Year Ended September 30, 2009
	(unaudited)
Increase (decrease) in net assets from operations:
Net investment loss	$	(45,799	)	$	(44,288	)
Net realized gain (loss) during the period on investments		3,790,791			(9,322,393	)
Net unrealized appreciation during the period on investments		1,287,571			9,260,235
Net increase (decrease) in net assets resulting from operations		5,032,563			(106,446	)
Capital share transactions:
Proceeds from sale of shares
Class A		10,764,888			8,421,946
Class B		1,127,622			2,137,575
Class C		153,228			463,278
Cost of shares redeemed
Class A		(3,901,760	)		(10,110,314	)
Class B		(1,239,289	)		(3,656,353	)
Class C		(751,056	)		(1,859,843	)
Net increase (decrease) from capital share transactions		6,153,633			(4,603,711	)
Net increase (decrease) in net assets		11,186,196			(4,710,157	)
Net assets:
Beginning of period		31,907,429			36,617,586
End of period	$	43,093,625		$	31,907,429
Accumulated net investment loss at end of period	$	(45,799	)	$	—
Capital share activity:
Shares sold
Class A		1,517,559			1,538,705
Class B		168,639			427,040
Class C		22,577			88,295
Shares redeemed
Class A		(525,433	)		(1,744,788	)
Class B		(179,861	)		(683,944	)
Class C		(109,923	)		(361,341	)

67 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Large Cap Concentrated Growth Fund

Class A	Six Months Ended March  31, 2010 a,h			2009			2008			2007			2006 b			Year Ended September 30, 2005
Per Share Data Net asset value, beginning of period	$	6.95		$	6.91		$	10.66		$	9.86		$	9.36		$	7.81
Income (loss) from investment operations: Net investment income (loss) c		(—	)*		0.01			(0.02	)		(0.01	)		(0.06	)		(0.07	)
Net gain (loss) on securities (realized and unrealized)		0.90			0.03			(2.87	)		0.81			0.56			1.62
Total from investment operations		0.90			0.04			(2.89	)		0.80			0.50			1.55
Less distributions:
Distributions from realized gains		—			—			(0.86	)		—			—			—
Total distributions		—			—			(0.86	)		—			—			—
Net asset value, end of period	$	7.85		$	6.95		$	6.91		$	10.66		$	9.86		$	9.36
Total Return d		12.95	%		0.58	%		(28.85	)%		8.11	%		5.34	%		19.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,130		$	22,425		$	23,723		$	30,375		$	30,078		$	8,912
Ratios to average net assets:
Net investment income (loss)		(0.04	)%		0.09	%		(0.20	)%		(0.10	)%		(0.68	)%		(0.79	)%
Total expenses e		1.72	%		2.04	%		1.72	%		1.57	%		1.76	%		1.67	%
Net expenses f		1.35	%		1.35	%		1.35	%		1.40	%		1.76	%		1.67	%
Net expenses prior to custodian earning credits and net of expense waivers		1.35	%		1.35	%		1.35	%		1.40	%		1.76	%		1.67	%
Portfolio turnover rate		185	%		134	%		198	% g		21	%		39	%		13	%
Class B	Six Months Ended March 31, 2010a,h			2009			2008			2007			2006b			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	6.39		$	6.40		$	10.01		$	9.33		$	8.92		$	7.50
Income (loss) from investment operations:
Net investment loss c		(0.03	)		(0.03	)		(0.08	)		(0.09	)		(0.13	)		(0.13	)
Net gain (loss) on securities (realized and unrealized)		0.83			0.02			(2.67	)		0.77			0.54			1.55
Total from investment operations		0.80			(0.01	)		(2.75	)		0.68			0.41			1.42
Less distributions:
Distributions from realized gains		—			—			(0.86	)		—			—			—
Total distributions		—			—			(0.86	)		—			—			—
Net asset value, end of period	$	7.19		$	6.39		$	6.40		$	10.01		$	9.33		$	8.92
Total Return d		12.52	%		(0.16	%)		(29.36	%)		7.29	%		4.60	%		18.93	%
Ratios/Supplemental Data Net assets, end of period (in thousands)	$	6,382		$	5,740		$	7,394		$	10,868		$	16,073		$	7,000
Ratios to average net assets:
Net investment loss		(0.81	)%		(0.66	)%		(0.95	)%		(0.88	)%		(1.46	)%		(1.54	)%
Total expenses e		2.47	%		2.79	%		2.47	%		2.32	%		2.53	%		2.42	%
Net expenses f		2.10	%		2.10	%		2.10	%		2.15	%		2.53	%		2.42	%
Net expenses prior to custodian earning credits and net of expense waivers		2.10	%		2.10	%		2.10	%		2.15	%		2.53	%		2.42	%
Portfolio turnover rate		185	%		134	%		198	% g		21	%		39	%		13	%

68 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Large Cap Concentrated Growth Fund

Class C	Six Months Ended March  31, 2010 a,h			2009			2008			2007			2006 b			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	6.41		$	6.42		$	10.04		$	9.36		$	8.94		$	7.52
Income (loss) from investment operations:
Net investment loss c		(0.03	)		(0.03	)		(0.08	)		(0.08	)		(0.13	)		(0.13	)
Net gain (loss) on securities (realized and unrealized)		0.84			0.02			(2.68	)		0.76			0.55			1.55
Total from investment operations		0.81			(0.01	)		(2.76	)		0.68			0.42			1.42
Less distributions:
Distributions from realized gains		—			—			(0.86	)		—			—			—
Total distributions		—			—			(0.86	)		—			—			—
Net asset value, end of period	$	7.22		$	6.41		$	6.42		$	10.04		$	9.36		$	8.94
Total Return d		12.64	%		(0.16	%)		(29.37	%)		7.26	%		4.70	%		18.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,582		$	3,742		$	5,501		$	11,245		$	12,777		$	5,029
Ratios to average net assets:
Net investment loss		(0.80	)%		(0.66	)%		(0.92	)%		(0.86	)%		(1.44	)%		(1.54	)%
Total expenses e		2.47	%		2.78	%		2.46	%		2.32	%		2.52	%		2.42	%
Net expenses f		2.10	%		2.10	%		2.10	%		2.15	%		2.52	%		2.42	%
Net expenses prior to custodian earning credits and net of expense waivers		2.10	%		2.10	%		2.10	%		2.15	%		2.52	%		2.42	%
Portfolio turnover rate		185	%		134	%		198	%g		21	%		39	%		13	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

^b The financial highlights for the Large Cap Concentrated Growth Fund exclude the historical financial highlights of the Enhanced Index Fund, Class A, B and C shares, the Large Cap Growth Fund, Class A, B and C shares and the Social Awareness Fund, Class A, B and C shares. A total of $29,412,366 was excluded from purchases in the portfolio turnover calculation. This was the cost of the securities Large Cap Concentrated Growth received as a result of the merger. The assets of the Enhanced Index, Large Cap Growth and Social Awareness Fund’ were acquired by the Large Cap Concentrated Growth Fund on June 16, 2006.

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

^d Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares.

^e Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^f Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

^g Significant variation in the portfolio turnover rate is due to the Investment Manager’s appointment of new portfolio managers for the Fund.

^h Effective February 1, 2010, the Fund’s name became Large Cap Concentrated Growth Fund. Prior to February 1, 2010, the Fund was known as the Select 25 Fund.

* Less than $0.01 per share.

69 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Small Cap Growth Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Over 10 Years

This chart assumes a $10,000 investment in Class A shares of Small Cap Growth Fund on March 31, 2000, reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Average Annual Returns
Periods Ended 3-31-10	1 Year		5 Years		10 Years
A Shares	57.71	%	(1.50	)%	(5.37	)%
A Shares with sales charge	48.70	%	(2.66	)%	(5.93	)%
B Shares	56.85	%	(2.20	)%	(5.97	)%
B Shares with CDSC	51.85	%	(2.56	)%	(5.97	)%
C Shares	56.57	%	(2.23	)%	(6.11	)%
C Shares with CDSC	55.57	%	(2.23	)%	(6.11	)%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10

Consumer Discretionary	15.22	%
Consumer Staples	4.53
Energy	5.33
Financials	5.13
Health Care	15.46
Industrials	17.04
Information Technology	24.21
Materials	5.29
Utilities	1.97
Exchange Traded Funds	3.52
Cash & Other Assets, Less Liabilities	2.30
Total Net Assets	100.00	%

70 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Small Cap Growth Fund

	Shares	Value
COMMON STOCKS - 97.7%
Aerospace & Defense - 2.4%
BE Aerospace, Inc.*	9,740	$	296,583
DigitalGlobe, Inc.*	3,120		87,017
			383,600
Aluminum - 0.5%
Kaiser Aluminum Corporation	2,250		86,783
Apparel, Accessories & Luxury
Goods - 3.1%
Hanesbrands, Inc.*	8,500		236,469
Lululemon Athletica, Inc.*	4,200		174,300
Oxford Industries, Inc.	5,100		103,683
			514,452
Application Software - 9.9%
Cadence Design Systems, Inc.*	19,600		130,536
Informatica Corporation*	7,600		204,136
JDA Software Group, Inc.*	7,574		210,709
Longtop Financial Technologies, Ltd. ADR*	4,450		143,335
Nuance Communications, Inc.*	12,965		215,738
Smith Micro Software, Inc.*	15,250		134,810
Solera Holdings, Inc.	9,800		378,769
Vancelnfo Technologies, Inc. ADR*	7,750		172,748
			1,590,781
Auto Parts & Equipment - 0.6%
Gentex Corporation	4,780		92,828
Automotive Retail - 0.6%
Monro Muffler Brake, Inc.	2,850		101,916
Biotechnology -2.4%
Halozyme Therapeutics, Inc.*	12,890		102,991
Martek Biosciences Corporation*	12,600		283,626
			386,617
Casinos & Gaming - 2.3%
Penn National Gaming, Inc.*	7,555		210,029
WMS Industries, Inc.*	3,955		165,873
			375,902
Coal & Consumable Fuels - 1.6%
Massey Energy Company	4,820		252,038
Communications Equipment - 2.4%
Ciena Corporation*	10,840		165,202
InterDigital, Inc.*	7,820		217,865
			383,067
Computer Storage & Peripherals - 1.9%
QLogic Corporation*	15,520		315,056
Construction & Engineering - 2.0%
Aecom Technology Corporation*	11,400		323,418
Construction & Farm Machinery &
Heavy Trucks - 2.4%
Bucyrus International, Inc.	3,500		230,965
Wabtec Corporation	3,800		160,056
			391,021
Consumer Finance - 0.0%
Cardtronics, Inc.*	300		3,771

	Shares	Value
COMMON STOCKS - 97.7% (continued)
Data Processing & Outsourced
Services - 1.7%
Alliance Data Systems Corporation*	4,435	$	283,796
Diversified Metals & Mining - 0.8%
Thompson Creek Metals Company, Inc.*	10,040		135,841
Education Services - 1.1%
DeVry, Inc.	2,650		172,780
Electric Utilities -1.0%
ITC Holdings Corporation	2,870		157,850
Electrical Components & Equipment - 2.8%
Regal-Beloit Corporation	3,570		212,094
Roper Industries, Inc.	4,250		245,820
			457,914
Electronic Equipment & Instruments - 1.7%
FLIR Systems, Inc.*	5,700		160,740
Rofin-Sinar Technologies, Inc.*	4,870		110,159
			270,899
Exchange Traded Funds - 3.5%
iShares Russell 2000 Growth Index Fund	7,805		571,638
Fertilizers & Agricultural Chemicals - 0.9%
CF Industries Holdings, Inc.	1,650		150,447
Health Care Equipment - 4.1%
ev3, Inc.*	8,400		133,224
Integra LifeSciences Holdings Corporation*	4,570		200,303
Natus Medical, Inc.*	11,120		176,919
Wright Medical Group, Inc.*	9,000		159,930
			670,376
Health Care Services - 3.5%
CardioNet, Inc.*	14,210		108,707
Clarient, Inc.*	26,850		70,347
LHC Group, Inc.*	5,580		187,097
Mednax, Inc.*	3,330		193,773
			559,924
Health Care Supplies - 1.4%
Haemonetics Corporation*	3,995		228,314
Homebuilding - 1.3%
Lennar Corporation	12,530		215,641
Home Furnishing Retail - 1.3%
Select Comfort Corporation*	25,800		205,626
Household Products - 1.5%
Church & Dwight Company, Inc.	3,700		247,715
Housewares & Specialties - 1.5%
Jarden Corporation	7,075		235,527

71 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Small Cap Growth Fund

	Shares	Value
COMMON STOCKS - 97.7% (continued)
Human Resources & Employment Services - 0.8%
Towers Watson & Company	2,900	$	137,750
Hypermarkets & Super Centers - 1.1%
BJ’s Wholesale Club, Inc.*	4,930		182,361
Industrial Machinery - 4.1%
IDEX Corporation	7,890		261,159
Pall Corporation	3,660		148,193
Pentair, Inc.	7,260		258,601
			667,953
Investment Banking & Brokerage - 2.5%
Knight Capital Group, Inc.*	12,150		185,288
Stifel Financial Corporation*	4,100		220,374
			405,662
Leisure Facilities - 2.6%
Life Time Fitness, Inc.*	7,950		223,395
Vail Resorts, Inc.*	4,915		197,042
			420,437
Life Sciences Tools & Services - 0.9%
Charles River Laboratories International, Inc.*	3,700		145,447
Metal & Glass Containers - 1.5%
Silgan Holdings, Inc.	3,950		237,909
Multi-Line Insurance - 1.7%
HCC Insurance Holdings, Inc.	9,850		271,860
Multi-Utilities - 1.0%
NorthWestern Corporation	6,030		161,664
Office Services & Supplies - 0.7%
Interface, Inc.	9,800		113,484
Oil & Gas Equipment & Services - 2.3%
Oil States International, Inc.*	5,150		233,501
Superior Energy Services, Inc.*	7,510		157,860
			391,361
Oil & Gas Exploration & Production-1.4%
Bill Barrett Corporation*	4,800		147,408
Comstock Resources, Inc.*	2,320		73,776
			221,184
Packaged Foods & Meats - 1.9%
Flowers Foods, Inc.	8,270		204,600
J&J Snack Foods Corporation	2,300		99,981
			304,581
Pharmaceuticals - 3.2%
Endo Pharmaceuticals Holdings, Inc.*	7,300		172,937
Obagi Medical Products, Inc.*	7,200		87,696
Perrigo Company	4,350		255,432
			516,065
Railroads - 1.0%
Kansas City Southern*	4,395		158,967

	Shares	Value
COMMON STOCKS - 97.7% (continued)
Regional Banks - 0.9%
TCF Financial Corporation	9,420	$	150,155
Research & Consulting Services - 0.8%
ICF International, Inc.*	5,200		129,168
Restaurants - 0.8%
Einstein Noah Restaurant Group, Inc.*	5,900		71,685
McCormick & Schmick’s Seafood Restaurants, Inc.*	6,150		61,931
			133,616
Semiconductor Equipment - 0.8%
Nanometrics, Inc.*	14,400		136,512
Semiconductors - 3.1%
ON Semiconductor Corporation*	27,865		222,920
Skyworks Solutions, Inc.*	16,840		262,704
			485,624
Steel - 1.6%
AK Steel Holding Corporation	10,835		247,687
Systems Software - 1.4%
Rovi Corporation*	6,100		226,493
Technology Distributors - 1.4%
SYNNEX Corporation*	7,950		235,002
TOTAL COMMON STOCKS (cost $12,247,191)		$	15,846,480
Total Investments - 97.7% 1 (cost $12,247,191)		$	15,846,480
Cash & Other Assets, Less Liabilities-2.3%			372,936
Total Net Assets-100.0%		$	16,219,416

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $12,525,725.

ADR    American Depositary Receipt

^* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

72 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Small Cap Growth Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments, at value *	$	15,846,480
Cash		277,705
Receivables:
Fund shares sold		3,785
Securities sold		314,235
Dividends		2,949
Prepaid expenses		21,223
Total assets		16,466,377
Liabilities:
Payable for:
Securities purchased		209,150
Fund shares redeemed		1,651
Management fees		11,606
Custodian fees		625
Transfer agent/maintenance fees		5,588
Administration fees		1,697
Professional fees		7,669
12b-l distribution plan fees		5,481
Directors’ fees		64
Other		3,430
Total liabilities		246,961
Net assets	$	16,219,416
Net assets consist of:
Paid in capital	$	20,595,230
Accumulated net investment loss		(104,311	)
Accumulated net realized loss on sale of investments		(7,870,792	)
Net unrealized appreciation in value of investments		3,599,289
Net assets	$	16,219,416
Class A:
Capital shares outstanding (unlimited number of shares authorized)		1,083,674
Net assets	$	12,970,308
Net asset value and redemption price per share	$	11.97
Maximum offering price per share (net asset value divided by 94.25%)	$	12.70
Class B:
Capital shares outstanding (unlimited number of shares authorized)		157,937
Net assets	$	1,681,298
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	10.65
Class C:
Capital shares outstanding (unlimited number of shares authorized)		144,497
Net assets	$	1,567,810
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	10.85
*Investments, at cost	$	12,247,191

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends	$	69,450
Interest		84
Total investment income		69,534
Expenses:
Management fees		60,587
Transfer agent/maintenance fees		45,389
Administration fees		13,407
Directors’ fees		563
Professional fees		4,978
Reports to shareholders		1,551
Registration fees		16,421
Other expenses		1,181
12b-1 distribution fees—Class A		13,836
12b-1 distribution fees—Class B		8,367
12b-1 distribution fees—Class C		7,565
Total expenses		173,845
Net investment loss		(104,311	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		1,288,559
Net realized gain		1,288,559
Net unrealized appreciation (depreciation) during the period on:
Investments		684,004
Net unrealized appreciation		684,004
Net realized and unrealized gain		1,972,563
Net increase in net assets resulting from operations	$	1,868,252

73 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Small Cap Growth Fund

	Six Months Ended March 31, 2010			Year Ended September 30, 2009
	(unaudited)
Increase (decrease) in net assets from operations:
Net investment loss	$	(104,311	)	$	(267,291	)
Net realized gain (loss) during the period on investments		1,288,559			(5,298,229	)
Net unrealized appreciation during the period on investments		684 ,004			3,555,194
Net increase (decrease) in net assets resulting from operations		1,868,252			(2,010,326	)
Distributions to shareholders from:
Net realized gain
Class A		—			(68,412	)
Class B		—			(15,241	)
Class C		—			(14,153	)
Total distributions to shareholders		—			(97,806	)
Capital share transactions:
Proceeds from sale of shares
Class A		5,166,398			2,029,895
Class B		75,726			248,049
Class C		111,321			317,482
Distributions reinvested
Class A		—			67,918
Class B		—			15,032
Class C		—			14,129
Cost of shares redeemed
Class A		(3,638,616	)		(3,116,009	)
Class B		(364,505	)		(805,709	)
Class C		(248,475	)		(820,807	)
Net increase (decrease) from capital share transactions		1,101,849			(2,050,020	)
Net increase (decrease) in net assets		2,970,101			(4,158,152	)
Net assets:
Beginning of period		13,249,315			17,407,467
End of period	$	16,219,416		$	13,249,315
Accumulated net investment loss at end of period	$	(104,311	)	$	—
Capital share activity:
Shares sold
Class A		470,062			233,845
Class B		7,878			32,329
Class C		11,069			41,277
Shares reinvested
Class A		—			8,334
Class B		—			2,056
Class C		—			1,894
Shares redeemed
Class A		(329,773	)		(384,736	)
Class B		(37,291	)		(107,295	)
Class C		(24,474	)		(106,372	)

74 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Small Cap Growth Fund

Class A	Six Months Ended March  31, 2010 a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	10.56		$	11.43		$	18.53		$	15.63		$	15.76		$	13.11
Income (loss) from investment operations:
Net investment loss b		(0.07	)		(0.18	)		(0.24	)		(0.23	)		(0.23	)		(0.24	)
Net gain (loss) on securities (realized and unrealized)		1.48			(0.63	)		(5.55	)		3.13			0.10			2.89
Total from investment operations		1.41			(0.81	)		(5.79	)		2.90			(0.13	)		2.65
Less distributions:
Distributions from realized gains		—			(0.06	)		(1.31	)		—			—			—
Total distributions		—			(0.06	)		(1.31	)		—			—			—
Net asset value, end of period	$	11.97		$	10.56		$	11.43		$	18.53		$	15.63		$	15.76
Total Return c		13.35	%		(6.89	)%		(33.25	)%		18.55	%		(0.82	)%		20.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,970		$	9,966		$	12,414		$	45,430		$	45,451		$	22,637
Ratios to average net assets:
Net investment loss		(1.29	)%		(2.04	)%		(1.59	)%		(1.32	)%		(1.46	)%		(1.67	)%
Total expenses d		2.27	%		2.67	%		1.98	%		1.80	%		2.01	%		2.10	%
Net expenses e		2.27	%		2.60	%		1.98	%		1.80	%		2.01	%		2.10	%
Net expenses prior to custodian earning credits and net of expense waivers		2.27	%		2.60	%		1.98	%		1.80	%		2.01	%		2.10	%
Portfolio turnover rate		109	%		200	%		169	%		145	%		136	%		134	%
Class B	Six Months Ended March 31, 2010 a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	9.43		$	10.28		$	16.92		$	14.38		$	14.60		$	12.24
Income (loss) from investment operations:
Net investment loss b		(0.10	)		(0.21	)		(0.32	)		(0.33	)		(0.36	)		(0.33	)
Net gain (loss) on securities (realized and unrealized)		1.32			(0.58	)		(5.01	)		2.87			0.14			2.69
Total from investment operations		1.22			(0.79	)		(5.33	)		2.54			(0.22	)		2.36
Less distributions:
Distributions from realized gains		—			(0.06	)		(1.31	)		—			—			—
Total distributions		—			(0.06	)		(1.31	)		—			—			—
Net asset value, end of period	$	10.65		$	9.43		$	10.28		$	16.92		$	14.38		$	14.60
Total Return c		12.94	%		(7.47	)%		(33.72	)%		17.66	%		(1.51	)%		19.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,681		$	1,766		$	2,675		$	5,792		$	5,919		$	8,283
Ratios to average net assets:
Net investment loss		(2.05	)%		(2.78	)%		(2.42	)%		(2.07	)%		(2.31	)%		(2.41	)%
Total expenses d		3.03	%		3.41	%		2.82	%		2.56	%		2.79	%		2.85	%
Net expenses e		3.03	%		3.34	%		2.82	%		2.55	%		2.79	%		2.85	%
Net expenses prior to custodian earning credits and net of expense waivers		3.03	%		3.34	%		2.82	%		2.56	%		2.79	%		2.85	%
Portfolio turnover rate		109	%		200	%		169	%		145	%		136	%		134	%

75 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Small Cap Growth Fund

Class C	Six Months Ended March  31, 2010 a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	9.61		$	10.48		$	17.23		$	14.64		$	14.88		$	12.47
Income (loss) from investment operations:
Net investment loss b		(0.10	)		(0.22	)		(0.33	)		(0.33	)		(0.35	)		(0.33	)
Net gain (loss) on securities (realized and unrealized)		1.34			(0.59	)		(5.11	)		2.92			0.11			2.74
Total from investment operations		1.24			(0.81	)		(5.44	)		2.59			(0.24	)		2.41
Less distributions:
Distributions from realized gains		—			(0.06	)		(1.31	)		—			—			—
Total distributions		—			(0.06	)		(1.31	)		—			—			—
Net asset value, end of period	$	10.85		$	9.61		$	10.48		$	17.23		$	14.64		$	14.88
Total Return c		12.90	%		(7.51	)%		(33.76	)%		17.69	%		(1.61	)%		19.33	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,568		$	1,518		$	2,318		$	3,964		$	4,304		$	4,420
Ratios to average net assets:
Net investment loss		(2.07	)%		(2.77	)%		(2.43	)%		(2.07	)%		(2.29	)%		(2.42	)%
Total expenses d		3.03	%		3.40	%		2.83	%		2.56	%		2.79	%		2.85	%
Net expenses e		3.03	%		3.33	%		2.83	%		2.55	%		2.79	%		2.85	%
Net expenses prior to custodian earning credits and net of expense waivers		3.03	%		3.33	%		2.83	%		2.56	%		2.79	%		2.85	%
Portfolio turnover rate		109	%		200	%		169	%		145	%		136	%		134	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

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

^c Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares.

^d Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^e Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

76 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Performance Summary	Small Cap Value Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Since Inception

This chart assumes a $10,000 investment in Class A shares of Small Cap Value Fund on July 11, 2008 (date of inception), reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 2000 Value Index is an unmanaged index that measures the performance of securities of small to mid cap U.S. companies with lower price-to-book ratios and lower forecasted growth values.

Average Annual Returns

Periods Ended 3-31-10 1 Year Since  Inception
(7-11-08)

A Shares	74.25	%	29.79	%
A Shares with Sales Charge	64.22	%	25.40	%
C Shares	73.37	%	26.97	%
C Shares with CDSC	72.37	%	28.97	%
Institutional Class	74.76	%	30.10	%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10
Consumer Discretionary	14.46	%
Consumer Staples	6.13
Energy	10.15
Financials	13.27
Health Care	2.11
Industrials	19.57
Information Technology	13.58
Materials	10.11
Utilities	4.98
Cash & Other Assets, Less Liabilities	5.64
Total Net Assets	100.00	%

77 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Small Cap Value Fund

	Shares	Value
COMMON STOCKS - 94.4%
Aerospace & Defense - 5.5%
Ceradyne, Inc. *	1,520	$	34,489
DynCorp International, Inc. *	10,200		117,300
GeoEye, Inc. *	5,850		172,574
Orbital Sciences Corporation *	6,576		125,010
			449,373
Apparel Retail - 4.2%
Brown Shoe Company, Inc.	8,520		131,890
Chico’s FAS, Inc.	12,320		177,654
Talbots, Inc. *	1,873		24,274
			333,818
Apparel, Accessories & Luxury
Goods - 2.3%
Columbia Sportswear Company	44		2,311
Maidenform Brands, Inc. *	8,270		180,700
			183,011
Asset Management & Custody
Banks - 1.2%
Fifth Street Finance Corporation	8,520		98,917
Building Products - 1.2%
Griffon Corporation *	1,499		18,678
Trex Company, Inc. *	3,680		78,347
			97,025
Casinos & Gaming - 1.2%
Penn National Gaming, Inc. *	3,450		95,910
Coal & Consumable Fuels - 0.6%
USEC, Inc. *	8,140		46,968
Communications Equipment - 1.7%
Harmonic, Inc. *	11,800		74,458
Symmetricom, Inc. *3	11,060		64,480
			138,938
Computer & Electronics Retail - 0.5%
Conn’s, Inc. *	5,590		43,770
Computer Hardware - 1.2%
Silicon Graphics International Corporation *	9,235		98,722
Computer Storage & Peripherals - 1.2%
Adaptec, Inc. *	29,630		96,890
Construction & Engineering - 2.9%
Insituform Technologies, Inc. *	8,260		219,798
Quanta Services, Inc. *	600		11,496
			231,294
Construction & Farm Machinery & Heavy Trucks - 1.3%
Force Protection, Inc. *	17,670		106,373
Construction Materials - 0.1%
Eagle Materials, Inc.	331		8,785
Consumer Finance - 0.2%
First Marblehead Corporation *	6,601		18,747

	Shares	Value
COMMON STOCKS - 94.4% (continued)
Diversified Chemicals - 0.7%
LSB Industries, Inc. *	3,900	$	59,436
Diversified REIT’s - 1.3%
Investors Real Estate Trust	11,844		106,833
Electric Utilities - 2.2%
Allete, Inc.	2,924		97,895
Westar Energy, Inc.	3,430		76,489
			174,384
Electrical Components & Equipment - 2.4%
General Cable Corporation *	3,600		97,200
La Barge, Inc. *	6,230		68,842
UQM Technologies, Inc. *	5,500		23,155
			189,197
Electronic Components - 1.7%
Power-One, Inc. *	31,690		133,732
Electronic Manufacturing Services - 2.1%
Maxwell Technologies, Inc. *	8,390		103,952
Methode Electronics, Inc.	6,574		65,083
			169,035
Food Retail - 1.4%
Winn-Dixie Stores, Inc. *	8,900		111,161
Forest Products - 3.3%
Louisiana-Pacific Corporation *	28,610		258,921
Gas Utilities - 1.3%
Atmos Energy Corporation 2	3,560		101,709
Health Care Services - 2.1%
Amedisys, Inc. *	80		4,418
Mednax, Inc. *	1,460		84,957
RehabCare Group, Inc. *	2,920		79,628
			169,003
Human Resources & Employment Services - 1.1%
Administaff, Inc.	4,200		89,628
Industrial Machinery - 1.0%
Flow International Corporation *	26,482		79,711
Industrial REIT’s - 0.5%
First Potomac Realty Trust	2,800		42,084
IT Consulting & Other Services - 2.4%
CACI International, Inc. *	2,940		143,619
Satyam Computer Services, Ltd. ADR	9,508		49,632
			193,251
Leisure Products - 1.5%
Smith & Wesson Holding Corporation *	30,900		116,802
Metal & Glass Containers - 1.5%
Myers Industries, Inc.	11,700		122,616

78 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Equity Fund
March 31, 2010 (unaudited)	Small Cap Value Fund

	Shares	Value
COMMON STOCKS - 94.4% (continued)
Mortgage REIT’s - 0.4%
Redwood Trust, Inc.	2,030	$	31,303
Multi-Line Insurance -1.4%
Horace Mann Educators Corporation	7,630		114,908
Multi-Utilities - 1.5%
Northwestern Corporation	4,570		122,522
Office REIT’s - 0.5%
Lexington Realty Trust	6,100		39,711
Office Services & Supplies - 0.3%
United Stationers, Inc. *	421		24,776
Oil & Gas Drilling -1.0%
Vantage Drilling Company *	51,421		76,103
Oil & Gas Equipment & Services - 3.8%
Global Industries, Ltd. *	19,772		126,936
Superior Well Services, Inc. *	3,600		48,168
Tesco Corporation *	11,060		129,070
			304,174
Oil & Gas Exploration & Production - 2.2%
GMX Resources, Inc. *	4,960		40,771
Goodrich Petroleum Corporation *	3,754		58,712
Gulfport Energy Corporation *	3,940		44,286
Petrohawk Energy Corporation *	1,520		30,826
			174,595
Oil & Gas Storage & Transportation - 2.6%
Southern Union Company	8 ,330		211,332
Packaged Foods & Meats - 2.7%
Del Monte Foods Company	9,380		136,948
Smart Balance, Inc. *	12,600		81,648
			218,596
Paper Packaging - 1.0%
Bemis Company, Inc.	2,920		83,862
Paper Products - 0.5%
Clearwater Paper Corporation *	740		36,445
Personal Products - 2.0%
Elizabeth Arden, Inc. *	8,950		161,100
Property & Casualty Insurance - 3.0%
Employers Holdings, Inc.	4,190		62,222
Hanover Insurance Group, Inc.	3,940		171,823
			234,045
Regional Banks - 4.8%
1st Source Corporation	4,700		82,485
Associated Banc-Corporation	6,624		91,411
Bancfirst Corporation	890		37,300
Commerce Bancshares, Inc.	1,281		52,700
Heritage Financial Corporation	1,800		27,162
Old National Bancorp	7,099		84,833
			375,891

	Shares	Value
COMMON STOCKS - 94.4% (continued)
Research & Consulting Services - 2.7%
ICF International, Inc. *	3,680	$	91,412
Navigant Consulting, Inc. *	7,370		89,398
School Specialty, Inc. *	1,520		34,519
			215,329
Restaurants - 2.5%
Burger King Holdings, Inc.	6,380		135,639
Jack in the Box, Inc. *	2,700		63,585
			199,224
Semiconductor Equipment - 0.1%
FEI Company *	407		9,324
Semiconductors - 3.2%
IXYS Corporation*3	13,730		117,254
Standard Microsystems Corporation *	5,593		130,205
			247,459
Specialty Chemicals - 3.0%
HB Fuller Company	1,650		38,297
Landec Corporation *3	16,280		107,936
Zoltek Companies, Inc. *	9,660		93,122
			239,355
Specialty Stores - 2.3%
Cabela’s, Inc. *	10,629		185,901
Trucking - 1.1%
Saia, Inc. *	6,100		84,668
TOTAL COMMON STOCKS (cost $6,489,857)		$	7,556,667
Total Investments - 94.4% 1
(cost $6,489,857)		$	7,556,667
Cash & Other Assets, Less Liabilities - 5.6%			451,393
Total Net Assets - 100.0%		$	8,008,060

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $6,492,595.

ADR    American Depositary Receipt

* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

² Security is marked as collateral for open written option contracts.

³ Security is deemed illiquid. The total market value of illiquid securities is $289,670 (cost $274,954), or 3.6% of total net assets.

79 The accompanying notes are an integral part of the financial statements

Rydex | SGI Equity Fund

Small Cap Value Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments, at value*	$	7,556,667
Cash		478,416
Receivables:
Fund shares sold		14,190
Dividends		7,056
Security Investors		10,363
Prepaid expenses		14,495
Total assets		8,081,187
Liabilities:
Payable for:
Securities purchased		51,037
Fund shares redeemed		22
Written options, at value (premiums received, $2,172)		150
Management fees		6,768
Custodian fees		1,575
Transfer agent/maintenance fees		2,083
Administration fees		1,043
Professional fees		5,731
12b-1 distribution plan fees		2,147
Other		2,571
Total liabilities		73,127
Net assets	$	8,008,060
Net assets consist of:
Paid in capital	$	6,620,414
Accumulated net investment loss		(4,454	)
Undistributed net realized gain on sale of investments		323,268
Net unrealized appreciation in value of investments		1,068,832
Net assets	$	8,008,060
Class A:
Capital shares outstanding (unlimited number of shares authorized)		433,396
Net assets	$	6,130,166
Net asset value and redemption price per share .	$	14.14
Maximum offering price per share (net asset value divided by 94.25%)	$	15.00
Class C:
Capital shares outstanding (unlimited number of shares authorized)		75,620
Net assets	$	1,056,804
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	13.98
Institutional Class:
Capital shares outstanding (unlimited number of shares authorized)		57,823
Net assets	$	821,090
Net asset value, offering and redemption price per share	$	14.20
*Investments, at cost	$	6,489,857

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends	$	43,140
Interest		70
Total investment income		43,210
Expenses:
Management fees		35,054
Transfer agent/maintenance fees		7,323
Administration fees		6,851
Custodian fees		6,386
Directors’ fees		272
Professional fees		3,938
Reports to shareholders		1,208
Registration fees		15,524
Other expenses		692
12b-l distribution fees - Class A		6,752
12b-l distribution fees - Class C		4,295
Total expenses		88,295
Less:
Reimbursement of expenses - Class A.		(31,329	)
Reimbursement of expenses - Class C.		(4,957	)
Reimbursement of expenses - Institutional Class		(4,345	)
Net expenses		47,664
Net investment loss		(4,454	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		361,654
Options written		21,005
Net realized gain		382,659
Net unrealized appreciation (depreciation) during the period on:
Investments		349,540
Options written		(1,670	)
Net unrealized appreciation		347,870
Net realized and unrealized gain		730,529
Net increase in net assets resulting from operations	$	726,075

80 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Equity Fund
Statement of Changes in Net Assets	Small Cap Value Fund

	Six Months Ended March 31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment loss	$	(4,454	)	$	(10,392	)
Net realized gain during the period on investments		382,659			151,123
Net unrealized appreciation during the period on investments		347,870			654,339
Net increase in net assets resulting from operations		726,075			795,070
Distributions to shareholders from:
Net realized gain
Class A		(152,192	)		(37,409	)
Class C		(21,874	)		(26,547	)
Institutional Class		(21,435	)		(20,967	)
Total distributions to shareholders		(195,501	)		(84,923	)
Capital share transactions:
Proceeds from sale of shares
Class A		3,972,805			2,415,545
Class C		386,979			242,210
Institutional Class		154,006			144,125
Distributions reinvested
Class A		150,268			37,409
Class C		21,874			26,547
Institutional Class		13,598			20,967
Cost of shares redeemed
Class A		(1,657,674	)		(126,867	)
Class C		(116,130	)		(59,944	)
Institutional Class		(31,928	)		(340	)
Net increase from capital share transactions		2,893,798			2,699,652
Net increase in net assets		3,424,372			3,409,799
Net assets:
Beginning of period		4,583,688			1,173,889
End of period	$	8,008,060		$	4,583,688
Accumulated net investment loss at end of period	$	(4,454	)	$	—
Capital share activity:
Shares sold
Class A		298,815			216,245
Class C		29,050			23,833
Institutional Class		11,677			11,584
Shares reinvested
Class A		11,497			4,545
Class C		1,693			3,234
Institutional Class		1,036			2,545
Shares redeemed
Class A		(122,097	)		(10,413	)
Class C		(9,206	)		(7,117	)
Institutional Class		(2,321	)		(31	)

81 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Small Cap Value Fund

Class A	Six Months Ended March  31, 2010a			2009			Year Ended September 30, 2008b
Per Share Data
Net asset value, beginning of period	$	13.24		$	11.48		$	10.00
Income (loss) from investment operations:
Net investment loss c		(—	)*		(0.05	)		—
Net gain on securities (realized and unrealized)		1.28			2.44			1.48
Total from investment operations		1.28			2.39			1.48
Less distributions:
Distributions from realized gains		(0.38	)		(0.63	)		—
Total distributions		(0.38	)		(0.63	)		—
Net asset value, end of period	$	14.14		$	13.24		$	11.48
Total Return d		9.89	%		24.15	%		14.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,130		$	3,245		$	400
Ratios to average net assets:
Net investment loss		(0.06	)%		(0.46	)%		(0.19	)%
Total expenses e		2.45	%		4.88	%		6.10	%
Net expenses f		1.30	%		1.54	%		1.55	%
Net expenses prior to custodian earning credits and net of expense waivers		1.30	%		1.54	%		1.55	%
Portfolio turnover rate		85	%		58	%		86	%

Class C	Six Months Ended March  31, 2010a			2009			Year Ended September  30, 2008b
Per Share Data
Net asset value, beginning of period	$	13.11		$	11.46		$	10.00
Income (loss) from investment operations:
Net investment loss c		(0.05	)		(0.11	)		(0.02	)
Net gain on securities (realized and unrealized)		1.30			2.39			1.48
Total from investment operations		1.25			2.28			1.46
Less distributions:
Distributions from realized gains		(0.38	)		(0.63	)
Total distributions		(0.38	)		(0.63	)		—
Net asset value, end of period	$	13.98		$	13.11		$	11.46
Total Return d		9.76	%		23.16	%		14.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,057		$	709		$	391
Ratios to average net assets:
Net investment loss		(0.83	)%		(1.15	)%		(0.94	)%
Total expenses e		3.20	%		6.38	%		6.88	%
Net expenses f		2.05	%		2.29	%		2.30	%
Net expenses prior to custodian earning credits and net of expense waivers		2.05	%		2.29	%		2.30	%
Portfolio turnover rate		85	%		58	%		86	%

82 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Equity Fund
Selected data for each share of capital stock outstanding throughout each period	Small Cap Value Fund

Institutional Class	Six Months Ended March  31, 2010a			2009			Year Ended September 30, 2008b
Per Share Data
Net asset value, beginning of period	$	13.28		$	11.49		$	10.00
Income (loss) from investment operations:
Net investment income (loss) c		0.01			(0.01	)		—
Net gain on securities (realized and unrealized)		1.29			2.43			1.49
Total from investment operations		1.30			2.42			1.49
Less distributions:
Distributions from realized gains		(0.38	)		(0.63	)		—
Total distributions		(0.38	)		(0.63	)		—
Net asset value, end of period	$	14.20		$	13.28		$	11.49
Total Return d		10.02	%		24.40	%		14.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	821		$	630		$	383
Ratios to average net assets:
Net investment income (loss)		0.17	%		(0.14	%)		0.06	%
Total expenses e		2.19	%		5.43	%		5.90	%
Net expenses f		1.04	%		1.30	%		1.30	%
Net expenses prior to custodian earning credits and net of expense waivers		1.04	%		1.30	%		1.30	%
Portfolio turnover rate		85	%		58	%		86	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

^b Security Small Cap Value Fund was initially capitalized on July 11, 2008 with a net asset value of $10 per share. Percentage amounts for the period, except total return have been annualized

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

^d Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class C shares.

^e Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^f Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable

* Less than $0.01 per share

83 The accompanying notes are an integral part of the financial statements

	Rydex | SGI
Performance Summary	Large Cap Value Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Over Ten Years

This chart assumes a $10,000 investment in Class A shares of Large Cap Value Fund on March 31, 2000, reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 1000 Value Index is an unmanaged index representing the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values.

Average Annual Returns
Perioda Ended 3-31-10
	1 Year		5 Years		10 Years
A Shares	56.04	%	3.45	%	1.49	%
A Shares with sales charge	47.08	%	2.23	%	0.88	%
B Shares	56.39	%	3.12	%	0.88	%
B Shares with CDSC	51.39	%	2.76	%	0.88	%
C Shares	54.89	%	2.57	%	0.64	%
C Shares with CDSC	53.89	%	2.57	%	0.64	%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of Fund shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10
Consumer Discretionary	7.07	%
Consumer Staples	9.76
Energy	13.70
Financials	16.55
Health Care	9.18
Industrials	21.41
Information Technology	11.54
Materials	2.43
Telecommunication Services	1.01
Utilities	4.42
Cash & Other Assets, Less Liabilities	2.93
Total Net Assets	100.00	%

84 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI
March 31, 2010 (unaudited)	Large Cap Value Fund

	Shares	Value
COMMON STOCKS - 97.1%
Aerospace & Defense - 2.8%
United Technologies Corporation	20,900	$	1,538,449
Air Freight & Logistics - 3.3%
FedEx Corporation	19,300		1,802,620
Application Software - 1.0%
Synopsys, Inc. *	25,400		568,198
Asset Management & Custody Banks - 1.6%
Bank of New York Mellon Corporation	28,800		889,344
Building Products - 3.2%
USG Corporation *	100,800		1,729,728
Computer Hardware - 2.4%
Hewlett-Packard Company	24,300		1,291,545
Consumer Finance - 0.4%
First Marblehead Corporation *	74,421		211,356
Data Processing & Outsourced Services - 5.5%
Computer Sciences Corporation *	10,500		572,145
Western Union Company	145,100		2,460,896
			3,033,041
Department Stores - 2.1%
JC Penney Company, Inc.	36,000		1,158,120
Diversified Banks - 4.6%
U.S. Bancorp	52,127		1,349,047
Wells Fargo & Company	34,716		1,080,362
			2,429,409
Diversified Chemicals—1.4%
Dow Chemical Company	26,200		774,734
Drug Retail - 2.5%
CVS Caremark Corporation	36,600		1,338,096
Electric Utilities - 3.4%
Edison International	54,300		1,855,431
Electronic Manufacturing Services - 2.6%
Tyco Electronics, Ltd.	50,650		1,391,862
Health Care Equipment - 4.8%
Covidien plc	21,950		1,103,646
Hospira, Inc. *	26,400		1,495,560
			2,599,206
Health Care Services - 1.2%
Medco Health Solutions, Inc. *	10,300		664,968
Home Improvement Retail - 2.3%
Lowe’s Companies, Inc.	52,700		1,277,448
Hypermarkets & Super Centers - 4.8%
Costco Wholesale Corporation	21,100		1,259,881

	Shares	Value
COMMON STOCKS - 97.1% (continued)
Hypermarkets & Super Centers -4.8% (continued)
Wal-Mart Stores, Inc.	24,400	$	1,356,640
			2,616,521
Independent Power Producers & Energy Traders - 1.0%
NRG Energy, Inc. *	26,500		553,850
Industrial Conglomerates - 3.3%
McDermott International, Inc. *	67,500		1,817,100
Industrial Machinery - 2.1%
Parker Hannifin Corporation	17,900		1,158,846
Insurance Brokers - 2.4%
AON Corporation	30,800		1,315,468
Integrated Oil & Gas - 7.3%
Chevron Corporation	20,100		1,524,183
ConocoPhillips	9,600		491,232
Exxon Mobil Corporation	28,900		1,935,722
			3,951,137
Integrated Telecommunication Services - 1.0%
Windstream Corporation	50,576		550,773
Managed Health Care - 2.5%
Aetna, Inc.	38,900		1,365,779
Movies & Entertainment - 2.7%
Time Warner, Inc.	45,166		1,412,341
Oil & Gas Equipment & Services - 2.5%
Halliburton Company	45,300		1,364,889
Oil & Gas Exploration & Production - 1.4%
Chesapeake Energy Corporation	32,000		756,480
Oil & Gas Storage & Transportation - 2.5%
Williams Companies, Inc.	60,000		1,386,000
Other Diversified Financial Services - 1.6%
JPMorgan Chase & Company	19,763		884,394
Paper Packaging - 1.0%
Bemis Company, Inc.	19,000		545,680
Pharmaceuticals - 0.7%
Merck & Company, Inc.	9,919		370,475
Property & Casualty Insurance - 2.9%
Berkshire Hathaway, Inc. *	13		1,583,400
Railroads - 3.0%
Union Pacific Corporation	22,000		1,612,600
Regional Banks - 3.1%
BB&T Corporation	19,700		638,083

85 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI
March 31, 2010 (unaudited)	Large Cap Value Fund

	Shares	Value
COMMON STOCKS - 97.1% (continued)
Regional Banks - 3.1% (continued)
Fifth Third Bancorp	23,800	$	323,442
Regions Financial Corporation	94,100		738,685
			1,700,210
Research & Consulting Services - 3.7%
Equifax, Inc.	55,900		2,001,219
Tobacco - 2.5%
Altria Group, Inc.	20,100		412,452
Philip Morris International, Inc.	18,200		949,312
			1,361,764
TOTAL COMMON STOCKS
(cost $49,326,511)		$	52,862,481
Total Investments - 97.1% 1
(cost $49,326,511)		$	52,862,481
Cash & Other Assets, Less Liabilities - 2.9%			1,593,774
Total Net Assets - 100.0%		$	54,456,255

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $49,336,878.

plc         Public Limited Company

* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

86 The accompanying notes are an integral part of the financial statements

Rydex | SGI

Large Cap Value Fund (unaudited)

Statement of Assets and Liabilities March 31, 2010
Assets:
Investments, at value *	$	52,862,481
Cash		1,518,739
Receivables:
Fund shares sold		13,036
Dividends		78,612
Security Investors		18,942
Prepaid expenses		41,909
Total assets		54,533,719
Liabilities:
Payable for:
Fund shares redeemed		5,293
Management fees		30,863
Custodian fees		427
Transfer agent/maintenance fees		9,544
Administration fees		4,591
Professional fees		5,258
12b-1 distribution plan fees		12,789
Directors’ fees		1,184
Other		7,515
Total liabilities		77,464
Net assets	$	54,456,255
Net assets consist of:
Paid in capital	$	67,810,954
Undistributed net investment income		83,559
Accumulated net realized loss on sale of investments		(16,974,228	)
Net unrealized appreciation in value of investments		3,535,970
Net assets	$	54,456,255
Class A:
Capital shares outstanding (unlimited number of shares authorized) .		6,943,677
Net assets	$	47,631,415
Net asset value and redemption price per share	$	6.86
Maximum offering price per share (net asset value divided by 94.25%)	$	7.28
Class B:
Capital shares outstanding (unlimited number of shares authorized)		629,821
Net assets	$	3,996,544
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	6.35
Class C:
Capital shares outstanding (unlimited number of shares authorized)		435,847
Net assets	$	2,828,296
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	6.49
* Investments, at cost	$	49,326,511

Statement of Operations For the Six Months Ended March 31, 2010
Investment Income:
Dividends	$	416,260
Interest		501
Total investment income		416,761
Expenses:
Management fees		170,072
Transfer agent/maintenance fees		98,193
Administration fees		24,963
Custodian fees		1,127
Directors’ fees		1,914
Professional fees		8,171
Reports to shareholders		4,235
Registration fees		22,998
Other expenses		12,652
12b-1 distribution fees - Class A		56,653
12b-1 distribution fees - Class C		13,700
Total expenses		414,678
Less:
Reimbursement of expenses - ClassA		(78,843	)
Reimbursement of expenses - Class B		(7,347	)
Reimbursement of expenses - Class C		(4,660	)
Net expenses		323,828
Net investment income		92,933
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		(226,927	)
Net realized loss		(226,927	)
Net unrealized appreciation (depreciation) during the period on:
Investments		5,925,928
Net unrealized appreciation		5,925,928
Net realized and unrealized gain		5,699,001
Net increase in net assets resulting from operations	$	5,791,934

87 The accompanying notes are an integral part of the financial statements

	Rydex | SGI
Statement of Changes in Net Assets	Large Cap Value Fund

	Six Months Ended March 31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment income	$	92,933		$	414,061
Net realized loss during the period on investments		(226,927	)		(9,147,170	)
Net unrealized appreciation (depreciation) during the period on investments		5,925,928			(2,052,233	)
Net increase (decrease) in net assets resulting from operations		5,791,934			(10,785,342	)
Distributions to shareholders from:
Net investment income
Class A		(355,260	)		(503,278	)
Class B		(50,199	)		(90,508	)
Net realized gain
Class A		—			(377,459	)
Class B		—			(49,025	)
Class C		—			(28,173	)
Total distributions to shareholders		(405,459	)		(1,048,443	)
Capital share transactions:
Proceeds from sale of shares
Class A		14,554,431			9,579,824
Class B		320,218			2,086,370
Class C		146,382			1,077,179
Distributions reinvested
Class A		337,051			846,030
Class B		49,907			138,477
Class C		—			28,048
Cost of shares redeemed
Class A		(9,979,818	)		(29,267,639	)
Class B		(1,573,278	)		(4,280,914	)
Class C		(723,498	)		(1,844,593	)
Net increase (decrease) from capital share transactions		3,131,395			(21,637,218	)
Net increase (decrease) in net assets		8,517,870			(33,471,003	)
Net assets:
Beginning of period		45,938,385			79,409,388
End of period	$	54,456,255		$	45,938,385
Undistributed net investment income at end of period	$	83,559		$	396,085
Capital share activity:
Shares sold
Class A		2,310,309			1,952,259
Class B		54,142			449,727
Class C		23,748			222,048
Shares reinvested
Class A		52,912			170,227
Class B		8,473			29,908
Class C		—			5,930
Shares redeemed
Class A		(1,523,941	)		(5,975,380	)
Class B		(263,853	)		(934,814	)
Class C		(121,036	)		(389,302	)

88 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI
Selected data for each share of capital stock outstanding throughout each period	Large Cap Value Fund

Class A	Six Months Ended March  31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005b
Per Share Data
Net asset value, beginning of period	$	6.23		$	6.72		$	9.18		$	7.65		$	6.78		$	5.71
Income (loss) from investment operations:
Net investment incomec		0.01			0.05			0.05			0.04			0.01			0.03
Net gain (loss) on securities (realized and unrealized)		0.67			(0.45	)		(2.14	)		1.49			0.90			1.04
Total from investment operations		0.68			(0.40	)		(2.09	)		1.53			0.91			1.07
Less distributions:
Dividends from net investment income		(0.05	)		(0.05	)		(0.04	)		—			(0.04	)		—
Distributions from realized gains		—			(0.04	)		(0.33	)		—			—			—
Total distributions		(0.05	)		(0.09	)		(0.37	)		—			(0.04	)		—
Net asset value, end of period	$	6.86		$	6.23		$	6.72		$	9.18		$	7.65		$	6.78
Total Return d		10.96	%		(5.59	)%		(23.45	)%		20.04	%		13.45	%		18.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	47,631		$	38,008		$	66,902		$	79,998		$	64,786		$	45,295
Ratios to average net assets:
Net investment income		0.38	%		0.88	%		0.68	%		0.51	%		0.17	%		0.56	%
Total expenses e		1.56	%		1.70	%		1.36	%		1.35	%		1.49	%		1.61	%
Net expenses f		1.22	%		1.25	%		1.25	%		1.27	%		1.49	%		1.61	%
Net expenses prior to custodian earning credits and net of expense waivers		1.22	%		1.25	%		1.25	%		1.27	%		1.49	%		1.61	%
Portfolio turnover rate		31	%		25	%		48	%		25	%		54	%		110	%
Class B	Six Months Ended March 31, 2010a,g			2009g			2008g			2007g			2006			Year Ended September 30, 2005b
Per Share Data
Net asset value, beginning of period	$	5.78		$	6.29		$	8.58		$	7.18		$	6.38		$	5.42
Income (loss) from investment operations:
Net investment income (loss) c		0.02			0.06			0.07			(0.01	)		(0.04	)		(0.01	)
Net gain (loss) on securities (realized and unrealized)		0.62			(0.46	)		(2.02	)		1.41			0.84			0.97
Total from investment operations		0.64			(0.40	)		(1.95	)		1.40			0.80			0.96
Less distributions:
Dividends from net investment income		(0.07	)		(0.07	)		(0.01	)		—			—			—
Distributions from realized gains		—			(0.04	)		(0.33	)		—			—			—
Total distributions		(0.07	)		(0.11	)		(0.34	)		—			—			—
Net asset value, end of period	$	6.35		$	5.78		$	6.29		$	8.58		$	7.18		$	6.38
Total Return d		11.20	%		(5.91	%)		(23.39	%)		19.50	%		12.54	%		17.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,997		$	4,802		$	8,097		$	13,784		$	12,761		$	8,500
Ratios to average net assets:
Net investment income (loss)		0.59	%		1.17	%		0.93	%		(0.08	)%		(0.58	)%		(0.16	)%
Total expenses e		1.31	%		1.47	%		1.11	%		1.92	%		2.26	%		2.36	%
Net expenses f		0.97	%		1.00	%		1.00	%		1.85	%		2.26	%		2.36	%
Net expenses prior to custodian earning credits and net of expense waivers		0.97	%		1.00	%		1.00	%		1.85	%		2.26	%		2.36	%
Portfolio turnover rate		31	%		25	%		48	%		25	%		54	%		110	%

89 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI
Selected data for each share of capital stock outstanding throughout each period	Large Cap Value Fund

Class C	Six Months Ended March 31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005b
Per Share Data
Net asset value, beginning of period	$	5.87		$	6.35		$	8.72		$	7.31		$	6.49		$	5.52
Income (loss) from investment operations:
Net investment income (loss) c		(0.01	)		0.01			—			(0.02	)		(0.04	)		(0.01	)
Net gain (loss) on securities (realized and unrealized)		0.63			(0.45	)		(2.04	)		1.43			0.86			0.98
Total from investment operations		0.62			(0.44	)		(2.04	)		1.41			0.82			0.97
Less distributions:
Distributions from realized gains		—			(0.04	)		(0.33	)		—			—			—
Total distributions		—			(0.04	)		(0.33	)		—			—			—
Net asset value, end of period	$	6.49		$	5.87		$	6.35		$	8.72		$	7.31		$	6.49
Total Return d		10.56	%		(6.80	)%		(24.09	)%		19.29	%		12.63	%		17.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,828		$	3,128		$	4,410		$	5,717		$	3,536		$	2,899
Ratios to average net assets:
Net investment income (loss)		(0.40	)%		0.14	%		(0.07	)%		(0.23	)%		(0.60	)%		(0.18	)%
Total expenses e		2.31	%		2.47	%		2.11	%		2.10	%		2.25	%		2.36	%
Net expenses f		1.97	%		1.99	%		2.00	%		2.02	%		2.25	%		2.36	%
Net expenses prior to custodian earning credits and net of expense waivers		1.97	%		1.99	%		2.00	%		2.02	%		2.25	%		2.36	%
Portfolio turnover rate		31	%		25	%		48	%		25	%		54	%		110	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

^b Security Investors (SI) became the advisor of Security Large Cap Value Fund effective June 30, 2005. Prior to June 30, 2005, SI paid Dreyfus Corporation for sub-advisory services,

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

^d Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for Class B and C shares,

^e Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^f Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

^g Effective August 1, 2007, Class B shares ceased charging 12b-l fees in accordance with FINRA (formerly NASD) sales cap regulations. Per share information reflects this change. This fee will be reinstated when sales exceed the sales cap limit.

90 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Large Cap Value Fund
Performance Summary	Large Cap Value Institutional Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Since Inception

This chart assumes a $10,000 investment in shares of Large Cap Value Institutional Fund on July 11, 2008 (date of inception), and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions or the redemption of fund shares. The Russell 1000 Value Index is an unmanaged index representing the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values.

Average Annual Returns
Periods Ended 3-31-10
	1 Year	Since Inception (7-11-08)
Large Cap Value Institutional Fund	57.16%	(0.30)%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted. Fee waivers and/or reimbursements reduced expenses of the Fund and in the absence of such waiver, the performance quoted would be reduced.

Portfolio Composition by Sector as of 3-31-10
Consumer Discretionary	6.63	%
Consumer Staples	9.90
Energy	14.74
Financials	17.92
Health Care	8.93
Industrials	20.30
Information Technology	11.36
Materials	2.44
Telecommunication Services	1.16
Utilities	4.42
Cash & Other Assets, Less Liabilities	2.20
Total Net Assets	100.00	%

91 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Large Cap Value Fund
March 31, 2010 (unaudited)	Large Cap Value Institutional Fund

	Shares	Value
COMMON STOCKS - 97.8%
Aerospace & Defense - 2.6%
United Technologies Corporation	1,030	$	75,818
Air Freight & Logistics - 3.2%
FedEx Corporation	1,000		93,400
Application Software - 1.0%
Synopsys, Inc. *	1,300		29,081
Asset Management & Custody Banks - 1.6%
Bank of New York Mellon Corporation	1,500		46,320
Building Products - 2.8%
USG Corporation *	4,890		83,912
Computer Hardware - 2.3%
Hewlett-Packard Company	1,250		66,438
Consumer Finance - 0.3%
First Marblehead Corporation *	3,412		9,690
Data Processing & Outsourced Services - 5.5%
Computer Sciences Corporation *	500		27,245
Western Union Company	7,940		134,662
			161,907
Department Stores - 2.0%
JC Penney Company, Inc.	1,870		60,158
Diversified Banks - 4.8%
U.S. Bancorp	3,041		78,701
Wells Fargo & Company	1,917		59,657
			138,358
Diversified Chemicals - 1.6%
Dow Chemical Company	1,650		48,791
Drug Retail - 2.4%
CVS Caremark Corporation	1,960		71,658
Electric Utilities - 3.3%
Edison International	2,830		96,701
Electronic Manufacturing Services - 2.6%
Tyco Electronics, Ltd.	2,810		77,219
Health Care Equipment - 4.7%
Covidien plc	1,150		57,822
Hospira, Inc. *	1,460		82,709
			140,531
Health Care Services - 1.3%
Medco Health Solutions, Inc. *	580		37,445
Home Improvement Retail - 2.2%
Lowe’s Companies, Inc.	2,680		64,963
Hypermarkets & Super Centers - 4.9%
Costco Wholesale Corporation	1,140		68,069

	Shares	Value
COMMON STOCKS - 97.8% (continued)
Hypermarkets & Super Centers - 4.9% (continued)
Wal-Mart Stores, Inc.	1,360	$	75,616
			143,685
Independent Power Producers & Energy Traders - 1.1%
NRG Energy, Inc. *	1,600		33,440
Industrial Conglomerates - 3.3%
McDermott International, Inc. *	3,570		96,104
Industrial Machinery - 2.1%
Parker Hannifin Corporation	940		60,856
Insurance Brokers - 2.4%
AON Corporation	1,670		71,326
Integrated Oil & Gas - 7.9%
Chevron Corporation	1,190		90,238
ConocoPhillips	660		33,772
Exxon Mobil Corporation	1,620		108,507
			232,517
Integrated Telecommunication Services - 1.2%
Windstream Corporation	3,130		34,086
Managed Health Care - 2.9%
Aetna, Inc.	2,420		84,966
Movies & Entertainment - 2.4%
Time Warner, Inc.	2,240		70,045
Oil & Gas Equipment & Services - 3.1%
Halliburton Company	3,060		92,198
Oil & Gas Exploration & Production - 1.3%
Chesapeake Energy Corporation	1,600		37,824
Oil & Gas Storage & Transportation -2.4%
Williams Companies, Inc. 3,090			71,379
Other Diversified Financial Services - 1.6%
JPMorgan Chase & Company	1,076		48,151
Paper Packaging - 0.8%
Bern is Company, Inc.	800		22,976
Property & Casualty Insurance - 4.1%
Berkshire Hathaway, Inc. *	1		121,800
Railroads - 2.6%
Union Pacific Corporation	1,060		77,698
Regional Banks - 3.1%
BB&T Corporation	1,000		32,390
Fifth Third Bancorp	1,500		20,385

92 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI Large Cap Value Fund
March 31, 2010 (unaudited)	Large Cap Value Institutional Fund

	Shares	Value
COMMON STOCKS - 97.8% (continued)
Regional Banks - 3.1% (continued)		$	39,250
Regions Financial Corporation	5,000		92,025
Research & Consulting Services - 3.8%
Equifax, Inc.	3,070		109,906
Tobacco - 2.6%
Altria Group, Inc.	1,100		22,572
Philip Morris International, Inc.	1,030		53,725
			76,297
TOTAL COMMON STOCKS
(cost $2,629,515)		$	2,879,669
Total Investments - 97.8% 1
(cost $2,629,515)		$	2,879,669
Cash & Other Assets, Less Liabilities - 2.2%			64,907
Total Net Assets - 100.0%		$	2,944,576

For federal income tax purposes the identified cost of investments owned at March 31, 2010 was $2,634,817.

plc         Public Limited Company

* Non-income producing security

¹ Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

93 The accompanying notes are an integral part of the financial statements

Rydex | SGI Large Cap Value Fund

Large Cap Value Institutional Fund (unaudited)

Statement of Assets and Liabilities
March 31, 2010
Assets:
Investments, at value *	$	2,879,669
Cash		63,410
Receivables:
Dividends		4,148
Security Investors		6,688
Prepaid expenses		7,252
Total assets		2,961,167
Liabilities:
Payable for:
Fund shares redeemed		1,381
Management fees		1,651
Administration fees		361
Transfer agent/maintenance fees		2,083
Custodian fees		420
Directors’ fees		12
Professional fees		5,808
Other fees		4,875
Total liabilities		16,591
Net assets	$	2,944,576
Net assets consist of:
Paid in capital	$	3,007,401
Undistributed net investment income		6,138
Accumulated net realized loss on sale of investments		(319,117	)
Net unrealized appreciation in value of investments		250,154
Net assets	$	2,944,576
Capital shares authorized		unlimited
Capital shares outstanding		300,431
Net asset value per share (net assets divided by shares outstanding)	$	9.80
* Investments, at cost	$	2,629,515

Statement of Operations
For the Six Months Ended March 31, 2010
Investment Income:
Dividends	$	21,879
Interest		30
Total investment income		21,909
Expenses:
Management fees		9,074
Administration fees		5,166
Transfer agent/maintenance fees		4,272
Custodian fees		675
Directors’ fees		115
Professional fees		4,267
Reports to shareholders		2,265
Registration fees		7,839
Other		915
Total expenses		34,588
Reimbursement of expenses		(21,047	)
Net expenses		13,541
Net investment income		8,368
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		4,126
Net realized gain		4,126
Net unrealized appreciation (depreciation) during the period on:
Investments		289,535
Net unrealized appreciation		289,535
Net realized and unrealized gain		293,661
Net increase in net assets resulting from operations	$	302,029

94 The accompanying notes are an integral part of the financial statements

	Rydex | SGI Large Cap Value Fund
Statement of Changes in Net Assets	Large Cap Value Institutional Fund

	Six Months Ended March  31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment income	$	8,368		$	33,258
Net realized gain (loss) during the period on investments		4,126			(280,294	)
Net unrealized appreciation during the period on investments		289,535			42,891
Net increase (decrease) in net assets resulting from operations		302,029			(204,145	)
Distributions to shareholders from:
Net investment income		(23,939	)		(19,621	)
Total distributions to shareholders		(23,939	)		(19,621	)
Capital share transactions:
Proceeds from sale of shares		556,727			2,460,110
Dividends reinvested		23,939			19,622
Cost of shares redeemed		(631,823	)		(2,416,519	)
Net increase (decrease) from capital share transactions		(51,157	)		63,213
Net increase (decrease) in net assets		226,933			(160,553	)
Net assets:
Beginning of period		2,717,643			2,878,196
End of period	$	2,944,576		$	2,717,643
Undistributed net investment income at end of period	$	6,138		$	21,709
Capital share activity:
Shares sold		59,980			343,781
Shares reinvested		2,631			2,763
Shares redeemed		(67,721	)		(340,533	)
Total capital share activity		(5,110	)		6,011

95 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI Large Cap Value Fund
Selected data for each share of capital stock outstanding throughout each period	Large Cap Value Institutional Fund

	Six Months Ended March  31, 2010a			2009			Year Ended September 30, 2008b
Per Share Data
Net asset value, beginning of period	$	8.89		$	9.61		$	10.00
Income (loss) from investment operations:
Net investment income c		0.03			0.09			0.03
Net gain (loss) on securities (realized and unrealized)		0.96			(0.76	)		(0.42	)
Total from investment operations		0.99			(0.67	)		(0.39	)
Less distributions:
Dividends from net investment income		(0.08	)		(0.05	)		—
Total distributions		(0.08	)		(0.05	)		—
Net asset value, end of period	$	9.80		$	8.89		$	9.61
Total Return		11.19	%		(6.89	)%		(3.90	)%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,945		$	2,718		$	2,878
Ratios to average net assets:
Net investment income		0.60	%		1.22	%		1.17	%
Total expenses d		2.48	%		2.37	%		2.33	%
Net expenses e		0.97	%		0.98	%		0.98	%
Net expenses prior to custodian earnings credits and net of expense waivers		0.97	%		0.98	%		0.98	%
Portfolio turnover rate		23	%		45	%		35	%

^a Unaudited figures for the six months ended March 31, 2010. Percentage amounts, except total return, have been annualized.

^b Security Large Cap Value Institutional Fund was initially capitalized on July 11, 2008 with a net asset value of $10 per share. Percentage amounts for the period, except total return, have been annualized.

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

^d Total expense information reflects the expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

^e Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

96 The accompanying notes are an integral part of the financial statements

	Rydex | SGI
Performance Summary	Mid Cap Growth Fund
March 31, 2010	(unaudited)

PERFORMANCE

$10,000 Over Ten Years

This chart assumes a $10,000 investment in Class A shares of Mid Cap Growth Fund on March 31, 2000, reflects deduction of the 5.75% sales load and assumes all dividends reinvested. The chart does not reflect the deduction of taxes that a shareholder would pay on distributions of the redemption of fund shares. The Russell MidCap Growth Index is an unmanaged capitalization-weighted index that is designed to measure the performance of the 800 smallest companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values.

Average Annual Returns
Periods Ended 3-31-10
	1 Year		5 Years		10 Years
A Shares	54.78	%	(0.11	)%	(0.59	)%
A Shares with sales charge	45.80	%	(1.29	)%	(1.18	)%
B Shares	53.50	%	(0.85	)%	(1.25	)%
B Shares with CDSC	48.50	%	(1.08	)%	(1.25	)%
C Shares	53.53	%	(0.87	)%	(1.34	)%
C Shares with CDSC	52.53	%	(0.87	)%	(1.34	)%

The performance data above represents past performance that is not predictive of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The figures above do not reflect deduction of the maximum front-end sales charge of 5.75% for Class A shares or the contingent deferred sales charge of 5% for Class B shares and 1% for Class C shares, as applicable, except where noted. The figures do not reflect the deduction of taxes that a shareholder would pay on distributions or redemption of shares. Such figures would be lower if the maximum sales charge and any applicable taxes were deducted.

Portfolio Composition by Sector as of 3-31-10
Consumer Discretionary	20.51	%
Consmer Staples	1.94
Energy	6.92
Financials	5.22
Health Care	10.71
Industrials	16.45
Information Technology	25.24
Materials	6.38
Exchange Traded Funds	3.81
Cash & Other Assets, Less Liabilities	2.82
Total Net Assets	100.00	%

97 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI
March 31, 2010 (unaudited)	Mid Cap Growth Fund

	Shares	Value
COMMON STOCKS - 97.2%
Aerospace & Defense - 3.9%
Goodrich Corporation	29,350	$	2,069,762
Precision Castparts Corporation	9,565		1,211,981
			3,281,743
Apparel Retail - 3.8%
Gap, Inc.	68,730		1,588,350
TJX Companies, Inc.	37,630		1,600,028
			3,188,378
Apparel, Accessories & Luxury Goods - 2.4%
Phillips-Van Heusen Corporation	36,200		2,076,432
Application Software - 2.9%
Cadence Design Systems, Inc. *	102,700		683,982
Nuance Communications, Inc. *	105,635		1,757,766
			2,441,748
Asset Management & Custody Banks - 3.6%
BlackRock, Inc.	6,110		1,330,514
T. Rowe Price Group, Inc.	31,800		1,746,774
			3,077,288
Casinos & Gaming - 1.9%
Penn National Gaming, Inc. *	25,870		719,186
WMS Industries, Inc. *	20,755		870,465
			1,589,651
Coal & Consumable Fuels - 2.3%
Peabody Energy Corporation	41,380		1,891,066
Communications Equipment - 2.1%
Ciena Corporation *	56,950		867,918
Juniper Networks, Inc. *	30,800		944,944
			1,812,862
Computer Storage & Peripherals - 2.0%
QLogic Corporation *	85,555		1,736,767
Construction & Engineering - 1.8%
Aecom Technology Corporation *	55,200		1,566,024
Data Processing & Outsourced Services - 1.4%
Alliance Data Systems Corporation *	19,170		1,226,688
Electrical Components & Equipment - 5.2%
Cooper Industries pic	51,300		2,459,321
Roper Industries, Inc.	33,570		1,941,689
			4,401,010
Electronic Equipment & Instruments - 1.8%
Agilent Technologies, Inc. *	44,300		1,523,477
Exchange Traded Funds - 3.8%
iShares Russell Midcap Growth Index Fund	66,585		3,230,704
Fertilizers & Agricultural Chemicals - 1.1%
Agrium, Inc.	13,000		918,190

		Shares	Value
COMMON STOCKS - 97.2% (continued)
Health Care Equipment - 5.0%
Beckman Coulter, Inc.		36,870	$	2,315,436
Zimmer Holdings, Inc. *		32,130		1,902,096
				4,217,532
Homebuilding - 1.4%
Lennar Corporation		68,300		1,175,443
Home Furnishing Retail - 2.2%
Bed Bath & Beyond, Inc. *		41,670		1,823,479
Hotels, Resorts & Cruise Lines - 1.7%
Royal Caribbean Cruises, Ltd. *		42,700		1,408,673
Household Products - 1.9%
Clorox Company		25,700		1,648,398
Housewares & Specialties - 4.6%
Fortune Brands, Inc.		31,050		1,506,236
Jarden Corporation		70,480		2,346,279
				3,852,515
Industrial Gases - 1.7%
Praxair, Inc.		17,575		1,458,725
Industrial Machinery - 3.4%
Dover Corporation		61,850		2,891,488
IT Consulting & Other Services - 3.9%
Amdocs, Ltd. *		57,000		1,716,270
Cognizant Technology Solutions Corporation *		29,885		1,523,537
				3,239,807
Leisure Facilities - 0.9%
Life Time Fitness, Inc. *		28,500		800,850
Life Sciences Tools & Services - 2.7%
Thermo Fisher Scientific, Inc. *		44,815		2,305,284
	��
Metal & Glass Containers - 2.1%
Ball Corporation		32,522		1,736,024
Multi-Line Insurance - 1.6%
HCC Insurance Holdings, Inc.		48,850		1,348,260
Oil & Gas Drilling - 1.6%
Ensco International plc ADR		31,000		1,388,180
Oil & Gas Equipment & Services -1.4%
Cameron International Corporation *		28,350		1,215,081
Oil & Gas Storage & Transportation - 1.6%
Williams Companies, Inc.		59,305		1,369,946
Pharmaceuticals - 3.0%
Teva Pharmaceutical Industries, Ltd. ADR		40,565		2,558,840

98 The accompanying notes are an integral part of the financial statements

Schedule of Investments	Rydex | SGI
March 31, 2010 (unaudited)	Mid Cap Growth Fund

	Shares	Value
COMMON STOCKS -97.2% (continued)
Railroads - 2.1%
Union Pacific Corporation	24,620	$	1,804,646
Restaurants - 1.7%
Darden Restaurants, Inc.	33,050		1,472,047
Semiconductor Equipment - 1.8%
Lam Research Corporation *	40,075		1,495,599
Semiconductors - 3.0%
ON Semiconductor Corporation *	143,965		1,151,720
Skyworks Solutions, Inc. *	90,825		1,416,870
			2,568,590
Specialty Chemicals - 1.5%
International Flavors & Fragrances, Inc.	27,150		1,294,241
Systems Software - 6.4%
Check Point Software Technologies *	49,895		1,749,318
McAfee, Inc. *	37,600		1,508,888
Rovi Corporation *	33,300		1,236,429
Sybase, Inc. *	18,280		852,214
			5,346,849
TOTAL COMMON STOCKS
(cost $68,061,145)		$	82,382,525
	Shares	Value
WARRANTS – 0.0%
Nova Biosource Fuels, Inc. $2.40, 7/5/2011 1	208,050	$	482
TOTAL WARRANTS (cost $214,905)		$	482
Total Investments - 97.2% 2
(cost $68,276,050)		$	82,383,007
Cash & Other Assets, Less Liabilities - 2.8%			2,390,114
Total Net Assets - 100.0%		$	84,773,121

For federal income tax purposes the identified cost of

investments owned at March 31, 2010 was $68,964,092.

ADR American Depositary Receipt

plc Public Limited Company

* Non-income producing security

¹ Value determined based on Level 2 inputs.

² Unless otherwise indicated, the values of the securities of the Portfolio are determined based on Level 1 inputs.

99 The accompanying notes are an integral part of the financial statements

Rydex | SGI

Mid Cap Growth Fund (unaudited)

Statement of Assets and Liabilities

March 31, 2010

Assets:
Investments, at value *	$	82,383,007
Cash		2,516,315
Receivables:
Fund shares sold		9,290
Securities sold		311,291
Dividends		47,620
Prepaid expenses		44,250
Total assets		85,311,773
Liabilities:
Payable for:
Securities purchased		349,162
Fund shares redeemed		55,242
Management fees		53,611
Custodian fees		520
Transfer agent/maintenance fees		15,258
Administration fees		6,991
Professional fees		9,984
12b-1distribution plan fees		24,999
Directors’ fees		426
Other		22,459
Total liabilities		538,652
Net assets	$	84,773,121
Net assets consist of:
Paid in capital	$	109,599,989
Accumulated net investment loss		(378,990	)
Accumulated net realized loss on sale of investments		(38,554,835	)
Net unrealized appreciation in value of investments		14,106,957
Net assets	$	84,773,121
Class A:
Capital shares outstanding (unlimited number of shares authorized)		10,087,393
Net assets	$	73,524,619
Net asset value and redemption price per share	$	7.29
Maximum offering price per share (net asset value divided by 94.25%)	$	7.73
Class B:
Capital shares outstanding (unlimited number of shares authorized)		997,528
Net assets	$	5,462,126
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	5.48
Class C:
Capital shares outstanding (unlimited number of shares authorized) .		916,650
Net assets	$	5,786,376
Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)	$	6.31
* investments, at cost	$	68,276,050

Statement of Operations

For the Six Months Ended March 31, 2010

Investment Income:
Dividends	$	335,774
Interest		593
Total investment income		336,367
Expenses:
Management fees		310,758
Transfer agent/maintenance fees		152,768
Administration fees		39,496
Custodian fees		3,192
Directors’ fees		3,482
Professional fees		11,345
Reports to shareholders		12,144
Registration fees		22,681
Other expenses		12,337
12b-1distribution fees - Class A		89,063
12b-1distribution fees - Class B		30,792
12b-1distribution fees - Class C		27,299
Total expenses		715,357
Net investment loss		(378,990	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) during the period on:
Investments		7,141,043
Net realized gain		7,141,043
Net unrealized appreciation (depreciation) during the period on:
Investments		2,168,495
Net unrealized appreciation		2,168,495
Net realized and unrealized gain		9,309,538
Net increase in net assets resulting from operations	$	8,930,548

100 The accompanying notes are an integral part of the financial statements

	Rydex | SGI
Statement of Changes in Net Assets	Mid Cap Growth Fund

	Six Months Ended March  31, 2010 (unaudited)			Year Ended September 30, 2009
Increase (decrease) in net assets from operations:
Net investment loss	$	(378,990	)	$	(750,158	)
Net realized gain (loss) during the period on investments		7,141,043			(21,443,279	)
Net unrealized appreciation during the period on investments		2,168,495			22,788,661
Net increase in net assets resulting from operations		8,930,548			595,224
Distributions to shareholders from:
Net realized gain
Class A		—			(535,743	)
Class B		—			(73,574	)
Class C		—			(53,571	)
Total distributions to shareholders		—			(662,888	)
Capital share transactions:
Proceeds from sale of shares
Class A		4,958,645			12,472,300
Class B		146,269			2,327,638
Class C		385,903			1,992,612
Distributions reinvested
Class A		—			513,214
Class B		—			72,606
Class C		—			50,288
Cost of shares redeemed
Class A		(11,172,398	)		(12,908,354	)
Class B		(2,734,827	)		(2,576,449	)
Class C		(800,951	)		(2,633,411	)
Net decrease from capital share transactions		(9,217,359	)		(689,556	)
Net decrease in net assets		(286,811	)		(757,220	)
Net assets:
Beginning of period		85,059,932			85,817,152
End of period	$	84,773,121		$	85,059,932
Accumulated net investment loss at end of period	$	(378,990	)	$	—
Capital share activity:
Shares sold
Class A		747,650			2,324,333
Class B		29,062			571,695
Class C		66,002			344,666
Shares reinvested
Class A		—			111,569
Class B		—			20,804
Class C		—			12,509
Shares redeemed
Class A		(1,667,211	)		(2,528,289	)
Class B		(542,631	)		(647,831	)
Class C		(138,079	)		(506,175	)

101 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI
Selected data for each share of capital stock outstanding throughout each period	Mid Cap Growth Fund

Class A	Six Months Ended March  31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	6.54		$	6.46		$	11.11		$	12.03		$	12.65		$	11.02
Income (loss) from investment operations:
Net investment loss b		(0.03	)		(0.05	)		(0.05	)		(0.08	)		(0.12	)		(0.10	)
Net gain (loss) on securities (realized and unrealized)		0.78			0.18			(2.46	)		0.35			0.47			2.46
Total from investment operations		0.75			0.13			(2.51	)		0.27			0.35			2.36
Less distributions:
Distributions from realized gains		—			(0.05	)		(2.14	)		(1.19	)		(0.97	)		(0.73	)
Total distributions		—			(0.05	)		(2.14	)		(1.19	)		(0.97	)		(0.73	)
Net asset value, end of period	$	7.29		$	6.54		$	6.46		$	11.11		$	12.03		$	12.65
Total Return c		11.47	%		2.32	%		(26.24	)%		2.10	%		2.81	%		21.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	73,525		$	71,985		$	71,655		$	160,544		$	192,159		$	183,676
Ratios to average net assets:
Net investment loss		(0.81	)%		(0.99	)%		(0.63	)%		(0.67	)%		(0.93	)%		(0.85	)%
Total expenses d		1.62	%		1.78	%		1.50	%		1.41	%		1.40	%		1.42	%
Net expenses e		1.62	%		1.78	%		1.50	%		1.41	%		1.40	%		1.42	%
Net expenses prior to custodian earning credits and net of expense waivers		1.62	%		1.78	%		1.50	%		1.41	%		1.40	%		1.42	%
Portfolio turnover rate		131	%		138	%		191	%f		34	%		41	%		31	%
Class B	Six Months Ended March 31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	4.93		$	4.92		$	9.09		$	10.12		$	10.86		$	9.61
Income (loss) from investment operations:
Net investment lossb		(0.04	)		(0.07	)		(0.09	)		(0.14	)		(0.18	)		(0.16	)
Net gain (loss) on securities (realized and unrealized)		0.59			0.13			(1.94	)		0.30			0.41			2.14
Total from investment operations		0.55			0.06			(2.03	)		0.16			0.23			1.98
Less distributions:
Distributions from realized gains		—			(0.05	)		(2.14	)		(1.19	)		(0.97	)		(0.73	)
Total distributions		—			(0.05	)		(2.14	)		(1.19	)		(0.97	)		(0.73	)
Net asset value, end of period	$	5.48		$	4.93		$	4.92		$	9.09		$	10.12		$	10.86
Total Return c		11.16	%		1.61	%		(26.92	)%		1.34	%		2.12	%		20.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,462		$	7,454		$	7,711		$	14,877		$	22,010		$	27,115
Ratios to average net assets:
Net investment loss		(1.57	)%		(1.73	)%		(1.40	)%		(1.43	)%		(1.68	)%		(1.61	)%
Total expenses d		2.37	%		2.53	%		2.26	%		2.16	%		2.15	%		2.17	%
Net expenses e		2.37	%		2.53	%		2.26	%		2.16	%		2.15	%		2.17	%
Net expenses prior to custodian earning credits and net of expense waivers		2.37	%		2.53	%		2.26	%		2.16	%		2.15	%		2.17	%
Portfolio turnover rate		131	%		138	%		191	%f		34	%		41	%		31	%

102 The accompanying notes are an integral part of the financial statements

Financial Highlights	Rydex | SGI
Selected data for each share of capital stock outstanding throughout each period	Mid Cap Growth Fund

Class C	Six Months Ended March  31, 2010a			2009			2008			2007			2006			Year Ended September 30, 2005
Per Share Data
Net asset value, beginning of period	$	5.69		$	5.67		$	10.11		$	11.13		$	11.84		$	10.43
Income (loss) from investment operations:
Net investment loss b		(0.05	)		(0.08	)		(0.10	)		(0.15	)		(0.19	)		(0.18	)
Net gain (loss) on securities (realized and unrealized)		0.67			0.15			(2.20	)		0.32			0.45			2.32
Total from investment operations		0.62			0.07			(2.30	)		0.17			0.26			2.14
Less distributions:
Distributions from realized gains		—			(0.05	)		(2.14	)		(1.19	)		(0.97	)		(0.73	)
Total distributions		—			(0.05	)		(2.14	)		(1.19	)		(0.97	)		(0.73	)
Net asset value, end of period	$	6.31		$	5.69		$	5.67		$	10.11		$	11.13		$	11.84
Total Return c		10.90	%		1.58	%		(26.87	)%		1.31	%		2.20	%		20.83	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,786		$	5,622		$	6,452		$	10,717		$	15,505		$	16,330
Ratios to average net assets:
Net investment loss		(1.55	)%		(1.74	)%		(1.40	)%		(1.43	)%		(1.68	)%		(1.60	)%
Total expenses d		2.37	%		2.54	%		2.26	%		2.16	%		2.15	%		2.17	%
Net expenses e		2.37	%		2.54	%		2.26	%		2.16	%		2.15	%		2.17	%
Net expenses prior to custodian earning credits and net of expense waivers		2.37	%		2.54	%		2.26	%		2.16	%		2.15	%		2.17	%
Portfolio turnover rate		131	%		138	%		191	%f		34	%		41	%		31	%

a Unaudited figures for the six months ended March 31, 2010. Percentage amounts for the period, except total return, have been annualized.

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

c Total return information does not reflect deduction of any sales charges imposed at the time of purchase for Class A shares or upon redemption for ClassB and C shares.

d Total expense information reflects expense ratios absent expense reductions by the Investment Manager and custodian earnings credits, as applicable.

e Net expense information reflects the expense ratios after voluntary expense waivers, reimbursements and custodian earnings credits, as applicable.

f Significant variation in the portfolio turnover rate is due to the Investment Manager’s appointment of new portfolio managers for the Fund.

103 The accompanying notes are an integral part of the financial statements

Notes to Financial Statements

March 31, 2010 (unaudited)

1. Significant Accounting Policies

Rydex | SGI Large Cap Value, Equity and Mid Cap Growth Funds (formerly Security Large Cap Value Fund, Security Equity Fund and Security Mid Cap Growth Fund, respectively), (collectively referred to herein as the Funds) are registered under the Investment Company Act of 1940 (the “1940 Act”), as amended, as open-end management investment companies. The shares of Rydex I SGI Equity Fund and Large Cap Value Fund are currently issued in multiple series, with each series, in effect, representing a separate fund. The Rydex | SGI Equity Fund and Large Cap Value Fund account for the assets of each series separately. Class “A” shares are generally sold with a sales charge at the time of purchase. Class “A” shares are not subject to a sales charge when they are redeemed, except for purchases of $1 million or more sold without a front-end sales charge are subject to a contingent deferred sales charge if redeemed within one year of purchase. Class “B” shares may be subject to a contingent deferred sales charge for six years and automatically convert to Class A shares after eight years. Redemptions of Class “B” shares within five years of acquisition incur a contingent deferred sales charge. Class “C” shares are offered without a front-end sales charge but incur additional class-specific expenses. Redemptions of Class “C” shares within one year of acquisition incur a contingent deferred sales charge. “Institutional” Class shares are offered primarily for direct investment by institutions, such as pension and profit sharing plans, endowments, foundations and corporations. Institutional class shares have a minimum initial investment of $2 million and a minimum account balance of $1 million. Institutional Class shares are offered without a front-end sales charge or a contingent deferred sales charge. The following is a summary of the significant accounting policies followed by the Funds in the preparation of their financial statements.

A. Security Valuation - Valuations of the Funds’ securities are supplied by pricing services approved by the Board of Directors. The Funds’ officers, under the general supervision of the Board of Directors, regularly review procedures used by, and valuations provided by, the pricing services. Each security owned by the Funds that is listed on a securities exchange is valued at its last sale price on that exchange on the date as of which assets are valued. Where the security is listed on more than one exchange, the Fund will use the price of that exchange that it generally considers to be the principal exchange on which the stock is traded. Securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”) will be valued at the NASDAQ Official Closing Price, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on such day, the security is valued at the closing bid price on such day. Securities for which market quotations are not readily available are valued taking into consideration securities with similar yields, quality, type of issue, coupon, duration and rating. If there is no bid price or if the bid price is deemed to be unsatisfactory by the Board of Directors or by the Funds’ investment manager, then the securities are valued in good faith by such method as the Board of Directors determines will reflect the fair value. If events occur after the close of a foreign exchange that will affect the value of a Funds portfolio securities before the time as of which the NAV is calculated (a “significant event”), the security will generally be

priced using a fair value procedure. If the Valuation Committee determines a significant event has occurred, it will evaluate the impact of that event on an affected security or securities, to determine whether a fair value adjustment would materially affect the Funds net asset value per share. Some of the factors which may be considered by the Board of Directors in determining fair value are fundamental analytical data relating to the investment, the nature and duration of any restrictions on disposition, trading in similar securities of the same issuer or comparable companies, information from broker-dealers, and an evaluation of the forces that influence the market in which the securities are purchased and sold. The Funds generally will value short-term debt securities at prices based on market quotations for such securities or securities of similar type, yield, quality and duration, except those securities purchased with 60 days or less to maturity are valued on the basis of amortized cost, which approximates market value.

Generally, trading in foreign securities markets is substantially completed each day at various times prior to the close of the New York Stock Exchange. The values of foreign securities are determined as of the close of such foreign markets or the close of the New York Stock Exchange, if earlier. All investments quoted in foreign currency are valued in U.S. dollars on the basis of the foreign currency exchange rates prevailing at the close of business. Investments in foreign securities may involve risks not present in domestic investments. The Valuation Committee will determine the current value of such foreign securities by taking into consideration certain factors which may include those discussed above, as well as the following factors, among others: the value of the securities traded on other foreign markets, ADR trading, closed-end fund trading, foreign currency exchange activity, and the trading prices of financial products that are tied to foreign securities such as WEBS^®. In addition, the Board of Directors has authorized the Valuation Committee and Administrator to use prices and other information supplied by a third party pricing vendor in valuing foreign securities.

B. Repurchase Agreements - In connection with transactions in repurchase agreements, it is the Funds’ policy that their custodian take possession of the underlying collateral and that the fair value of the collateral exceed the principal amount of the repurchase transaction, including accrued interest, at all times. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by the Fund may be delayed or limited.

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

104

Notes to Financial Statements

March 31, 2010 (unaudited)

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

Net realized foreign exchange gains or losses arise from sales of portfolio securities, sales of foreign currencies, and the difference between asset and liability amounts initially stated in foreign currencies and the U.S. dollar value of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the value of portfolio securities and other assets and liabilities at the end of the reporting period, resulting from changes in the exchange rates.

D. Forward Foreign Currency Exchange Contracts - Certain Funds may enter into forward foreign exchange contracts in order to manage foreign currency risk from purchase or sale of securities denominated in foreign currency. The Funds may also enter into such contracts to manage the effect of changes in foreign currency exchange rates on portfolio positions. These contracts are marked to market daily, by recognizing the difference between the contract exchange rate and the current market rate as unrealized gains or losses. Realized gains or losses are recognized when contracts are settled and are reflected in the Statement of Operations. These contracts involve market risk in excess of the amount reflected in the Statement of Assets and Liabilities. The face or contract amount in U.S. dollars reflects the total exposure these Funds have in that particular currency contract. Losses may arise due to changes in the value of the foreign currency or if the counterparty does not perform under the contract.

E. Futures - The Funds may utilize futures contracts to a limited extent, with the objectives of maintaining full exposure to the underlying stock market, enhancing returns, maintaining liquidity, minimizing transaction costs and hedging possible variations in foreign exchange values. The Funds, as applicable, may purchase or sell financial and foreign currency futures contracts to immediately position incoming cash in the market, thereby simulating a fully invested position in the underlying index while maintaining a cash balance for liquidity. In the event of redemptions, the Fund, as applicable, may pay from its cash balances and reduce its future positions accordingly. Returns may be enhanced by purchasing futures contracts instead of the underlying securities when futures are believed to be priced more attractively than the underlying securities. The primary risks associated with the use of futures contracts are imperfect correlation between changes in market values of stocks contained in the indexes and the prices of futures contracts, and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Funds are required to deposit and maintain as collateral either cash or securities, representing the initial margin, equal to a certain percentage of the contract value. Cash deposits are shown as restricted cash on the Statement of Assets and Liabilities; securities held as collateral are noted in the Schedule of Investments. Subsequent changes in the value of the contract are recorded as unrealized gains or losses. The variation margin is paid or received in cash daily by the Funds. The Funds realize a gain or loss when the contract is closed or expires.

F. Options Purchased and Written - The Funds may purchase put and call options and write such options on a covered basis on securities that are traded on recognized securities exchanges and over-the-counter markets. Call and put options on securities give the holder the right to purchase or sell (and the writer the obligation to sell or purchase), respectively, a security at a specified price, until a certain date. Options may be used to hedge the Funds’ or portfolio, to increase returns or to maintain exposure to the equity markets. The primary risks associated with the use of options are an imperfect correlation between the change in market value of the securities held by the Fund and the price of the option, the possibility of an illiquid market, and the inability of the counterparty to meet the terms of the contract.

The premium received for a written option is recorded as an asset with an equal liability which is marked to market based on the option’s quoted daily settlement price. Fluctuations in the value of such instruments are recorded as unrealized appreciation (depreciation) until terminated, at which time realized gains and losses are recognized.

G. Securities Sold Short - Certain Funds may make short sales “against the box,” in which the Fund enters into a short sale of a security it owns. At no time will more than 15% of the value of the Funds’ net assets be in deposits on short sales against the box. If a Fund makes a short sale, the Fund does not immediately deliver from its own account the securities sold and does not receive the proceeds from the sale. To complete the sale, the Fund must borrow the security (generally from the broker through which the short sale is made) in order to make delivery to the buyer. The Fund must replace the security borrowed by purchasing it at the market price at the time of replacement or delivering the security from its own portfolio. The Fund is said to have a “short position” in securities sold until it delivers them to the broker, at which time it receives the proceeds of the sale. Certain Funds may make short sales that are not “against the box,” which create opportunities to increase the Fund’s return but, at the same time, involve specific risk considerations and may be considered a speculative technique. Such short sales theoretically involve unlimited loss potential, as the market price of securities sold short may continually increase, although a Fund may mitigate such losses by replacing the securities sold short before the market price has increased significantly. For financial statement purposes, an amount equal to the settlement amount is included in the Statement of Assets and Liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the short position. Subsequent fluctuations in the market prices of securities sold, but not yet purchased, may require purchasing the securities at prices which differ from the market value reflected on the Statement of Assets and Liabilities. The Funds are liable for any dividends or interest payable on securities while those securities are in a short position and are recorded as dividend expense in the statement of operations. As collateral for its short positions, the Funds are required under the 1940 Act to maintain segregated assets consisting

105

Notes to Financial Statements

March 31, 2010 (unaudited)

of cash, cash equivalents or liquid securities. These segregated assets are valued consistent with Note 1A above. These segregated assets are required to be adjusted daily to reflect changes in the market value of the securities sold short.

H. Security Transactions and Investment Income - Security transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses are reported on an identified cost basis. Dividend income is accrued as of the ex-dividend date, except that certain dividends for foreign securities where the ex-dividend date may have passed are recorded as soon as the Fund is informed of the dividend in the exercise of reasonable diligence. Interest income is recognized on the accrual basis, including the amortization of premiums and accretion of discounts on debt securities.

I. Expenses - Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses are allocated to the Funds on the basis of relative net assets. Class specific expenses, such as 12b-1fees, are borne by that class. Income, other expenses and realized and unrealized gains and losses of a Fund are allocated to each respective class in proportion to the relative net assets of each class.

J. Distributions to Shareholders - Distributions to shareholders are recorded on the ex-dividend date. The character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes.

K. Taxes - The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and distribute all of their taxable net income and net realized gains sufficient to relieve them from all, or substantially all, federal income, excise and state income taxes. Therefore, no provision for federal or state income tax is required.

The evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns is required to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. For all open tax years (September 30, 2006 - September 30, 2009) and all major taxing jurisdictions through the end of the reporting period, the Fund’s management has completed a review and evaluation and has determined that no tax liability is required and no additional disclosures are needed as of September 30, 2009.

L. Earning’s Credits - Under the fee agreement with the custodian, the Funds may earn credits based on overnight custody cash balances. These credits are utilized to reduce related custodial expenses. The custodian fees disclosed in the Statement of Operations are before the reduction in expense from the related earnings credits.

M. Use of Estimates - The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

N. Indemnifications - Under the Funds’ organizational documents, its Officers and Directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnification to other parties. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred, and may not occur. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.

106

Notes to Financial Statements

March 31, 2010 (unaudited)

2. Management Fees and Other Transactions with Affiliates

Management fees are paid monthly to Security Investors (SI), based on the following annual rates for the six months ended March 31, 2010:

	Management Fees (as a % of net assets)
Rydex | SGI Equity Fund:
All Cap Value Fund	0.70	%
Alpha Opportunity Fund	1.25	%
Large Cap Core Fund	0.75	%
Global Fund	1.00	%
Global Institutional Fund	1.00	%
Mid Cap Value Fund	0.80	%  1
Mid Cap Value Institutional Fund	0.75	%
Large Cap Concentrated Growth Fund	0.75	%
Small Cap Growth Fund	0.85	%
Small Cap Value Fund	1.00	%
Rydex | SGI large Cap Value Fund
Large Cap Value Fund	0.65	%
Large Cap Value Institutional Fund	0.65	%
Rydex | SGI Mid Cap Growth Fund	0.75	%

¹ Management fees are payable at an annual rate of 1.00% of the average daily net assets of $200 million or less, and 0.75% of the average daily net assets of the Mid Cap Value Fund in excess of $200 million.

SI also acts as the administrative agent and transfer agent for the Funds, and as such performs administrative functions, transfer agency and dividend disbursing services, and the bookkeeping, accounting and pricing functions for each Fund. For these services, the Investment Manager receives the following:

	Administrative Fees (as a %  of net assets)
Rydex | SGI Equity Fund:
All Cap Value Fund	0.095%
Alpha Opportunity Fund	0.15%
Large Cap Core Fund	0.095%
Global Fund	0.05% + greater of 0.10% or $60,000
Global Institutional Fund	0.15%
Mid Cap Value Fund	0.095%
Mid Cap Value Institutional Fund	0.095%
Large Cap Concentrated Growth Fund	0.095%
Small Cap Growth Fund	0.095%
Small Cap Value Fund	0.095%
Rydex | SGI Large Cap Value Fund:
Large Cap Value Fund	0.095%
Large Cap Value Institutional Fund	0.095%
Rydex | SGI Mid Cap Growth Fund	0.095%
Minimum charge per Fund	$25,000  1
Certain out-of-pocket charges	Varies

¹ SI has agreed not to charge the $25,000 minimum fee on the All Cap Value Fund indefinitely.

SI is paid the following for providing transfer agent services to the Funds:

Annual per account charge	$5.00 - $8.00
Transaction fee	$0.60 -$1.10
Annual minimum charge (per Fund)	$25,000 1
Certain out-of-pocket charges	Varies

¹ SI has agreed not to charge the $25,000 minimum fee on the All Cap Value Fund indefinitely.

107

Notes to Financial Statements

March 31, 2010 (unaudited)

The investment advisory contracts for the following Funds provides that the total expenses be limited to a percentage of average net assets for each class of shares, exclusive of brokerage costs, dividends on securities sold short, expenses of other investment companies in which a Fund invests, interest, taxes, litigation, indemnification and extraordinary expenses (as determined under generally accepted accounting principles) The limits are listed below:

	Limit		Effective Date		Contract End Date
Rydex | SGI Equity Fund:
All Cap Value Fund - Class A	1.27	%	2/1/2010	2	1/31/2011
All Cap Value Fund - Class C	2.02	%	2/1/2010	2	1/31/2011
All Cap Value Fund - Institutional Class	1.02	%	2/1/2010	2	1/31/2011
Alpha Opportunity Fund - Class A	2.11	%	2/1/2010	1	1/31/2011
Alpha Opportunity Fund - Class B	2.86	%	2/1/2010	1	1/31/2011
Alpha Opportunity Fund - Class C	2.86	%	2/1/2010	1	1/31/2011
Alpha Opportunity Fund - Institutional Class	1.86	%	2/1/2010	1	1/31/2011
Global Institutional Fund	1.00	%	7/11/2008		1/31/2011
Mid Cap Value Institutional Fund	0.90	%	4/13/2009		3/31/2011
Large Cap Concentrated Growth Fund - Class A	1.35	%	1/11/2007		1/31/2011
Large Cap Concentrated Growth Fund - Class B	2.10	%	1/11/2007		1/31/2011
Large Cap Concentrated Growth Fund - Class C	2.10	%	1/11/2007		1/31/2011
Small Cap Value Fund - Class A	1.30	%	7/11/2008		1/31/2011
Small Cap Value Fund - Class C	2.05	%	7/11/2008		1/31/2011
Small Cap Value Fund - Institutional Class	1.05	%	7/11/2008		1/31/2011
Rydex | SGI Large Cap Value Fund:
Large Cap Value Fund - Class A	1.15	%	2/1/2010	3	1/31/2011
Large Cap Value Fund - Class B	1.90	%	2/1/2010	3	1/31/2011
Large Cap Value Fund - Class C	1.90	%	2/1/2010	3	1/31/2011
Large Cap Value Institutional Fund	0.96	%	2/1/2010	4	1/31/2011

¹ Prior to February 1, 2010 the expense limit was 1.95% for Class A shares, 2.70% for Class B & Class C shares and 1.70% for the Institutional Class of shares.

² Prior to February 1, 2010 the expense limit was 1.35% for Class A shares, 2.10% for Class C shares and 1.10% for the Institutional Class of shares.

³ Prior to February 1, 2010 the expense limit was 1.25% for Class A shares, 2.00% for Class B & Class C shares.

⁴ Prior to February 1, 2010 the expense ratio was 0.98%.

The Investment Manager is entitled to reimbursement by the All Cap Value Fund, Alpha Opportunity Fund, Global Institutional Fund, Mid Cap Value Institutional Fund, Large Cap Concentrated Growth Fund, Small Cap Value Fund, Large Cap Value Fund and the Large Cap Value Institutional Fund of fees waived or expenses reimbursed during any of the previous 36 months, beginning on the date of the expense limitation agreement, if on any day the estimated operating expenses are less than the indicated percentages. As of March 31, 2010, the amount of fees waived or expenses reimbursed in the All Cap Value Fund, Alpha Opportunity Fund, Global Institutional Fund, Mid Cap Value Institutional Fund, Select 25 Fund, Small Cap Value Fund, Large Cap Value Fund and the Large Cap Value Institutional Fund were $26,456, $107,762, $40,357, $147,699, $74,232, $40,631,$90,850 and $21,047, respectively. As of March 31, 2010, no amounts were recouped by the Investment Manager.

The Funds have adopted Distribution Plans related to the offering of Class A, Class B and Class C shares pursuant to Rule 12b-1under the Investment Company Act of 1940. The plans provide for payments at an annual rate of 1.00% of the average daily net assets of each Fund’s Class B and Class C shares, and 0.25% of the average daily net assets of each Fund’s Class A shares. Effective August 25, 2005, the Global Fund ceased charging 12b-1fees on Class B shares in accordance with the FINRA sales cap regulations. Effective August 1, 2007, the Rydex I SGI Large Cap Value Fund ceased charging 12b-1fees on Class B shares in accordance with the FINRA sales cap regulations. These fees may be reinstated at any time.

108

Notes to Financial Statements

March 31, 2010 (unaudited)

SDI retained underwriting commissions during the period ended October 16, 2009, on sales of shares after allowances to broker dealers in the following amounts:

	SDI Underwriting Commissions
Rydex | SGI Equity Fund:
All Cap Value Fund	$	32
Large Cap Core Fund		4,744
Global Fund		20,101
Mid Cap Value Fund		53,880
Large Cap Concentrated Growth Fund		856
Small Cap Growth Fund		991
Small Cap Value Fund		961
Rydex | SGI Large Cap Value Fund		5,586
Rydex I SGI Mid Cap Growth Fund		5,553

Rydex Distributors retained underwriting commissions during the period ended October 16, 2009 to March 31, 2010, on sales of shares after allowances to brokers and dealers in the following amounts:

	Rydex Distributors Underwriting Commissions
Rydex | SGI Equity Fund:
All Cap Value Fund	$	444
Large Cap Core Fund		2,341
Global Fund		2,274
Small Cap Growth Fund		583
Small Cap Value Fund		1,238
Rydex | SGI Large Cap Value Fund		5,108
Rydex | SGI Mid Cap Growth Fund		1,746

Certain officers and directors of the Funds are also officers and/or directors of Security Benefit Life Insurance Company, a subsidiary of Security Benefit Corporation, and its affiliates, which include Security Investors, Security Global Investors (SGI), SDI, and Rydex Distributors.

At March 31, 2010, Security Benefit Corporation and its subsidiaries owned over five percent of the outstanding shares of the Funds, as follows:

Fund	Percent of outstanding shares owned
Rydex | SGI Equity Fund:
All Cap Value Fund	36.81	%
Alpha Opportunity Fund	12.6	%
Large Cap Core Fund	14.58	%
Global Institutional Fund	100	%
Large Cap Concentrated Growth Fund	6.13	%
Small Cap Growth Fund	18.19	%
Small Cap Value Fund	19.54	%
Rydex | SGI Large Cap Value Fund:
Large Cap Value Fund	16.18	%
Large Cap Value Institutional Fund	100	%
Rydex | SGI Mid Cap Growth Fund	7.13	%

3. Investment Transactions

Investment transactions for the six months ended March 31, 2010, (excluding overnight investments and short-term commercial paper) were as follows:

	Purchases		Proceeds from Sales
Rydex | SGI Equity Fund:
All Cap Value Fund	$	496,726	$	166,709
Alpha Opportunity Fund		31,802,022		34,337,547
Large Cap Core Fund		95,863,163		100,350,932
Global Fund		130,090,937		151,370,724
Global Institutional Fund		5,924,935		6,755,334
Mid Cap Value Fund		208,875,617		142,562,895
Mid Cap Value Institutional Fund		72,929,915		39,765,744
Large Cap Concentrated Growth Fund		40,827,629		35,056,993
Small Cap Growth Fund		8,505,573		7,386,834
Small Cap Value Fund		5,139,421		2,759,500
Rydex | SGI Large Cap Value Fund:
Large Cap Value Fund		10,051,381		7,502,251
Large Cap Value Institutional Fund		268,417		444,534
Rydex | SGI Mid Cap Growth Fund		51,772,233		59,438,026

4. Open Futures Contracts

Open futures contracts for Alpha Opportunity Fund as of March 31, 2010, were as follows:

	Alpha Opportunity Fund S&P 500 Index Futures
Position	Long
Number of Contracts	12
Expiration Date	6-18-2010
Contract Amount	$3,440,158
Market Value	$3,495,600
Unrealized Gain	$55,442

5. Options Written

Information as to options written by the Funds during the six months ended March 31, 2010, and options outstanding at March 31, 2010 is provided below:

All Cap Value Fund Written Call Options

All Cap Value Fund Written Call Options	Number of Contracts		Premium Amount
Balance at September 30, 2009	28		$	1,701
Opened	1			308
Exercised	(2	)		(462	)
Expired	(27	)		(1,547	)
Balance at March 31,2010	—		$	—

All Cap Value Fund Written Call Options

	Number of Contracts		Premium Amount
Balance at September 30, 2009	5		$	532
Opened	2			236
Exercised	(2	)		(236	)
Expired	(5	)		(532	)
Balance at March 31, 2010	—		$	—

109

Notes to Financial Statements

March 31, 2010 (unaudited)

Mid Cap Value Fund Written Put Options Outstanding

Common Stock	Expiration Date	Exercise Price	Number of Contracts	Market Value
Group 1 Automotive, Inc.	04-16-10	25.00	2,112	$	21,120
Total call options outstanding (premiums received, $305, 623)			2,112	$	21,120

Mid Cap Value Fund Written Call Options

Common Stock	Number of Contracts		Premium Amount
Balance at September 30, 2009	25,125		$	2,200,451
Opened	6,576			1,391,352
Bought Back	(408	)		(74,662	)
Exercised	(7,661	)		(1,769,135	)
Expired	(23,632	)		(1,748,006	)
Balance at March 31, 2010	—		$	—

Mid Cap Value Fund Written Put Options

Common Stock	Number of Contracts		Premium Amount
Balance at September 30, 2009	6,939		$	790,339
Opened	4,839			718,929
Exercised	(2,727	)		(413,306	)
Expired	(6,939	)		(790,339	)
Balance at March 31, 2010	2,112		$	305,623

Mid Cap Value Institutional Fund standing

Written Put Options Outstanding

Common Stock	Expiration Date	Exercise Price		Number of Contracts	Market Value
Group 1 Automotive, Inc.	04-16-10	$	25.00	680	$	6,800
Total call options outstanding (premiums received, $98,402)				680	$	6,800

Mid Cap Value Institutional Fund Written Call Options

Common Stock	Number of Contracts		Premium Amount
Balance at September 30, 2009	6,637		$	519,263
Opened	2,057			440,612
Bought Back	(24	)		(4,392	)
Exercised	(1,645	)		(397,011	)
Expired	(7,025	)		(558,472	)
Balance at March 31, 2010	—		$	—

Mid Cap Value Institutional Fund Written Put Options

	Number of Contracts		Premium Amount
Balance at September 30, 2009	683		$	81,300
Opened	1,588			236,052
Exercised	(908	)		(137,650	)
Expired	(683	)		(81,300	)
Balance at March 31, 2010	680		$	98,402

Small Cap Value Fund Written Put Options Outstanding

	Expiration Date	Exercise Price		Number of Contracts	Market Value
Common Stock Group 1 Automotive, Inc.	04-16-10	$	25.00	15	$	150
Total call options outstanding (premiums received, $2,172)				15	$	150

Small Cap Value Fund Written Call Options

	Number of Contracts		Premium Amount
Balance at September 30, 2009	134		$	12,682
Opened	41			9,012
Bought Back	(1	)		(183	)
Exercised	(41	)		(11,320	)
Expired	(133	)		(10,191	)
Balance at March 31, 2010	—		$	—

Small Cap Value Fund Written Put Options

	Number of Contracts		Premium Amount
Balance at September 30, 2009	75		$	7,544
Opened	3			6,318
Exercised	(6	)		(978	)
Expired	(91	)		(10,172	)
Balance at March 31, 2010	15		$	2,172

110

Notes to Financial Statements

March 31, 2010 (unaudited)

6. Derivative Investment Holdings Categorized by Risk Exposure

U.S. generally accepted accounting principles requires enhanced disclosures to enable investors to better understand how and why the Funds use derivative instruments, how these derivative instruments are accounted for and their effects on the Funds’ financial position and results of operations. None of the derivatives currently held by the Funds are being used as hedging instruments.

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of March 31, 2010:

Location on the Statements of Assets and Liabilities

Derivative Investments Type	Asset Derivatives	Liability Derivatives
Futures - equity contracts Options - equity contracts	Receivable: Variation margin Investments, at value	Payable: Variation margin Outstanding options written, at value

The following table sets forth the fair value of the Funds’ derivative contracts by primary risk exposure as of March 31, 2010:

Asset Derivative Investments Value

Fund	Futures Equity Contracts*		Options Equity Contracts		Total Value at March  31, 2010
Rydex | SGI Equity Fund:
Alpha Opportunity Fund	$	55,442	$	—	$	55,442

Liability Derivative Investments Value

Fund	Futures Equity Contracts*		Options Equity Contracts		Total Value at March  31, 2010
Rydex | SGI Equity Fund:
Mid Cap Value Fund	$	—	$	21,120	$	21,120
Mid Cap Value Institutional Fund		—		6,800		6,800
Small Cap Value Fund		—		150		150

* Includes cumulative appreciation (depreciation) of futures contracts as reported in the Notes to Financial Statements. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

111

Notes to Financial Statements

March 31, 2010 (unaudited)

The following is a summary of the location of derivative investments on the Funds’ Statements of Operations as of March 31, 2010:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Futures - equity contracts	Net realized gain (loss) on futures contracts and change in net unrealized appreciation (depreciation) on futures contracts
Options - equity contracts	Net realized gain (loss) on options written and change in net unrealized appreciation (depreciation) on options written

The following is a summary of the Fund’s realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized in the Statements of Operations categorized by primary risk exposure as of March 31, 2010:

Realized Gain (Loss) on Derivative Investments Recognized in the Statement of Operations

Fund	Futures Equity Contracts		Options Equity Contracts		Total Value at March  31, 2010
Rydex | SGI Equity Fund:
All Cap Value Fund	$	—	$	2,078	$	2,078
Alpha Opportunity Fund		442,780		—		442,780
Mid Cap Value Fund		—		2,579,834		2,579,834
Mid Cap Value Institutional Fund		—		642,212		642,212
Small Cap Value Fund		—		21,005		21,005

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized in the Statement of Operations

Fund	Futures Equity Contracts		Options Equity Contracts			Total Value at March  31, 2010
Rydex | SGI Equity Fund:
All Cap Value Fund	$	—	$	(623	)	$	(623	)
Alpha Opportunity Fund		20,273		—			20,273
Mid Cap Value Fund		—		(282,461	)		(282,461	)
Mid Cap Value Institutional Fund		—		72,855			72,855
Small Cap Value Fund		—		(1,670	)		(1,670	)

112

Notes to Financial Statements

March 31, 2010 (unaudited)

7. Federal Tax Matters

For federal income tax purposes, the amounts of unrealized appreciation (depreciation) on investments at March 31, 2010, were as follows:

	Gross unrealized appreciation		Gross unrealized (depreciation)			Net unrealized appreciation (depreciation)
Rydex | SGI Equity Fund:
All Cap Value Fund	$	385,474	$	(23,366	)	$	362,108
Alpha Opportunity Fund		752,171		(1,128,456	)		(376,285	)
Large Cap Core Fund		28,474,923		(10,383,281	)		18,091,642
Global Fund		9,510,850		(381,986	)		9,128,864
Global Institutional Fund		400,808		(17,111	)		383,697
Mid Cap Value Fund		177,822,860		(58,113,337	)		119,709,523
Mid Cap Value Institutional Fund		63,860,850		(4,404,461	)		59,456,389
Large Cap Concentrated Growth Fund		4,653,932		(72,473	)		4,581,459
Small Cap Growth Fund		3,583,794		(263,039	)		3,320,755
Small Cap Value Fund		1,268,497		(204,425	)		1,064,072
Rydex | SGI Large Cap Value Fund
Large Cap Value Fund		7,719,770		(4,194,167	)		3,525,603
Large Cap Value Institutional Fund		392,625		(147,773	)		244,852
Rydex | SGI Mid Cap Growth Fund		13,812,261		(393,346	)		13,418,915

The tax character of distributions paid during the fiscal year ended September 30, 2009 is as follows:

2009	Ordinary Income		Capital Gain		Return of Capital		Total
Rydex | SGI Equity Fund:
Large Cap Core Fund	$	392,434	$	—	$	639,278	$	1,031,712
Global Fund		239,128		—		683,073		922,201
Global Institutional Fund		21,309		—		—		21,309
Mid Cap Value Fund		3,483,597		86,413,567		—		89,897,164
Mid Cap Value Institutional Fund		1,082,491		—		—		1,082,491
Small Cap Growth Fund		—		97,806		—		97,806
Small Cap Value Fund		84,923		—		—		84,923
Rydex | SGI Large Cap Value Fund:
Large Cap Value Fund		620,709		427,734		—		1,048,443
Large Cap Value Institutional Fund		19,621		—		—		19,621
Rydex | SGI Mid Cap Growth Fund		—		651,342		11,546		662,888

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

113

Notes to Financial Statements

March 31, 2010 (unaudited)

As of September 30, 2009, the components of distributable earnings on a tax basis were:

		Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Accumulated Capital and Other Losses*			Unrealized Appreciation (Depreciation)**			Total Accumulated Earnings/(Deficit)
Rydex | SGI Equity Fund:
All Cap Value Fund		$	3,576	$	—	$	(22,756	)	$	147,684		$	128,504
Alpha Opportunity Fund			—		—		(13,628,594	)		(1,140,844	)		(14,769,438	)
Large Cap Core Fund			—		—		(40,519,164	)		404,964			(40,114,200	)
Global Fund			—		—		(55,652,487	)		13,899,193			(41,753,294	)
Global Institutional Fund			61,382		—		(2,291,544	)		574,392			(1,655,770	)
Mid Cap Value Fund			1,105,623		—		(75,200,073	)		16,703,412			(57,391,038	)
Mid Cap Value Institutional Fund	��		8,586,009		—		(45,564	)		36,923,438			45,463,883
Large Cap Concentrated Growth Fund			—		—		(19,996,566	)		3,293,888			(16,702,678	)
Small Cap Growth Fund			—		—		(8,880,816	)		2,636,750			(6,244,066	)
Small Cap Value Fund			133,540		5,308		—			718,224			857,072
Rydex | SGI Large Cap Value Fund:
Large Cap Value Fund			396,085		—		(16,736,934	)		(2,400,325	)		(18,741,174	)
Large Cap Value Institutional Fund			21,709		—		(317,941	)		(44,683	)		(340,915	)
Rydex | SGI Mid Cap Growth Fund			—		—		(45,007,835	)		11,250,419			(33,757,416	)

* Certain Funds had net capital loss carryovers and deferred post October losses as identified elsewhere in the Notes to the Financial Statements.

** The differences between book-basis and tax-basis unrealized appreciation (depreciation) are attributable primarily to the tax deferral of wash sale losses, the differences between book and tax basis passive foreign investment companies and bond discount accretion.

114

Notes to Financial Statements

March 31, 2010 (unaudited)

For the year ended September 30, 2009, the capital loss carryovers utilized or expired and the accumulated net realized loss on sales of investments for federal income tax purposes which are available to offset future taxable gains are shown in the table below. The post-October losses that are deferred to the first day of the next fiscal year are as follows:

	Capital  Loss Carryovers Utilized		Capital Loss Carryovers Expired		Remaining Capital Loss Carryovers		Expires In	Deferred Post- October Losses
Rydex | SGI Equity Fund: All Cap Value Fund	$	—	$	—	$	4,080	2017	$	18,676
Alpha Opportunity Fund	$	—	$	—	$	8,215,458	2017	$	5,413,137
Large Cap Core Fund	$	—	$	—	$	10,341,572	2017	$	30,177,593
Global Fund	$	—	$	—	$	674,209	2010	$	17,677,910
						37,300,368	2017		37,300,368
	$	—	$	—	$	37,974,577
Global Institutional Fund	$	—	$	—	$	1,263,838	2017	$	1,027,707
Mid Cap Value Fund	$	—	$	—	$	3,357,672	2017	$	71,842,401
Mid Cap Value Institutional Fund	$	—	$	—	$	—		$	45,464
Large Cap Concentrated Growth Fund*	$	—	$	2,412,936	$	—	2009	$	6,543,280
		—		—		2,582,076	2010
		—		—		3,390,876	2011
		—		—		38,639	2012
		—		—		7,441,695	2017
	$	—	$	2,412,936	$	13,453,286
Small Cap Growth Fund	$	—	$	—	$	4,589,755	2017	$	4,291,061
Rydex | SGI Large Cap Value Fund:
Large Cap Value Fund	$	—	$	—	$	7,053,807	2017	$	9,683,127
Large Cap Value Institutional Fund	$	—	$	—	$	70,714	2017	$	247,227
Rydex | SGI Mid Cap Growth Fund	$	—	$	567,035	$	—	2009	$	17,668,750
						567,035	2010
						16,944	2011
						26,755,106	2017
	$	—	$	567,035	$	27,339,085

* Subject to limitations pursuant to Section 382 of the Internal Revenue Code.

115

Notes to Financial Statements

March 31, 2010 (unaudited)

Net investment income and net realized gains (losses) may differ for financial statement and tax purposes because of temporary or permanent book/tax differences. These differences are primarily due to post-October losses, losses deferred due to wash sales, foreign currency gains and losses, and the “mark-to-market” of certain passive foreign investment companies (PFICs) for tax purposes. To the extent these differences are permanent, reclassifications are made to the appropriate equity accounts in the period that the differences arise.

8. Affiliated Transactions*

Investments representing 5% or more of the outstanding voting securities of a portfolio company of a Fund results in that portfolio company being considered an affiliated company of such Fund, as defined in the 1940 Act. The aggregate market value of all securities of affiliated companies held in the Mid Cap Value Fund of the Rydex I SGI Equity Fund as of March 31, 2010 amounted to $60,688,684, which represents 5.2% of net assets. There were no affiliated companies held in any other Fund. Transactions in the Mid Cap Value Fund during the six months ended March 31, 2010, in which the portfolio company is an “affiliated person” are as follows:

	Balance 9-30-09		Gross Additions		Gross Reductions			Balance 3-31-10		Realized Gain/(Loss)			Investment Income
Hydrogen Corporation (Shares)		1,265,700		—		—			1,285700		—			—
Hydrogen Corporation (Cost)	$	5,225,373	$	—	$	—		$	5,225,373	$	—		$	—
IXYS Corporation (Shares)		2,361,300		—		(21,300	)		2,340,300		—			—
IXYS Corporation (Cost)	$	20,328,503	$	—	$	(146,971	)	$	20,181,532	$	34,931		$	242,704
Maxwell Technologies, Inc. (Shares)		1,446,000		31,200		—			1,477,200		—			—
Maxwell Technologies, Inc. (Cost)	$	15,721,564	$	508,560	$	—		$	16,230,124	$	—		$	—
Power-One, Inc. (Shares)		5,626,300		91,000		(595,100	)		5,122,200		—			—
Power-One, Inc. (Cost)	$	26,663,702	$	395,850	$	(4,694,814	)	$	22,364,738	$	(3,349,888	)	$	—
Quixote Corporation (Shares)		469,100		—		(469,100	)		—		—			—
Quixote Corporation (Cost)	$	9,097,228	$	—	$	(9,097,228	)	$	—	$	(6,104,369	)	$	—
Thermoenergy Corporation (Shares)		3,582,432		—		(880,593	)		2,701,839		.			.
Thermoenergy Corporation (Cost)	$	2,774,021	$	—	$	(830,886	)	$	1,943,135	$	(511,604	)	$	—

* As a result of the Rydex I SGI Mid Cap Values Funds’ beneficial ownership of the common stock of these portfolio companies, applicable regulations require that the Fund states that it may be deemed an affiliate of the respective portfolio company. The Fund disclaims that the “affiliated persons” are affiliates of the Distributor, Advisor, Fund or any other client of the Advisor.

9. Alpha Opportunity Fund

Alpha Opportunity Fund contracted with Lehman Brothers International Europe (“LBIE”) to provide prime brokerage services related to the Fund’s short selling. On September 15, 2008, LBIE was placed into administration and a third party administrator has been named (the “Administrator”). The Fund’s exposure to LBIE consists of short sale proceeds held by LBIE, and restricted long positions held at the Fund’s custodian, as collateral for said short sales. The Fund has delivered a Notice of Termination of Loans to LBIE and the Administrator. The Fund is working to resolve these issues with LBIE and the Administrator. As of March 31, 2010, included in the statement of net assets are the value of restricted long positions of $7,602,331, restricted cash representing the value of short sale proceeds of $4,139,648 and liabilities for short sales of $7,341,377 representing the value of securities sold short at the date of termination. Until such time as the liability for short sales is settled and all restrictions are removed, the Fund cannot sell such restricted long positions and/or utilize the restricted cash balances to achieve the Fund’s investment objectives and/or meet Fund redemption or other Fund obligations. As of the close of business on October 3, 2008, and until further notice, the Fund is not accepting subscriptions for shares from either new or existing shareholders.

116

Notes to Financial Statements

March 31, 2010 (unaudited)

10. Fair Value of Financial Instruments

In accordance with FASB ASC 820, Fair Value Measurements and Disclosure (ASC 820) (formerly known as FASB 157) , fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 establishes a three-tier hierarchy to distinguish between (1) inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances (unobservable inputs) and to establish classification of fair value measurements for disclosure purposes. Various inputs are used in determining the value of the Funds’ investments. The inputs are summarized in the three broad levels listed below:

Level 1 -	quoted prices in active markets for identical securities. The types of assets and liabilities carried at Level 1 fair value generally are government and agency securities, equities listed in active markets, certain futures and certain options.
Level 2 -	other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). The types of assets and liabilities carried at Level 2 fair value generally are municipal bonds, certain mortgage and asset-backed securities, certain corporate debt, commercial paper and repurchase agreements.
Level 3 -	significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The types of assets and liabilities carried at Level 3 fair value generally are certain mortgage and asset-backed securities, certain corporate debt and certain derivatives.

Observable inputs are those based on market data obtained from sources independent of the Fund, and unobservable inputs reflect the Fund’s own assumptions based on the best information available.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk association with investing in those securities.

117

Notes to Financial Statements

March 31, 2010 (unaudited)

The following table provides the fair value measurement of applicable Fund assets by level within the fair value hierarchy as of March 31, 2010. These assets are measured on a recurring basis.

			LEVEL 1		LEVEL 2		LEVEL 3
Description	Total		Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs
Rydex 1 SGI Equity Fund:
All Cap Value Fund
Common Stocks	$	2,524,219	$	2,524,219	$	—	$	—
Alpha Opportunity Fund
ASSETS:
Common Stocks		12,513,481		12,513,481		—		—
U.S. Government Sponsored Agency Bonds & Notes		2,299,813		—		2,299,813		—
Short Term Investments		827,114		_		827,114		_
Repurchase Agreement		1,910,272		—		1,910,272		—
Futures Contracts		55,442		55,442		—		—
Total		17,606,122		12,568,923		5,037,199		—
LIABILITIES:
Common Stocks (sold short)		4,163,889		474,649		—		3,689,240
Foreign Stocks (sold short)		3,651,329		—		—		3,651,329
Foreign Rights (sold short)		808		—		—		808
Total		7,816,026		474,649		—		7,341,377
Large Cap Core Fund
Common Stocks		197,952,388		197,952,388		—		—
Global Fund
Common Stocks		46,782,597		46,782,597		—		—
Foreign Stocks		49,353,305		49,353,305		—		—
Short Term Investments		3,192		3,192		—		—
Total		96,139,094		96,139,094		—		—
Global Institutional Fund
Common Stocks		2,059,847		2,059,847		—		—
Foreign Stocks		2,171,930		2,171,930		—		—
Rights		142		142		—		—
Total		4,231,919		4,231,919		—		—
Mid Cap Value Fund
ASSETS:
Common Stocks		1,106,590,548		1,106,590,548		—		—
Warrants		1,571		—		1,571		—
Convertible Bonds		6,137,000		—		6,137,000		—
Commercial Paper		57,278,763		—		57,278,763		—
Total		1,170,007,882		1,106,590,548		63,417,334		—

(continued)

118

Notes to Financial Statements

March 31, 2010 (unaudited)

(continued)			LEVEL 1		LEVEL 2		LEVEL 3
Description	Total		Quoted prices in active  markets for identical assets		Significant other observable inputs		Significant unobservable inputs
LIABILITIES:
Options (net of premiums received)	$	284,503	$	284,503	$	—	$	—
Mid Cap Value Institutional Fund
ASSETS:
Common Stocks		379,286,000		379,286,000		—		—
Repurchase Agreement		22,999,517		—		22,999,517		—
Total		402,285,517		379,286,000		22,999,517		—
LIABILITIES:
Options (net of premiums received)		91,602		98,602		—		—
Large Cap Concentrated Growth Fund
Common Stocks		42,009,802		42,009,802		—		—
Small Cap Growth Fund
Common Stocks		15,846,480		15,846,480		—		—
Small Cap Value Fund
ASSETS:
Common Stocks		7,556,667		7,556,667		—		—
LIABILITIES:
Options (net of premiums received)		2,022		2,022		—		—
Rydex 1 SGI Large Cap Value Fund:
Large Cap Value Fund
Common Stocks		52,862,481		52,862,481		—		—
Large Cap Value Institutional Fund
Common Stocks		2,879,669		2,879,669		—		—
Rydex 1 SGI Mid Cap Growth Fund
Common Stocks		82,382,525		82,382,525		—		—
Warrants		482		—		482		—
Total		82,383,007		82,382,525		482		—

119

Notes to Financial Statements

March 31, 2010 (unaudited)

Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value for the six months ended March 31, 2010:

	LEVEL 3 - Fair value measurement using  significant unobservable inputs
	Securities		Derivatives		Total
Alpha Opportunity Fund
LIABILITIES:
Beginning Balance	$	7,341,377	$	—	$	7,341,377
Total realized gains or losses included in earnings
Total unrealized gains or losses included in earnings		—		—		—
Purchases, sales, issuances, and settlements (net)		—		—		—
Transfers in and/or out of Level 3 Ending Balance		—		—		—
	$	7,341,377	$	—	$	7,341,377

11. Other Liabilities

Rydex I SGI Equity Fund-Mid Cap Value Fund, Rydex I SGI Equity Fund-Mid Cap Value Institutional Fund and Rydex I SGI Equity Fund-Large Cap Core Fund each wrote put option contracts through Lehman Brothers Inc., (“Lehman”) that were exercised prior to the option contracts’ expiration and prior to the bankruptcy filing by Lehman, during September, 2008. However, these transactions have not settled and the securities have not been delivered to the Funds as of March 31, 2010.

Although the ultimate resolution of these transactions is uncertain, the Funds have recorded a liability on their respective books equal to the difference between the strike price on the put options and the market price of the underlying security on the exercise date. The amount of the liability recorded by the Funds as of March 31, 2010 was $473,594 for Rydex I SGI Equity Fund-Mid Cap Value Fund, $15,940 for Rydex I SGI Equity Fund-Mid Cap Value Institutional Fund, and $18,615 for Rydex I SGI Equity Fund-Large Cap Core Fund.

12. New Accounting Pronouncements

In January 2010, the Financial Accounting Standards Board issued an Accounting Standards Update, Improving Disclosures about Fair Value Measurements, which introduces new disclosure requirements and clarifies certain existing disclosure requirements around fair value measurements currently presented in Note 10. The new disclosures and clarifications of existing disclosures are generally effective for the Funds’ year ending September 30, 2010 and interim periods therein. Management is evaluating the impact of this update on its current disclosures.

13. Subsequent Events

Management has evaluated events or transactions that may have occurred since March 31, 2010, that would merit recognition of disclosure in the financial statements.

120

Directors’ Disclosure

(unaudited)

Director Approval of Investment Advisory Agreement

At an in-person meeting of the Fund’s Boards of Directors held on November 9-10, 2009, called for the purpose of, among other things, voting on the renewal of the investment advisory and sub-advisory agreements applicable to the Funds, the Fund’s Board of Directors, including the Independent Directors, unanimously approved the continuation for a one year period of the investment advisory agreement between the Funds and Security Investors, LLC (“SI”). In reaching this conclusion, the Directors requested and obtained from SI and each investment sub-adviser such information as the Directors deemed reasonably necessary to evaluate the proposed renewal of the agreements. Each Fund’s Board of Directors carefully evaluated this information and was advised by legal counsel with respect to its deliberations.

In considering the proposed continuation of the investment advisory agreements, the Independent Directors evaluated a number of considerations, including, among others, (1) the nature, extent, and quality of the advisory services to be provided by SI; (2) the investment performance of the Funds and SI; (3) the costs of services provided by SI and the profits derived by SI from its relationship with the Funds; (4) a comparison of each Funds’ expense ratios and those of similarly situated funds; (5) benefits (such as soft dollars) to SI and its affiliates from their relationship with the Funds (and any corresponding benefits to the Funds); (6) the expense limitation/fee waiver agreements between SI and certain of the Funds; and (7) other factors of the Board deemed to be relevant. Each Board of Directors also took into account other considerations that it believed, in light of the legal advice furnished to the Independent Directors by their independent legal counsel and the Directors’ own business judgment, to be relevant. Following its review, each Fund’s Board of Directors determined that the investment advisory agreement will enable Fund shareholders to obtain high quality services at a cost that is appropriate, reasonable and in the best interests of shareholders. Accordingly, the Directors, including the Independent Directors, unanimously approved the renewal of the investment advisory agreements based upon the following considerations, among others:

• The nature, extent and quality of the advisory services to be provided. Each Board of Directors concluded that SI is capable of providing high quality services to the Funds, as indicated by the nature and quality of services provided in the past, SI’s management capabilities demonstrated with respect to the Funds and other mutual funds managed by SI, the professional qualifications and experience of SI’s and SI’s investment and management oversight processes. The Directors also determined that SI proposed to provide investment and related services

that were of the same quality and quantity as services provided to the Funds in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company business and investor needs.

• The investment performance of the Fund. With respect to the Funds, the Directors concluded on the basis of information compiled by Morningstar that SI and the investment sub-advisers had achieved investment performance that was acceptable, and competitive or superior relative to comparable funds over trailing periods.

• The cost of advisory services provided and the level of profitability. On the basis of each Board’s review of the fees to be charged by SI for investment advisory and other services, and the estimated profitability of SI’s relationship with each Fund, each Board concluded that the level of investment advisory fees and SI’s profitability are appropriate in light of the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between each Fund and SI and its affiliates. On the basis of comparative information compiled by Morningstar, the Directors determined that the advisory fees and estimated overall expense ratio of each Fund are consistent with, and often below, industry medians, particularly with respect to mutual funds of comparable size.

• Whether the advisory fees reflect economies of scale. The directors concluded that the Funds’ investment advisory fees appropriately reflect the current economic environment for SI and the competitive nature of the mutual fund market.

• The extent to which economies of scale will be realized as the Fund grows. While the Funds’ investment advisory fees do not reduce should Fund assets grow meaningfully, the Directors determined that the investment advisory fees payable by the Funds already reflect potential future economies of scale to some extent by virtue of their competitive levels (determined with reference to industry standards as reported by Lipper and SI’s estimated profitability at current or foreseeable asset levels. The Directors also considered that they will have the opportunity to periodically re-examine whether each Fund has achieved economies of scale, and the appropriateness of investment advisory fees payable to SI in the future.

121

Directors’ Disclosure

(unaudited)

• Benefits (such as soft dollars) to SI from its relationship with the Funds (and any corresponding benefits to the Funds). The Directors concluded that other benefits described by SI and the investment sub-advisers from their relationships with the Funds, including “soft dollar” benefits in connection with the Funds’ brokerage transactions, are reasonable and fair, and consistent with industry practice and the best interests of the Funds and their shareholders. In addition, the Directors determined that the administration, transfer agency and fund accounting fees paid by the Funds to SI are reasonable, fair and in the best interests of Funds’ shareholders in light of the nature and quality of the services provided, the associated costs, and the necessity of the services for the Funds’ operations.

• Other considerations: In approving the investment advisory and sub-advisory agreements the Directors determined that SI has made a substantial commitment to the recruitment and retention of high quality personnel, and maintains the financial, compliance and operational resources reasonably necessary to manage the Funds in a professional manner that is consistent with the best interests of the Funds and their shareholders. In this regard, the Directors favorably considered the compliance track record of the Funds and SI. The Directors also concluded that SI has made a significant entrepreneurial commitment to the management and success of the Funds, which entails a substantial financial and professional commitment, including investment advisory fee waivers and expense limitation arrangements with respect to the Funds to the benefit of Funds’ shareholders.

122

Directors (unaudited)

The business address of each director is One Security Benefit Place, Topeka, KS 66636-0001

Name (Date of Birth) Year Elected***	Principal Occupation(s) During Past 5 Years
Donald A. Chubb, Jr. ** (12-14-46) 1994	Business Broker- Griffith & Blair Realtors
Harry W. Craig, Jr. ** (05-11-39) 2004	Chairman, CEO, Secretary & Director - The Martin Tractor Company, Inc.
Jerry B. Farley ** (09-20-46) 2005	President - Washburn University
Penny A. Lumpkin ** (08-20-39) 1993	Partner - Vivian’s Gift Shop (Corporate Retail) Vice President - Palmer Companies, lnc.(Small Business and Shopping Center Development) Vice President - PLB (Real Estate Equipment Leasing)
Maynard F. Oliverius ** (12-18-43) 1998	President & Chief Executive Officer - Stormont-Vail Healthcare
Richard M. Goldman * (03-04-61) 2008 (President, Director & Chairman of the Board)	Senior Vice President - Security Benefit Corporation Director, First Security Benefit Life Insurance and Annuity Company of New York President, Security Investors, LLC President & Director, Security Global Investors, LLC CEO, President, & Director, Rydex Distributors, Inc. President & CEO, Rydex Holdings, LLC CEO & Director, Padco Advisors, Inc. CEO & Director, Padco Advisors II, Inc. Director, Rydex Fund Services, Inc. Director, Security Distributors, Inc. (2007- 2009) Managing Member, RM Goldman Partners, LLC (2006-2007) President and CEO, ForstmannLeff (2003-2005)

* This director is deemed to be an “interested person” of the Funds under the Investment Company Act of 1940, as amended, by reason of his position with the Funds’ Investment Manager and/or the parent of the Investment Manager. This director is also an officer of the funds.

** These directors serve on the Fund’s joint audit committee, the purpose of which is to meet with the independent registered public accounting firm, to review the work of the independent registered public accounting firm, and to oversee the handling by Security Investors of the accounting and financial reporting functions for the Funds.

*** Each director oversees 30 Security Funds portfolios and serves until the next annual meeting, or until a successor has been duly elected and qualified.

123

Officers (unaudited)

The business address of each officer is One Security Benefit Place, Topeka, KS 66636-0001

Name (Date of Birth) Title - Year Elected	Principal Occupation(s) During Past 5 Years
Mark P. Bronzo (11-01-60) Vice President—2008	Portfolio Manager, Security Investors, LLC Managing Director & Chief Compliance Officer, Nationwide Separate Accounts LLC (2003 - 2008)
Brenda M. Harwood (11-03-63) Chief Compliance Officer - 2004 Treasurer - 1988	Vice President and Chief Compliance Officer, Security Investors, LLC Chief Compliance Officer, Security Global Investors, LLC Assistant Vice President, Security Benefit Life Insurance Company (2004-2009) Vice President & Assistant Treasurer (2006-2009) & Director, Security Distributors, Inc. (2004-2009)
Amy J. Lee (06-05-61) Secretary - 1987 Vice President - 2007	Secretary - Security Investors, LLC Secretary & Chief Compliance Officer - Security Distributors, Inc. Vice President, Associate General Counsel & Assistant Secretary - Security Benefit Life Insurance Company & Security Benefit Corporation Secretary, Security Global Investors, LLC Associate General Counsel, First Security Benefit Life Insurance and Annuity of New York Secretary, Security Financial Resources, Inc. Vice President & Assistant Secretary, Rydex Series Funds, Rydex ETF Trust, Rydex Dynamic Funds, and Rydex Variable Trust Secretary, Rydex Holdings, LLC Vice President and Secretary, Rydex Advisory Services, LLC President and Secretary, Advisor Research Center, Inc. Director, Brecek & Young Advisors, Inc. (2004-2008)
Mark Mitchell (08-24-64) Vice President - 2003	Vice President & Portfolio Manager - Security Investors, LLC Vice President & Portfolio Manager - Security Benefit Life Insurance Company
Joseph C. O’Connor (07-15-60) Vice President - 2008	Portfolio Manager, Security Investors, LLC Managing Director, Nationwide Separate Accounts LLC (2003 - 2008)
Christopher Phalen (11-9-70) Vice President - 2002	Vice President, Security Investors, LLC Vice President, Security Benefit Corporation Vice President, Security Benefit Life Insurance Company Vice President, Security Global Investors, LLC Chief Investment Officer-Fixed Income, First Security Benefit Life Insurance and Annuity Company of New York Vice President, PADCO Advisors II, Inc. Vice President, Rydex Advisory Services, LLC Vice President, Rydex Specialized Products, LLC Vice President, Rydex Fund Services, Inc.
Daniel W. Portanova (10-02-60) Vice President - 2008	Portfolio Manager, Security Investors, LLC Managing Director, Nationwide Separate Accounts LLC (2003 - 2008)
James P. Schier (12-28-57) Vice President - 1998	Senior Portfolio Manager - Security Investors, LLC; Vice President & Senior Portfolio Manager - Security Benefit Life Insurance Company
Christopher D. Swickard (10-09-65) Assistant Secretary - 1996	Assistant Secretary - Security Investors, LLC and Security Distributors, Inc. Second Vice President & Assistant General Counsel - Security Benefit Corporation and Security Benefit Life Insurance Company Assistant General Counsel, First Security Benefit Life Insurance and Annuity Company of New York
David G. Toussaint (10-10-66) Vice President - 2001	Vice President & Portfolio Manager - Security Investors, LLC Assistant Vice President & Portfolio Manager - Security Benefit Life Insurance Company (2005 - 2009)

* Officers serve until the next annual meeting or until a successor has been duly elected and qualified.

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Rydex | SGI Privacy Policies

Rydex Funds, Rydex I SGI Funds, Rydex Investments, Rydex Distributors, Inc., Security Investors, LLC, Security Global Investors, LLC, Security Distributors, Inc. and Rydex Advisory Services (Collectively “Rydex”)

Our Commitment to You

When you become a Rydex I SGI investor, you entrust us with not only your hard-earned money but also with personal and financial information about you. We recognize that your relationship with us is based on trust and that you expect us to act responsibly and in your best interests. Because we have access to this private information about you, we hold ourselves to the highest standards in its safekeeping and use. This means, most importantly, that we do not sell client information to anyone—whether it is your personal information or if you are a current or former Rydex I SGI client.

The Information We Collect About You

In the course of doing business with shareholders and investors, we collect nonpublic personal information about you. You typically provide personal information when you complete a Rydex I SGI account application or when you request a transaction that involves Rydex and Rydex I SGI funds or one of the Rydex I SGI affiliated companies. “Nonpublic personal information” is personally identifiable private information about you. For example, it includes information regarding your name and address, Social Security or taxpayer identification number, assets, income, account balance, bank account information and investment activity (e.g., purchase and redemption history).

How We Handle Your Personal Information

As emphasized above, we do not sell information about current or former clients or their accounts to third parties. Nor do we share such information, except when necessary to complete transactions at your request or to make you aware of related investment products and services that we offer. Additional details about how we handle your personal information are provided below. To complete certain transactions or account changes that you direct, it may be necessary to provide identifying information to companies, individuals or groups that are not affiliated with Rydex I SGI. For example, if you ask to transfer assets from another financial institution to Rydex I SGI, we will need to provide certain information about you to that company to complete the transaction. To alert you to other Rydex I SGI investment products and services, we may share your information within the Rydex I SGI family of affiliated companies. This would include, for example, sharing your information within Rydex I SGI so we can make you aware of new Rydex and Rydex I SGI funds or the services offered through another Rydex I SGI affiliated company. In certain instances, we may contract with nonaffiliated companies to perform services for us. Where necessary, we will disclose information we have about you to these third parties. In all such cases, we provide the third party with only the information necessary to carry out its assigned responsibilities and only for that purpose. And we require these third parties to treat your private information with the same high degree of confidentiality that we do. In certain instances, we may share information with other financial institutions regarding individuals and entities in response to the U.S.A. Patriot Act. Finally, we will release information about you if you direct us to do so, if we are compelled by law to do so or in other circumstances permitted by law.

Opt Out Provisions

We do not sell your personal information to anyone. The law allows you to “opt out” of only certain kinds of information sharing with third parties. The firm does not share personal information about you with any third parties that triggers this opt-out right. This means YOU ARE ALREADY OPTED OUT.

How We Protect Privacy Online

Our concern for the privacy of our shareholders also extends to those who use our web site, www.rydex-sgi.com. Our web site uses some of the most secure forms of online communication available, including encryption technology, Secure Socket Layer (SSL) protocol, firewalls and user names and passwords. These technologies provide a high level of security and privacy when you access your account information or initiate online transactions. The Rydex I SGI web site offers customized features that require our use of “http cookies”—tiny pieces of information that we ask your browser to store. However, we make very limited use of these cookies. We only use cookies for session management and security features on the Rydex I SGI web site. We do not use them to pull data from your hard drive, to learn your email address, or to view data in cookies created by other web sites. We will not share the information in our cookies or give others access to it. See the legal information area on our web site for more details about web site security and privacy features.

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Rydex I SGI Privacy Policies (continued)

How We Safeguard Your Personal Information

We restrict access to nonpublic personal information about shareholders to our employees and in some cases to third parties (for example, the service providers described above) as permitted by law. We maintain strict physical, electronic and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

We’ll Keep You Informed

As required by federal law, we will notify shareholders of our privacy policy annually. We reserve the right to modify this policy at any time, but rest assured that if we do change it, we will tell you promptly. You will also be able to access our privacy policy from our web site at www.rydex-sgi.com. Should you have any questions regarding our privacy policy, contact us at 800.820.0888 or 301.296.5100.

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Other Information

Pending Acquisition Transaction

On February 16, 2010, Security Benefit Corporation (“SBC”), the parent company of PADCO Advisors, Inc., PADCO Advisors II, Inc. and Security Investors, LLC, the Funds’ investment advisers, as applicable (the “Investment Advisers”), and certain of SBC’s affiliates entered into agreements with an investor group (the “Investors”) led by Guggenheim Partners, LLC (“Guggenheim”). Under the agreements, a special purpose vehicle owned by the Investors and managed by an affiliate of Guggenheim would receive a 100% ownership stake in SBC and consequently acquire control of the Investment Advisers and affiliates (the “Purchase Transaction”). Guggenheim is a global, independent, privately held, diversified financial services firm with more than $100 billion in assets under supervision. The Purchase Transaction should not result in material changes to the day-to-day management and operations of the Funds or any increase in fees. While the parties expect the Purchase Transaction’s closing to take place on or about May 31, 2010, it is subject to various conditions, and may be delayed or even terminated due to unforeseen circumstances.

Each of the Security Funds files a complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Forms N-Q of each such Fund are available on the Commission’s website at www.sec.gov. The Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The portfolio holdings of each of the Security Funds are available on their website, www.securitvbenefit.com or by calling 1-800-888-2461.

A description of the policies and procedures that the Security Funds use to determine how to vote proxies relating to portfolio securities is available upon request, free of charge by calling 1-800-888-2461, or accessing the U.S. Securities and Exchange Commission website at www.sec.gov. Information regarding how the Security Funds voted proxies relating to portfolio securities during the 12 month period ended June 30, 2008 is available upon request, free of charge by calling 1-800-888-2461, or accessing the U.S. Securities and Exchange Commission website at www.sec.gov.

The statement of additional information (“SAI”) includes additional information about the Funds’ Directors and is available upon request without charge by calling 1-800-888-2461.

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  One Security Benefit Place — Topeka, Kansas 66636-0001 — securitybenefit.com   Rydex Distributors, Inc.   PRSRT STD     U.S. POSTAGE     PAID     LANCASTER, PA     PERMIT NO. 732  

SDI 604 46-06043-00 2010/03/31

Item 2. Code of Ethics.

Not required at this time.

Item 3. Audit Committee Financial Expert.

Not required at this time.

Item 4. Principal Accountant Fees and Services.

Not required at this time.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

The Schedule of Investments is included under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-end Management Investment Companies

Not applicable

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

The registrant does not currently have in place procedures by which shareholders may recommend nominees to the registrant’s board.

There have been no changes to the procedures by which shareholders may recommend nominees to the registrant’s board.

Item 11. Controls and Procedures.

(a) The registrant’s President and Treasurer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the

Investment Company Act of 1940) are effective based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.

There was no fraud, whether or not material, involving officers or employees of the Registrant who have a significant role in the Registrant’s internal controls, including disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) that has come to the attention of the Registrant, including its President and Treasurer.

(b) There were no significant changes in the registrant’s internal controls, or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Item 12. Exhibits.

(a) (2) Separate certifications by the President (principal executive officer) and Treasurer (principal financial officer) of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)) are attached.

(b) A certification by the registrant’s President (principal executive officer) and Treasurer (principal financial officer) as required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)) is attached.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) SECURITY EQUITY FUND
By (Signature and Title)*	/s/ RICHARD M. GOLDMAN
	Richard M. Goldman, President
Date June 9, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ RICHARD M. GOLDMAN
	Richard M. Goldman, President
Date June 9, 2010
By (Signature and Title)*	/s/ BRENDA M. HARWOOD
	Brenda M. Harwood, Treasurer
Date June 9, 2010

^* Print the name and title of each signing officer under his or her signature.