Rydex Russell 2000 Fund (RYRHX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number  811- 07584

Rydex Series Funds

(Exact name of registrant as specified in charter)

805 King Farm Boulevard, Suite 600Rockville, Maryland 20850

(Address of principal executive offices) (Zip code)

Amy J. Lee

Rydex Series Funds805 King Farm Boulevard, Suite 600Rockville, Maryland 20850

(Name and address of agent for service)

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

Date of fiscal year end:  March 31

Date of reporting period:  September 30, 2014

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

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

Item 1. Reports to Stockholders.

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

9.30.2014

Rydex Funds Semi-Annual Report

Sector Funds

Banking Fund

Basic Materials Fund

Biotechnology Fund

Consumer Products Fund

Electronics Fund

Energy Fund

Energy Services Fund

Financial Services Fund

Health Care Fund

Internet Fund

Leisure Fund

Precious Metals Fund

Real Estate Fund

Retailing Fund

Technology Fund

Telecommunications Fund

Transportation Fund

Utilities Fund

RSECF-SEMI-0914x0315 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS' FUND EXPENSES	5
BANKING FUND	10
BASIC MATERIALS FUND	17
BIOTECHNOLOGY FUND	25
CONSUMER PRODUCTS FUND	32
ELECTRONICS FUND	39
ENERGY FUND	46
ENERGY SERVICES FUND	53
FINANCIAL SERVICES FUND	60
HEALTH CARE FUND	69
INTERNET FUND	77
LEISURE FUND	84
PRECIOUS METALS FUND	92
REAL ESTATE FUND	99
RETAILING FUND	107
TECHNOLOGY FUND	115
TELECOMMUNICATIONS FUND	124
TRANSPORTATION FUND	131
UTILITIES FUND	138
NOTES TO FINANCIAL STATEMENTS	145
OTHER INFORMATION	155
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	158
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	161

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  1 

September 30, 2014

Dear Shareholder:

Security Investors, LLC (the "Investment Adviser") is pleased to present the semi-annual shareholder report for one or more of our Funds (the "Funds") for the six-month period ended September 30, 2014.

The Investment Adviser is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC, a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

Donald C. Cacciapaglia

President

October 31, 2014

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

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW(Unaudited) September 30, 2014

Despite market volatility rising in October, for the period ended September 30, data on everything from hiring to housing conveys that the U.S. economy is firing on all cylinders. Overcoming a first-quarter weather-related soft patch, second-quarter GDP was revised upward to 4.6%, led by business investment. Durable goods orders surged over the summer and consumer confidence was at multi-year highs, despite a lower reading for the last part of the period. With tailwinds for economic growth gathering, we could see a strong third quarter GDP reading.

September's addition of 248,000 non-farm payroll jobs was, on the surface, at least a strong figure and certainly not something to be discounted. However, investor optimism about the report, which also showed the unemployment rate falling to 5.9%—its lowest level since 2008—masked the fact that average hourly earnings were unchanged. Economic data late in the period included disappointing factory orders, poor construction spending, and weaker-than-expected ISM manufacturing data. The most recent decline in the U.S. Conference Board Consumer Confidence Index was worrisome.

The U.S. economy is certainly doing well enough to suggest higher interest rates ahead. With quantitative easing ending in the U.S. in October 2014 and the Fed preparing investors for a higher federal funds rate, the stage is set for U.S. interest rates to move higher. However, our view is that, despite a strengthening U.S. economy, the greater risk is that interest rates head lower in the near term.

Following the "taper tantrum" last year, before rates were able to reach historical norms, the average rate on a 30-year mortgage spiked almost a full percentage point in two months—the sharpest rise since the late 1990s—resulting in an abrupt housing slowdown, which slowed the U.S. economy materially.

In addition, U.S. Treasury yields are still materially higher than those in any other developed market. The spread between 10-year U.S. Treasuries and comparable German bunds reached 157 basis points in September, its widest level since 1999, and the spread between 10-year Treasuries and 10-year Japanese government bonds was recently 189 basis points. With developments in the Middle East increasingly troubling and turbulence continuing elsewhere from Ukraine to Hong Kong, the relative price value of U.S. government bonds versus other safe haven investments should continue to be a factor keeping U.S. interest rates low.

International economic data remain weak. Euro zone economic confidence is falling as the entire region continues to battle below-target inflation. At the start of September, the European Central Bank cut interest rates and signaled their intent to launch a program to purchase asset-backed securities and covered bonds to stimulate the dismal economy. In Japan, retail sales fell month-over-month in August, while industrial production falters.

Economic data around the world confirms our view that central banks are likely to renew efforts to force liquidity into the global financial system, which in turn further supports our positive outlook for risk assets. However, positive returns are unlikely without volatility. While markets continue to rally, gains are becoming more grudging. The upward momentum in U.S. stocks has deteriorated meaningfully while credit spreads, specifically high-yield spreads, have widened significantly over the past number of weeks. While the bull market trend remains intact, as the appreciation in risk assets continues it becomes more likely that this ageing advance will, at some point, experience a correction.

For the six-month period ended September 30, 2014, the return of the Standard & Poor's 500^® Index* ("S&P 500") was 6.42%. The Barclays U.S. Aggregate Bond Index* returned 2.21% for the period, while the Barclays U.S. Corporate High Yield Index* returned 0.49%. The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index* returned 0.02%. The MSCI World Index* returned 2.59%, while the MSCI Emerging Markets Index* returned 2.87%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  3 

ECONOMIC AND MARKET OVERVIEW(Unaudited)(concluded) September 30, 2014

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

*Index Definitions:

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

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

Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Barclays U.S. Corporate High Yield Index covers the universe of dollar denominated, fixed rate, non-investment grade debt, taxable corporate debt.

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

MSCI World Index (Net) is calculated with net dividends reinvested. It is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

S&P 500^® Index is a market-weighted stock market index comprised of the stocks of 500 U.S. corporations; the index is owned and maintained by Standard & Poor's.

4  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS' FUND EXPENSES(Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2014 and ending September 30, 2014.

The following tables illustrate a Fund's costs in two ways:

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

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

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

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

More information about a Fund's expenses, including annual expense ratios for the past five years, can be found in the Financial Highlights section of this report. For additional information on operating expenses and other shareholder costs, please refer to the appropriate Fund prospectus.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  5 

ABOUT SHAREHOLDERS' FUND EXPENSES(Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Banking Fund
Investor Class	1.37%	(1.43%)	$1,000.00	$985.70	$6.82
Advisor Class	1.86%	(1.66%)	1,000.00	983.40	9.25
A-Class	1.61%	(1.53%)	1,000.00	984.70	8.01
C-Class	2.37%	(1.92%)	1,000.00	980.80	11.77
Basic Materials Fund
Investor Class	1.37%	(0.76%)	1,000.00	992.40	6.84
Advisor Class	1.87%	(1.01%)	1,000.00	989.90	9.33
A-Class	1.62%	(0.90%)	1,000.00	991.00	8.09
C-Class	2.37%	(1.26%)	1,000.00	987.40	11.81
Biotechnology Fund
Investor Class	1.36%	11.80%	1,000.00	1,118.00	7.22
Advisor Class	1.86%	11.53%	1,000.00	1,115.30	9.86
A-Class	1.61%	11.66%	1,000.00	1,116.60	8.54
C-Class	2.36%	11.25%	1,000.00	1,112.50	12.50
Consumer Products Fund
Investor Class	1.38%	5.15%	1,000.00	1,051.50	7.10
Advisor Class	1.88%	4.87%	1,000.00	1,048.70	9.66
A-Class	1.63%	5.02%	1,000.00	1,050.20	8.38
C-Class	2.38%	4.63%	1,000.00	1,046.30	12.21
Electronics Fund
Investor Class	1.37%	7.42%	1,000.00	1,074.20	7.12
Advisor Class	1.87%	7.16%	1,000.00	1,071.60	9.71
A-Class	1.62%	7.27%	1,000.00	1,072.70	8.42
C-Class	2.36%	6.89%	1,000.00	1,068.90	12.24
Energy Fund
Investor Class	1.36%	0.07%	1,000.00	1,000.70	6.82
Advisor Class	1.87%	(0.18%)	1,000.00	998.20	9.37
A-Class	1.61%	(0.04%)	1,000.00	999.60	8.07
C-Class	2.36%	(0.39%)	1,000.00	996.10	11.81
Energy Services Fund
Investor Class	1.36%	(6.38%)	1,000.00	936.20	6.60
Advisor Class	1.87%	(6.62%)	1,000.00	933.80	9.07
A-Class	1.61%	(6.47%)	1,000.00	935.30	7.81
C-Class	2.37%	(6.83%)	1,000.00	931.70	11.48
Financial Services Fund
Investor Class	1.36%	2.06%	1,000.00	1,020.60	6.89
Advisor Class	1.87%	1.81%	1,000.00	1,018.10	9.46
A-Class	1.61%	1.92%	1,000.00	1,019.20	8.15
C-Class	2.37%	1.55%	1,000.00	1,015.50	11.97
Health Care Fund
Investor Class	1.37%	8.72%	1,000.00	1,087.20	7.17
Advisor Class	1.87%	8.47%	1,000.00	1,084.70	9.77
A-Class	1.62%	8.62%	1,000.00	1,086.20	8.47
C-Class	2.37%	8.15%	1,000.00	1,081.50	12.37

6  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS' FUND EXPENSES(Unaudited)(continued)

Expense Ratio¹ Fund Return Beginning Account Value March 31, 2014 Ending Account Value September 30, 2014 Expenses Paid During Period²

Internet Fund
Investor Class	1.37%	3.70%	$1,000.00	$1,037.00	$7.00
Advisor Class	1.87%	3.41%	1,000.00	1,034.10	9.54
A-Class	1.61%	3.58%	1,000.00	1,035.80	8.22
C-Class	2.37%	3.20%	1,000.00	1,032.00	12.07
Leisure Fund
Investor Class	1.36%	2.10%	1,000.00	1,021.00	6.89
Advisor Class	1.87%	1.85%	1,000.00	1,018.50	9.46
A-Class	1.62%	1.96%	1,000.00	1,019.60	8.20
C-Class	2.37%	1.57%	1,000.00	1,015.70	11.98
Precious Metals Fund
Investor Class	1.26%	(10.20%)	1,000.00	898.00	6.00
Advisor Class	1.77%	(10.41%)	1,000.00	895.90	8.41
A-Class	1.52%	(10.33%)	1,000.00	896.70	7.23
C-Class	2.27%	(10.66%)	1,000.00	893.40	10.77
Real Estate Fund
A-Class	1.63%	1.55%	1,000.00	1,015.50	8.24
C-Class	2.37%	1.18%	1,000.00	1,011.80	11.95
H-Class	1.62%	1.53%	1,000.00	1,015.30	8.18
Retailing Fund
Investor Class	1.37%	0.93%	1,000.00	1,009.30	6.90
Advisor Class	1.86%	0.86%	1,000.00	1,008.60	9.37
A-Class	1.62%	0.98%	1,000.00	1,009.80	8.16
C-Class	2.37%	0.63%	1,000.00	1,006.30	11.92
Technology Fund
Investor Class	1.37%	3.88%	1,000.00	1,038.80	7.00
Advisor Class	1.87%	3.64%	1,000.00	1,036.40	9.55
A-Class	1.62%	3.75%	1,000.00	1,037.50	8.27
C-Class	2.37%	3.43%	1,000.00	1,034.30	12.09
Telecommunications Fund
Investor Class	1.37%	2.86%	1,000.00	1,028.60	6.97
Advisor Class	1.87%	2.58%	1,000.00	1,025.80	9.50
A-Class	1.61%	2.78%	1,000.00	1,027.80	8.18
C-Class	2.37%	2.31%	1,000.00	1,023.10	12.02
Transportation Fund
Investor Class	1.37%	4.73%	1,000.00	1,047.30	7.03
Advisor Class	1.87%	4.46%	1,000.00	1,044.60	9.58
A-Class	1.62%	4.59%	1,000.00	1,045.90	8.31
C-Class	2.37%	4.20%	1,000.00	1,042.00	12.13
Utilities Fund
Investor Class	1.37%	1.50%	1,000.00	1,015.00	6.92
Advisor Class	1.87%	1.19%	1,000.00	1,011.90	9.43
A-Class	1.62%	1.34%	1,000.00	1,013.40	8.18
C-Class	2.37%	0.95%	1,000.00	1,009.50	11.94

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  7 

ABOUT SHAREHOLDERS' FUND EXPENSES(Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Banking Fund
Investor Class	1.37%	5.00%	$1,000.00	$1,018.20	$6.93
Advisor Class	1.86%	5.00%	1,000.00	1,015.74	9.40
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Basic Materials Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Biotechnology Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
Advisor Class	1.86%	5.00%	1,000.00	1,015.74	9.40
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
Consumer Products Fund
Investor Class	1.38%	5.00%	1,000.00	1,018.15	6.98
Advisor Class	1.88%	5.00%	1,000.00	1,015.64	9.50
A-Class	1.63%	5.00%	1,000.00	1,016.90	8.24
C-Class	2.38%	5.00%	1,000.00	1,013.14	12.01
Electronics Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
Energy Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
Energy Services Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Financial Services Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Health Care Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96

8  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS' FUND EXPENSES(Unaudited)(concluded)

Expense Ratio¹ Fund Return Beginning Account Value March 31, 2014 Ending Account Value September 30, 2014 Expenses Paid During Period²

Internet Fund
Investor Class	1.37%	5.00%	$1,000.00	$1,018.20	$6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Leisure Fund
Investor Class	1.36%	5.00%	1,000.00	1,018.25	6.88
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Precious Metals Fund
Investor Class	1.26%	5.00%	1,000.00	1,018.75	6.38
Advisor Class	1.77%	5.00%	1,000.00	1,016.19	8.95
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
Real Estate Fund
A-Class	1.63%	5.00%	1,000.00	1,016.90	8.24
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
H-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
Retailing Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.86%	5.00%	1,000.00	1,015.74	9.40
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Technology Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Telecommunications Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Transportation Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96
Utilities Fund
Investor Class	1.37%	5.00%	1,000.00	1,018.20	6.93
Advisor Class	1.87%	5.00%	1,000.00	1,015.69	9.45
A-Class	1.62%	5.00%	1,000.00	1,016.95	8.19
C-Class	2.37%	5.00%	1,000.00	1,013.19	11.96

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2014 to September 30, 2014.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  9 

FUND PROFILE(Unaudited) September 30, 2014

BANKING FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Bank of America Corp.	4.3%
JPMorgan Chase & Co.	4.2%
Citigroup, Inc.	4.2%
Wells Fargo & Co.	4.2%
U.S. Bancorp	3.3%
PNC Financial Services Group, Inc.	2.6%
Capital One Financial Corp.	2.6%
Bank of New York Mellon Corp.	2.5%
State Street Corp.	2.1%
BB&T Corp.	2.0%
Top Ten Total	32.0%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

10  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
BANKING FUND

	Shares		Value
COMMON STOCKS† - 100.0%
SUPER-REGIONAL BANKS-U.S. - 19.2%
Wells Fargo & Co.		14,695	$	762,229
U.S. Bancorp		14,233		595,366
PNC Financial Services Group, Inc.		5,457		467,010
Capital One Financial Corp.		5,690		464,418
SunTrust Banks, Inc.		7,992		303,936
Fifth Third Bancorp		13,946		279,199
KeyCorp		17,428		232,315
Comerica, Inc.		4,130		205,922
Huntington Bancshares, Inc.		19,851		193,150
Total Super-Regional Banks-U.S.				3,503,545
DIVERSIFIED BANKING INSTITUTIONS - 18.2%
Bank of America Corp.		45,999		784,282
JPMorgan Chase & Co.		12,790		770,470
Citigroup, Inc.		14,728		763,205
Deutsche Bank AG		6,028		210,136
HSBC Holdings plc ADR		3,920		199,450
UBS AG		11,336		196,906
Barclays plc ADR		12,841		190,175
Credit Suisse Group AG ADR		6,822		188,560
Total Diversified Banking Institutions				3,303,184
COMMERCIAL BANKS-NON-U.S. - 16.8%
Itau Unibanco Holding S.A. ADR		16,932		235,015
Banco Bradesco S.A. ADR		14,571		207,637
ICICI Bank Ltd. ADR		4,126		202,587
Credicorp Ltd.		1,305		200,174
Banco Santander S.A. ADR1		20,957		199,092
Toronto-Dominion Bank		4,020		198,548
HDFC Bank Ltd. ADR		4,231		197,080
Royal Bank of Canada		2,628		187,771
Bank of Montreal		2,456		180,811
ING Groep N.V. ADR*		12,720		180,497
Grupo Financiero Santander Mexico SAB de CV ADR		13,310		180,084
Banco Santander Brasil S.A. ADR		27,269		178,339
Bancolombia S.A. ADR		3,125		177,250
Bank of Nova Scotia		2,840		175,654
Banco Bilbao Vizcaya Argentaria S.A. ADR		14,597		175,164
Canadian Imperial Bank of Commerce		1,885		169,367
Total Commercial Banks-Non-U.S.				3,045,070
COMMERCIAL BANKS-CENTRAL U.S. - 9.3%
Cullen/Frost Bankers, Inc.		1,960		149,960
BOK Financial Corp.		2,230		148,250
Commerce Bancshares, Inc.		3,115		139,069
Prosperity Bancshares, Inc.		2,403		137,380
FirstMerit Corp.		6,668		117,357
Texas Capital Bancshares, Inc.*		1,950		112,476
Associated Banc-Corp.		6,441		112,202
TCF Financial Corp.		7,113		110,465
UMB Financial Corp.		1,995		108,827
PrivateBancorp, Inc. — Class A		3,587		107,287
Wintrust Financial Corp.		2,192		97,917
MB Financial, Inc.		3,530		97,710
First Financial Bankshares, Inc.		3,240		90,040
Old National Bancorp		6,500		84,305
First Midwest Bancorp, Inc.		4,700		75,623
Total Commercial Banks-Central U.S.				1,688,868
COMMERCIAL BANKS-WESTERN U.S. - 8.5%
First Republic Bank		3,741		184,731
SVB Financial Group*		1,471		164,884
East West Bancorp, Inc.		4,510		153,340
City National Corp.		1,845		139,611
PacWest Bancorp		3,355		138,327
Umpqua Holdings Corp.		7,860		129,454
Bank of Hawaii Corp.		1,921		109,132
Western Alliance Bancorporation*		4,220		100,858
Cathay General Bancorp		3,910		97,085
Glacier Bancorp, Inc.		3,700		95,682
CVB Financial Corp.		5,890		84,522
Westamerica Bancorporation		1,620		75,362
BBCN Bancorp, Inc.		5,150		75,139
Total Commercial Banks-Western U.S.				1,548,127
COMMERCIAL BANKS-EASTERN U.S. - 7.2%
M&T Bank Corp.		2,251		277,526
CIT Group, Inc.		4,370		200,845
Signature Bank*		1,465		164,168
Webster Financial Corp.		3,853		112,276
Fulton Financial Corp.		8,876		98,346
Valley National Bancorp		9,953		96,445
FNB Corp.		8,032		96,304
Susquehanna Bancshares, Inc.		9,336		93,360
National Penn Bancshares, Inc.		8,340		80,981
Community Bank System, Inc.		2,390		80,280
Total Commercial Banks-Eastern U.S.				1,300,531
COMMERCIAL BANKS-SOUTHERN U.S. - 6.8%
Popular, Inc.*		6,281		184,881
Synovus Financial Corp.		5,250		124,110
BankUnited, Inc.		3,890		118,606
First Horizon National Corp.		9,613		118,048
Hancock Holding Co.		3,473		111,310
Bank of the Ozarks, Inc.		3,440		108,429
United Bankshares, Inc.		3,240		100,213
IBERIABANK Corp.		1,574		98,391
BancorpSouth, Inc.		4,737		95,403
Home BancShares, Inc.		3,240		95,288
Trustmark Corp.		3,730		85,921
Total Commercial Banks-Southern U.S.				1,240,600

 SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  11 

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
BANKING FUND

	Shares		Value
FIDUCIARY BANKS - 6.1%
Bank of New York Mellon Corp.		11,624	$	450,198
State Street Corp.		5,220		384,244
Northern Trust Corp.		4,030		274,161
Total Fiduciary Banks				1,108,603
COMMERICAL BANKS-SOUTHERN U.S. - 3.4%
BB&T Corp.		9,546		355,207
Regions Financial Corp.		25,360		254,614
Total Commerical Banks-Southern U.S.				609,821
SAVINGS & LOANS/THRIFTS-EASTERN U.S. - 2.4%
New York Community Bancorp, Inc.		11,462		181,902
Investors Bancorp, Inc.		12,960		131,285
First Niagara Financial Group, Inc.		13,961		116,295
Total Savings & Loans/Thrifts-Eastern U.S.				429,482
MULTI-LINE INSURANCE - 1.2%
Voya Financial, Inc.		5,500		215,050
COMMERICAL BANKS-WESTERN U.S. - 0.9%
Zions Bancorporation		5,777		167,880
Total Common Stocks
(Cost $13,558,489)				18,160,761

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.9%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	72,351		72,351
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		29,796		29,796
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		29,796		29,796
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		29,796		29,796
Total Repurchase Agreements
(Cost $161,739)				161,739
SECURITIES LENDING COLLATERAL††,3 - 0.6%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		95,004		95,004
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		15,575		15,575
Total Securities Lending Collateral
(Cost $110,579)				110,579
Total Investments - 101.5%
(Cost $13,830,807)			$	18,433,079
Other Assets & Liabilities, net - (1.5)%				(271,862	)
Total Net Assets - 100.0%			$	18,161,217

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

BANKING FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $125,400 of securities loaned (cost $13,558,489)	$	18,160,761
Repurchase agreements, at value (cost $272,318)		272,318
Total investments (cost $13,830,807)		18,433,079
Segregated cash with broker		18,121
Receivables:
Fund shares sold		550,179
Dividends		23,678
Foreign taxes reclaim		848
Securities lending income		43
Total assets		19,025,948
Liabilities:
Payable for:
Securities purchased		579,025
Fund shares redeemed		131,138
Upon return of securities loaned		128,700
Management fees		10,777
Distribution and service fees		3,796
Transfer agent and administrative fees		3,170
Portfolio accounting fees		1,268
Miscellaneous		6,857
Total liabilities		864,731
Net assets	$	18,161,217
Net assets consist of:
Paid in capital	$	37,995,882
Undistributed net investment income		131,731
Accumulated net realized loss on investments		(24,568,668	)
Net unrealized appreciation on investments		4,602,272
Net assets	$	18,161,217
Investor Class:
Net assets	$	8,091,617
Capital shares outstanding		129,074
Net asset value per share	$	62.69
Advisor Class:
Net assets	$	1,154,467
Capital shares outstanding		20,452
Net asset value per share	$	56.45
A-Class:
Net assets	$	5,168,282
Capital shares outstanding		89,345
Net asset value per share	$	57.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.73
C-Class:
Net assets	$	3,746,851
Capital shares outstanding		69,846
Net asset value per share	$	53.64

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $2,918)	$	150,835
Income from securities lending, net		209
Interest		5
Total investment income		151,049
Expenses:
Management fees		62,117
Transfer agent and administrative fees		18,269
Distribution and service fees:
Advisor Class		3,240
A-Class		2,789
C-Class		18,216
Portfolio accounting fees		7,308
Registration fees		6,628
Custodian fees		853
Trustees' fees*		691
Tax expense		85
Line of credit interest expense		50
Miscellaneous		3,794
Total expenses		124,040
Net investment income		27,009
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(313,417	)
Net realized loss		(313,417	)
Net change in unrealized appreciation (depreciation) on:
Investments		(907,326	)
Net change in unrealized appreciation (depreciation)		(907,326	)
Net realized and unrealized loss		(1,220,743	)
Net decrease in net assets resulting from operations	$	(1,193,734	)

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

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

BANKING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	27,009		$	104,560
Net realized gain (loss) on investments		(313,417	)		2,054,539
Net change in unrealized appreciation (depreciation) on investments		(907,326	)		456,330
Net increase (decrease) in net assets resulting from operations		(1,193,734	)		2,615,429
Distributions to shareholders from:
Net investment income
Investor Class		—			(69,539	)
Advisor Class		—			(27,301	)
A-Class		—			(69,825	)
C-Class		—			(40,063	)
Total distributions to shareholders		—			(206,728	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		11,463,122			55,738,638
Advisor Class		19,485,711			20,491,522
A-Class		4,183,398			21,112,841
C-Class		8,327,452			22,307,410
Distributions reinvested
Investor Class		—			66,494
Advisor Class		—			27,265
A-Class		—			34,044
C-Class		—			37,004
Cost of shares redeemed
Investor Class		(14,193,751	)		(54,691,263	)
Advisor Class		(18,652,134	)		(24,496,009	)
A-Class		(6,862,886	)		(15,248,615	)
C-Class		(8,789,250	)		(22,684,146	)
Net increase (decrease) from capital share transactions		(5,038,338	)		2,695,185
Net increase (decrease) in net assets		(6,232,072	)		5,103,886
Net assets:
Beginning of period		24,393,289			19,289,403
End of period	$	18,161,217		$	24,393,289
Undistributed net investment income at end of period	$	131,731		$	104,722
Capital share activity:
Shares sold
Investor Class		180,622			942,203
Advisor Class		346,291			383,290
A-Class		69,303			377,509
C-Class		153,944			443,798
Shares issued from reinvestment of distributions
Investor Class		—			1,089
Advisor Class		—			494
A-Class		—			603
C-Class		—			703
Shares redeemed
Investor Class		(228,292	)		(936,087	)
Advisor Class		(335,246	)		(463,143	)
A-Class		(121,318	)		(279,911	)
C-Class		(162,845	)		(453,983	)
Net increase (decrease) in shares		(97,541	)		16,565

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

BANKING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	63.60		$	52.58		$	46.75		$	49.75		$	50.73		$	32.62
Income (loss) from investment operations:
Net investment income (loss)b		.22			.54			.54			.44			.13			.28
Net gain (loss) on investments (realized and unrealized)		(1.13	)		11.09			5.44			(3.39	)		(.99	)		20.05
Total from investment operations		(.91	)		11.63			5.98			(2.95	)		(.86	)		20.33
Less distributions from:
Net investment income		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Total distributions		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Net asset value, end of period	$	62.69		$	63.60		$	52.58		$	46.75		$	49.75		$	50.73
Total Returnc		(1.43	%)		22.17	%		12.84	%		(5.89	%)		(1.66	%)		63.48	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,092		$	11,241		$	8,915		$	29,061		$	8,711		$	26,340
Ratios to average net assets:
Net investment income (loss)		0.70	%		0.92	%		1.16	%		1.02	%		0.27	%		0.67	%
Total expenses		1.37	%		1.37	%		1.35	%		1.34	%		1.39	%		1.38	%
Portfolio turnover rate		232	%		481	%		382	%		544	%		1,130	%		986	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	57.40		$	47.71		$	42.63		$	45.63		$	46.79		$	30.36
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		.23			.17			.12			(.08	)		.06
Net gain (loss) on investments (realized and unrealized)		(.93	)		10.07			5.06			(3.07	)		(.96	)		18.59
Total from investment operations		(.95	)		10.30			5.23			(2.95	)		(1.04	)		18.65
Less distributions from:
Net investment income		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Total distributions		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Net asset value, end of period	$	56.45		$	57.40		$	47.71		$	42.63		$	45.63		$	46.79
Total Returnc		(1.66	%)		21.64	%		12.32	%		(6.43	%)		(2.19	%)		62.66	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,154		$	540		$	4,235		$	1,105		$	629		$	1,291
Ratios to average net assets:
Net investment income (loss)		(0.09	%)		0.44	%		0.38	%		0.30	%		(0.18	%)		0.17	%
Total expenses		1.86	%		1.87	%		1.86	%		1.83	%		1.89	%		1.88	%
Portfolio turnover rate		232	%		481	%		382	%		544	%		1,130	%		986	%

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

BANKING FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	58.75		$	48.74		$	43.45		$	46.38		$	47.41		$	30.67
Income (loss) from investment operations:
Net investment income (loss)b		.15			.39			.36			.30			.04			.02
Net gain (loss) on investments (realized and unrealized)		(1.05	)		10.23			5.08			(3.18	)		(.95	)		18.94
Total from investment operations		(.90	)		10.62			5.44			(2.88	)		(.91	)		18.96
Less distributions from:
Net investment income		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Total distributions		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Net asset value, end of period	$	57.85		$	58.75		$	48.74		$	43.45		$	46.38		$	47.41
Total Returnc		(1.53	%)		21.84	%		12.60	%		(6.19	%)		(1.89	%)		63.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,168		$	8,305		$	2,103		$	3,088		$	913		$	6,381
Ratios to average net assets:
Net investment income (loss)		0.53	%		0.71	%		0.88	%		0.73	%		0.09	%		0.06	%
Total expenses		1.61	%		1.62	%		1.59	%		1.61	%		1.64	%		1.63	%
Portfolio turnover rate		232	%		481	%		382	%		544	%		1,130	%		986	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	54.69		$	45.74		$	41.09		$	44.20		$	45.51		$	29.90
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.05	)		.01			(.01	)		(.29	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(.99	)		9.61			4.79			(3.05	)		(.90	)		17.99
Total from investment operations		(1.05	)		9.56			4.80			(3.06	)		(1.19	)		17.83
Less distributions from:
Net investment income		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Total distributions		—			(.61	)		(.15	)		(.05	)		(.12	)		(2.22	)
Net asset value, end of period	$	53.64		$	54.69		$	45.74		$	41.09		$	44.20		$	45.51
Total Returnc		(1.92	%)		20.95	%		11.74	%		(6.88	%)		(2.58	%)		60.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,747		$	4,307		$	4,036		$	3,841		$	2,844		$	5,607
Ratios to average net assets:
Net investment income (loss)		(0.24	%)		(0.10	%)		0.02	%		(0.03	%)		(0.67	%)		(0.42	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.35	%		2.38	%		2.38	%
Portfolio turnover rate		232	%		481	%		382	%		544	%		1,130	%		986	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE(Unaudited) September 30, 2014

BASIC MATERIALS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
EI du Pont de Nemours & Co.	2.9%
Dow Chemical Co.	2.8%
Monsanto Co.	2.8%
LyondellBasell Industries N.V. — Class A	2.7%
Praxair, Inc.	2.2%
Ecolab, Inc.	2.1%
Freeport-McMoRan, Inc.	2.1%
Air Products & Chemicals, Inc.	1.9%
PPG Industries, Inc.	1.9%
Southern Copper Corp.	1.7%
Top Ten Total	23.1%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  17 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
BASIC MATERIALS FUND

	Shares		Value
COMMON STOCKS† - 98.9%
CHEMICALS-DIVERSIFIED - 16.2%
EI du Pont de Nemours & Co.		16,568	$	1,188,919
Dow Chemical Co.		21,818		1,144,136
LyondellBasell Industries N.V. — Class A		10,107		1,098,227
PPG Industries, Inc.		3,870		761,384
Westlake Chemical Corp.		5,600		484,904
Celanese Corp. — Class A		7,442		435,506
FMC Corp.		7,011		400,959
Huntsman Corp.		13,808		358,870
Rockwood Holdings, Inc.		4,371		334,163
Axiall Corp.		6,240		223,454
Olin Corp.		8,196		206,949
Total Chemicals-Diversified				6,637,471
CHEMICALS-SPECIALTY - 13.6%
Ecolab, Inc.		7,514		862,832
Sigma-Aldrich Corp.		5,029		683,994
Eastman Chemical Co.		6,279		507,908
Ashland, Inc.		3,962		412,444
International Flavors & Fragrances, Inc.		4,231		405,668
WR Grace & Co.*		4,075		370,581
Methanex Corp.		4,900		327,320
Albemarle Corp.		5,121		301,627
NewMarket Corp.		785		299,101
Cytec Industries, Inc.		5,636		266,526
Cabot Corp.		5,030		255,373
Sensient Technologies Corp.		4,390		229,817
Minerals Technologies, Inc.		3,535		218,145
Chemtura Corp.*		9,060		211,370
HB Fuller Co.		5,084		201,835
Total Chemicals-Specialty				5,554,541
GOLD MINING - 9.7%
Barrick Gold Corp.		37,858		554,999
Newmont Mining Corp.		21,395		493,155
Goldcorp, Inc.		18,886		434,945
Agnico Eagle Mines Ltd.		11,343		329,287
AngloGold Ashanti Ltd. ADR		27,378		328,536
Randgold Resources Ltd. ADR		4,782		323,215
Franco-Nevada Corp.		6,288		307,357
Yamana Gold, Inc.		50,666		303,996
Eldorado Gold Corp.		44,562		300,348
Royal Gold, Inc.		4,593		298,269
Cia de Minas Buenaventura SAA ADR		25,430		294,479
Total Gold Mining				3,968,586
AGRICULTURAL CHEMICALS - 7.6%
Monsanto Co.		10,093		1,135,563
Mosaic Co.		13,258		588,788
CF Industries Holdings, Inc.		1,954		545,596
Potash Corporation of Saskatchewan, Inc.		14,240		492,134
Agrium, Inc.		4,013		357,157
Total Agricultural Chemicals				3,119,238
STEEL-PRODUCERS - 6.7%
Nucor Corp.		10,787		585,517
ArcelorMittal1		24,624		337,103
Reliance Steel & Aluminum Co.		4,782		327,089
Steel Dynamics, Inc.		14,316		323,685
United States Steel Corp.		7,864		308,033
Gerdau S.A. ADR		60,790		291,792
Carpenter Technology Corp.		4,745		214,237
Commercial Metals Co.		11,629		198,507
AK Steel Holding Corp.*,1		18,163		145,486
Total Steel-Producers				2,731,449
CONTAINERS-PAPER/PLASTIC - 5.6%
Sealed Air Corp.		11,418		398,261
Rock-Tenn Co. — Class A		8,120		386,350
Packaging Corporation of America		5,870		374,623
Graphic Packaging Holding Co.*		23,830		296,207
Sonoco Products Co.		7,490		294,282
Bemis Company, Inc.		7,572		287,887
Berry Plastics Group, Inc.*		10,470		264,263
Total Containers-Paper/Plastic				2,301,873
INDUSTRIAL GASES - 5.1%
Praxair, Inc.		6,975		899,775
Air Products & Chemicals, Inc.		5,948		774,311
Airgas, Inc.		3,826		423,347
Total Industrial Gases				2,097,433
BUILDING PRODUCTS-CEMENT/AGGREGATES - 4.1%
Cemex SAB de CV ADR*		36,781		479,624
Martin Marietta Materials, Inc.		3,419		440,846
Vulcan Materials Co.		6,738		405,830
Eagle Materials, Inc.		3,241		330,031
Total Building Products-Cement/Aggregates				1,656,331
PAPER & RELATED PRODUCTS - 4.0%
International Paper Co.		14,131		674,614
MeadWestvaco Corp.		9,454		387,047
Domtar Corp.		9,223		324,004
KapStone Paper and Packaging Corp.*		8,439		236,039
Total Paper & Related Products				1,621,704
METAL-COPPER - 3.8%
Freeport-McMoRan, Inc.		25,753		840,835
Southern Copper Corp.		23,850		707,153
Total Metal-Copper				1,547,988
COATINGS/PAINT - 3.5%
Sherwin-Williams Co.		3,096		677,993
Valspar Corp.		4,775		377,177

18  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
BASIC MATERIALS FUND

	Shares		Value
RPM International, Inc.		7,901	$	361,708
Total Coatings/Paint				1,416,878
DIVERSIFIED MINERALS - 3.2%
BHP Billiton Ltd. ADR		7,305		430,118
Teck Resources Ltd. — Class B		16,453		310,797
BHP Billiton plc ADR		5,420		300,973
US Silica Holdings, Inc.		3,957		247,352
Total Diversified Minerals				1,289,240
CONTAINERS-METAL/GLASS - 2.7%
Ball Corp.		6,964		440,613
Crown Holdings, Inc.*		8,241		366,889
Owens-Illinois, Inc.*		11,883		309,552
Total Containers-Metal/Glass				1,117,054
METAL-ALUMINUM - 2.0%
Alcoa, Inc.		40,587		653,045
Kaiser Aluminum Corp.		2,220		169,208
Total Metal-Aluminum				822,253
METAL-IRON - 1.9%
Vale S.A. ADR1		57,137		629,078
Cliffs Natural Resources, Inc.1		14,525		150,770
Total Metal-Iron				779,848
METAL-DIVERSIFIED - 1.1%
Rio Tinto plc ADR1		9,505		467,456
SILVER MINING - 0.9%
Silver Wheaton Corp.		17,946		357,664
MISCELLANEOUS MANUFACTURING - 0.7%
AptarGroup, Inc.		4,894		297,066
OFFICE SUPPLIES & FORMS - 0.7%
Avery Dennison Corp.		6,647		296,789
CHEMICALS-PLASTICS - 0.7%
PolyOne Corp.		7,780		276,812
STEEL-SPECIALTY - 0.7%
Allegheny Technologies, Inc.		7,456		276,618
CONSUMER PRODUCTS-MISCELLANEOUS - 0.7%
Scotts Miracle-Gro Co. — Class A		4,910		270,050
QUARRYING - 0.6%
Compass Minerals International, Inc.		2,900		244,412
METAL PROCESSORS & FABRICATE - 0.6%
Worthington Industries, Inc.		6,202		230,838
STEEL PIPE & TUBE - 0.5%
TimkenSteel Corp.		4,460		207,345
CHEMICALS-FIBERS - 0.5%
Rayonier Advanced Materials, Inc.1		5,840		192,194
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS - 0.5%
Louisiana-Pacific Corp.*		13,980		189,988
PLATINUM - 0.5%
Stillwater Mining Co.*		12,439		186,958
OIL FIELD MACHINERY & EQUIPMENT - 0.4%
Flotek Industries, Inc.*		6,603		172,140
COAL - 0.1%
Walter Energy, Inc.1		22,643		52,985
Total Common Stocks
(Cost $23,586,435)				40,381,202
EXCHANGE-TRADED FUNDS† - 0.5%
Market Vectors Junior Gold Miners ETF		5,639		189,583
Total Exchange-Traded Funds
(Cost $217,523)				189,583
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	143,722		143,722
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		59,189		59,189
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		59,189		59,189
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		59,189		59,189
Total Repurchase Agreements
(Cost $321,289)				321,289

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  19 

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
BASIC MATERIALS FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 2.8%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	973,818	$	973,818
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		159,642		159,642
Total Securities Lending Collateral
(Cost $1,133,460)				1,133,460
Total Investments - 103.0%
(Cost $25,258,707)			$	42,025,534
Other Assets & Liabilities, net - (3.0)%				(1,211,310	)
Total Net Assets - 100.0%			$	40,814,224

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

BASIC MATERIALS FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $1,278,930 of securities loaned (cost $23,803,958)	$	40,570,785
Repurchase agreements, at value (cost $1,454,749)		1,454,749
Total investments (cost $25,258,707)		42,025,534
Segregated cash with broker		185,740
Cash		1,162
Receivables:
Fund shares sold		49,281
Dividends		38,807
Securities lending income		1,801
Total assets		42,302,325
Liabilities:
Payable for:
Upon return of securities loaned		1,319,200
Fund shares redeemed		99,424
Management fees		28,096
Transfer agent and administrative fees		8,264
Distribution and service fees		7,433
Portfolio accounting fees		3,305
Miscellaneous		22,379
Total liabilities		1,488,101
Net assets	$	40,814,224
Net assets consist of:
Paid in capital	$	49,678,892
Undistributed net investment income		269,141
Accumulated net realized loss on investments		(25,900,636	)
Net unrealized appreciation on investments		16,766,827
Net assets	$	40,814,224
Investor Class:
Net assets	$	22,264,700
Capital shares outstanding		427,105
Net asset value per share	$	52.13
Advisor Class:
Net assets	$	4,018,346
Capital shares outstanding		83,460
Net asset value per share	$	48.15
A-Class:
Net assets	$	9,751,567
Capital shares outstanding		197,091
Net asset value per share	$	49.48
Maximum offering price per share (Net asset value divided by 95.25%)	$	51.95
C-Class:
Net assets	$	4,779,611
Capital shares outstanding		105,452
Net asset value per share	$	45.33

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $8,325)	$	441,928
Income from securities lending, net		17,784
Interest		17
Total investment income		459,729
Expenses:
Management fees		211,489
Transfer agent and administrative fees		62,202
Distribution and service fees:
Advisor Class		9,950
A-Class		13,817
C-Class		25,751
Portfolio accounting fees		24,881
Custodian fees		2,904
Trustees' fees*		2,102
Tax expense		1,493
Line of credit interest expense		34
Miscellaneous		35,747
Total expenses		390,370
Net investment income		69,359
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,334,295
Net realized gain		2,334,295
Net change in unrealized appreciation (depreciation) on:
Investments		(2,203,230	)
Net change in unrealized appreciation (depreciation)		(2,203,230	)
Net realized and unrealized gain		131,065
Net increase in net assets resulting from operations	$	200,424

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

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

BASIC MATERIALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	69,359		$	217,641
Net realized gain on investments		2,334,295			6,023,395
Net change in unrealized appreciation (depreciation) on investments		(2,203,230	)		(5,738,840	)
Net increase in net assets resulting from operations		200,424			502,196
Distributions to shareholders from:
Net investment income
Investor Class		—			(196,131	)
Advisor Class		—			(14,384	)
A-Class		—			(54,137	)
C-Class		—			(34,529	)
Total distributions to shareholders		—			(299,181	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		80,795,811			162,952,932
Advisor Class		35,502,779			8,129,722
A-Class		13,156,125			13,387,890
C-Class		13,585,856			22,384,921
Distributions reinvested
Investor Class		—			187,009
Advisor Class		—			13,713
A-Class		—			50,565
C-Class		—			31,129
Cost of shares redeemed
Investor Class		(92,523,085	)		(165,714,358	)
Advisor Class		(34,086,485	)		(9,087,918	)
A-Class		(16,812,954	)		(11,090,005	)
C-Class		(13,866,474	)		(23,983,376	)
Net decrease from capital share transactions		(14,248,427	)		(2,737,776	)
Net decrease in net assets		(14,048,003	)		(2,534,761	)
Net assets:
Beginning of period		54,862,227			57,396,988
End of period	$	40,814,224		$	54,862,227
Undistributed net investment income at end of period	$	269,141		$	199,782
Capital share activity:
Shares sold
Investor Class		1,502,387			3,283,583
Advisor Class		708,499			179,322
A-Class		255,595			276,591
C-Class		287,960			520,203
Shares issued from reinvestment of distributions
Investor Class		—			3,814
Advisor Class		—			302
A-Class		—			1,084
C-Class		—			724
Shares redeemed
Investor Class		(1,716,521	)		(3,367,228	)
Advisor Class		(680,088	)		(202,337	)
A-Class		(325,821	)		(243,630	)
C-Class		(294,689	)		(559,837	)
Net decrease in shares		(262,678	)		(107,409	)

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	52.53		$	49.94		$	49.80		$	56.36		$	44.65		$	27.43
Income (loss) from investment operations:
Net investment income (loss)b		.13			.32			.46			.09			—	c		.24
Net gain (loss) on investments (realized and unrealized)		(.53	)		2.58			(.15	)		(6.65	)		11.82			17.07
Total from investment operations		(.40	)		2.90			.31			(6.56	)		11.82			17.31
Less distributions from:
Net investment income		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Total distributions		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Net asset value, end of period	$	52.13		$	52.53		$	49.94		$	49.80		$	56.36		$	44.65
Total Returnd		(0.76	%)		5.84	%		0.65	%		(11.66	%)		26.50	%		63.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,265		$	33,687		$	36,012		$	36,847		$	73,606		$	44,582
Ratios to average net assets:
Net investment income (loss)		0.48	%		0.66	%		0.95	%		0.17	%		0.00	%		0.65	%
Total expensese		1.37	%		1.38	%		1.36	%		1.36	%		1.39	%		1.39	%
Portfolio turnover rate		169	%		349	%		251	%		217	%		292	%		455	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	48.64		$	46.50		$	46.61		$	53.00		$	42.20		$	26.06
Income (loss) from investment operations:
Net investment income (loss)b		—	c		.08			.19			.08			(.20	)		.03
Net gain (loss) on investments (realized and unrealized)		(.49	)		2.37			(.13	)		(6.47	)		11.11			16.20
Total from investment operations		(.49	)		2.45			.06			(6.39	)		10.91			16.23
Less distributions from:
Net investment income		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Total distributions		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Net asset value, end of period	$	48.15		$	48.64		$	46.50		$	46.61		$	53.00		$	42.20
Total Returnd		(1.01	%)		5.31	%		0.16	%		(12.08	%)		25.88	%		62.30	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,018		$	2,678		$	3,616		$	5,287		$	15,986		$	8,799
Ratios to average net assets:
Net investment income (loss)		0.02	%		0.18	%		0.43	%		0.17	%		(0.44	%)		0.07	%
Total expensese		1.87	%		1.88	%		1.86	%		1.86	%		1.89	%		1.89	%
Portfolio turnover rate		169	%		349	%		251	%		217	%		292	%		455	%

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

BASIC MATERIALS FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	49.93		$	47.60		$	47.58		$	53.99		$	42.88		$	26.41
Income (loss) from investment operations:
Net investment income (loss)b		.06			.22			.32			(.01	)		(.09	)		.15
Net gain (loss) on investments (realized and unrealized)		(.51	)		2.42			(.13	)		(6.40	)		11.31			16.41
Total from investment operations		(.45	)		2.64			.19			(6.41	)		11.22			16.56
Less distributions from:
Net investment income		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Total distributions		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Net asset value, end of period	$	49.48		$	49.93		$	47.60		$	47.58		$	53.99		$	42.88
Total Returnd		(0.90	%)		5.58	%		0.41	%		(11.87	%)		26.20	%		62.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,752		$	13,347		$	11,104		$	9,410		$	18,187		$	8,159
Ratios to average net assets:
Net investment income (loss)		0.22	%		0.47	%		0.69	%		(0.03	%)		(0.19	%)		0.40	%
Total expensese		1.62	%		1.63	%		1.61	%		1.61	%		1.64	%		1.65	%
Portfolio turnover rate		169	%		349	%		251	%		217	%		292	%		455	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	45.91		$	44.12		$	44.45		$	50.80		$	40.67		$	25.24
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.15	)		(.03	)		(.33	)		(.40	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		(.45	)		2.25			(.13	)		(6.02	)		10.64			15.65
Total from investment operations		(.58	)		2.10			(.16	)		(6.35	)		10.24			15.52
Less distributions from:
Net investment income		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Total distributions		—			(.31	)		(.17	)		—			(.11	)		(.09	)
Net asset value, end of period	$	45.33		$	45.91		$	44.12		$	44.45		$	50.80		$	40.67
Total Returnd		(1.26	%)		4.80	%		(0.35	%)		(12.50	%)		25.21	%		61.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,780		$	5,150		$	6,666		$	8,317		$	13,353		$	9,125
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.34	%)		(0.07	%)		(0.73	%)		(0.93	%)		(0.37	%)
Total expensese		2.37	%		2.38	%		2.36	%		2.36	%		2.39	%		2.40	%
Portfolio turnover rate		169	%		349	%		251	%		217	%		292	%		455	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE(Unaudited) September 30, 2014

BIOTECHNOLOGY FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Gilead Sciences, Inc.	7.8%
Amgen, Inc.	6.2%
Biogen Idec, Inc.	5.3%
Celgene Corp.	5.3%
Regeneron Pharmaceuticals, Inc.	3.6%
Alexion Pharmaceuticals, Inc.	3.5%
Vertex Pharmaceuticals, Inc.	3.4%
Illumina, Inc.	2.7%
BioMarin Pharmaceutical, Inc.	2.0%
Incyte Corp.	1.8%
Top Ten Total	41.6%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  25 

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
BIOTECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.4%
MEDICAL-BIOMEDICAL/GENETICS - 76.2%
Gilead Sciences, Inc.*		311,392	$	33,147,677
Amgen, Inc.		187,854		26,385,973
Biogen Idec, Inc.*		68,901		22,793,140
Celgene Corp.*		239,521		22,701,800
Regeneron Pharmaceuticals, Inc.*		42,614		15,363,199
Alexion Pharmaceuticals, Inc.*		90,776		15,052,476
Vertex Pharmaceuticals, Inc.*		128,612		14,444,414
Illumina, Inc.*		70,523		11,560,130
BioMarin Pharmaceutical, Inc.*		119,774		8,642,892
Incyte Corp.*		153,269		7,517,844
Medivation, Inc.*		71,370		7,056,352
Puma Biotechnology, Inc.*		27,051		6,453,557
United Therapeutics Corp.*		48,542		6,244,928
Alnylam Pharmaceuticals, Inc.*		78,233		6,109,997
Cubist Pharmaceuticals, Inc.*		87,678		5,816,559
Intercept Pharmaceuticals, Inc.*		23,600		5,585,884
Isis Pharmaceuticals, Inc.*,1		138,247		5,368,131
Myriad Genetics, Inc.*,1		136,280		5,256,320
Seattle Genetics, Inc.*,1		141,144		5,247,734
NPS Pharmaceuticals, Inc.*		181,354		4,715,204
Bio-Rad Laboratories, Inc. — Class A*		40,380		4,579,092
Theravance Biopharma, Inc.*,1		186,900		4,308,045
Charles River Laboratories International, Inc.*		71,466		4,269,379
Synageva BioPharma Corp.*		60,180		4,139,180
Exact Sciences Corp.*,1		208,355		4,037,920
Theravance, Inc.1		212,464		3,631,010
Ultragenyx Pharmaceutical, Inc.*,1		62,500		3,537,500
Intrexon Corp.*,1		189,300		3,517,194
Acorda Therapeutics, Inc.*		98,258		3,328,981
Medicines Co.*		129,750		2,896,020
PDL BioPharma, Inc.1		377,673		2,821,217
Celldex Therapeutics, Inc.*		208,433		2,701,292
Arena Pharmaceuticals, Inc.*,1		622,637		2,608,849
AMAG Pharmaceuticals, Inc.*		81,400		2,597,474
Halozyme Therapeutics, Inc.*		283,665		2,581,352
Aegerion Pharmaceuticals, Inc.*		75,100		2,506,838
Novavax, Inc.*,1		599,455		2,499,727
ARIAD Pharmaceuticals, Inc.*,1		461,789		2,493,661
Ligand Pharmaceuticals, Inc. — Class B*		52,746		2,478,535
ImmunoGen, Inc.*,1		226,300		2,396,517
Achillion Pharmaceuticals, Inc.*		235,900		2,354,282
Emergent Biosolutions, Inc.*		106,400		2,267,384
KYTHERA Biopharmaceuticals, Inc.*		64,720		2,120,227
Sangamo BioSciences, Inc.*		193,360		2,085,388
BioCryst Pharmaceuticals, Inc.*		211,300		2,066,514
Insmed, Inc.*		157,230		2,051,852
Repligen Corp.*		103,000		2,050,730
Organovo Holdings, Inc.*,1		320,180		2,039,547
Inovio Pharmaceuticals, Inc.*,1		205,900		2,028,115
Momenta Pharmaceuticals, Inc.*		177,210		2,009,561
NewLink Genetics Corp.*,1		83,700		1,792,854
Endocyte, Inc.*,1		200,249		1,217,514
XOMA Corp.*		264,600		1,113,966
Acceleron Pharma, Inc.*		31,900		964,656
Exelixis, Inc.*,1		378,125		578,531
Total Medical-Biomedical/Genetics				326,135,115
MEDICAL-DRUGS - 12.6%
Quintiles Transnational Holdings, Inc.*		124,204		6,928,099
OPKO Health, Inc.*,1		662,840		5,640,768
Alkermes plc*		126,378		5,417,825
Grifols S.A. ADR		143,761		5,050,324
ACADIA Pharmaceuticals, Inc.*,1		157,728		3,905,345
Ironwood Pharmaceuticals, Inc. — Class A*		280,556		3,634,603
Receptos, Inc.*		52,300		3,248,353
Clovis Oncology, Inc.*,1		70,200		3,184,272
Insys Therapeutics, Inc.*,1		80,375		3,116,943
Ophthotech Corp.*,1		76,800		2,989,824
Keryx Biopharmaceuticals, Inc.*,1		216,465		2,976,394
TESARO, Inc.*		95,763		2,577,940
Raptor Pharmaceutical Corp.*,1		196,532		1,884,742
Orexigen Therapeutics, Inc.*,1		414,100		1,764,066
Vanda Pharmaceuticals, Inc.*,1		135,300		1,404,414
Total Medical-Drugs				53,723,912
THERAPEUTICS - 5.6%
Pharmacyclics, Inc.*		63,900		7,503,777
Agios Pharmaceuticals, Inc.*,1		68,804		4,221,125
MannKind Corp.*,1		708,100		4,184,871
Dyax Corp.*		291,620		2,951,194
Neurocrine Biosciences, Inc.*		178,865		2,802,815
Sarepta Therapeutics, Inc.*,1		111,031		2,342,754
Total Therapeutics				24,006,536
DIAGNOSTIC EQUIPMENT - 1.5%
Cepheid*		101,576		4,472,391
Affymetrix, Inc.*		234,445		1,870,871
Total Diagnostic Equipment				6,343,262
DIAGNOSTIC KITS - 1.2%
QIAGEN N.V.*		226,100		5,148,297
MEDICAL INSTRUMENTS - 1.1%
Techne Corp.		50,460		4,720,533
DRUG DELIVERY SYSTEMS - 0.7%
Nektar Therapeutics*		244,080		2,946,046
RESEARCH & DEVELOPMENT - 0.5%
Arrowhead Research Corp.*,1		150,281		2,219,650
Total Common Stocks
(Cost $235,023,289)				425,243,351

26  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
BIOTECHNOLOGY FUND

	Shares		Value
RIGHTS††† - 0.0%
Chelsea Therapeutics International
Expires 12/31/171		263,700	$	21,096
Clinical Data, Inc.
Expires 12/31/20		24,000		—
Total Rights
(Cost $19,745)				21,096
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	691,440		691,440
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		284,753		284,753
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		284,753		284,753
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		284,753		284,753
Total Repurchase Agreements
(Cost $1,545,699)				1,545,699

SECURITIES LENDING COLLATERAL††,3 - 16.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	58,725,362	$	58,725,362
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14	9,627,108		9,627,108
Total Securities Lending Collateral
(Cost $68,352,470)			68,352,470
Total Investments - 115.8%
(Cost $304,941,203)		$	495,162,616
Other Assets & Liabilities, net - (15.8)%			(67,615,354	)
Total Net Assets - 100.0%		$	427,547,262

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  27 

BIOTECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $74,951,920 of securities loaned (cost $235,043,034)	$	425,264,447
Repurchase agreements, at value (cost $69,898,169)		69,898,169
Total investments (cost $304,941,203)		495,162,616
Segregated cash with broker		11,200,911
Cash		7,189,100
Receivables:
Fund shares sold		1,074,067
Securities lending income		228,381
Total assets		514,855,075
Liabilities:
Payable for:
Upon return of securities loaned		79,553,381
Securities purchased		6,726,964
Fund shares redeemed		346,746
Management fees		308,897
Transfer agent and administrative fees		90,852
Distribution and service fees		47,079
Portfolio accounting fees		32,221
Miscellaneous		201,673
Total liabilities		87,307,813
Net assets	$	427,547,262
Net assets consist of:
Paid in capital	$	212,481,446
Accumulated net investment loss		(1,120,618	)
Accumulated net realized gain on investments		25,965,021
Net unrealized appreciation on investments		190,221,413
Net assets	$	427,547,262
Investor Class:
Net assets	$	309,385,646
Capital shares outstanding		4,041,571
Net asset value per share	$	76.55
Advisor Class:
Net assets	$	39,578,117
Capital shares outstanding		563,485
Net asset value per share	$	70.24
A-Class:
Net assets	$	53,595,648
Capital shares outstanding		745,225
Net asset value per share	$	71.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	75.51
C-Class:
Net assets	$	24,987,851
Capital shares outstanding		373,759
Net asset value per share	$	66.86

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Income from securities lending, net	$	1,409,965
Dividends		456,423
Interest		111
Total investment income		1,866,499
Expenses:
Management fees		1,705,232
Transfer agent and administrative fees		501,537
Distribution and service fees:
Advisor Class		88,508
A-Class		58,965
C-Class		118,587
Portfolio accounting fees		181,797
Custodian fees		23,417
Trustees' fees*		16,259
Line of credit interest expense		1,811
Miscellaneous		291,004
Total expenses		2,987,117
Net investment loss		(1,120,618	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		30,660,371
Net realized gain		30,660,371
Net change in unrealized appreciation (depreciation) on:
Investments		8,448,193
Net change in unrealized appreciation (depreciation)		8,448,193
Net realized and unrealized gain		39,108,564
Net increase in net assets resulting from operations	$	37,987,946

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

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

BIOTECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(1,120,618	)	$	(3,549,985	)
Net realized gain on investments		30,660,371			22,271,740
Net change in unrealized appreciation (depreciation) on investments		8,448,193			84,195,149
Net increase in net assets resulting from operations		37,987,946			102,916,904
Capital share transactions:
Proceeds from sale of shares
Investor Class		204,736,572			520,369,253
Advisor Class		71,623,015			128,608,371
A-Class		22,455,071			68,697,208
C-Class		14,133,435			39,913,128
Cost of shares redeemed
Investor Class		(236,623,673	)		(452,747,513	)
Advisor Class		(73,461,537	)		(123,757,687	)
A-Class		(24,540,309	)		(55,968,103	)
C-Class		(18,505,544	)		(32,688,163	)
Net increase (decrease) from capital share transactions		(40,182,970	)		92,426,494
Net increase (decrease) in net assets		(2,195,024	)		195,343,398
Net assets:
Beginning of period		429,742,286			234,398,888
End of period	$	427,547,262		$	429,742,286
Accumulated net investment loss at end of period	$	(1,120,618	)	$	—
Capital share activity:
Shares sold
Investor Class		2,838,414			8,519,648
Advisor Class		1,098,790			2,294,916
A-Class		332,185			1,179,822
C-Class		229,496			749,811
Shares redeemed
Investor Class		(3,373,022	)		(7,452,878	)
Advisor Class		(1,138,333	)		(2,188,643	)
A-Class		(383,007	)		(955,296	)
C-Class		(307,831	)		(612,767	)
Net increase (decrease) in shares		(703,308	)		1,534,613

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	68.47		$	48.97		$	36.90		$	29.16		$	27.34		$	19.37
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.51	)		(.40	)		(.34	)		(.33	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		8.23			20.01			12.47			8.08			2.15			8.18
Total from investment operations		8.08			19.50			12.07			7.74			1.82			7.97
Net asset value, end of period	$	76.55		$	68.47		$	48.97		$	36.90		$	29.16		$	27.34
Total Returnc		11.80	%		39.82	%		32.71	%		26.54	%		6.66	%		41.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	309,386		$	313,324		$	171,844		$	89,027		$	44,686		$	147,631
Ratios to average net assets:
Net investment income (loss)		(0.43	%)		(0.82	%)		(0.98	%)		(1.09	%)		(1.26	%)		(0.90	%)
Total expenses		1.36	%		1.36	%		1.35	%		1.36	%		1.39	%		1.39	%
Portfolio turnover rate		48	%		119	%		197	%		333	%		337	%		316	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	62.98		$	45.27		$	34.27		$	27.22		$	25.66		$	18.27
Income (loss) from investment operations:
Net investment income (loss)b		(.30	)		(.74	)		(.56	)		(.48	)		(.43	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		7.56			18.45			11.56			7.53			1.99			7.69
Total from investment operations		7.26			17.71			11.00			7.05			1.56			7.39
Net asset value, end of period	$	70.24		$	62.98		$	45.27		$	34.27		$	27.22		$	25.66
Total Returnc		11.53	%		39.12	%		32.10	%		25.90	%		6.08	%		40.45	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	39,578		$	37,978		$	22,486		$	8,313		$	7,410		$	9,144
Ratios to average net assets:
Net investment income (loss)		(0.93	%)		(1.32	%)		(1.46	%)		(1.65	%)		(1.77	%)		(1.38	%)
Total expenses		1.86	%		1.86	%		1.86	%		1.87	%		1.89	%		1.89	%
Portfolio turnover rate		48	%		119	%		197	%		333	%		337	%		316	%

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

BIOTECHNOLOGY FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	64.41		$	46.18		$	34.88		$	27.64		$	25.98		$	18.45
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.62	)		(.48	)		(.37	)		(.37	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		7.74			18.85			11.78			7.61			2.03			7.78
Total from investment operations		7.51			18.23			11.30			7.24			1.66			7.53
Net asset value, end of period	$	71.92		$	64.41		$	46.18		$	34.88		$	27.64		$	25.98
Total Returnc		11.66	%		39.48	%		32.40	%		26.19	%		6.39	%		40.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	53,596		$	51,270		$	26,391		$	4,741		$	2,211		$	2,869
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(1.07	%)		(1.21	%)		(1.30	%)		(1.51	%)		(1.12	%)
Total expenses		1.61	%		1.61	%		1.61	%		1.61	%		1.64	%		1.64	%
Portfolio turnover rate		48	%		119	%		197	%		333	%		337	%		316	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	60.10		$	43.41		$	33.04		$	26.38		$	24.96		$	17.87
Income (loss) from investment operations:
Net investment income (loss)b		(.44	)		(.99	)		(.73	)		(.58	)		(.54	)		(.38	)
Net gain (loss) on investments (realized and unrealized)		7.20			17.68			11.10			7.24			1.96			7.47
Total from investment operations		6.76			16.69			10.37			6.66			1.42			7.09
Net asset value, end of period	$	66.86		$	60.10		$	43.41		$	33.04		$	26.38		$	24.96
Total Returnc		11.25	%		38.45	%		31.39	%		25.25	%		5.65	%		39.68	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	24,988		$	27,170		$	13,677		$	6,969		$	3,393		$	4,705
Ratios to average net assets:
Net investment income (loss)		(1.42	%)		(1.82	%)		(1.96	%)		(2.06	%)		(2.27	%)		(1.78	%)
Total expenses		2.36	%		2.36	%		2.36	%		2.36	%		2.39	%		2.39	%
Portfolio turnover rate		48	%		119	%		197	%		333	%		337	%		316	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE(Unaudited) September 30, 2014

CONSUMER PRODUCTS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Procter & Gamble Co.	5.4%
Coca-Cola Co.	5.0%
PepsiCo, Inc.	4.3%
Philip Morris International, Inc.	4.1%
Altria Group, Inc.	3.5%
Colgate-Palmolive Co.	2.8%
Mondelez International, Inc. — Class A	2.7%
Kimberly-Clark Corp.	2.3%
Kraft Foods Group, Inc.	2.1%
Reynolds American, Inc.	2.1%
Top Ten Total	34.3%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

32  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
CONSUMER PRODUCTS FUND

	Shares		Value
COMMON STOCKS† - 99.1%
FOOD-MISCELLANEOUS/DIVERSIFIED - 15.7%
Mondelez International, Inc. — Class A		186,726	$	6,398,166
Kraft Foods Group, Inc.		87,900		4,957,560
General Mills, Inc.		96,037		4,845,067
Kellogg Co.		65,720		4,048,352
ConAgra Foods, Inc.		99,582		3,290,189
Campbell Soup Co.		73,717		3,149,927
McCormick & Company, Inc.		37,639		2,518,049
Ingredion, Inc.		26,374		1,998,885
Hain Celestial Group, Inc.*		18,980		1,942,603
Pinnacle Foods, Inc.		51,600		1,684,740
Lancaster Colony Corp.		15,200		1,296,256
B&G Foods, Inc.		37,200		1,024,860
Total Food-Miscellaneous/Diversified				37,154,654
BEVERAGES-NON-ALCOHOLIC - 14.2%
Coca-Cola Co.		278,926		11,898,983
PepsiCo, Inc.		108,437		10,094,400
Monster Beverage Corp.*		36,753		3,369,148
Dr Pepper Snapple Group, Inc.		47,401		3,048,358
Coca-Cola Enterprises, Inc.		62,494		2,772,234
Fomento Economico Mexicano SAB de CV ADR		23,593		2,171,736
Total Beverages-Non-alcoholic				33,354,859
TOBACCO - 13.0%
Philip Morris International, Inc.		116,097		9,682,490
Altria Group, Inc.		178,500		8,200,290
Reynolds American, Inc.		83,333		4,916,647
Lorillard, Inc.		66,831		4,003,845
British American Tobacco plc ADR		16,700		1,888,436
Vector Group Ltd.1		58,300		1,293,094
Universal Corp.		20,700		918,873
Total Tobacco				30,903,675
COSMETICS & TOILETRIES - 12.7%
Procter & Gamble Co.		153,560		12,859,134
Colgate-Palmolive Co.		101,249		6,603,460
Estee Lauder Companies, Inc. — Class A		61,556		4,599,464
Unilever N.V. — Class Y		53,341		2,116,571
Coty, Inc. — Class A		121,600		2,012,480
Avon Products, Inc.		156,646		1,973,740
Total Cosmetics & Toiletries				30,164,849
FOOD-RETAIL - 5.9%
Kroger Co.		82,887		4,310,124
Whole Foods Market, Inc.		80,742		3,077,078
Safeway, Inc.		70,565		2,420,380
Sprouts Farmers Market, Inc.*		60,300		1,752,921
SUPERVALU, Inc.*		139,232		1,244,734
Fresh Market, Inc.*		31,320		1,094,008
Total Food-Retail				13,899,245
CONSUMER PRODUCTS-MISCELLANEOUS - 4.4%
Kimberly-Clark Corp.		50,822	$	5,466,922
Clorox Co.		32,467		3,118,131
Spectrum Brands Holdings, Inc.		21,100		1,910,183
Total Consumer Products-Miscellaneous				10,495,236
BREWERY - 4.3%
Molson Coors Brewing Co. — Class B		40,724		3,031,495
AMBEV S.A. ADR		444,000		2,908,200
Anheuser-Busch InBev N.V. ADR		24,412		2,706,070
Boston Beer Company, Inc. — Class A*,1		6,400		1,419,264
Total Brewery				10,065,029
BEVERAGES-WINE/SPIRITS - 4.0%
Brown-Forman Corp. — Class B		41,020		3,700,824
Constellation Brands, Inc. — Class A*		40,144		3,498,951
Diageo plc ADR		20,640		2,381,856
Total Beverages-Wine/Spirits				9,581,631
			��
AGRICULTURAL OPERATIONS - 3.8%
Archer-Daniels-Midland Co.		95,903		4,900,643
Bunge Ltd.		35,196		2,964,559
Andersons, Inc.		17,700		1,112,976
Total Agricultural Operations				8,978,178
FOOD-MEAT PRODUCTS - 3.6%
Tyson Foods, Inc. — Class A		82,195		3,236,017
Hormel Foods Corp.		61,786		3,175,183
BRF S.A. ADR		88,780		2,112,076
Total Food-Meat Products				8,523,276
FOOD-CONFECTIONERY - 2.8%
Hershey Co.		41,592		3,969,124
JM Smucker Co.		27,531		2,725,294
Total Food-Confectionery				6,694,418
FOOD-WHOLESALE/DISTRIBUTION - 2.3%
Sysco Corp.		106,705		4,049,455
United Natural Foods, Inc.*		24,030		1,476,884
Total Food-Wholesale/Distribution				5,526,339
VITAMINS & NUTRITION PRODUCTS - 2.3%
Mead Johnson Nutrition Co. — Class A		38,949		3,747,672
Herbalife Ltd.1		38,914		1,702,488
Total Vitamins & Nutrition Products				5,450,160
COFFEE - 1.6%
Keurig Green Mountain, Inc.		29,374		3,822,439
POULTRY - 1.5%
Pilgrim's Pride Corp.*		77,100		2,356,176
Sanderson Farms, Inc.		13,800		1,213,710
Total Poultry				3,569,886

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
CONSUMER PRODUCTS FUND

	Shares		Value
FOOD-DAIRY PRODUCTS - 1.3%
WhiteWave Foods Co. — Class A*		59,600	$	2,165,268
Dean Foods Co.		68,640		909,480
Total Food-Dairy Products				3,074,748
SOAP & CLEANING PREPARATION - 1.1%
Church & Dwight Company, Inc.		37,266		2,614,583
BATTERIES/BATTERY SYSTEMS - 1.0%
Energizer Holdings, Inc.		19,065		2,348,998
FOOD-BAKING - 0.7%
Flowers Foods, Inc.		90,392		1,659,597
FOOD-CANNED - 0.7%
TreeHouse Foods, Inc.*		19,701		1,585,931
ALTERNATIVE WASTE TECHNOLOGY - 0.6%
Darling Ingredients, Inc.*		81,368		1,490,662
RETAIL-CONVENIENCE STORE - 0.6%
Casey's General Stores, Inc.		19,623		1,406,969
MULTILEVEL DIRECT SELLING - 0.6%
Nu Skin Enterprises, Inc. — Class A		30,930		1,392,778
FOOD-FLOUR & GRAIN - 0.4%
Post Holdings, Inc.*		31,000		1,028,580
Total Common Stocks
(Cost $172,938,916)				234,786,720

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.4%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	403,527	$	403,527
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		166,183		166,183
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		166,183		166,183
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		166,183		166,183
Total Repurchase Agreements
(Cost $902,076)				902,076
SECURITIES LENDING COLLATERAL††,3 - 1.2%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		2,511,434		2,511,434
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		411,710		411,710
Total Securities Lending Collateral
(Cost $2,923,144)				2,923,144
Total Investments - 100.7%
(Cost $176,764,136)			$	238,611,940
Other Assets & Liabilities, net - (0.7)%				(1,638,878	)
Total Net Assets - 100.0%			$	236,973,062

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

34  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

CONSUMER PRODUCTS FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $3,338,207 of securities loaned (cost $172,938,916)	$	234,786,720
Repurchase agreements, at value (cost $3,825,220)		3,825,220
Total investments (cost $176,764,136)		238,611,940
Segregated cash with broker		479,015
Receivables:
Fund shares sold		2,374,044
Dividends		597,918
Foreign taxes reclaim		6,248
Securities lending income		2,479
Total assets		242,071,644
Liabilities:
Payable for:
Upon return of securities loaned		3,402,159
Securities purchased		1,128,772
Fund shares redeemed		218,336
Management fees		152,710
Transfer agent and administrative fees		44,915
Distribution and service fees		33,204
Portfolio accounting fees		17,966
Miscellaneous		100,520
Total liabilities		5,098,582
Net assets	$	236,973,062
Net assets consist of:
Paid in capital	$	181,263,908
Undistributed net investment income		2,289,934
Accumulated net realized loss on investments		(8,428,584	)
Net unrealized appreciation on investments		61,847,804
Net assets	$	236,973,062
Investor Class:
Net assets	$	148,401,167
Capital shares outstanding		2,709,803
Net asset value per share	$	54.76
Advisor Class:
Net assets	$	45,567,675
Capital shares outstanding		916,822
Net asset value per share	$	49.70
A-Class:
Net assets	$	27,701,113
Capital shares outstanding		540,659
Net asset value per share	$	51.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	53.80
C-Class:
Net assets	$	15,303,107
Capital shares outstanding		330,235
Net asset value per share	$	46.34

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $7,049)	$	2,444,384
Income from securities lending, net		11,697
Interest		60
Total investment income		2,456,141
Expenses:
Management fees		875,728
Transfer agent and administrative fees		257,566
Distribution and service fees:
Advisor Class		86,073
A-Class		29,961
C-Class		74,430
Portfolio accounting fees		103,025
Tax expense		14,930
Custodian fees		12,034
Trustees' fees*		7,548
Line of credit interest expense		112
Miscellaneous		150,247
Total expenses		1,611,654
Net investment income		844,487
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,525,199
Net realized gain		1,525,199
Net change in unrealized appreciation (depreciation) on:
Investments		7,162,242
Net change in unrealized appreciation (depreciation)		7,162,242
Net realized and unrealized gain		8,687,441
Net increase in net assets resulting from operations	$	9,531,928

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  35 

CONSUMER PRODUCTS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	844,487		$	1,430,602
Net realized gain on investments		1,525,199			16,541,099
Net change in unrealized appreciation (depreciation) on investments		7,162,242			2,525,092
Net increase in net assets resulting from operations		9,531,928			20,496,793
Distributions to shareholders from:
Net investment income
Investor Class		—			(1,145,002	)
Advisor Class		—			(232,317	)
A-Class		—			(203,982	)
C-Class		—			(138,802	)
Net realized gains
Investor Class		—			(3,773,580	)
Advisor Class		—			(765,646	)
A-Class		—			(672,262	)
C-Class		—			(457,448	)
Total distributions to shareholders		—			(7,389,039	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		99,579,960			198,150,046
Advisor Class		87,450,994			38,899,657
A-Class		10,767,411			21,016,640
C-Class		10,922,178			27,537,280
Distributions reinvested
Investor Class		—			4,792,637
Advisor Class		—			995,811
A-Class		—			697,114
C-Class		—			581,614
Cost of shares redeemed
Investor Class		(59,411,218	)		(291,984,030	)
Advisor Class		(70,687,401	)		(24,065,444	)
A-Class		(9,835,755	)		(19,454,898	)
C-Class		(10,401,298	)		(26,613,638	)
Net increase (decrease) from capital share transactions		58,384,871			(69,447,211	)
Net increase (decrease) in net assets		67,916,799			(56,339,457	)
Net assets:
Beginning of period		169,056,263			225,395,720
End of period	$	236,973,062		$	169,056,263
Undistributed net investment income at end of period	$	2,289,934		$	1,445,447
Capital share activity:
Shares sold
Investor Class		1,845,895			3,954,307
Advisor Class		1,778,326			847,688
A-Class		212,756			446,742
C-Class		238,323			642,147
Shares issued from reinvestment of distributions
Investor Class		—			94,753
Advisor Class		—			21,601
A-Class		—			14,701
C-Class		—			13,476
Shares redeemed
Investor Class		(1,098,972	)		(5,892,976	)
Advisor Class		(1,434,705	)		(527,437	)
A-Class		(195,533	)		(418,104	)
C-Class		(227,004	)		(619,832	)
Net increase (decrease) in shares		1,119,086			(1,422,934	)

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	52.08		$	47.79		$	40.19		$	36.37		$	37.83		$	26.39
Income (loss) from investment operations:
Net investment income (loss)b		.27			.46			.57			.49			.69			.50
Net gain (loss) on investments (realized and unrealized)		2.41			5.81			7.14			4.82			4.40			11.04
Total from investment operations		2.68			6.27			7.71			5.31			5.09			11.54
Less distributions from:
Net investment income		—			(.46	)		(.11	)		(.57	)		(.82	)		(.10	)
Net realized gains		—			(1.52	)		—			(.92	)		(5.73	)		—
Total distributions		—			(1.98	)		(.11	)		(1.49	)		(6.55	)		(.10	)
Net asset value, end of period	$	54.76		$	52.08		$	47.79		$	40.19		$	36.37		$	37.83
Total Returnd		5.15	%		13.24	%		19.26	%		15.06	%		14.81	%		43.75	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	148,401		$	102,231		$	181,945		$	155,432		$	57,876		$	182,915
Ratios to average net assets:
Net investment income (loss)		1.01	%		0.91	%		1.38	%		1.29	%		1.84	%		1.46	%
Total expenses		1.38	%		1.37	%		1.35	%		1.35	%		1.38	%		1.37	%
Portfolio turnover rate		47	%		112	%		230	%		402	%		400	%		200	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	47.39		$	43.87		$	37.08		$	33.84		$	35.77		$	25.09
Income (loss) from investment operations:
Net investment income (loss)b		.13			.24			.35			.24			.62			.35
Net gain (loss) on investments (realized and unrealized)		2.18			5.26			6.55			4.49			4.00			10.43
Total from investment operations		2.31			5.50			6.90			4.73			4.62			10.78
Less distributions from:
Net investment income		—			(.46	)		(.11	)		(.57	)		(.82	)		(.10	)
Net realized gains		—			(1.52	)		—			(.92	)		(5.73	)		—
Total distributions		—			(1.98	)		(.11	)		(1.49	)		(6.55	)		(.10	)
Net asset value, end of period	$	49.70		$	47.39		$	43.87		$	37.08		$	33.84		$	35.77
Total Returnd		4.87	%		12.66	%		18.66	%		14.49	%		14.32	%		42.99	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	45,568		$	27,162		$	10,148		$	16,975		$	3,475		$	5,824
Ratios to average net assets:
Net investment income (loss)		0.53	%		0.51	%		0.93	%		0.68	%		1.78	%		1.17	%
Total expenses		1.88	%		1.87	%		1.85	%		1.84	%		1.88	%		1.88	%
Portfolio turnover rate		47	%		112	%		230	%		402	%		400	%		200	%

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

CONSUMER PRODUCTS FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	48.79		$	45.00		$	37.93		$	34.49		$	36.26		$	25.37
Income (loss) from investment operations:
Net investment income (loss)b		.18			.33			.44			.40			.41			.55
Net gain (loss) on investments (realized and unrealized)		2.27			5.44			6.74			4.53			4.37			10.44
Total from investment operations		2.45			5.77			7.18			4.93			4.78			10.99
Less distributions from:
Net investment income		—			(.46	)		(.11	)		(.57	)		(.82	)		(.10	)
Net realized gains		—			(1.52	)		—			(.92	)		(5.73	)		—
Total distributions		—			(1.98	)		(.11	)		(1.49	)		(6.55	)		(.10	)
Net asset value, end of period	$	51.24		$	48.79		$	45.00		$	37.93		$	34.49		$	36.26
Total Returnd		5.02	%		12.95	%		18.98	%		14.80	%		14.58	%		43.34	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	27,701		$	25,538		$	21,604		$	21,021		$	5,033		$	21,277
Ratios to average net assets:
Net investment income (loss)		0.70	%		0.70	%		1.12	%		1.11	%		1.14	%		1.72	%
Total expenses		1.63	%		1.62	%		1.60	%		1.60	%		1.63	%		1.63	%
Portfolio turnover rate		47	%		112	%		230	%		402	%		400	%		200	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	44.29		$	41.32		$	35.11		$	32.28		$	34.57		$	24.36
Income (loss) from investment operations:
Net investment income (loss)b		(—	)c		(.01	)		.13			.12			.30			.24
Net gain (loss) on investments (realized and unrealized)		2.05			4.96			6.19			4.20			3.96			10.07
Total from investment operations		2.05			4.95			6.32			4.32			4.26			10.31
Less distributions from:
Net investment income		—			(.46	)		(.11	)		(.57	)		(.82	)		(.10	)
Net realized gains		—			(1.52	)		—			(.92	)		(5.73	)		—
Total distributions		—			(1.98	)		(.11	)		(1.49	)		(6.55	)		(.10	)
Net asset value, end of period	$	46.34		$	44.29		$	41.32		$	35.11		$	32.28		$	34.57
Total Returnd		4.63	%		12.11	%		18.06	%		13.91	%		13.78	%		42.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,303		$	14,125		$	11,699		$	9,712		$	3,484		$	4,194
Ratios to average net assets:
Net investment income (loss)		(0.02	%)		(0.02	%)		0.37	%		0.36	%		0.90	%		0.77	%
Total expenses		2.38	%		2.37	%		2.35	%		2.35	%		2.38	%		2.38	%
Portfolio turnover rate		47	%		112	%		230	%		402	%		400	%		200	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE(Unaudited) September 30, 2014

ELECTRONICS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Intel Corp.	8.9%
Texas Instruments, Inc.	4.8%
Micron Technology, Inc.	4.3%
Applied Materials, Inc.	3.4%
Broadcom Corp. — Class A	3.3%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR	2.8%
Analog Devices, Inc.	2.7%
KLA-Tencor Corp.	2.4%
Lam Research Corp.	2.3%
Skyworks Solutions, Inc.	2.3%
Top Ten Total	37.2%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  39 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
ELECTRONICS FUND

	Shares		Value
COMMON STOCKS† - 99.4%
ELECTRONIC COMPONENTS-SEMICONDUCTOR - 56.5%
Intel Corp.		140,699	$	4,899,138
Texas Instruments, Inc.		55,580		2,650,609
Micron Technology, Inc.*		68,299		2,339,923
Broadcom Corp. — Class A		44,917		1,815,545
Skyworks Solutions, Inc.		21,735		1,261,717
Xilinx, Inc.		28,886		1,223,322
Altera Corp.		33,975		1,215,626
NVIDIA Corp.		63,157		1,165,247
Microchip Technology, Inc.		23,985		1,132,812
Avago Technologies Ltd.		12,890		1,121,430
First Solar, Inc.*		14,138		930,422
Freescale Semiconductor Ltd.*		43,373		847,075
Cree, Inc.*		19,988		818,509
SunEdison, Inc.*		43,112		813,955
ARM Holdings plc ADR		18,163		793,541
ON Semiconductor Corp.*		79,548		711,159
Mellanox Technologies Ltd.*		15,126		678,704
International Rectifier Corp.*		15,970		626,663
Cavium, Inc.*		12,070		600,241
Microsemi Corp.*		22,888		581,584
Amkor Technology, Inc.*		61,130		514,103
Semtech Corp.*		18,400		499,560
Fairchild Semiconductor International, Inc. — Class A*		31,899		495,391
Silicon Laboratories, Inc.*		12,133		493,085
Intersil Corp. — Class A		34,419		489,094
Monolithic Power Systems, Inc.		10,890		479,705
GT Advanced Technologies, Inc.*,1		42,955		465,203
Ambarella, Inc.*		10,450		456,352
Rambus, Inc.*		36,422		454,547
OmniVision Technologies, Inc.*		17,087		452,122
Total Electronic Components-Semiconductor				31,026,384
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUIT - 20.6%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		76,240		1,538,523
Analog Devices, Inc.		29,735		1,471,585
Linear Technology Corp.		27,147		1,205,055
NXP Semiconductor N.V.*		15,777		1,079,620
Maxim Integrated Products, Inc.		35,686		1,079,145
Marvell Technology Group Ltd.		69,654		938,936
Himax Technologies, Inc. ADR1		74,870		759,931
TriQuint Semiconductor, Inc.*		36,328		692,775
Atmel Corp.*		82,735		668,499
Integrated Device Technology, Inc.*		35,333		563,561
Power Integrations, Inc.		8,753		471,874
Cypress Semiconductor Corp.		46,291		457,124
Cirrus Logic, Inc.*		19,531		407,221
Total Semiconductor Components-Integrated Circuit				11,333,849
SEMICONDUCTOR EQUIPMENT - 11.7%
Applied Materials, Inc.		87,304	$	1,886,639
KLA-Tencor Corp.		17,034		1,341,939
Lam Research Corp.		17,031		1,272,216
ASML Holding N.V. — Class G		7,884		779,097
Teradyne, Inc.		37,240		722,084
Veeco Instruments, Inc.*		12,531		437,958
Total Semiconductor Equipment				6,439,933
POWER CONVERTER/SUPPLY EQUIPMENT - 4.2%
SunPower Corp. — Class A*,1		22,368		757,828
Canadian Solar, Inc.*		18,971		678,593
Yingli Green Energy Holding Company Ltd. ADR*,1		182,382		567,208
Advanced Energy Industries, Inc.*		17,227		323,695
Total Power Converter/Supply Equipment				2,327,324
ENERGY-ALTERNATE SOURCES - 3.2%
Trina Solar Ltd. ADR*,1		48,901		590,235
JA Solar Holdings Company Ltd. ADR*		61,712		570,836
JinkoSolar Holding Company Ltd. ADR*,1		20,613		566,651
Total Energy-Alternate Sources				1,727,722
WIRELESS EQUIPMENT - 1.3%
RF Micro Devices, Inc.*		60,046		692,931
COMPUTERS-PERIPHERAL EQUIPMENT - 1.1%
Synaptics, Inc.*		8,045		588,894
COMPUTERS-MEMORY DEVICES - 0.8%
Spansion, Inc. — Class A*		19,210		437,796
Total Common Stocks
(Cost $50,648,487)				54,574,833
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	198,139		198,139
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		81,600		81,600
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		81,600		81,600
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		81,600		81,600
Total Repurchase Agreements
(Cost $442,939)				442,939

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
ELECTRONICS FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 3.7%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	1,749,173	$	1,749,173
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		286,750		286,750
Total Securities Lending Collateral
(Cost $2,035,923)				2,035,923
Total Investments - 103.9%
(Cost $53,127,349)			$	57,053,695
Other Assets & Liabilities, net - (3.9)%				(2,124,626	)
Total Net Assets - 100.0%			$	54,929,069

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

ELECTRONICS FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $2,194,294 of securities loaned (cost $50,648,487)	$	54,574,833
Repurchase agreements, at value (cost $2,478,862)		2,478,862
Total investments (cost $53,127,349)		57,053,695
Segregated cash with broker		333,627
Cash		4,227
Receivables:
Fund shares sold		67,044
Dividends		10,757
Securities lending income		7,039
Total assets		57,476,389
Liabilities:
Payable for:
Upon return of securities loaned		2,369,550
Fund shares redeemed		120,286
Management fees		28,743
Transfer agent and administrative fees		8,454
Distribution and service fees		4,422
Portfolio accounting fees		3,382
Miscellaneous		12,483
Total liabilities		2,547,320
Net assets	$	54,929,069
Net assets consist of:
Paid in capital	$	70,837,264
Accumulated net investment loss		(45,586	)
Accumulated net realized loss on investments		(19,788,955	)
Net unrealized appreciation on investments		3,926,346
Net assets	$	54,929,069
Investor Class:
Net assets	$	41,391,764
Capital shares outstanding		551,920
Net asset value per share	$	75.00
Advisor Class:
Net assets	$	4,643,875
Capital shares outstanding		67,296
Net asset value per share	$	69.01
A-Class:
Net assets	$	7,246,161
Capital shares outstanding		102,544
Net asset value per share	$	70.66
Maximum offering price per share (Net asset value divided by 95.25%)	$	74.18
C-Class:
Net assets	$	1,647,269
Capital shares outstanding		25,101
Net asset value per share	$	65.63

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $606)	$	128,899
Income from securities lending, net		18,708
Interest		10
Total investment income		147,617
Expenses:
Management fees		98,768
Transfer agent and administrative fees		29,049
Distribution and service fees:
Advisor Class		9,414
A-Class		4,757
C-Class		7,860
Portfolio accounting fees		11,620
Custodian fees		1,359
Trustees' fees*		600
Line of credit interest expense		56
Miscellaneous		17,306
Total expenses		180,789
Net investment loss		(33,172	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,259,172	)
Net realized loss		(1,259,172	)
Net change in unrealized appreciation (depreciation) on:
Investments		964,654
Net change in unrealized appreciation (depreciation)		964,654
Net realized and unrealized loss		(294,518	)
Net decrease in net assets resulting from operations	$	(327,690	)

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

42  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

ELECTRONICS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(33,172	)	$	(23,668	)
Net realized gain (loss) on investments		(1,259,172	)		690,809
Net change in unrealized appreciation (depreciation) on investments		964,654			1,007,719
Net increase (decrease) in net assets resulting from operations		(327,690	)		1,674,860
Distributions to shareholders from:
Net investment income
Investor Class		—			(1,558	)
Advisor Class		—			(974	)
A-Class		—			(118	)
C-Class		—			(329	)
Total distributions to shareholders		—			(2,979	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		83,097,583			119,447,698
Advisor Class		15,448,583			29,407,626
A-Class		11,017,795			15,892,309
C-Class		8,934,769			20,348,276
Distributions reinvested
Investor Class		—			1,521
Advisor Class		—			967
A-Class		—			118
C-Class		—			328
Cost of shares redeemed
Investor Class		(50,796,674	)		(113,730,945	)
Advisor Class		(14,491,295	)		(27,385,057	)
A-Class		(9,146,416	)		(11,112,191	)
C-Class		(8,412,666	)		(20,133,392	)
Net increase from capital share transactions		35,651,679			12,737,258
Net increase in net assets		35,323,989			14,409,139
Net assets:
Beginning of period		19,605,080			5,195,941
End of period	$	54,929,069		$	19,605,080
Accumulated net investment loss at end of period	$	(45,586	)	$	(12,414	)
Capital share activity:
Shares sold
Investor Class		1,119,128			1,999,524
Advisor Class		235,074			523,694
A-Class		160,004			274,282
C-Class		141,306			391,550
Shares issued from reinvestment of distributions
Investor Class		—			25
Advisor Class		—			17
A-Class		—			2
C-Class		—			6
Shares redeemed
Investor Class		(705,504	)		(1,917,706	)
Advisor Class		(223,327	)		(494,817	)
A-Class		(138,367	)		(199,435	)
C-Class		(133,190	)		(388,980	)
Net increase in shares		455,124			188,162

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  43 

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	69.82		$	52.11		$	55.09		$	60.57		$	52.33		$	32.76
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.04	)		.22			(.12	)		(.13	)		(.02	)
Net gain (loss) on investments (realized and unrealized)		5.23			17.79			(3.20	)		(5.36	)		8.37			19.59
Total from investment operations		5.18			17.75			(2.98	)		(5.48	)		8.24			19.57
Less distributions from:
Net investment income		—			(.04	)		—			—			—			—
Total distributions		—			(.04	)		—			—			—			—
Net asset value, end of period	$	75.00		$	69.82		$	52.11		$	55.09		$	60.57		$	52.33
Total Returnc		7.42	%		34.07	%		(5.41	%)		(9.05	%)		15.75	%		59.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	41,392		$	9,655		$	2,942		$	5,453		$	6,976		$	15,988
Ratios to average net assets:
Net investment income (loss)		(0.14	%)		(0.07	%)		0.45	%		(0.22	%)		(0.23	%)		(0.06	%)
Total expenses		1.37	%		1.37	%		1.35	%		1.35	%		1.39	%		1.38	%
Portfolio turnover rate		213	%		1,436	%		1,640	%		1,329	%		1,171	%		592	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	64.40		$	48.33		$	51.40		$	56.77		$	49.26		$	31.01
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.17	)		(.12	)		(.34	)		(.41	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		4.70			16.28			(2.95	)		(5.03	)		7.92			18.41
Total from investment operations		4.61			16.11			(3.07	)		(5.37	)		7.51			18.25
Less distributions from:
Net investment income		—			(.04	)		—			—			—			—
Total distributions		—			(.04	)		—			—			—			—
Net asset value, end of period	$	69.01		$	64.40		$	48.33		$	51.40		$	56.77		$	49.26
Total Returnc		7.16	%		33.34	%		(5.97	%)		(9.46	%)		15.25	%		58.85	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,644		$	3,577		$	1,288		$	1,271		$	3,081		$	1,634
Ratios to average net assets:
Net investment income (loss)		(0.26	%)		(0.29	%)		(0.26	%)		(0.67	%)		(0.79	%)		(0.39	%)
Total expenses		1.87	%		1.87	%		1.85	%		1.86	%		1.89	%		1.87	%
Portfolio turnover rate		213	%		1,436	%		1,640	%		1,329	%		1,171	%		592	%

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

ELECTRONICS FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	65.87		$	49.29		$	52.23		$	57.59		$	49.88		$	31.31
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.33	)		.24			(.19	)		(.21	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		4.99			16.95			(3.18	)		(5.17	)		7.92			18.71
Total from investment operations		4.79			16.62			(2.94	)		(5.36	)		7.71			18.57
Less distributions from:
Net investment income		—			(.04	)		—			—			—			—
Total distributions		—			(.04	)		—			—			—			—
Net asset value, end of period	$	70.66		$	65.87		$	49.29		$	52.23		$	57.59		$	49.88
Total Returnc		7.27	%		33.72	%		(5.63	%)		(9.31	%)		15.46	%		59.31	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,246		$	5,329		$	299		$	659		$	1,619		$	1,329
Ratios to average net assets:
Net investment income (loss)		(0.58	%)		(0.59	%)		0.51	%		(0.36	%)		(0.43	%)		(0.31	%)
Total expenses		1.62	%		1.62	%		1.60	%		1.62	%		1.64	%		1.62	%
Portfolio turnover rate		213	%		1,436	%		1,640	%		1,329	%		1,171	%		592	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	61.40		$	46.32		$	49.50		$	55.03		$	47.90		$	30.28
Income (loss) from investment operations:
Net investment income (loss)b		(.30	)		(.54	)		(.18	)		(.70	)		(.65	)		(.51	)
Net gain (loss) on investments (realized and unrealized)		4.53			15.66			(3.00	)		(4.83	)		7.78			18.13
Total from investment operations		4.23			15.12			(3.18	)		(5.53	)		7.13			17.62
Less distributions from:
Net investment income		—			(.04	)		—			—			—			—
Total distributions		—			(.04	)		—			—			—			—
Net asset value, end of period	$	65.63		$	61.40		$	46.32		$	49.50		$	55.03		$	47.90
Total Returnc		6.89	%		32.65	%		(6.44	%)		(10.01	%)		14.86	%		58.19	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,647		$	1,043		$	667		$	263		$	1,246		$	3,342
Ratios to average net assets:
Net investment income (loss)		(0.94	%)		(1.03	%)		(0.41	%)		(1.42	%)		(1.31	%)		(1.21	%)
Total expenses		2.36	%		2.37	%		2.35	%		2.36	%		2.39	%		2.38	%
Portfolio turnover rate		213	%		1,436	%		1,640	%		1,329	%		1,171	%		592	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE(Unaudited) September 30, 2014

ENERGY FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Exxon Mobil Corp.	5.2%
Chevron Corp.	3.9%
Schlumberger Ltd.	3.0%
ConocoPhillips	2.5%
Occidental Petroleum Corp.	2.3%
Halliburton Co.	2.0%
EOG Resources, Inc.	1.9%
Anadarko Petroleum Corp.	1.9%
Phillips 66	1.7%
Williams Companies, Inc.	1.7%
Top Ten Total	26.1%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

46  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
ENERGY FUND

	Shares		Value
COMMON STOCKS† - 99.6%
OIL COMPANY-EXPLORATION & PRODUCTION - 41.4%
ConocoPhillips		16,709	$	1,278,573
Occidental Petroleum Corp.		12,136		1,166,876
EOG Resources, Inc.		9,726		963,069
Anadarko Petroleum Corp.		9,401		953,637
Apache Corp.		8,480		796,018
Pioneer Natural Resources Co.		3,665		721,895
Hess Corp.		7,592		716,077
Devon Energy Corp.		10,201		695,504
Noble Energy, Inc.		9,626		658,033
Continental Resources, Inc.*		9,362		622,386
Chesapeake Energy Corp.		22,015		506,125
Antero Resources Corp.*		9,120		500,597
Concho Resources, Inc.*		3,961		496,670
Cabot Oil & Gas Corp. — Class A		15,070		492,638
Equities Corp.		5,340		488,824
Southwestern Energy Co.*		13,265		463,612
Range Resources Corp.		6,546		443,884
Cimarex Energy Co.		3,495		442,222
Whiting Petroleum Corp.*		5,186		402,174
Canadian Natural Resources Ltd.		9,662		375,272
Encana Corp.		17,544		372,108
Athlon Energy, Inc.*		6,200		361,026
QEP Resources, Inc.		10,162		312,786
Cobalt International Energy, Inc.*		22,860		310,896
Energen Corp.		4,290		309,910
Denbury Resources, Inc.		20,291		304,974
SM Energy Co.		3,769		293,982
Newfield Exploration Co.*		7,929		293,928
WPX Energy, Inc.*		11,933		287,108
Talisman Energy, Inc.		32,688		282,751
Gulfport Energy Corp.*		5,211		278,267
Diamondback Energy, Inc.*		3,680		275,190
Oasis Petroleum, Inc.*		6,450		269,675
LinnCo LLC		9,000		260,550
CNOOC Ltd. ADR		1,500		258,810
Kodiak Oil & Gas Corp.*		18,349		248,996
Ultra Petroleum Corp.*,1		10,482		243,811
Laredo Petroleum, Inc.*		10,780		241,580
Rice Energy, Inc.*		9,000		239,400
Energy XXI Bermuda Ltd.		20,660		234,491
Rosetta Resources, Inc.*		4,931		219,725
Carrizo Oil & Gas, Inc.*		3,810		205,054
Bonanza Creek Energy, Inc.*		3,600		204,840
SandRidge Energy, Inc.*,1		41,941		179,927
Matador Resources Co.*		6,940		179,399
Stone Energy Corp.*		5,680		178,125
PDC Energy, Inc.*		3,480		175,009
Sanchez Energy Corp.*		5,800		152,308
Seventy Seven Energy, Inc.*		6,077		144,268
Magnum Hunter Resources Corp.*		24,070		134,070
Bill Barrett Corp.*		5,900		130,036
Penn Virginia Corp.*		9,800	$	124,558
Comstock Resources, Inc.		6,400		119,168
Goodrich Petroleum Corp.*,1		6,890		102,110
Total Oil Company-Exploration & Production				21,112,922
OIL COMPANY-INTEGRATED - 17.6%
Exxon Mobil Corp.		28,487		2,679,202
Chevron Corp.		16,776		2,001,712
Phillips 66		10,872		884,002
Petroleo Brasileiro S.A. ADR		49,712		705,413
Marathon Oil Corp.		17,505		658,013
BP plc ADR		11,026		484,593
Murphy Oil Corp.		7,538		428,988
Suncor Energy, Inc.		10,671		385,757
Royal Dutch Shell plc — Class A ADR		5,067		385,751
YPF S.A. ADR		9,800		362,502
Total Oil Company-Integrated				8,975,933
OIL-FIELD SERVICES - 11.5%
Schlumberger Ltd.		15,289		1,554,739
Halliburton Co.		15,451		996,745
Baker Hughes, Inc.		10,906		709,544
Weatherford International plc*		19,520		406,016
Oceaneering International, Inc.		5,625		366,581
Targa Resources Corp.		2,430		330,893
Superior Energy Services, Inc.		9,178		301,681
Exterran Holdings, Inc.		5,201		230,456
Core Laboratories N.V.		1,377		201,524
Oil States International, Inc.*		3,187		197,275
Helix Energy Solutions Group, Inc.*		8,781		193,709
McDermott International, Inc.*		26,356		150,756
CARBO Ceramics, Inc.1		2,241		132,734
Hornbeck Offshore Services, Inc.*		3,250		106,373
Total Oil-Field Services				5,879,026
OIL & GAS DRILLING - 7.3%
Transocean Ltd.1		16,882		539,717
Ensco plc — Class A		11,083		457,839
Helmerich & Payne, Inc.		4,417		432,292
Seadrill Ltd.		15,815		423,209
Nabors Industries Ltd.		18,464		420,241
Noble Corporation plc		18,454		410,048
Patterson-UTI Energy, Inc.		9,043		294,169
Diamond Offshore Drilling, Inc.1		8,260		283,070
Rowan Companies plc — Class A		9,495		240,318
Atwood Oceanics, Inc.*		5,230		228,499
Total Oil & Gas Drilling				3,729,402
PIPELINES - 7.2%
Williams Companies, Inc.		15,572		861,909
Kinder Morgan, Inc.1		22,375		857,858
Spectra Energy Corp.		17,470		685,872
ONEOK, Inc.		7,490		490,970
Kinder Morgan Management LLC*		5,166		486,379

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
ENERGY FUND

	Shares		Value
Enbridge, Inc.		6,300	$	301,644
Total Pipelines				3,684,632
OIL REFINING & MARKETING - 6.6%
Valero Energy Corp.		14,398		666,196
Marathon Petroleum Corp.		7,736		655,007
Cheniere Energy, Inc.*		7,231		578,697
HollyFrontier Corp.		8,924		389,800
Tesoro Corp.		6,252		381,247
Western Refining, Inc.		6,610		277,554
PBF Energy, Inc. — Class A		8,840		212,160
Delek US Holdings, Inc.		5,700		188,784
Total Oil Refining & Marketing				3,349,445
OIL FIELD MACHINERY & EQUIPMENT - 4.6%
National Oilwell Varco, Inc.		9,930		755,674
Cameron International Corp.*		7,311		485,304
FMC Technologies, Inc.*		8,916		484,228
Dresser-Rand Group, Inc.*		4,340		357,008
Dril-Quip, Inc.*		2,930		261,942
Total Oil Field Machinery & Equipment				2,344,156
COAL - 1.2%
CONSOL Energy, Inc.		10,566		400,029
Peabody Energy Corp.		19,124		236,755
Total Coal				636,784
STEEL PIPE & TUBE - 0.5%
Tenaris S.A. ADR		6,229		283,731
NON-FERROUS METALS - 0.5%
Cameco Corp.		14,500		256,070
TRANSPORT-SERVICES - 0.4%
Bristow Group, Inc.		3,110		208,992
ENERGY-ALTERNATE SOURCES - 0.4%
Green Plains, Inc.		4,900		183,211
TRANSPORT-MARINE - 0.4%
Tidewater, Inc.		4,601		179,577
Total Common Stocks
(Cost $25,717,466)				50,823,881

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.8%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	177,788	$	177,788
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		73,219		73,219
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		73,219		73,219
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		73,219		73,219
Total Repurchase Agreements
(Cost $397,445)				397,445
SECURITIES LENDING COLLATERAL††,3 - 3.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		1,325,148		1,325,148
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		217,237		217,237
Total Securities Lending Collateral
(Cost $1,542,385)				1,542,385
Total Investments - 103.4%
(Cost $27,657,296)			$	52,763,711
Other Assets & Liabilities, net - (3.4)%				(1,711,488	)
Total Net Assets - 100.0%			$	51,052,223

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

ENERGY FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $1,715,322 of securities loaned (cost $25,717,466)	$	50,823,881
Repurchase agreements, at value (cost $1,939,830)		1,939,830
Total investments (cost $27,657,296)		52,763,711
Segregated cash with broker		252,750
Cash		4,545
Receivables:
Securities sold		309,856
Fund shares sold		31,468
Dividends		26,753
Securities lending income		1,714
Total assets		53,390,797
Liabilities:
Payable for:
Upon return of securities loaned		1,795,135
Fund shares redeemed		439,143
Management fees		40,763
Transfer agent and administrative fees		11,989
Distribution and service fees		11,284
Portfolio accounting fees		4,796
Miscellaneous		35,464
Total liabilities		2,338,574
Net assets	$	51,052,223
Net assets consist of:
Paid in capital	$	32,033,176
Undistributed net investment income		338,258
Accumulated net realized loss on investments		(6,425,626	)
Net unrealized appreciation on investments		25,106,415
Net assets	$	51,052,223
Investor Class:
Net assets	$	31,616,400
Capital shares outstanding		1,063,691
Net asset value per share	$	29.72
Advisor Class:
Net assets	$	5,454,462
Capital shares outstanding		199,404
Net asset value per share	$	27.35
A-Class:
Net assets	$	5,198,576
Capital shares outstanding		185,278
Net asset value per share	$	28.06
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.46
C-Class:
Net assets	$	8,782,785
Capital shares outstanding		341,743
Net asset value per share	$	25.70

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $14,723)	$	771,838
Income from securities lending, net		18,941
Interest		25
Total investment income		790,804
Expenses:
Management fees		358,300
Transfer agent and administrative fees		105,382
Distribution and service fees:
Advisor Class		21,157
A-Class		9,785
C-Class		47,523
Portfolio accounting fees		42,153
Custodian fees		4,922
Trustees' fees*		3,090
Line of credit interest expense		113
Miscellaneous		60,854
Total expenses		653,279
Net investment income		137,525
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,852,523
Net realized gain		2,852,523
Net change in unrealized appreciation (depreciation) on:
Investments		(1,092,109	)
Net change in unrealized appreciation (depreciation)		(1,092,109	)
Net realized and unrealized gain		1,760,414
Net increase in net assets resulting from operations	$	1,897,939

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

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

ENERGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	137,525		$	200,733
Net realized gain on investments		2,852,523			14,055,229
Net change in unrealized appreciation (depreciation) on investments		(1,092,109	)		(5,739,014	)
Net increase in net assets resulting from operations		1,897,939			8,516,948
Capital share transactions:
Proceeds from sale of shares
Investor Class		191,216,002			143,421,747
Advisor Class		44,796,635			9,124,810
A-Class		11,403,131			9,853,780
C-Class		13,009,526			25,870,251
Cost of shares redeemed
Investor Class		(197,558,463	)		(163,234,190	)
Advisor Class		(43,546,261	)		(10,093,114	)
A-Class		(12,965,573	)		(9,665,717	)
C-Class		(12,490,637	)		(28,215,805	)
Net decrease from capital share transactions		(6,135,640	)		(22,938,238	)
Net decrease in net assets		(4,237,701	)		(14,421,290	)
Net assets:
Beginning of period		55,289,924			69,711,214
End of period	$	51,052,223		$	55,289,924
Undistributed net investment income at end of period	$	338,258		$	200,733
Capital share activity:
Shares sold
Investor Class		6,180,579			5,152,398
Advisor Class		1,513,121			356,398
A-Class		378,674			388,496
C-Class		470,559			1,083,634
Shares redeemed
Investor Class		(6,313,865	)		(5,837,470	)
Advisor Class		(1,487,566	)		(400,131	)
A-Class		(429,336	)		(378,139	)
C-Class		(452,683	)		(1,182,490	)
Net decrease in shares		(140,517	)		(817,304	)

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

ENERGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	29.70		$	26.12		$	24.58		$	28.70		$	20.91		$	14.01
Income (loss) from investment operations:
Net investment income (loss)b		.09			.15			.12			.07			—	c		.10
Net gain (loss) on investments (realized and unrealized)		(.07	)		3.43			1.89			(4.19	)		7.82			6.82
Total from investment operations		.02			3.58			2.01			(4.12	)		7.82			6.92
Less distributions from:
Net investment income		—			—			(.07	)		—			(.03	)		(.02	)
Return of capital		—			—			(.40	)		—			—			—
Total distributions		—			—			(.47	)		—			(.03	)		(.02	)
Net asset value, end of period	$	29.72		$	29.70		$	26.12		$	24.58		$	28.70		$	20.91
Total Returnd		0.07	%		13.71	%		8.50	%		(14.39	%)		37.43	%		49.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	31,616		$	35,546		$	49,160		$	40,947		$	93,648		$	35,228
Ratios to average net assets:
Net investment income (loss)		0.55	%		0.55	%		0.52	%		0.27	%		0.00	%		0.51	%
Total expenses		1.36	%		1.37	%		1.35	%		1.36	%		1.39	%		1.38	%
Portfolio turnover rate		252	%		231	%		248	%		288	%		273	%		228	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	27.40		$	24.23		$	22.95		$	26.93		$	19.72		$	13.28
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.02	)		.01			(.08	)		(.11	)		(—	)c
Net gain (loss) on investments (realized and unrealized)		(.02	)		3.19			1.74			(3.90	)		7.35			6.46
Total from investment operations		(.05	)		3.17			1.75			(3.98	)		7.24			6.46
Less distributions from:
Net investment income		—			—			(.07	)		—			(.03	)		(.02	)
Return of capital		—			—			(.40	)		—			—			—
Total distributions		—			—			(.47	)		—			(.03	)		(.02	)
Net asset value, end of period	$	27.35		$	27.40		$	24.23		$	22.95		$	26.93		$	19.72
Total Returnd		(0.18	%)		13.08	%		7.92	%		(14.78	%)		36.75	%		48.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,454		$	4,764		$	5,272		$	11,080		$	16,015		$	6,489
Ratios to average net assets:
Net investment income (loss)		(0.21	%)		(0.09	%)		0.06	%		(0.33	%)		(0.53	%)		(0.02	%)
Total expenses		1.87	%		1.87	%		1.85	%		1.86	%		1.89	%		1.88	%
Portfolio turnover rate		252	%		231	%		248	%		288	%		273	%		228	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  51 

ENERGY FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	28.07		$	24.76		$	23.38		$	27.40		$	20.01		$	13.44
Income (loss) from investment operations:
Net investment income (loss)b		.02			.08			.08			(.01	)		(.08	)		.06
Net gain (loss) on investments (realized and unrealized)		(.03	)		3.23			1.77			(4.01	)		7.50			6.53
Total from investment operations		(.01	)		3.31			1.85			(4.02	)		7.42			6.59
Less distributions from:
Net investment income		—			—			(.07	)		—			(.03	)		(.02	)
Return of capital		—			—			(.40	)		—			—			—
Total distributions		—			—			(.47	)		—			(.03	)		(.02	)
Net asset value, end of period	$	28.06		$	28.07		$	24.76		$	23.38		$	27.40		$	20.01
Total Returnd		(0.04	%)		13.37	%		8.20	%		(14.67	%)		37.11	%		49.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,199		$	6,624		$	5,586		$	5,622		$	14,752		$	3,903
Ratios to average net assets:
Net investment income (loss)		0.14	%		0.30	%		0.38	%		(0.05	%)		(0.38	%)		0.35	%
Total expenses		1.61	%		1.62	%		1.60	%		1.61	%		1.64	%		1.63	%
Portfolio turnover rate		252	%		231	%		248	%		288	%		273	%		228	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	25.80		$	22.93		$	21.85		$	25.78		$	18.97		$	12.84
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.12	)		(.09	)		(.19	)		(.20	)		(.08	)
Net gain (loss) on investments (realized and unrealized)		(.04	)		2.99			1.64			(3.74	)		7.04			6.23
Total from investment operations		(.10	)		2.87			1.55			(3.93	)		6.84			6.15
Less distributions from:
Net investment income		—			—			(.07	)		—			(.03	)		(.02	)
Return of capital		—			—			(.40	)		—			—			—
Total distributions		—			—			(.47	)		—			(.03	)		(.02	)
Net asset value, end of period	$	25.70		$	25.80		$	22.93		$	21.85		$	25.78		$	18.97
Total Returnd		(0.39	%)		12.52	%		7.40	%		(15.24	%)		36.09	%		47.87	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,783		$	8,357		$	9,693		$	13,153		$	19,993		$	13,972
Ratios to average net assets:
Net investment income (loss)		(0.41	%)		(0.52	%)		(0.45	%)		(0.84	%)		(0.99	%)		(0.48	%)
Total expenses		2.36	%		2.37	%		2.35	%		2.36	%		2.39	%		2.38	%
Portfolio turnover rate		252	%		231	%		248	%		288	%		273	%		228	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

52  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FUND PROFILE (Unaudited) September 30, 2014

ENERGY SERVICES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Schlumberger Ltd.	10.8%
Halliburton Co.	7.0%
National Oilwell Varco, Inc.	5.3%
Baker Hughes, Inc.	4.9%
Transocean Ltd.	3.4%
FMC Technologies, Inc.	3.4%
Cameron International Corp.	3.3%
Helmerich & Payne, Inc.	3.0%
Ensco plc — Class A	2.8%
Noble Corporation plc	2.6%
Top Ten Total	46.5%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  53 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
ENERGY SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.5%
OIL-FIELD SERVICES - 47.9%
Schlumberger Ltd.		46,022	$	4,679,978
Halliburton Co.		46,672		3,010,811
Baker Hughes, Inc.		32,868		2,138,392
Weatherford International plc*		52,835		1,098,968
Oceaneering International, Inc.		16,831		1,096,876
RPC, Inc.		41,726		916,303
Superior Energy Services, Inc.		27,568		906,160
Core Laboratories N.V.		5,115		748,580
Oil States International, Inc.*		12,072		747,257
Exterran Holdings, Inc.		15,566		689,729
Helix Energy Solutions Group, Inc.*		26,285		579,847
C&J Energy Services, Inc.*		18,185		555,552
SEACOR Holdings, Inc.*		6,504		486,499
McDermott International, Inc.*,1		78,688		450,095
Hornbeck Offshore Services, Inc.*		12,517		409,681
Newpark Resources, Inc.*		32,900		409,276
CARBO Ceramics, Inc.1		6,475		383,514
Basic Energy Services, Inc.*		17,480		379,141
Pioneer Energy Services Corp.*		27,000		378,540
Gulfmark Offshore, Inc. — Class A		11,290		353,942
Key Energy Services, Inc.*		69,371		335,756
Total Oil-Field Services				20,754,897
OIL & GAS DRILLING - 26.5%
Transocean Ltd.1		46,000		1,470,619
Helmerich & Payne, Inc.		13,216		1,293,450
Ensco plc — Class A		29,222		1,207,161
Noble Corporation plc		50,817		1,129,154
Seadrill Ltd.		41,069		1,099,006
Nabors Industries Ltd.		47,698		1,085,606
Patterson-UTI Energy, Inc.		27,243		886,215
Diamond Offshore Drilling, Inc.1		25,050		858,464
Rowan Companies plc — Class A		28,513		721,664
Atwood Oceanics, Inc.*		15,927		695,851
Precision Drilling Corp.		50,720		547,269
Paragon Offshore plc*,1		46,355		285,083
Hercules Offshore, Inc.*,1		98,203		216,047
Total Oil & Gas Drilling				11,495,589
OIL FIELD MACHINERY & EQUIPMENT - 17.8%
National Oilwell Varco, Inc.		30,066		2,288,023
FMC Technologies, Inc.*		26,724		1,451,380
Cameron International Corp.*		21,832		1,449,208
Dresser-Rand Group, Inc.*		12,953		1,065,514
Dril-Quip, Inc.*		8,653		773,578
Forum Energy Technologies, Inc.*		21,780		666,686
Total Oil Field Machinery & Equipment				7,694,389
OIL COMPANY-EXPLORATION & PRODUCTION - 2.6%
Unit Corp.*		11,561	$	678,053
Seventy Seven Energy, Inc.*		18,300		434,442
Total Oil Company-Exploration & Production				1,112,495
STEEL PIPE & TUBE - 1.5%
Tenaris S.A. ADR		14,251		649,133
TRANSPORT-SERVICES - 1.4%
Bristow Group, Inc.		9,145		614,544
TRANSPORT-MARINE - 1.2%
Tidewater, Inc.		13,809		538,965
SEISMIC DATA COLLECTION - 0.6%
Geospace Technologies Corp.*		7,219		253,748
Total Common Stocks
(Cost $20,644,734)				43,113,760
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	146,552		146,552
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		60,355		60,355
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		60,355		60,355
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		60,355		60,355
Total Repurchase Agreements
(Cost $327,617)				327,617

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
ENERGY SERVICES FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 5.2%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	1,945,245	$	1,945,245
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		318,893		318,893
Total Securities Lending Collateral
(Cost $2,264,138)				2,264,138
Total Investments - 105.5%
(Cost $23,236,489)			$	45,705,515
Other Assets & Liabilities, net - (5.5)%				(2,399,890	)
Total Net Assets - 100.0%			$	43,305,625

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

 

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

ENERGY SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $2,459,912 of securities loaned (cost $20,644,734)	$	43,113,760
Repurchase agreements, at value (cost $2,591,755)		2,591,755
Total investments (cost $23,236,489)		45,705,515
Segregated cash with broker		371,024
Cash		3,727
Receivables:
Fund shares sold		719,900
Dividends		22,433
Securities lending income		3,143
Total assets		46,825,742
Liabilities:
Payable for:
Upon return of securities loaned		2,635,163
Securities purchased		422,696
Fund shares redeemed		375,621
Management fees		33,824
Distribution and service fees		12,291
Transfer agent and administrative fees		9,948
Portfolio accounting fees		3,979
Miscellaneous		26,595
Total liabilities		3,520,117
Net assets	$	43,305,625
Net assets consist of:
Paid in capital	$	51,069,831
Undistributed net investment income		53,510
Accumulated net realized loss on investments		(30,286,742	)
Net unrealized appreciation on investments		22,469,026
Net assets	$	43,305,625
Investor Class:
Net assets	$	22,717,332
Capital shares outstanding		388,636
Net asset value per share	$	58.45
Advisor Class:
Net assets	$	7,011,296
Capital shares outstanding		129,688
Net asset value per share	$	54.06
A-Class:
Net assets	$	5,628,344
Capital shares outstanding		101,421
Net asset value per share	$	55.50
Maximum offering price per share (Net asset value divided by 95.25%)	$	58.27
C-Class:
Net assets	$	7,948,653
Capital shares outstanding		155,332
Net asset value per share	$	51.17

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $2,471)	$	500,890
Income from securities lending, net		28,296
Interest		17
Total investment income		529,203
Expenses:
Management fees		244,847
Transfer agent and administrative fees		72,014
Distribution and service fees:
Advisor Class		21,110
A-Class		9,183
C-Class		46,619
Portfolio accounting fees		28,805
Custodian fees		3,363
Trustees' fees*		2,104
Line of credit interest expense		178
Miscellaneous		41,878
Total expenses		470,101
Net investment income		59,102
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,152,121	)
Net realized loss		(1,152,121	)
Net change in unrealized appreciation (depreciation) on:
Investments		(2,975,046	)
Net change in unrealized appreciation (depreciation)		(2,975,046	)
Net realized and unrealized loss		(4,127,167	)
Net decrease in net assets resulting from operations	$	(4,068,065	)

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

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

ENERGY SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	59,102		$	(128,281	)
Net realized gain (loss) on investments		(1,152,121	)		10,172,016
Net change in unrealized appreciation (depreciation) on investments		(2,975,046	)		(4,603,394	)
Net increase (decrease) in net assets resulting from operations		(4,068,065	)		5,440,341
Capital share transactions:
Proceeds from sale of shares
Investor Class		87,504,015			136,799,275
Advisor Class		71,214,334			47,862,323
A-Class		6,132,529			11,403,811
C-Class		12,064,625			25,331,498
Cost of shares redeemed
Investor Class		(96,117,099	)		(132,689,190	)
Advisor Class		(68,100,637	)		(53,070,944	)
A-Class		(7,601,375	)		(10,306,276	)
C-Class		(12,073,581	)		(26,390,621	)
Net decrease from capital share transactions		(6,977,189	)		(1,060,124	)
Net increase (decrease) in net assets		(11,045,254	)		4,380,217
Net assets:
Beginning of period		54,350,879			49,970,662
End of period	$	43,305,625		$	54,350,879
Undistributed net investment income/Accumulated net investment loss at end of period	$	53,510		$	(5,592	)
Capital share activity:
Shares sold
Investor Class		1,369,020			2,359,895
Advisor Class		1,189,003			898,924
A-Class		99,248			204,539
C-Class		212,902			497,418
Shares redeemed
Investor Class		(1,512,890	)		(2,306,869	)
Advisor Class		(1,144,533	)		(1,004,649	)
A-Class		(125,179	)		(183,900	)
C-Class		(214,442	)		(519,469	)
Net decrease in shares		(126,871	)		(54,111	)

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	62.43		$	54.43		$	50.87		$	62.66		$	42.83		$	25.07
Income (loss) from investment operations:
Net investment income (loss)b		.16			.02			(.05	)		(.14	)		(.21	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		(4.14	)		7.98			3.61			(11.65	)		20.04			17.77
Total from investment operations		(3.98	)		8.00			3.56			(11.79	)		19.83			17.76
Net asset value, end of period	$	58.45		$	62.43		$	54.43		$	50.87		$	62.66		$	42.83
Total Returnc		(6.38	%)		14.70	%		7.00	%		(18.82	%)		46.27	%		70.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,717		$	33,244		$	26,097		$	34,353		$	151,318		$	49,371
Ratios to average net assets:
Net investment income (loss)		0.49	%		0.03	%		(0.10	%)		(0.25	%)		(0.42	%)		(0.01	%)
Total expenses		1.36	%		1.37	%		1.35	%		1.36	%		1.39	%		1.38	%
Portfolio turnover rate		215	%		350	%		275	%		162	%		205	%		472	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	57.89		$	50.72		$	47.64		$	58.97		$	40.50		$	23.83
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.27	)		(.25	)		(.34	)		(.42	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		(3.80	)		7.44			3.33			(10.99	)		18.89			16.93
Total from investment operations		(3.83	)		7.17			3.08			(11.33	)		18.47			16.67
Net asset value, end of period	$	54.06		$	57.89		$	50.72		$	47.64		$	58.97		$	40.50
Total Returnc		(6.62	%)		14.14	%		6.47	%		(19.21	%)		45.61	%		69.95	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,011		$	4,933		$	9,685		$	8,025		$	17,222		$	6,631
Ratios to average net assets:
Net investment income (loss)		(0.08	%)		(0.50	%)		(0.54	%)		(0.66	%)		(0.93	%)		(0.70	%)
Total expenses		1.87	%		1.87	%		1.85	%		1.86	%		1.89	%		1.88	%
Portfolio turnover rate		215	%		350	%		275	%		162	%		205	%		472	%

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

ENERGY SERVICES FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	59.34		$	51.86		$	48.59		$	60.01		$	41.12		$	24.13
Income (loss) from investment operations:
Net investment income (loss)b		.05			(.13	)		(.17	)		(.25	)		(.31	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(3.89	)		7.61			3.44			(11.17	)		19.20			17.15
Total from investment operations		(3.84	)		7.48			3.27			(11.42	)		18.89			16.99
Net asset value, end of period	$	55.50		$	59.34		$	51.86		$	48.59		$	60.01		$	41.12
Total Returnc		(6.47	%)		14.42	%		6.73	%		(19.03	%)		45.94	%		70.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,628		$	7,557		$	5,535		$	7,115		$	24,849		$	8,957
Ratios to average net assets:
Net investment income (loss)		0.17	%		(0.23	%)		(0.37	%)		(0.47	%)		(0.67	%)		(0.43	%)
Total expenses		1.61	%		1.62	%		1.60	%		1.61	%		1.64	%		1.63	%
Portfolio turnover rate		215	%		350	%		275	%		162	%		205	%		472	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	54.92		$	48.37		$	45.66		$	56.81		$	39.22		$	23.19
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.50	)		(.49	)		(.54	)		(.60	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		(3.61	)		7.05			3.20			(10.61	)		18.19			16.47
Total from investment operations		(3.75	)		6.55			2.71			(11.15	)		17.59			16.03
Net asset value, end of period	$	51.17		$	54.92		$	48.37		$	45.66		$	56.81		$	39.22
Total Returnc		(6.83	%)		13.54	%		5.94	%		(19.63	%)		44.85	%		69.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,949		$	8,616		$	8,654		$	10,144		$	15,276		$	11,059
Ratios to average net assets:
Net investment income (loss)		(0.50	%)		(0.97	%)		(1.11	%)		(1.13	%)		(1.43	%)		(1.25	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.36	%		2.39	%		2.38	%
Portfolio turnover rate		215	%		350	%		275	%		162	%		205	%		472	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  59 

FUND PROFILE (Unaudited) September 30, 2014

FINANCIAL SERVICES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Berkshire Hathaway, Inc. — Class B	2.8%
Wells Fargo & Co.	2.5%
JPMorgan Chase & Co.	2.3%
Bank of America Corp.	2.1%
Citigroup, Inc.	1.9%
American Express Co.	1.4%
Goldman Sachs Group, Inc.	1.3%
American International Group, Inc.	1.3%
U.S. Bancorp	1.3%
Morgan Stanley	1.2%
Top Ten Total	18.1%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

60  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
FINANCIAL SERVICES FUND

	Shares		Value
COMMON STOCKS† - 99.8%
DIVERSIFIED BANKING INSTITUTIONS - 10.2%
JPMorgan Chase & Co.		10,363	$	624,267
Bank of America Corp.		32,925		561,371
Citigroup, Inc.		9,997		518,045
Goldman Sachs Group, Inc.		1,996		366,406
Morgan Stanley		9,697		335,225
Deutsche Bank AG		3,930		137,000
HSBC Holdings plc ADR		2,561		130,304
Barclays plc ADR		8,178		121,116
Total Diversified Banking Institutions				2,793,734
SUPER-REGIONAL BANKS-U.S. - 8.4%
Wells Fargo & Co.		13,003		674,467
U.S. Bancorp		8,445		353,254
PNC Financial Services Group, Inc.		3,234		276,766
Capital One Financial Corp.		3,361		274,325
SunTrust Banks, Inc.		4,742		180,338
Fifth Third Bancorp		8,272		165,605
KeyCorp		10,386		138,445
Comerica, Inc.		2,454		122,356
Huntington Bancshares, Inc.		11,843		115,232
Total Super-Regional Banks-U.S.				2,300,788
MULTI-LINE INSURANCE - 7.5%
American International Group, Inc.		6,566		354,695
MetLife, Inc.		5,908		317,378
ACE Ltd.		1,962		205,755
Hartford Financial Services Group, Inc.		4,491		167,290
Loews Corp.		3,919		163,266
Allstate Corp.		2,589		158,887
XL Group plc — Class A		4,659		154,539
Voya Financial, Inc.		3,260		127,466
Cincinnati Financial Corp.		2,427		114,190
Genworth Financial, Inc. — Class A*		8,000		104,800
Assurant, Inc.		1,330		85,519
Old Republic International Corp.		5,590		79,825
Total Multi-Line Insurance				2,033,610
INVESTMENT MANAGEMENT/ADVISORY SERVICES - 6.2%
BlackRock, Inc. — Class A		911		299,100
Franklin Resources, Inc.		4,358		237,990
Ameriprise Financial, Inc.		1,542		190,252
T. Rowe Price Group, Inc.		2,393		187,611
Invesco Ltd.		4,242		167,474
Affiliated Managers Group, Inc.*		660		132,238
Legg Mason, Inc.		1,920		98,227
Eaton Vance Corp.		2,296		86,628
Waddell & Reed Financial, Inc. — Class A		1,590		82,187
NorthStar Asset Management Group Incorporated*		4,270		78,653
Janus Capital Group, Inc.		5,404		78,574
WisdomTree Investments, Inc.*		4,620	$	52,576
Total Investment Management/Advisory Services				1,691,510
REINSURANCE - 5.4%
Berkshire Hathaway, Inc. — Class B*		5,445		752,171
Everest Re Group Ltd.		858		139,004
Axis Capital Holdings Ltd.		2,650		125,425
PartnerRe Ltd.		1,140		125,275
RenaissanceRe Holdings Ltd.		1,230		122,988
Validus Holdings Ltd.		3,000		117,420
Reinsurance Group of America, Inc. — Class A		1,160		92,951
Total Reinsurance				1,475,234
REITs-DIVERSIFIED - 5.0%
American Tower Corp. — Class A		2,670		249,992
Crown Castle International Corp.		2,670		215,015
Vornado Realty Trust		1,712		171,132
Weyerhaeuser Co.		5,258		167,520
Digital Realty Trust, Inc.		1,873		116,838
Plum Creek Timber Company, Inc.		2,735		106,692
Duke Realty Corp.		5,683		97,634
Liberty Property Trust		2,650		88,139
Corrections Corporation of America		2,441		83,873
Rayonier, Inc.		2,594		80,777
Total REITs-Diversified				1,377,612
LIFE/HEALTH INSURANCE - 4.3%
Prudential Financial, Inc.		2,940		258,543
Aflac, Inc.		3,688		214,826
Principal Financial Group, Inc.		3,057		160,401
Lincoln National Corp.		2,880		154,310
Unum Group		3,473		119,402
Torchmark Corp.		1,990		104,216
Protective Life Corp.		1,360		94,398
CNO Financial Group, Inc.		4,610		78,186
Total Life/Health Insurance				1,184,282
REITs-APARTMENTS - 3.5%
Equity Residential		3,159		194,530
AvalonBay Communities, Inc.		1,234		173,957
Essex Property Trust, Inc.		751		134,241
UDR, Inc.		3,918		106,766
Camden Property Trust		1,428		97,861
Mid-America Apartment Communities, Inc.		1,350		88,628
Apartment Investment & Management Co. — Class A		2,750		87,505
American Campus Communities, Inc.		2,300		83,835
Total REITs-Apartments				967,323
COMMERCIAL BANKS-NON-U.S. - 3.5%
Itau Unibanco Holding S.A. ADR		11,915		165,379
Banco Bradesco S.A. ADR		9,928		141,474
ICICI Bank Ltd. ADR		2,727		133,896

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
FINANCIAL SERVICES FUND

	Shares		Value
Banco Santander S.A. ADR1		13,650	$	129,675
Toronto-Dominion Bank		2,620		129,402
HDFC Bank Ltd. ADR		2,729		127,117
Credicorp Ltd.		820		125,780
Total Commercial Banks-Non-U.S.				952,723
PROPERTY & CASUALTY INSURANCE - 3.4%
Travelers Companies, Inc.		2,483		233,253
Chubb Corp.		2,110		192,179
Progressive Corp.		6,316		159,668
Arch Capital Group Ltd.*		2,350		128,592
Alleghany Corp.*		250		104,538
WR Berkley Corp.		2,120		101,336
Total Property & Casualty Insurance				919,566
REITs-OFFICE PROPERTY - 3.1%
Boston Properties, Inc.		1,438		166,463
American Realty Capital Properties, Inc.		11,215		135,253
SL Green Realty Corp.		1,223		123,914
Alexandria Real Estate Equities, Inc.		1,240		91,450
Kilroy Realty Corp.		1,490		88,566
BioMed Realty Trust, Inc.		4,130		83,426
Equity Commonwealth*		2,940		75,587
Highwoods Properties, Inc.		1,890		73,521
Total REITs-Office Property				838,180
REITs-REGIONAL MALLS - 3.0%
Simon Property Group, Inc.		1,729		284,282
General Growth Properties, Inc.		7,873		185,409
Macerich Co.		1,852		118,213
Taubman Centers, Inc.		1,160		84,680
Tanger Factory Outlet Centers, Inc.		2,190		71,657
CBL & Associates Properties, Inc.		3,970		71,063
Total REITs-Regional Malls				815,304
FINANCE-INVESTMENT BANKERS/BROKERS - 2.7%
Charles Schwab Corp.		8,496		249,696
TD Ameritrade Holding Corp.		5,379		179,497
Raymond James Financial, Inc.		2,082		111,554
E*TRADE Financial Corp.*		4,479		101,181
LPL Financial Holdings, Inc.		1,850		85,193
Total Finance-Investment Bankers/Brokers				727,121
REITs-HEALTH CARE - 2.6%
Health Care REIT, Inc.		2,859		178,315
Ventas, Inc.		2,844		176,186
HCP, Inc.		4,404		174,883
Omega Healthcare Investors, Inc.		2,582		88,279
Senior Housing Properties Trust		4,000		83,680
Total REITs-Health Care				701,343
FIDUCIARY BANKS - 2.4%
Bank of New York Mellon Corp.		6,900		267,237
State Street Corp.		3,098		228,044
Northern Trust Corp.		2,403		163,476
Total Fiduciary Banks				658,757
INSURANCE BROKERS - 2.3%
Marsh & McLennan Companies, Inc.		4,172		218,362
Aon plc		2,233		195,767
Arthur J Gallagher & Co.		2,460		111,586
Brown & Brown, Inc.		2,860		91,949
Total Insurance Brokers				617,664
FINANCE-CREDIT CARD - 2.2%
American Express Co.		4,440		388,678
Discover Financial Services		3,432		220,986
Total Finance-Credit Card				609,664
FINANCE-OTHER SERVICES - 2.2%
CME Group, Inc. — Class A		2,650		211,881
Intercontinental Exchange, Inc.		937		182,762
NASDAQ OMX Group, Inc.		2,574		109,189
CBOE Holdings, Inc.		1,570		84,034
Total Finance-Other Services				587,866
REITs-SHOPPING CENTERS - 2.1%
Kimco Realty Corp.		5,575		122,148
Federal Realty Investment Trust		948		112,300
DDR Corp.		6,050		101,217
Regency Centers Corp.		1,640		88,281
Weingarten Realty Investors		2,640		83,160
Kite Realty Group Trust		2,480		60,115
Total REITs-Shopping Centers				567,221
REITs-MORTGAGE - 1.8%
Annaly Capital Management, Inc.		12,607		134,643
American Capital Agency Corp.		5,194		110,373
NorthStar Realty Finance Corp.		5,100		90,117
Starwood Property Trust, Inc.		4,070		89,377
Two Harbors Investment Corp.		7,860		76,006
Total REITs-Mortgage				500,516
REAL ESTATE MANAGEMENT/SERVICES - 1.5%
CBRE Group, Inc. — Class A*		4,330		128,774
WP Carey, Inc.		1,540		98,206
Realogy Holdings Corp.*		2,590		96,348
Jones Lang LaSalle, Inc.		750		94,755
Total Real Estate Management/Services				418,083
REITs-HOTELS - 1.4%
Host Hotels & Resorts, Inc.		7,627		162,684
RLJ Lodging Trust		2,760		78,577
LaSalle Hotel Properties		2,290		78,410
Sunstone Hotel Investors, Inc.		4,960		68,547
Total REITs-Hotels				388,218

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
FINANCIAL SERVICES FUND

	Shares		Value
COMMERICAL SERVICES-FINANCE - 1.4%
McGraw Hill Financial, Inc.		2,320	$	195,924
Moody's Corp.		1,899		179,456
Total Commerical Services-Finance				375,380
COMMERCIAL BANKS-EASTERN U.S. - 1.4%
M&T Bank Corp.		1,299		160,154
CIT Group, Inc.		2,599		119,450
Signature Bank*		850		95,251
Total Commercial Banks-Eastern U.S.				374,855
COMMERICAL BANKS-SOUTHERN U.S. - 1.3%
BB&T Corp.		5,665		210,795
Regions Financial Corp.		15,130		151,905
Total Commerical Banks-Southern U.S.				362,700
SAVINGS & LOANS/THRIFTS-EASTERN U.S. - 1.3%
New York Community Bancorp, Inc.		6,770		107,440
Hudson City Bancorp, Inc.		9,446		91,815
People's United Financial, Inc.		5,975		86,458
First Niagara Financial Group, Inc.		8,281		68,981
Total Savings & Loans/Thrifts-Eastern U.S.				354,694
FINANCIAL GUARANTEE INSURANCE - 1.2%
Assured Guaranty Ltd.		5,860		129,858
Radian Group, Inc.		4,670		66,594
MGIC Investment Corp.*		8,490		66,307
MBIA, Inc.*		5,830		53,519
Total Financial Guarantee Insurance				316,278
REITs-STORAGE - 1.1%
Public Storage		1,298		215,261
Extra Space Storage, Inc.		1,890		97,467
Total REITs-Storage				312,728
REITs-SINGLE TENANT - 1.1%
Realty Income Corp.		3,084		125,796
National Retail Properties, Inc.	��	2,465		85,215
Spirit Realty Capital, Inc.		7,732		84,820
Total REITs-Single Tenant				295,831
COMMERCIAL BANKS-WESTERN U.S. - 1.0%
First Republic Bank		2,230		110,117
SVB Financial Group*		850		95,277
PacWest Bancorp		1,940		79,986
Total Commercial Banks-Western U.S.				285,380
FINANCE-CONSUMER LOANS - 1.0%
Navient Corp.		6,310		111,749
SLM Corp.		9,287		79,497
Ocwen Financial Corp.*		2,787		72,964
Total Finance-Consumer Loans				264,210
INVESTMENT COMPANIES - 0.9%
Ares Capital Corp.		5,889		95,166
American Capital Ltd.*		5,750		81,420
Prospect Capital Corp.1		7,580		75,042
Total Investment Companies				251,628
REITs-WAREHOUSE/INDUSTRIES - 0.9%
Prologis, Inc.		4,715		177,756
DCT Industrial Trust, Inc.		8,930		67,064
Total REITs-Warehouse/Industries				244,820
COMMERCIAL BANKS-SOUTHERN U.S. - 0.5%
Synovus Financial Corp.		3,120		73,757
First Horizon National Corp.		5,707		70,082
Total Commercial Banks-Southern U.S.				143,839
DIVERSIFIED OPERATIONS - 0.4%
Leucadia National Corp.		5,012		119,486
FINANCE-MORTGAGE LOAN/BANKER - 0.4%
FNF Group		4,070		112,902
COMMERICAL BANKS-WESTERN U.S. - 0.4%
Zions Bancorporation		3,430		99,676
COMMERCIAL BANKS-CENTRAL U.S. - 0.3%
Cullen/Frost Bankers, Inc.		1,130		86,456
CASINO SERVICES - 0.3%
Gaming and Leisure Properties, Inc.		2,460		76,014
CHEMICALS-FIBERS - 0.2%
Rayonier Advanced Materials, Inc.1		1,561		51,373
Total Common Stocks
(Cost $21,432,823)				27,254,569
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.5%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	59,722		59,722
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		24,595		24,595
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		24,595		24,595
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		24,595		24,595
Total Repurchase Agreements
(Cost $133,507)				133,507

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
FINANCIAL SERVICES FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 0.6%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	140,385	$	140,385
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		23,014		23,014
Total Securities Lending Collateral
(Cost $163,399)				163,399
Total Investments - 100.9%
(Cost $21,729,729)			$	27,551,475
Other Assets & Liabilities, net - (0.9)%				(232,488	)
Total Net Assets - 100.0%			$	27,318,987

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

FINANCIAL SERVICES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $185,651 of securities loaned (cost $21,432,823)	$	27,254,569
Repurchase agreements, at value (cost $296,906)		296,906
Total investments (cost $21,729,729)		27,551,475
Segregated cash with broker		26,776
Cash		2,322
Receivables:
Securities sold		718,229
Dividends		48,083
Fund shares sold		12,014
Securities lending income		67
Total assets		28,358,966
Liabilities:
Payable for:
Fund shares redeemed		808,723
Upon return of securities loaned		190,175
Management fees		19,010
Transfer agent and administrative fees		5,591
Distribution and service fees		3,964
Portfolio accounting fees		2,236
Miscellaneous		10,280
Total liabilities		1,039,979
Net assets	$	27,318,987
Net assets consist of:
Paid in capital	$	25,346,853
Undistributed net investment income		213,172
Accumulated net realized loss on investments		(4,062,784	)
Net unrealized appreciation on investments		5,821,746
Net assets	$	27,318,987
Investor Class:
Net assets	$	17,717,603
Capital shares outstanding		163,614
Net asset value per share	$	108.29
Advisor Class:
Net assets	$	5,844,673
Capital shares outstanding		58,361
Net asset value per share	$	100.15
A-Class:
Net assets	$	2,317,809
Capital shares outstanding		22,528
Net asset value per share	$	102.88
Maximum offering price per share (Net asset value divided by 95.25%)	$	108.01
C-Class:
Net assets	$	1,438,902
Capital shares outstanding		15,233
Net asset value per share	$	94.46

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $721)	$	243,909
Income from securities lending, net		106
Interest		9
Total investment income		244,024
Expenses:
Management fees		97,509
Transfer agent and administrative fees		28,679
Distribution and service fees:
Advisor Class		13,118
A-Class		3,913
C-Class		6,793
Portfolio accounting fees		11,471
Custodian fees		1,342
Trustees' fees*		947
Tax expense		85
Line of credit interest expense		73
Miscellaneous		16,441
Total expenses		180,371
Net investment income		63,653
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		590,749
Net realized gain		590,749
Net change in unrealized appreciation (depreciation) on:
Investments		(972,607	)
Net change in unrealized appreciation (depreciation)		(972,607	)
Net realized and unrealized loss		(381,858	)
Net decrease in net assets resulting from operations	$	(318,205	)

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

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

FINANCIAL SERVICES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	63,653		$	147,974
Net realized gain on investments		590,749			2,155,894
Net change in unrealized appreciation (depreciation) on investments		(972,607	)		512,726
Net increase (decrease) in net assets resulting from operations		(318,205	)		2,816,594
Distributions to shareholders from:
Net investment income
Investor Class		—			(79,512	)
Advisor Class		—			(17,906	)
A-Class		—			(40,320	)
C-Class		—			(7,809	)
Total distributions to shareholders		—			(145,547	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		38,597,507			87,025,488
Advisor Class		5,043,990			9,891,676
A-Class		4,669,589			16,249,371
C-Class		12,624,914			21,219,453
Distributions reinvested
Investor Class		—			78,044
Advisor Class		—			17,860
A-Class		—			35,520
C-Class		—			7,710
Cost of shares redeemed
Investor Class		(38,236,293	)		(87,847,468	)
Advisor Class		(3,851,002	)		(12,957,819	)
A-Class		(9,984,179	)		(10,980,642	)
C-Class		(12,247,715	)		(21,766,316	)
Net increase (decrease) from capital share transactions		(3,383,189	)		972,877
Net increase (decrease) in net assets		(3,701,394	)		3,643,924
Net assets:
Beginning of period		31,020,381			27,376,457
End of period	$	27,318,987		$	31,020,381
Undistributed net investment income at end of period	$	213,172		$	149,519
Capital share activity:
Shares sold
Investor Class		354,721			880,833
Advisor Class		50,614			107,616
A-Class		44,984			170,038
C-Class		134,079			243,282
Shares issued from reinvestment of distributions
Investor Class		—			774
Advisor Class		—			191
A-Class		—			370
C-Class		—			87
Shares redeemed
Investor Class		(357,820	)		(902,467	)
Advisor Class		(38,844	)		(145,268	)
A-Class		(98,722	)		(115,259	)
C-Class		(130,142	)		(250,011	)
Net decrease in shares		(41,130	)		(9,814	)

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

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	106.10		$	90.67		$	78.47		$	81.18		$	75.23		$	44.37
Income (loss) from investment operations:
Net investment income (loss)b		.41			.78			.76			.61			.15			.41
Net gain (loss) on investments (realized and unrealized)		1.78			15.21			11.99			(3.29	)		6.75			31.07
Total from investment operations		2.19			15.99			12.75			(2.68	)		6.90			31.48
Less distributions from:
Net investment income		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Total distributions		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Net asset value, end of period	$	108.29		$	106.10		$	90.67		$	78.47		$	81.18		$	75.23
Total Returnc		2.06	%		17.67	%		16.37	%		(3.31	%)		9.33	%		71.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,718		$	17,688		$	17,007		$	19,973		$	4,885		$	26,364
Ratios to average net assets:
Net investment income (loss)		0.75	%		0.81	%		0.95	%		0.86	%		0.19	%		0.64	%
Total expenses		1.36	%		1.37	%		1.36	%		1.34	%		1.39	%		1.38	%
Portfolio turnover rate		186	%		414	%		590	%		970	%		601	%		447	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	98.37		$	84.51		$	73.53		$	76.47		$	71.29		$	42.28
Income (loss) from investment operations:
Net investment income (loss)b		.15			.24			.22			.26			(.14	)		.12
Net gain (loss) on investments (realized and unrealized)		1.63			14.18			11.31			(3.17	)		6.27			29.51
Total from investment operations		1.78			14.42			11.53			(2.91	)		6.13			29.63
Less distributions from:
Net investment income		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Total distributions		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Net asset value, end of period	$	100.15		$	98.37		$	84.51		$	73.53		$	76.47		$	71.29
Total Returnc		1.81	%		17.10	%		15.80	%		(3.80	%)		8.76	%		70.26	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,845		$	4,583		$	7,103		$	4,243		$	3,634		$	3,285
Ratios to average net assets:
Net investment income (loss)		0.29	%		0.26	%		0.29	%		0.37	%		(0.20	%)		0.21	%
Total expenses		1.87	%		1.87	%		1.85	%		1.85	%		1.89	%		1.88	%
Portfolio turnover rate		186	%		414	%		590	%		970	%		601	%		447	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  67 

FINANCIAL SERVICES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	100.94		$	86.48		$	75.07		$	77.87		$	72.38		$	42.80
Income (loss) from investment operations:
Net investment income (loss)b		.25			.58			.51			.45			(.01	)		.30
Net gain (loss) on investments (realized and unrealized)		1.69			14.44			11.45			(3.22	)		6.45			29.90
Total from investment operations		1.94			15.02			11.96			(2.77	)		6.44			30.20
Less distributions from:
Net investment income		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Total distributions		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Net asset value, end of period	$	102.88		$	100.94		$	86.48		$	75.07		$	77.87		$	72.38
Total Returnc		1.92	%		17.41	%		16.06	%		(3.57	%)		9.06	%		70.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,318		$	7,698		$	1,826		$	632		$	1,782		$	1,408
Ratios to average net assets:
Net investment income (loss)		0.50	%		0.62	%		0.66	%		0.64	%		(0.01	%)		0.50	%
Total expenses		1.61	%		1.62	%		1.61	%		1.61	%		1.64	%		1.63	%
Portfolio turnover rate		186	%		414	%		590	%		970	%		601	%		447	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	93.02		$	80.30		$	70.26		$	73.42		$	68.79		$	41.01
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.16	)		.03			(.12	)		(.49	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		1.55			13.44			10.56			(3.01	)		6.07			28.64
Total from investment operations		1.44			13.28			10.59			(3.13	)		5.58			28.40
Less distributions from:
Net investment income		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Total distributions		—			(.56	)		(.55	)		(.03	)		(.95	)		(.62	)
Net asset value, end of period	$	94.46		$	93.02		$	80.30		$	70.26		$	73.42		$	68.79
Total Returnc		1.55	%		16.58	%		15.21	%		(4.27	%)		8.28	%		69.44	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,439		$	1,051		$	1,440		$	817		$	1,114		$	1,942
Ratios to average net assets:
Net investment income (loss)		(0.23	%)		(0.18	%)		0.04	%		(0.18	%)		(0.72	%)		(0.40	%)
Total expenses		2.37	%		2.37	%		2.36	%		2.36	%		2.39	%		2.38	%
Portfolio turnover rate		186	%		414	%		590	%		970	%		601	%		447	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

68  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FUND PROFILE (Unaudited) September 30, 2014

HEALTH CARE FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Johnson & Johnson	3.4%
Pfizer, Inc.	2.7%
Merck & Company, Inc.	2.6%
Gilead Sciences, Inc.	2.6%
Amgen, Inc.	2.0%
AbbVie, Inc.	1.9%
Bristol-Myers Squibb Co.	1.8%
UnitedHealth Group, Inc.	1.8%
Biogen Idec, Inc.	1.8%
Celgene Corp.	1.8%
Top Ten Total	22.4%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  69 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
HEALTH CARE FUND

	Shares		Value
COMMON STOCKS† - 100.4%
MEDICAL-DRUGS - 29.3%
Johnson & Johnson		43,706	$	4,658,622
Pfizer, Inc.		121,522		3,593,405
Merck & Company, Inc.		59,120		3,504,633
AbbVie, Inc.		43,549		2,515,389
Bristol-Myers Squibb Co.		48,556		2,485,096
Eli Lilly & Co.		34,948		2,266,378
Allergan, Inc.		11,608		2,068,430
Abbott Laboratories		49,690		2,066,607
Valeant Pharmaceuticals International, Inc.*		14,366		1,884,819
Shire plc ADR		5,772		1,495,237
Zoetis, Inc.		31,500		1,163,925
GlaxoSmithKline plc ADR		24,297		1,116,933
Endo International plc*		16,093		1,099,796
AstraZeneca plc ADR		14,288		1,020,735
Mallinckrodt plc*		9,831		886,265
Novartis AG ADR		9,251		870,797
Jazz Pharmaceuticals plc*		5,400		867,024
Salix Pharmaceuticals Ltd.*		5,176		808,698
Novo Nordisk A/S ADR		15,900		757,158
Alkermes plc*		17,372		744,738
Quintiles Transnational Holdings, Inc.*		12,939		721,737
OPKO Health, Inc.*,1		73,380		624,464
Akorn, Inc.*		14,800		536,796
Pacira Pharmaceuticals, Inc.*		5,100		494,292
ACADIA Pharmaceuticals, Inc.*,1		16,700		413,492
Clovis Oncology, Inc.*		7,455		338,159
Keryx Biopharmaceuticals, Inc.*,1		22,674		311,768
Auxilium Pharmaceuticals, Inc.*		9,400		280,590
Total Medical-Drugs				39,595,983
MEDICAL-BIOMEDICAL/GENETICS - 20.5%
Gilead Sciences, Inc.*		32,473		3,456,751
Amgen, Inc.		19,653		2,760,460
Biogen Idec, Inc.*		7,323		2,422,522
Celgene Corp.*		25,379		2,405,422
Regeneron Pharmaceuticals, Inc.*		4,434		1,598,546
Alexion Pharmaceuticals, Inc.*		9,591		1,590,380
Vertex Pharmaceuticals, Inc.*		13,605		1,527,978
Illumina, Inc.*		7,614		1,248,087
BioMarin Pharmaceutical, Inc.*		12,732		918,741
Incyte Corp.*		16,227		795,934
Medivation, Inc.*		7,582		749,632
Puma Biotechnology, Inc.*		2,800		667,996
United Therapeutics Corp.*		5,156		663,319
Alnylam Pharmaceuticals, Inc.*		8,345		651,745
Cubist Pharmaceuticals, Inc.*		9,363		621,141
Myriad Genetics, Inc.*,1		15,700		605,549
Intercept Pharmaceuticals, Inc.*		2,500		591,725
Isis Pharmaceuticals, Inc.*		14,671		569,675
Seattle Genetics, Inc.*		14,933		555,209
NPS Pharmaceuticals, Inc.*		19,209		499,434
Charles River Laboratories International, Inc.*		7,653		457,190
Theravance, Inc.1		22,000		375,980
Exact Sciences Corp.*,1		19,300		374,034
Medicines Co.*		13,861		309,378
PDL BioPharma, Inc.1		39,543		295,386
Celldex Therapeutics, Inc.*		22,100		286,416
Arena Pharmaceuticals, Inc.*,1		65,107		272,798
Aegerion Pharmaceuticals, Inc.*		7,955		265,538
ARIAD Pharmaceuticals, Inc.*,1		48,226		260,420
Total Medical-Biomedical/Genetics				27,797,386
MEDICAL PRODUCTS - 9.0%
Baxter International, Inc.		23,697		1,700,733
Covidien plc		17,520		1,515,655
Stryker Corp.		18,325		1,479,744
Becton Dickinson and Co.		11,203		1,275,013
Zimmer Holdings, Inc.		11,051		1,111,178
Henry Schein, Inc.*		7,334		854,191
CareFusion Corp.*		17,826		806,627
Hospira, Inc.*		15,253		793,614
Varian Medical Systems, Inc.*		9,837		788,140
Cooper Companies, Inc.		4,770		742,928
Sirona Dental Systems, Inc.*		7,522		576,787
Teleflex, Inc.		5,380		565,115
Total Medical Products				12,209,725
MEDICAL-HMO - 7.3%
UnitedHealth Group, Inc.		28,440		2,452,949
WellPoint, Inc.		12,959		1,550,156
Aetna, Inc.		17,769		1,439,289
Cigna Corp.		14,112		1,279,817
Humana, Inc.		9,242		1,204,140
Centene Corp.*		7,360		608,746
Health Net, Inc.*		11,316		521,781
WellCare Health Plans, Inc.*		7,300		440,482
Molina Healthcare, Inc.*		8,800		372,240
Total Medical-HMO				9,869,600
MEDICAL INSTRUMENTS - 5.2%
Medtronic, Inc.		32,712		2,026,508
St. Jude Medical, Inc.		18,337		1,102,604
Intuitive Surgical, Inc.*		2,361		1,090,357
Boston Scientific Corp.*		89,864		1,061,294
Edwards Lifesciences Corp.*		8,734		892,178
DexCom, Inc.*		11,800		471,882
Thoratec Corp.*		12,690		339,204
Total Medical Instruments				6,984,027
MEDICAL-GENERIC DRUGS - 4.4%
Actavis plc*		9,084		2,191,788
Teva Pharmaceutical Industries Ltd. ADR		25,667		1,379,601
Perrigo Company plc		8,294		1,245,676

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
HEALTH CARE FUND

	Shares		Value
Mylan, Inc.*		23,652	$	1,075,929
Total Medical-Generic Drugs				5,892,994
MEDICAL-WHOLESALE DRUG DISTRIBUTION - 3.2%
McKesson Corp.		9,407		1,831,260
Cardinal Health, Inc.		18,428		1,380,626
AmerisourceBergen Corp. — Class A		14,860		1,148,678
Total Medical-Wholesale Drug Distribution				4,360,564
MEDICAL-HOSPITALS - 3.1%
HCA Holdings, Inc.*		21,317		1,503,275
Universal Health Services, Inc. — Class B		8,176		854,392
Community Health Systems, Inc.*		12,325		675,287
Tenet Healthcare Corp.*		10,800		641,412
LifePoint Hospitals, Inc.*		6,800		470,492
Total Medical-Hospitals				4,144,858
PHARMACY SERVICES - 2.5%
Express Scripts Holding Co.*		27,096		1,913,790
Catamaran Corp.*		18,190		766,709
Omnicare, Inc.		10,779		671,101
Total Pharmacy Services				3,351,600
INSTRUMENTS-SCIENTIFIC - 2.4%
Thermo Fisher Scientific, Inc.		15,524		1,889,270
Waters Corp.*		7,897		782,750
PerkinElmer, Inc.		13,923		607,043
Total Instruments-Scientific				3,279,063
MEDICAL INFORMATION SYSTEM - 2.0%
Cerner Corp.*		20,544		1,223,806
athenahealth, Inc.*		4,880		642,647
Medidata Solutions, Inc.*		9,800		434,042
Allscripts Healthcare Solutions, Inc.*		30,410		407,950
Total Medical Information System				2,708,445
MEDICAL LABS & TESTING SERVICES - 1.6%
Laboratory Corporation of America Holdings*		7,750		788,563
Quest Diagnostics, Inc.		12,844		779,374
Covance, Inc.*		7,172		564,436
Total Medical Labs & Testing Services				2,132,373
DENTAL SUPPLIES & EQUIPMENTS - 1.3%
DENTSPLY International, Inc.		14,802		674,971
Patterson Companies, Inc.		13,900		575,877
Align Technology, Inc.*		10,664		551,116
Total Dental Supplies & Equipments				1,801,964
THERAPEUTICS - 0.9%
Pharmacyclics, Inc.*		6,800		798,524
MannKind Corp.*,1		71,100		420,201
Total Therapeutics				1,218,725
ELECTRONIC MEASURING INSTRUMENTS - 0.8%
Agilent Technologies, Inc.		20,214		1,151,794
DIAGNOSTIC KITS - 0.8%
IDEXX Laboratories, Inc.*		5,627		663,030
Alere, Inc.*		12,031		466,562
Total Diagnostic Kits				1,129,592
DIALYSIS CENTERS - 0.8%
DaVita HealthCare Partners, Inc.*		14,757		1,079,327
DISPOSABLE MEDICAL PRODUCTS - 0.6%
CR Bard, Inc.		6,199		884,659
INSTRUMENTS-CONTROLS - 0.5%
Mettler-Toledo International, Inc.*		2,850		729,971
RESPIRATORY PRODUCTS - 0.5%
ResMed, Inc.1		14,409		709,931
X-RAY EQUIPMENT - 0.5%
Hologic, Inc.*		28,670		697,541
RETIREMENT/AGED CARE - 0.5%
Brookdale Senior Living, Inc. — Class A*		20,331		655,065
PHYSICAL PRACTICE MANAGEMENT - 0.5%
MEDNAX, Inc.*		11,840		649,069
HUMAN RESOURCES - 0.4%
Team Health Holdings, Inc.*		9,400		545,106
RESEARCH & DEVELOPMENT - 0.4%
PAREXEL International Corp.*		8,100		511,029
VETERINARY DIAGNOSTICS - 0.4%
VCA, Inc.*		12,540		493,198
DIAGNOSTIC EQUIPMENT - 0.4%
Cepheid*		10,821		476,449
MEDICAL-OUTPATIENT/HOME MEDICINE - 0.3%
Air Methods Corp.*		7,400		411,070
DIVERSIFIED OPERATIONS/COMMERCIAL SERVICES - 0.3%
Chemed Corp.		3,500		360,150
Total Common Stocks
(Cost $89,497,083)				135,831,258

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
HEALTH CARE FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.6%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	390,627	$	390,627
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		160,871		160,871
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		160,871		160,871
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		160,871		160,871
Total Repurchase Agreements
(Cost $873,240)				873,240
SECURITIES LENDING COLLATERAL††,3 - 2.2%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		2,521,599	$	2,521,599
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		413,377		413,377
Total Securities Lending Collateral
(Cost $2,934,976)				2,934,976
Total Investments - 103.2%
(Cost $93,305,299)			$	139,639,474
Other Assets & Liabilities, net - (3.2)%				(4,308,733	)
Total Net Assets - 100.0%			$	135,330,741

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

HEALTH CARE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $3,255,831 of securities loaned (cost $89,497,083)	$	135,831,258
Repurchase agreements, at value (cost $3,808,216)		3,808,216
Total investments (cost $93,305,299)		139,639,474
Cash		756,798
Segregated cash with broker		480,954
Receivables:
Fund shares sold		3,260,790
Securities sold		797,654
Dividends		75,074
Securities lending income		10,442
Total assets		145,021,186
Liabilities:
Payable for:
Fund shares redeemed		6,061,884
Upon return of securities loaned		3,415,930
Management fees		91,005
Transfer agent and administrative fees		26,766
Distribution and service fees		23,660
Portfolio accounting fees		10,706
Miscellaneous		60,494
Total liabilities		9,690,445
Net assets	$	135,330,741
Net assets consist of:
Paid in capital	$	95,114,520
Accumulated net investment loss		(313,325	)
Accumulated net realized loss on investments		(5,804,629	)
Net unrealized appreciation on investments		46,334,175
Net assets	$	135,330,741
Investor Class:
Net assets	$	81,099,838
Capital shares outstanding		2,686,955
Net asset value per share	$	30.18
Advisor Class:
Net assets	$	33,494,419
Capital shares outstanding		1,211,422
Net asset value per share	$	27.65
A-Class:
Net assets	$	12,678,970
Capital shares outstanding		447,132
Net asset value per share	$	28.36
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.77
C-Class:
Net assets	$	8,057,514
Capital shares outstanding		308,306
Net asset value per share	$	26.13

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	603,651
Income from securities lending, net		82,623
Interest		41
Total investment income		686,315
Expenses:
Management fees		532,152
Transfer agent and administrative fees		156,515
Distribution and service fees:
Advisor Class		93,087
A-Class		11,254
C-Class		39,742
Portfolio accounting fees		62,605
Custodian fees		7,320
Trustees' fees*		5,062
Tax expense		1,187
Line of credit interest expense		58
Miscellaneous		90,658
Total expenses		999,640
Net investment loss		(313,325	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		462,921
Net realized gain		462,921
Net change in unrealized appreciation (depreciation) on:
Investments		8,942,551
Net change in unrealized appreciation (depreciation)		8,942,551
Net realized and unrealized gain		9,405,472
Net increase in net assets resulting from operations	$	9,092,147

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

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

HEALTH CARE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(313,325	)	$	(254,146	)
Net realized gain on investments		462,921			20,336,238
Net change in unrealized appreciation (depreciation) on investments		8,942,551			7,106,133
Net increase in net assets resulting from operations		9,092,147			27,188,225
Distributions to shareholders from:
Net investment income
Investor Class		—			(89,982	)
Advisor Class		—			(7,552	)
A-Class		—			(7,852	)
C-Class		—			(7,895	)
Net realized gains
Investor Class		—			(3,786,592	)
Advisor Class		—			(317,778	)
A-Class		—			(326,428	)
C-Class		—			(332,239	)
Total distributions to shareholders		—			(4,876,318	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		127,652,368			324,677,607
Advisor Class		45,897,237			76,308,656
A-Class		15,724,635			20,247,591
C-Class		11,027,379			33,842,495
Distributions reinvested
Investor Class		—			3,851,003
Advisor Class		—			323,914
A-Class		—			330,789
C-Class		—			328,744
Cost of shares redeemed
Investor Class		(149,681,870	)		(354,047,641	)
Advisor Class		(53,719,258	)		(42,786,393	)
A-Class		(11,657,137	)		(17,317,347	)
C-Class		(10,919,588	)		(32,535,770	)
Net increase (decrease) from capital share transactions		(25,676,234	)		13,223,648
Net increase (decrease) in net assets		(16,584,087	)		35,535,555
Net assets:
Beginning of period		151,914,828			116,379,273
End of period	$	135,330,741		$	151,914,828
Accumulated net investment loss at end of period	$	(313,325	)	$	—
Capital share activity:
Shares sold
Investor Class		4,444,320			12,765,655
Advisor Class		1,750,737			3,036,456
A-Class		581,552			823,789
C-Class		442,897			1,521,467
Shares issued from reinvestment of distributions
Investor Class		—			148,573
Advisor Class		—			13,587
A-Class		—			13,557
C-Class		—			14,527
Shares redeemed
Investor Class		(5,295,038	)		(14,053,114	)
Advisor Class		(2,048,809	)		(1,714,436	)
A-Class		(437,325	)		(707,448	)
C-Class		(437,522	)		(1,464,775	)
Net increase (decrease) in shares		(999,188	)		397,838

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	27.76		$	22.35		$	18.83		$	17.14		$	15.80		$	11.20
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.03	)		.09			.01			(.02	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		2.46			7.00			3.48			1.68			1.36			4.62
Total from investment operations		2.42			6.97			3.57			1.69			1.34			4.61
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—			(.01	)
Net realized gains		—			(1.53	)		—			—			—			—
Total distributions		—			(1.56	)		(.05	)		—			—			(.01	)
Net asset value, end of period	$	30.18		$	27.76		$	22.35		$	18.83		$	17.14		$	15.80
Total Returnc		8.72	%		31.70	%		18.98	%		9.86	%		8.48	%		41.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	81,100		$	98,209		$	104,525		$	39,036		$	19,534		$	195,616
Ratios to average net assets:
Net investment income (loss)		(0.27	%)		(0.12	%)		0.45	%		0.08	%		(0.10	%)		(0.04	%)
Total expenses		1.37	%		1.37	%		1.35	%		1.36	%		1.38	%		1.37	%
Portfolio turnover rate		86	%		277	%		266	%		582	%		619	%		241	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	25.49		$	20.73		$	17.55		$	16.04		$	14.85		$	10.58
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.15	)		(.06	)		(.07	)		(.05	)		(.04	)
Net gain (loss) on investments (realized and unrealized)		2.26			6.47			3.29			1.58			1.24			4.32
Total from investment operations		2.16			6.32			3.23			1.51			1.19			4.28
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—			(.01	)
Net realized gains		—			(1.53	)		—			—			—			—
Total distributions		—			(1.56	)		(.05	)		—			—			(.01	)
Net asset value, end of period	$	27.65		$	25.49		$	20.73		$	17.55		$	16.04		$	14.85
Total Returnc		8.47	%		31.03	%		18.43	%		9.41	%		8.01	%		40.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,494		$	38,480		$	3,605		$	4,275		$	2,229		$	3,432
Ratios to average net assets:
Net investment income (loss)		(0.76	%)		(0.62	%)		(0.31	%)		(0.44	%)		(0.36	%)		(0.33	%)
Total expenses		1.87	%		1.87	%		1.86	%		1.85	%		1.88	%		1.88	%
Portfolio turnover rate		86	%		277	%		266	%		582	%		619	%		241	%

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

HEALTH CARE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	26.11		$	21.15		$	17.87		$	16.30		$	15.05		$	10.69
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.09	)		.04			(.02	)		(.02	)		(.03	)
Net gain (loss) on investments (realized and unrealized)		2.32			6.61			3.29			1.59			1.27			4.40
Total from investment operations		2.25			6.52			3.33			1.57			1.25			4.37
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—			(.01	)
Net realized gains		—			(1.53	)		—			—			—			—
Total distributions		—			(1.56	)		(.05	)		—			—			(.01	)
Net asset value, end of period	$	28.36		$	26.11		$	21.15		$	17.87		$	16.30		$	15.05
Total Returnc		8.62	%		31.36	%		18.65	%		9.63	%		8.31	%		40.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	12,679		$	7,909		$	3,660		$	2,964		$	1,156		$	6,204
Ratios to average net assets:
Net investment income (loss)		(0.51	%)		(0.37	%)		0.20	%		(0.13	%)		(0.14	%)		(0.25	%)
Total expenses		1.62	%		1.62	%		1.60	%		1.60	%		1.63	%		1.62	%
Portfolio turnover rate		86	%		277	%		266	%		582	%		619	%		241	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	24.16		$	19.81		$	16.86		$	15.50		$	14.39		$	10.30
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.26	)		(.09	)		(.14	)		(.11	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		2.13			6.17			3.09			1.50			1.22			4.21
Total from investment operations		1.97			5.91			3.00			1.36			1.11			4.10
Less distributions from:
Net investment income		—			(.03	)		(.05	)		—			—			(.01	)
Net realized gains		—			(1.53	)		—			—			—			—
Total distributions		—			(1.56	)		(.05	)		—			—			(.01	)
Net asset value, end of period	$	26.13		$	24.16		$	19.81		$	16.86		$	15.50		$	14.39
Total Returnc		8.15	%		30.38	%		17.81	%		8.77	%		7.71	%		39.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,058		$	7,318		$	4,589		$	3,468		$	3,870		$	8,393
Ratios to average net assets:
Net investment income (loss)		(1.28	%)		(1.14	%)		(0.53	%)		(0.91	%)		(0.76	%)		(0.91	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.36	%		2.38	%		2.38	%
Portfolio turnover rate		86	%		277	%		266	%		582	%		619	%		241	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

INTERNET FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Facebook, Inc. — Class A	5.2%
Amazon.com, Inc.	4.3%
Cisco Systems, Inc.	4.0%
QUALCOMM, Inc.	3.9%
Google, Inc. — Class C	3.8%
Google, Inc. — Class A	3.8%
Priceline Group, Inc.	3.3%
eBay, Inc.	3.1%
Time Warner, Inc.	2.8%
Yahoo!, Inc.	2.2%
Top Ten Total	36.4%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  77 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INTERNET FUND

	Shares		Value
COMMON STOCKS† - 99.6%
E-COMMERCE/SERVICES - 15.1%
Priceline Group, Inc.*		601	$	696,308
Netflix, Inc.*		866		390,722
TripAdvisor, Inc.*		2,936		268,409
Expedia, Inc.		2,912		255,149
SouFun Holdings Ltd. ADR		19,775		196,761
Ctrip.com International Ltd. ADR*		3,300		187,308
58.com, Inc. ADR*,1		4,760		177,310
IAC/InterActiveCorp		2,600		171,340
Bitauto Holdings Ltd. ADR*		2,188		170,664
Zillow, Inc. — Class A*		1,406		163,082
Groupon, Inc. — Class A*		23,476		156,820
Liberty Ventures*		3,270		124,129
Trulia, Inc.*		1,887		92,274
RetailMeNot, Inc.*		4,340		70,134
ChannelAdvisor Corp.*		2,896		47,494
Angie's List, Inc.*		7,015		44,686
Total E-Commerce/Services				3,212,590
WEB PORTALS/ISP - 14.9%
Google, Inc. — Class C*		1,382		797,911
Google, Inc. — Class A*		1,352		795,530
Yahoo!, Inc.*		11,466		467,240
Baidu, Inc. ADR*		1,879		410,054
Yandex N.V. — Class A*		6,827		189,756
SINA Corp.*		4,485		184,513
Sohu.com, Inc.*		3,133		157,371
AOL, Inc.*		3,241		145,683
Total Web Portals/ISP				3,148,058
E-COMMERCE/PRODUCTS - 11.2%
Amazon.com, Inc.*		2,849		918,631
eBay, Inc.*		11,586		656,115
Vipshop Holdings Ltd. ADR*		1,085		205,076
MercadoLibre, Inc.		1,583		171,993
zulily, Inc. — Class A*,1		4,293		162,662
E-Commerce China Dangdang, Inc. — Class A ADR*,1		13,204		161,089
Shutterfly, Inc.*		2,125		103,573
Total E-Commerce/Products				2,379,139
INTERNET CONTENT-ENTERTAINMENT - 10.1%
Facebook, Inc. — Class A*		13,858		1,095,336
Twitter, Inc.*		8,373		431,879
Youku Tudou, Inc. ADR*		9,713		174,057
NetEase, Inc. ADR		1,919		164,382
Pandora Media, Inc.*		6,518		157,475
Shutterstock, Inc.*		1,630		116,349
Total Internet Content-Entertainment				2,139,478
NETWORKING PRODUCTS - 5.4%
Cisco Systems, Inc.		33,611		845,989
Palo Alto Networks, Inc.*		2,084		204,440
Polycom, Inc.*		7,677		94,312
Total Networking Products				1,144,741
WIRELESS EQUIPMENT - 5.1%
Motorola Solutions, Inc.		4,740		299,947
Telefonaktiebolaget LM Ericsson ADR		13,484		169,764
Gogo, Inc.*,1		9,347		157,590
Ubiquiti Networks, Inc.1		3,474		130,379
ViaSat, Inc.*		2,115		116,579
Aruba Networks, Inc.*		5,297		114,309
InterDigital, Inc.		2,330		92,781
Total Wireless Equipment				1,081,349
APPLICATIONS SOFTWARE - 4.9%
Intuit, Inc.		4,322		378,824
Red Hat, Inc.*		4,102		230,327
Check Point Software Technologies Ltd.*		2,879		199,342
Dealertrack Technologies, Inc.*		2,600		112,866
Demandware, Inc.*		2,010		102,349
Total Applications Software				1,023,708
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUIT - 3.9%
QUALCOMM, Inc.		11,082		828,601
INTERNET CONTENT-INFO/NETWORK - 3.9%
LinkedIn Corp. — Class A*		1,856		385,658
YY, Inc. ADR*		2,373		177,714
Yelp, Inc. — Class A*		2,364		161,343
WebMD Health Corp. — Class A*		2,149		89,850
Total Internet Content-Info/Network				814,565
INTERNET SECURITY - 3.3%
Symantec Corp.		12,465		293,051
Qihoo 360 Technology Company Ltd. ADR*		3,199		215,837
VeriSign, Inc.*		3,564		196,448
Total Internet Security				705,336
TELECOMMUNICATION EQUIPMENTS - 3.1%
Juniper Networks, Inc.		10,592		234,613
Harris Corp.		2,890		191,896
ARRIS Group, Inc.*		5,119		145,149
ADTRAN, Inc.		3,702		76,002
Total Telecommunication Equipments				647,660
MULTIMEDIA - 2.8%
Time Warner, Inc.		7,846		590,098
WEB HOSTING/DESIGN - 2.5%
Equinix, Inc.*		1,279		271,762
Rackspace Hosting, Inc.*		5,422		176,486
Web.com Group, Inc.*		3,750		74,850
Total Web Hosting/Design				523,098

78  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
INTERNET FUND

	Shares		Value
INTERNET INFRASTRUCTURE SOFTWARE - 1.9%
F5 Networks, Inc.*		1,802	$	213,969
TIBCO Software, Inc.*		7,966		188,237
Total Internet Infrastructure Software				402,206
ELECTRONIC COMPONENTS-SEMICONDUCTOR - 1.7%
Broadcom Corp. — Class A		8,922		360,627
COMPUTER SOFTWARE - 1.6%
Akamai Technologies, Inc.*		4,000		239,200
Cornerstone OnDemand, Inc.*		2,932		100,890
Total Computer Software				340,090
TELECOMMUNICATION EQUIPMENTS FIBER OPTICS - 1.5%
JDS Uniphase Corp.*		9,686		123,981
Ciena Corp.*		5,617		93,916
Finisar Corp.*		5,420		90,135
Total Telecommunication Equipments Fiber Optics				308,032
COMPUTERS-INTEGRATED SYSTEMS - 1.4%
Brocade Communications Systems, Inc.		15,243		165,692
Riverbed Technology, Inc.*		6,830		126,662
Total Computers-Integrated Systems				292,354
FINANCE-INVESTMENT BANKERS/BROKERS - 0.9%
E*TRADE Financial Corp.*		8,050		181,850
PRINTING-COMMERCIAL - 0.8%
Vistaprint N.V.*		3,270		179,163
COMPUTERS - 0.8%
BlackBerry Ltd.*		17,328		172,240
E-MARKETING/INFORMATION - 0.8%
Conversant, Inc.*		3,261		111,689
Rocket Fuel, Inc.*,1		3,660		57,828
Total E-Marketing/Information				169,517
COMMERCIAL SERVICES - 0.8%
CoStar Group, Inc.*		1,051		163,473
INTERNET INCUBATORS - 0.7%
HomeAway, Inc.*		4,007		142,249
COMPUTER SERVICES - 0.5%
j2 Global, Inc.		2,285		112,788
Total Common Stocks
(Cost $13,728,237)				21,063,010
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.6%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	59,578		59,578
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		24,536		24,536
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		24,536		24,536
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		24,536		24,536
Total Repurchase Agreements
(Cost $133,186)				133,186
SECURITIES LENDING COLLATERAL††,3 - 2.6%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		467,273		467,273
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		76,602		76,602
Total Securities Lending Collateral
(Cost $543,875)				543,875
Total Investments - 102.8%
(Cost $14,405,298)			$	21,740,071
Other Assets & Liabilities, net - (2.8)%				(587,385	)
Total Net Assets - 100.0%			$	21,152,686

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6 .
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt

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

INTERNET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $601,939 of securities loaned (cost $13,728,237)	$	21,063,010
Repurchase agreements, at value (cost $677,061)		677,061
Total investments (cost $14,405,298)		21,740,071
Segregated cash with broker		89,125
Receivables:
Fund shares sold		19,596
Dividends		9,062
Securities lending income		1,139
Foreign taxes reclaim		955
Total assets		21,859,948
Liabilities:
Payable for:
Upon return of securities loaned		633,000
Fund shares redeemed		33,628
Management fees		17,078
Transfer agent and administrative fees		5,023
Distribution and service fees		4,101
Portfolio accounting fees		2,009
Miscellaneous		12,423
Total liabilities		707,262
Net assets	$	21,152,686
Net assets consist of:
Paid in capital	$	15,924,147
Accumulated net investment loss		(105,257	)
Accumulated net realized loss on investments		(2,000,977	)
Net unrealized appreciation on investments		7,334,773
Net assets	$	21,152,686
Investor Class:
Net assets	$	13,433,841
Capital shares outstanding		172,599
Net asset value per share	$	77.83
Advisor Class:
Net assets	$	1,708,931
Capital shares outstanding		23,753
Net asset value per share	$	71.95
A-Class:
Net assets	$	2,924,896
Capital shares outstanding		39,594
Net asset value per share	$	73.87
Maximum offering price per share (Net asset value divided by 95.25%)	$	77.55
C-Class:
Net assets	$	3,085,018
Capital shares outstanding		45,545
Net asset value per share	$	67.74

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $2,320)	$	92,942
Income from securities lending, net		9,915
Interest		6
Total investment income		102,863
Expenses:
Management fees		110,614
Transfer agent and administrative fees		32,534
Distribution and service fees:
Advisor Class		7,293
A-Class		6,274
C-Class		16,929
Portfolio accounting fees		13,013
Registration fees		15,010
Trustees' fees*		1,535
Custodian fees		1,516
Line of credit interest expense		247
Miscellaneous		3,155
Total expenses		208,120
Net investment loss		(105,257	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,143,758
Net realized gain		2,143,758
Net change in unrealized appreciation (depreciation) on:
Investments		(2,093,685	)
Net change in unrealized appreciation (depreciation)		(2,093,685	)
Net realized and unrealized gain		50,073
Net decrease in net assets resulting from operations	$	(55,184	)

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

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

INTERNET FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(105,257	)	$	(368,149	)
Net realized gain (loss) on investments		2,143,758			(1,599,042	)
Net change in unrealized appreciation (depreciation) on investments		(2,093,685	)		6,184,558
Net increase (decrease) in net assets resulting from operations		(55,184	)		4,217,367
Distributions to shareholders from:
Net realized gains
Investor Class		—			(111,377	)
Advisor Class		—			(17,627	)
A-Class		—			(40,920	)
C-Class		—			(15,187	)
Total distributions to shareholders		—			(185,111	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		26,834,279			137,136,622
Advisor Class		50,238,609			71,839,042
A-Class		3,272,768			18,920,974
C-Class		7,889,544			18,712,886
Distributions reinvested
Investor Class		—			108,663
Advisor Class		—			17,580
A-Class		—			37,431
C-Class		—			14,695
Cost of shares redeemed
Investor Class		(39,975,220	)		(119,310,474	)
Advisor Class		(60,724,681	)		(60,492,721	)
A-Class		(12,670,366	)		(8,526,665	)
C-Class		(9,520,879	)		(15,590,538	)
Net increase (decrease) from capital share transactions		(34,655,946	)		42,867,495
Net increase (decrease) in net assets		(34,711,130	)		46,899,751
Net assets:
Beginning of period		55,863,816			8,964,065
End of period	$	21,152,686		$	55,863,816
Accumulated net investment loss at end of period	$	(105,257	)	$	—
Capital share activity:
Shares sold
Investor Class		353,847			1,953,833
Advisor Class		729,201			1,024,297
A-Class		44,845			275,049
C-Class		120,351			314,443
Shares issued from reinvestment of distributions
Investor Class		—			1,528
Advisor Class		—			266
A-Class		—			554
C-Class		—			236
Shares redeemed
Investor Class		(538,728	)		(1,708,029	)
Advisor Class		(875,240	)		(865,440	)
A-Class		(181,452	)		(121,953	)
C-Class		(145,730	)		(266,422	)
Net increase (decrease) in shares		(492,906	)		608,362

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

INTERNET FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	75.05		$	55.46		$	51.90		$	52.28		$	41.74		$	26.58
Income (loss) from investment operations:
Net investment income (loss)b		(.22	)		(.62	)		(.44	)		(.51	)		(.34	)		(.38	)
Net gain (loss) on investments (realized and unrealized)		3.00			20.53			5.26			.13			10.88			15.54
Total from investment operations		2.78			19.91			4.82			(.38	)		10.54			15.16
Less distributions from:
Net realized gains		—			(.32	)		(1.26	)		—			—			—
Total distributions		—			(.32	)		(1.26	)		—			—			—
Net asset value, end of period	$	77.83		$	75.05		$	55.46		$	51.90		$	52.28		$	41.74
Total Returnc		3.70	%		35.93	%		9.65	%		(0.73	%)		25.25	%		57.04	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,434		$	26,828		$	6,109		$	6,206		$	20,589		$	21,924
Ratios to average net assets:
Net investment income (loss)		(0.59	%)		(0.87	%)		(0.87	%)		(1.05	%)		(0.69	%)		(1.12	%)
Total expenses		1.37	%		1.37	%		1.35	%		1.36	%		1.39	%		1.37	%
Portfolio turnover rate		193	%		472	%		442	%		380	%		291	%		443	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	69.58		$	51.70		$	48.71		$	49.31		$	39.57		$	25.32
Income (loss) from investment operations:
Net investment income (loss)b		(.35	)		(1.07	)		(.64	)		(.71	)		(.59	)		(.58	)
Net gain (loss) on investments (realized and unrealized)		2.72			19.27			4.89			.11			10.33			14.83
Total from investment operations		2.37			18.20			4.25			(.60	)		9.74			14.25
Less distributions from:
Net realized gains		—			(.32	)		(1.26	)		—			—			—
Total distributions		—			(.32	)		(1.26	)		—			—			—
Net asset value, end of period	$	71.95		$	69.58		$	51.70		$	48.71		$	49.31		$	39.57
Total Returnc		3.41	%		35.23	%		9.13	%		(1.24	%)		24.61	%		56.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,709		$	12		$	552		$	719		$	2,124		$	3,908
Ratios to average net assets:
Net investment income (loss)		(0.99	%)		(1.53	%)		(1.36	%)		(1.58	%)		(1.32	%)		(1.74	%)
Total expenses		1.87	%		1.87	%		1.85	%		1.86	%		1.89	%		1.88	%
Portfolio turnover rate		193	%		472	%		442	%		380	%		291	%		443	%

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

INTERNET FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	71.32		$	52.85		$	49.63		$	50.13		$	40.12		$	25.62
Income (loss) from investment operations:
Net investment income (loss)b		(.28	)		(.79	)		(.52	)		(.64	)		(.46	)		(.50	)
Net gain (loss) on investments (realized and unrealized)		2.83			19.58			5.00			.14			10.47			15.00
Total from investment operations		2.55			18.79			4.48			(.50	)		10.01			14.50
Less distributions from:
Net realized gains		—			(.32	)		(1.26	)		—			—			—
Total distributions		—			(.32	)		(1.26	)		—			—			—
Net asset value, end of period	$	73.87		$	71.32		$	52.85		$	49.63		$	50.13		$	40.12
Total Returnc		3.58	%		35.58	%		9.41	%		(1.00	%)		24.95	%		56.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,925		$	12,566		$	1,192		$	828		$	1,101		$	2,989
Ratios to average net assets:
Net investment income (loss)		(0.80	%)		(1.12	%)		(1.08	%)		(1.39	%)		(1.01	%)		(1.44	%)
Total expenses		1.61	%		1.62	%		1.60	%		1.61	%		1.64	%		1.63	%
Portfolio turnover rate		193	%		472	%		442	%		380	%		291	%		443	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	65.64		$	49.03		$	46.50		$	47.30		$	38.17		$	24.56
Income (loss) from investment operations:
Net investment income (loss)b		(.54	)		(1.16	)		(.85	)		(.94	)		(.83	)		(.66	)
Net gain (loss) on investments (realized and unrealized)		2.64			18.09			4.64			.14			9.96			14.27
Total from investment operations		2.10			16.93			3.79			(.80	)		9.13			13.61
Less distributions from:
Net realized gains		—			(.32	)		(1.26	)		—			—			—
Total distributions		—			(.32	)		(1.26	)		—			—			—
Net asset value, end of period	$	67.74		$	65.64		$	49.03		$	46.50		$	47.30		$	38.17
Total Returnc		3.20	%		34.56	%		8.55	%		(1.69	%)		23.92	%		55.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,085		$	4,655		$	1,111		$	643		$	1,770		$	1,057
Ratios to average net assets:
Net investment income (loss)		(1.63	%)		(1.85	%)		(1.91	%)		(2.17	%)		(1.92	%)		(2.00	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.36	%		2.39	%		2.38	%
Portfolio turnover rate		193	%		472	%		442	%		380	%		291	%		443	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE(Unaudited) September 30, 2014

LEISURE FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Walt Disney Co.	3.8%
Comcast Corp. — Class A	3.5%
Philip Morris International, Inc.	3.5%
McDonald's Corp.	3.0%
Altria Group, Inc.	2.9%
Twenty-First Century Fox, Inc. — Class A	2.7%
Time Warner, Inc.	2.4%
Starbucks Corp.	2.3%
Las Vegas Sands Corp.	2.2%
DIRECTV	2.0%
Top Ten Total	28.3%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

84  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
LEISURE FUND

	Shares		Value
COMMON STOCKS† - 99.6%
RETAIL-RESTAURANTS - 16.7%
McDonald's Corp.		2,989	$	283,386
Starbucks Corp.		2,918		220,192
Yum! Brands, Inc.		2,261		162,747
Chipotle Mexican Grill, Inc. — Class A*		199		132,651
Burger King Worldwide, Inc.1		3,080		91,353
Darden Restaurants, Inc.		1,473		75,801
Dunkin' Brands Group, Inc.		1,390		62,300
Panera Bread Co. — Class A*		378		61,508
Domino's Pizza, Inc.		780		60,029
Brinker International, Inc.		1,030		52,314
Wendy's Co.		6,080		50,221
Jack in the Box, Inc.		730		49,779
Buffalo Wild Wings, Inc.*		347		46,592
Cracker Barrel Old Country Store, Inc.		450		46,436
Bloomin' Brands, Inc.*		2,480		45,483
Cheesecake Factory, Inc.		964		43,862
Texas Roadhouse, Inc. — Class A		1,500		41,760
El Pollo Loco Holdings, Inc.*		950		34,115
Bob Evans Farms, Inc.		660		31,244
Total Retail-Restaurants				1,591,773
CABLE/SATELLITE TV - 12.8%
Comcast Corp. — Class A		6,223		334,672
DIRECTV*		2,212		191,381
Time Warner Cable, Inc.		1,242		178,215
DISH Network Corp. — Class A*		2,416		156,025
Charter Communications, Inc. — Class A*		750		113,528
Liberty Global plc*		2,289		93,883
Liberty Global plc — Class A*		2,079		88,441
Cablevision Systems Corp. — Class A		3,458		60,550
Total Cable/Satellite TV				1,216,695
MULTIMEDIA - 12.3%
Walt Disney Co.		4,014		357,367
Twenty-First Century Fox, Inc. — Class A		7,350		252,032
Time Warner, Inc.		3,082		231,797
Viacom, Inc. — Class B		2,128		163,728
Thomson Reuters Corp.		4,344		158,165
Total Multimedia				1,163,089
TOBACCO - 10.0%
Philip Morris International, Inc.		3,946		329,097
Altria Group, Inc.		6,059		278,350
Reynolds American, Inc.		2,825		166,675
Lorillard, Inc.		2,272		136,116
Vector Group Ltd.		1,983		43,983
Total Tobacco				954,221
CASINO HOTELS - 6.3%
Las Vegas Sands Corp.		3,317		206,350
Wynn Resorts Ltd.		691		129,272
Melco Crown Entertainment Ltd. ADR		3,823		100,507
MGM Resorts International*		4,370		99,549
Caesars Entertainment Corp.*,1		3,010		37,866
Boyd Gaming Corp.*		2,990		30,378
Total Casino Hotels				603,922
HOTELS & MOTELS - 5.1%
Hilton Worldwide Holdings, Inc.*		5,730		141,129
Marriott International, Inc. — Class A		1,843		128,826
Starwood Hotels & Resorts Worldwide, Inc.		1,396		116,161
Wyndham Worldwide Corp.		1,145		93,043
Total Hotels & Motels				479,159
BROADCAST SERVICES/PROGRAM - 4.2%
Scripps Networks Interactive, Inc. — Class A		1,240		96,832
Discovery Communications, Inc. — Class A*		1,890		71,442
Discovery Communications, Inc. — Class C*		1,900		70,831
Grupo Televisa SAB ADR		2,070		70,132
Starz — Class A*		1,747		57,791
Nexstar Broadcasting Group, Inc. — Class A		780		31,528
Total Broadcast Services/Program				398,556
TELEVISION - 3.9%
CBS Corp. — Class B		2,825		151,138
AMC Networks, Inc. — Class A*		1,010		59,004
Liberty Media Corp. — Class A*		1,220		57,560
Liberty Media Corp. — Class C*		1,210		56,858
Sinclair Broadcast Group, Inc. — Class A		1,760		45,918
Total Television				370,478
CRUISE LINES - 3.7%
Carnival Corp.		4,054		162,850
Royal Caribbean Cruises Ltd.		1,662		111,836
Norwegian Cruise Line Holdings Ltd.*		2,170		78,163
Total Cruise Lines				352,849
BEVERAGES-WINE/SPIRITS - 3.3%
Brown-Forman Corp. — Class B		1,393		125,676
Constellation Brands, Inc. — Class A*		1,361		118,625
Diageo plc ADR		590		68,086
Total Beverages-Wine/Spirits				312,387
ENTERTAINMENT SOFTWARE - 2.9%
Activision Blizzard, Inc.		5,581		116,029
Electronic Arts, Inc.*		2,740		97,571
Take-Two Interactive Software, Inc.*		1,779		41,042
Glu Mobile, Inc.*		3,970		20,525
Total Entertainment Software				275,167

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  85 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
LEISURE FUND

	Shares		Value
BREWERY - 2.8%
Molson Coors Brewing Co. — Class B		1,386	$	103,174
AMBEV S.A. ADR		12,600		82,530
Anheuser-Busch InBev N.V. ADR		693		76,819
Total Brewery				262,523
PUBLISHING-NEWSPAPERS - 2.1%
News Corp. — Class A*		5,383		88,012
TOYS - 1.8%
Mattel, Inc.		2,919		89,467
Hasbro, Inc.		1,422		78,203
Total Toys				167,670
RESORTS/THEME PARKS - 1.5%
Six Flags Entertainment Corp.		1,560		53,648
Vail Resorts, Inc.		590		51,188
SeaWorld Entertainment, Inc.		1,950		37,499
Total Resorts/Theme Parks				142,335
CASINO SERVICES - 1.2%
International Game Technology		3,538		59,686
Bally Technologies, Inc.*		637		51,406
Total Casino Services				111,092
MOTION PICTURES & SERVICES - 1.2%
Lions Gate Entertainment Corp.		1,857		61,225
DreamWorks Animation SKG, Inc. — Class A*		1,760		47,995
Total Motion Pictures & Services				109,220
THEATERS - 1.1%
Cinemark Holdings, Inc.		1,686		57,391
Regal Entertainment Group — Class A		2,570		51,092
Total Theaters				108,483
MOTORCYCLE/MOTOR SCOOTER - 1.1%
Harley-Davidson, Inc.		1,757		102,257
RECREATIONAL VEHICLES - 1.0%
Polaris Industries, Inc.		615		92,121
PROFESSIONAL SPORTS - 0.7%
Madison Square Garden Co. — Class A*		1,000		66,120
COMMERCIAL SERVICES - 0.7%
Live Nation Entertainment, Inc.*		2,620		62,932
LEISURE & RECREATION PRODUCTS - 0.6%
Brunswick Corp.		1,334		56,215
AUTO-CARS/LIGHT TRUCKS - 0.6%
Kandi Technologies Group, Inc.*		4,150		53,909
PUBLISHING-PERIODICALS - 0.5%
Time, Inc.*		1,970		46,157
RECREATIONAL CENTERS - 0.4%
Life Time Fitness, Inc.*		819		41,310
INTERNET APPLICATION SOFTWARE - 0.4%
Zynga, Inc. — Class A*		15,000		40,500
GAMBLING (NON-HOTEL) - 0.4%
Pinnacle Entertainment, Inc.*		1,390		34,875
FIREARMS & AMMUNITION - 0.3%
Sturm Ruger & Company, Inc.1		600		29,214
Total Common Stocks
(Cost $5,166,892)				9,442,543
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	29,648		29,648
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		12,211		12,211
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		12,211		12,211
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		12,211		12,211
Total Repurchase Agreements
(Cost $66,281)				66,281

86  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
LEISURE FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 1.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	79,761	$	79,761
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		13,076		13,076
Total Securities Lending Collateral
(Cost $92,837)				92,837
Total Investments - 101.3%
(Cost $5,326,010)			$	9,601,661
Other Assets & Liabilities, net - (1.3)%				(124,071	)
Total Net Assets - 100.0%			$	9,477,590

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

LEISURE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $103,761 of securities loaned (cost $5,166,892)	$	9,442,543
Repurchase agreements, at value (cost $159,118)		159,118
Total investments (cost $5,326,010)		9,601,661
Segregated cash with broker		15,213
Receivables:
Dividends		30,501
Fund shares sold		19,542
Securities lending income		768
Foreign taxes reclaim		472
Total assets		9,668,157
Liabilities:
Payable for:
Upon return of securities loaned		108,050
Fund shares redeemed		54,258
Management fees		10,549
Transfer agent and administrative fees		3,103
Distribution and service fees		1,953
Portfolio accounting fees		1,241
Miscellaneous		11,413
Total liabilities		190,567
Net assets	$	9,477,590
Net assets consist of:
Paid in capital	$	2,047,645
Undistributed net investment income		123,310
Accumulated net realized gain on investments		3,030,984
Net unrealized appreciation on investments		4,275,651
Net assets	$	9,477,590
Investor Class:
Net assets	$	5,100,322
Capital shares outstanding		89,517
Net asset value per share	$	56.98
Advisor Class:
Net assets	$	1,278,037
Capital shares outstanding		24,456
Net asset value per share	$	52.26
A-Class:
Net assets	$	1,980,004
Capital shares outstanding		37,019
Net asset value per share	$	53.49
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.16
C-Class:
Net assets	$	1,119,227
Capital shares outstanding		22,457
Net asset value per share	$	49.84

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $2,261)	$	211,720
Income from securities lending, net		2,141
Interest		8
Total investment income		213,869
Expenses:
Management fees		106,976
Transfer agent and administrative fees		31,463
Distribution and service fees:
Advisor Class		4,335
A-Class		2,894
C-Class		6,173
Portfolio accounting fees		12,585
Registration fees		12,072
Custodian fees		1,468
Trustees' fees*		1,224
Tax expense		85
Line of credit interest expense		84
Miscellaneous		5,846
Total expenses		185,205
Net investment income		28,664
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,738,416
Net realized gain		5,738,416
Net change in unrealized appreciation (depreciation) on:
Investments		(5,147,805	)
Net change in unrealized appreciation (depreciation)		(5,147,805	)
Net realized and unrealized gain		590,611
Net increase in net assets resulting from operations	$	619,275

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

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

LEISURE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	28,664		$	94,646
Net realized gain on investments		5,738,416			3,028,207
Net change in unrealized appreciation (depreciation) on investments		(5,147,805	)		2,702,964
Net increase in net assets resulting from operations		619,275			5,825,817
Distributions to shareholders from:
Net investment income
Investor Class		—			(167,161	)
Advisor Class		—			(17,486	)
A-Class		—			(8,764	)
C-Class		—			(6,684	)
Total distributions to shareholders		—			(200,095	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		5,098,315			71,016,096
Advisor Class		33,940,697			18,567,120
A-Class		6,002,248			6,654,372
C-Class		2,427,454			1,632,199
Distributions reinvested
Investor Class		—			166,413
Advisor Class		—			17,418
A-Class		—			8,624
C-Class		—			6,192
Cost of shares redeemed
Investor Class		(24,797,680	)		(73,669,092	)
Advisor Class		(35,714,101	)		(17,145,281	)
A-Class		(5,806,247	)		(6,623,023	)
C-Class		(2,784,060	)		(1,347,238	)
Net decrease from capital share transactions		(21,633,374	)		(716,200	)
Net increase (decrease) in net assets		(21,014,099	)		4,909,522
Net assets:
Beginning of period		30,491,689			25,582,167
End of period	$	9,477,590		$	30,491,689
Undistributed net investment income at end of period	$	123,310		$	94,646
Capital share activity:
Shares sold
Investor Class		89,604			1,384,928
Advisor Class		649,147			385,324
A-Class		110,858			134,495
C-Class		48,783			36,131
Shares issued from reinvestment of distributions
Investor Class		—			3,093
Advisor Class		—			351
A-Class		—			170
C-Class		—			130
Shares redeemed
Investor Class		(432,593	)		(1,445,332	)
Advisor Class		(685,393	)		(354,839	)
A-Class		(107,736	)		(134,028	)
C-Class		(56,082	)		(29,738	)
Net decrease in shares		(383,412	)		(19,315	)

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

LEISURE FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	55.81		$	44.93		$	36.94		$	33.50		$	27.48		$	15.40
Income (loss) from investment operations:
Net investment income (loss)b		.10			.20			.36			.17			(.02	)		.03
Net gain (loss) on investments (realized and unrealized)		1.07			10.95			7.66			3.27			6.04			12.05
Total from investment operations		1.17			11.15			8.02			3.44			6.02			12.08
Less distributions from:
Net investment income		—			(.27	)		(.03	)		—			—			—
Total distributions		—			(.27	)		(.03	)		—			—			—
Net asset value, end of period	$	56.98		$	55.81		$	44.93		$	36.94		$	33.50		$	27.48
Total Returnc		2.10	%		24.83	%		21.74	%		10.27	%		21.91	%		78.44	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,100		$	24,139		$	22,005		$	12,687		$	2,141		$	13,186
Ratios to average net assets:
Net investment income (loss)		0.35	%		0.34	%		0.92	%		0.49	%		(0.07	%)		0.13	%
Total expenses		1.36	%		1.37	%		1.35	%		1.35	%		1.39	%		1.37	%
Portfolio turnover rate		164	%		265	%		517	%		797	%		963	%		943	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	51.31		$	41.54		$	34.33		$	31.29		$	25.81		$	14.53
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.11	)		.29			(.01	)		(.16	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		.97			10.15			6.95			3.05			5.64			11.39
Total from investment operations		.95			10.04			7.24			3.04			5.48			11.28
Less distributions from:
Net investment income		—			(.27	)		(.03	)		—			—			—
Total distributions		—			(.27	)		(.03	)		—			—			—
Net asset value, end of period	$	52.26		$	51.31		$	41.54		$	34.33		$	31.29		$	25.81
Total Returnc		1.85	%		24.18	%		21.12	%		9.72	%		21.23	%		77.63	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,278		$	3,115		$	1,241		$	1,379		$	582		$	1,111
Ratios to average net assets:
Net investment income (loss)		(0.07	%)		(0.23	%)		0.80	%		(0.03	%)		(0.61	%)		(0.56	%)
Total expenses		1.87	%		1.87	%		1.85	%		1.86	%		1.89	%		1.88	%
Portfolio turnover rate		164	%		265	%		517	%		797	%		963	%		943	%

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

LEISURE FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	52.46		$	42.35		$	34.91		$	31.75		$	26.13		$	14.67
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		.04			.29			.07			(.05	)		.17
Net gain (loss) on investments (realized and unrealized)		1.06			10.34			7.18			3.09			5.67			11.29
Total from investment operations		1.03			10.38			7.47			3.16			5.62			11.46
Less distributions from:
Net investment income		—			(.27	)		(.03	)		—			—			—
Total distributions		—			(.27	)		(.03	)		—			—			—
Net asset value, end of period	$	53.49		$	52.46		$	42.35		$	34.91		$	31.75		$	26.13
Total Returnc		1.96	%		24.53	%		21.42	%		9.95	%		21.51	%		78.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,980		$	1,778		$	1,409		$	448		$	1,157		$	489
Ratios to average net assets:
Net investment income (loss)		(0.10	%)		0.09	%		0.80	%		0.23	%		(0.18	%)		0.74	%
Total expenses		1.62	%		1.62	%		1.60	%		1.60	%		1.63	%		1.63	%
Portfolio turnover rate		164	%		265	%		517	%		797	%		963	%		943	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	49.07		$	39.92		$	33.16		$	30.36		$	25.19		$	14.26
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.27	)		.01			(.15	)		(.30	)		(.22	)
Net gain (loss) on investments (realized and unrealized)		.94			9.69			6.78			2.95			5.47			11.15
Total from investment operations		.77			9.42			6.79			2.80			5.17			10.93
Less distributions from:
Net investment income		—			(.27	)		(.03	)		—			—			—
Total distributions		—			(.27	)		(.03	)		—			—			—
Net asset value, end of period	$	49.84		$	49.07		$	39.92		$	33.16		$	30.36		$	25.19
Total Returnc		1.57	%		23.61	%		20.54	%		9.19	%		20.52	%		76.65	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,119		$	1,460		$	928		$	1,345		$	828		$	929
Ratios to average net assets:
Net investment income (loss)		(0.66	%)		(0.59	%)		0.03	%		(0.50	%)		(1.13	%)		(1.01	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.35	%		2.39	%		2.38	%
Portfolio turnover rate		164	%		265	%		517	%		797	%		963	%		943	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

PRECIOUS METALS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Freeport-McMoRan, Inc.	8.7%
Newmont Mining Corp.	6.2%
Barrick Gold Corp.	6.2%
Goldcorp, Inc.	5.5%
Silver Wheaton Corp.	4.4%
Agnico Eagle Mines Ltd.	3.7%
Southern Copper Corp.	3.5%
Yamana Gold, Inc.	3.4%
Royal Gold, Inc.	3.3%
Randgold Resources Ltd. ADR	3.2%
Top Ten Total	48.1%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

92  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
PRECIOUS METALS FUND

	Shares		Value
COMMON STOCKS† - 97.2%
GOLD MINING - 64.0%
Newmont Mining Corp.		146,431	$	3,375,234
Barrick Gold Corp.		228,259		3,346,277
Goldcorp, Inc.		127,953		2,946,758
Agnico Eagle Mines Ltd.		68,504		1,988,671
Yamana Gold, Inc.		306,904		1,841,424
Royal Gold, Inc.		27,351		1,776,174
Randgold Resources Ltd. ADR		25,701		1,737,131
AngloGold Ashanti Ltd. ADR		133,867		1,606,404
Kinross Gold Corp.*		467,184		1,541,707
Franco-Nevada Corp.		28,901		1,412,681
Eldorado Gold Corp.		198,116		1,335,302
Cia de Minas Buenaventura S.A.A. ADR		99,781		1,155,464
IAMGOLD Corp.*		402,390		1,110,596
Gold Fields Ltd. ADR		274,902		1,072,118
New Gold, Inc.*		191,225		965,686
Allied Nevada Gold Corp.*,1		275,486		911,859
Sibanye Gold Ltd. ADR		92,895		787,750
AuRico Gold, Inc.		199,660		696,813
McEwen Mining, Inc.*,1		324,413		635,849
Harmony Gold Mining Company Ltd. ADR		293,717		634,429
Novagold Resources, Inc.*		193,203		585,405
B2Gold Corp.*,1		282,117		572,698
Seabridge Gold, Inc.*,1		70,226		564,617
Sandstorm Gold Ltd.*		124,195		534,039
Gold Resource Corp.1		92,253		472,335
Alamos Gold, Inc.		58,804		468,080
Pretium Resources, Inc.*,1		71,150		369,980
Total Gold Mining				34,445,481
SILVER MINING - 13.0%
Silver Wheaton Corp.		118,905		2,369,777
Hecla Mining Co.		409,902		1,016,557
Pan American Silver Corp.		89,947		987,618
Silver Standard Resources, Inc.*,1		143,182		873,410
First Majestic Silver Corp.*		103,096		804,149
Endeavour Silver Corp.*		143,766		628,257
Silvercorp Metals, Inc.1		222,481		353,745
Total Silver Mining				7,033,513
METAL-COPPER - 12.2%
Freeport-McMoRan, Inc.		143,347		4,680,280
Southern Copper Corp.		63,671		1,887,845
Total Metal-Copper				6,568,125
PRECIOUS METALS - 3.2%
Coeur Mining, Inc.*		154,411		765,879
Primero Mining Corp.*		110,825		537,501
Tahoe Resources, Inc.*		21,728		441,078
Total Precious Metals				1,744,458
PLATINUM - 2.8%
Stillwater Mining Co.*		99,712		1,498,671
METAL PROCESSORS & FABRICATIONS - 1.1%
RTI International Metals, Inc.*		24,690		608,855
DIAMONDS/PRECIOUS STONES - 0.9%
Dominion Diamond Corp.*		35,302		502,700
Total Common Stocks
(Cost $35,887,202)				52,401,803
EXCHANGE-TRADED FUNDS - 2.0%
Market Vectors Junior Gold Miners ETF		31,564		1,061,182
Total Exchange-Traded Funds
(Cost $1,099,482)				1,061,182
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.1%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	276,149		276,149
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		113,726		113,726
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		113,726		113,726
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		113,726		113,726
Total Repurchase Agreements
(Cost $617,327)				617,327

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  93 

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
PRECIOUS METALS FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 4.9%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	2,252,138	$	2,252,138
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		369,203		369,203
Total Securities Lending Collateral
(Cost $2,621,341)				2,621,341
Total Investments - 105.2%
(Cost $40,225,352)			$	56,701,653
Other Assets & Liabilities, net - (5.2)%				(2,781,387	)
Total Net Assets - 100.0%			$	53,920,266

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt

94  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

PRECIOUS METALS FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $2,769,297 of securities loaned (cost $36,986,684)	$	53,462,985
Repurchase agreements, at value (cost $3,238,668)		3,238,668
Total investments (cost $40,225,352)		56,701,653
Segregated cash with broker		429,559
Receivables:
Securities sold		1,270,237
Fund shares sold		160,034
Dividends		11,074
Securities lending income		10,466
Total assets		58,583,023
Liabilities:
Payable for:
Upon return of securities loaned		3,050,900
Fund shares redeemed		1,513,342
Management fees		37,557
Transfer agent and administrative fees		12,519
Distribution and service fees		10,806
Portfolio accounting fees		5,007
Miscellaneous		32,626
Total liabilities		4,662,757
Net assets	$	53,920,266
Net assets consist of:
Paid in capital	$	86,412,313
Undistributed net investment income		644,715
Accumulated net realized loss on investments		(49,613,057	)
Net unrealized appreciation on investments		16,476,295
Net assets	$	53,920,266
Investor Class:
Net assets	$	37,345,928
Capital shares outstanding		1,162,333
Net asset value per share	$	32.13
Advisor Class:
Net assets	$	2,924,598
Capital shares outstanding		96,283
Net asset value per share	$	30.38
A-Class:
Net assets	$	5,365,151
Capital shares outstanding		172,177
Net asset value per share	$	31.16
Maximum offering price per share (Net asset value divided by 95.25%)	$	32.71
C-Class:
Net assets	$	8,284,589
Capital shares outstanding		295,852
Net asset value per share	$	28.00

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $28,117)	$	346,982
Income from securities lending, net		52,130
Interest		23
Total investment income		399,135
Expenses:
Management fees		252,836
Transfer agent and administrative fees		84,279
Distribution and service fees:
Advisor Class		10,826
A-Class		8,567
C-Class		49,959
Portfolio accounting fees		33,711
Registration fees		28,750
Custodian fees		3,935
Trustees' fees*		2,930
Line of credit interest expense		144
Miscellaneous		19,894
Total expenses		495,831
Net investment loss		(96,696	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(593,014	)
Foreign currency		(3	)
Net realized loss		(593,017	)
Net change in unrealized appreciation (depreciation) on:
Investments		(6,484,986	)
Foreign currency		(1	)
Net change in unrealized appreciation (depreciation)		(6,484,987	)
Net realized and unrealized loss		(7,078,004	)
Net decrease in net assets resulting from operations	$	(7,174,700	)

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

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

PRECIOUS METALS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(96,696	)	$	531,727
Net realized loss on investments		(593,017	)		(21,811,865	)
Net change in unrealized appreciation (depreciation) on investments		(6,484,987	)		(18,958,806	)
Net decrease in net assets resulting from operations		(7,174,700	)		(40,238,944	)
Distributions to shareholders from:
Net investment income
Investor Class		—			(214,700	)
Advisor Class		—			(17,921	)
A-Class		—			(18,796	)
C-Class		—			(51,914	)
Total distributions to shareholders		—			(303,331	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		120,779,487			338,664,021
Advisor Class		34,155,074			73,664,880
A-Class		13,610,462			8,057,501
C-Class		10,652,956			25,324,298
Distributions reinvested
Investor Class		—			205,735
Advisor Class		—			17,782
A-Class		—			15,489
C-Class		—			49,648
Cost of shares redeemed
Investor Class		(121,616,363	)		(336,034,319	)
Advisor Class		(34,827,802	)		(71,421,958	)
A-Class		(12,443,025	)		(6,716,766	)
C-Class		(10,555,074	)		(29,074,122	)
Net increase (decrease) from capital share transactions		(244,285	)		2,752,189
Net decrease in net assets		(7,418,985	)		(37,790,086	)
Net assets:
Beginning of period		61,339,251			99,129,337
End of period	$	53,920,266		$	61,339,251
Undistributed net investment income at end of period	$	644,715		$	741,411
Capital share activity:
Shares sold
Investor Class		3,208,332			8,791,258
Advisor Class		970,214			2,073,315
A-Class		370,249			216,466
C-Class		323,997			747,420
Shares issued from reinvestment of distributions
Investor Class		—			6,301
Advisor Class		—			574
A-Class		—			488
C-Class		—			1,730
Shares redeemed
Investor Class		(3,243,436	)		(8,982,178	)
Advisor Class		(992,122	)		(2,019,696	)
A-Class		(348,734	)		(185,372	)
C-Class		(323,292	)		(860,994	)
Net decrease in shares		(34,792	)		(210,688	)

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

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	35.78		$	51.65		$	65.73		$	86.74		$	61.73		$	46.36
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		.36			.34			(.02	)		(.28	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		(3.64	)		(16.06	)		(12.12	)		(20.70	)		25.32			15.96
Total from investment operations		(3.65	)		(15.70	)		(11.78	)		(20.72	)		25.04			15.52
Less distributions from:
Net investment income		—			(.17	)		(.10	)		(.29	)		(.03	)		—
Net realized gains		—			—			(2.20	)		—			—			(.08	)
Return of capital		—			—			—			—			—			(.07	)
Total distributions		—			(.17	)		(2.30	)		(.29	)		(.03	)		(.15	)
Net asset value, end of period	$	32.13		$	35.78		$	51.65		$	65.73		$	86.74		$	61.73
Total Returnc		(10.20	%)		(30.37	%)		(18.60	%)		(23.91	%)		40.57	%		33.44	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	37,346		$	42,846		$	71,386		$	79,637		$	141,798		$	113,546
Ratios to average net assets:
Net investment income (loss)		(0.07	%)		0.96	%		0.55	%		(0.03	%)		(0.37	%)		(0.76	%)
Total expensesd		1.26	%		1.27	%		1.25	%		1.26	%		1.28	%		1.28	%
Portfolio turnover rate		170	%		348	%		206	%		235	%		322	%		383	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	33.92		$	49.20		$	63.02		$	83.59		$	59.79		$	45.12
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		.12			(.02	)		(.44	)		(.61	)		(.79	)
Net gain (loss) on investments (realized and unrealized)		(3.45	)		(15.23	)		(11.50	)		(19.84	)		24.44			15.61
Total from investment operations		(3.54	)		(15.11	)		(11.52	)		(20.28	)		23.83			14.82
Less distributions from:
Net investment income		—			(.17	)		(.10	)		(.29	)		(.03	)		—
Net realized gains		—			—			(2.20	)		—			—			(.08	)
Return of capital		—			—			—			—			—			(.07	)
Total distributions		—			(.17	)		(2.30	)		(.29	)		(.03	)		(.15	)
Net asset value, end of period	$	30.38		$	33.92		$	49.20		$	63.02		$	83.59		$	59.79
Total Returnc		(10.41	%)		(30.71	%)		(18.99	%)		(24.29	%)		39.87	%		32.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,925		$	4,009		$	3,148		$	9,610		$	30,418		$	18,677
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		0.34	%		(0.04	%)		(0.59	%)		(0.86	%)		(1.35	%)
Total expensesd		1.77	%		1.77	%		1.75	%		1.76	%		1.78	%		1.77	%
Portfolio turnover rate		170	%		348	%		206	%		235	%		322	%		383	%

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

PRECIOUS METALS FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	34.75		$	50.28		$	64.21		$	84.97		$	60.63		$	45.64
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		.16			.21			(.22	)		(.45	)		(.59	)
Net gain (loss) on investments (realized and unrealized)		(3.52	)		(15.52	)		(11.84	)		(20.25	)		24.82			15.73
Total from investment operations		(3.59	)		(15.36	)		(11.63	)		(20.47	)		24.37			15.14
Less distributions from:
Net investment income		—			(.17	)		(.10	)		(.29	)		(.03	)		—
Net realized gains		—			—			(2.20	)		—			—			(.08	)
Return of capital		—			—			—			—			—			(.07	)
Total distributions		—			(.17	)		(2.30	)		(.29	)		(.03	)		(.15	)
Net asset value, end of period	$	31.16		$	34.75		$	50.28		$	64.21		$	84.97		$	60.63
Total Returnc		(10.33	%)		(30.52	%)		(18.80	%)		(24.13	%)		40.21	%		33.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,365		$	5,235		$	5,988		$	6,412		$	14,919		$	8,422
Ratios to average net assets:
Net investment income (loss)		(0.35	%)		0.45	%		0.35	%		(0.30	%)		(0.63	%)		(1.04	%)
Total expensesd		1.52	%		1.52	%		1.50	%		1.51	%		1.53	%		1.52	%
Portfolio turnover rate		170	%		348	%		206	%		235	%		322	%		383	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	31.34		$	45.72		$	59.02		$	78.70		$	56.58		$	42.92
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.07	)		(.23	)		(.72	)		(.94	)		(.97	)
Net gain (loss) on investments (realized and unrealized)		(3.16	)		(14.14	)		(10.77	)		(18.67	)		23.09			14.78
Total from investment operations		(3.34	)		(14.21	)		(11.00	)		(19.39	)		22.15			13.81
Less distributions from:
Net investment income		—			(.17	)		(.10	)		(.29	)		(.03	)		—
Net realized gains		—			—			(2.20	)		—			—			(.08	)
Return of capital		—			—			—			—			—			(.07	)
Total distributions		—			(.17	)		(2.30	)		(.29	)		(.03	)		(.15	)
Net asset value, end of period	$	28.00		$	31.34		$	45.72		$	59.02		$	78.70		$	56.58
Total Returnc		(10.66	%)		(31.05	%)		(19.39	%)		(24.68	%)		39.18	%		32.14	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,285		$	9,250		$	18,608		$	26,533		$	39,650		$	23,483
Ratios to average net assets:
Net investment income (loss)		(1.12	%)		(0.22	%)		(0.42	%)		(1.04	%)		(1.37	%)		(1.81	%)
Total expensesd		2.27	%		2.27	%		2.25	%		2.26	%		2.28	%		2.28	%
Portfolio turnover rate		170	%		348	%		206	%		235	%		322	%		383	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE(Unaudited) September 30, 2014

REAL ESTATE FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Simon Property Group, Inc.	2.3%
American Tower Corp. — Class A	2.0%
Public Storage	1.8%
Crown Castle International Corp.	1.7%
Equity Residential	1.6%
General Growth Properties, Inc.	1.5%
Health Care REIT, Inc.	1.4%
AvalonBay Communities, Inc.	1.4%
Prologis, Inc.	1.4%
Ventas, Inc.	1.4%
Top Ten Total	16.5%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  99 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
REAL ESTATE FUND

	Shares		Value
COMMON STOCKS† - 100.9%
REITs - 90.1%
REITs-DIVERSIFIED - 17.1%
American Tower Corp. — Class A		5,952	$	557,285
Crown Castle International Corp.		5,940		478,347
Vornado Realty Trust		3,911		390,943
Weyerhaeuser Co.		11,729		373,686
Digital Realty Trust, Inc.		4,288		267,485
Plum Creek Timber Company, Inc.		6,100		237,961
Duke Realty Corp.		12,681		217,860
Liberty Property Trust		5,896		196,101
Rayonier, Inc.		5,768		179,616
Corrections Corporation of America		5,207		178,913
Retail Properties of America, Inc. — Class A		11,496		168,186
Geo Group, Inc.		4,030		154,027
EPR Properties		2,889		146,415
Cousins Properties, Inc.		12,180		145,551
Lexington Realty Trust		13,683		133,957
PS Business Parks, Inc.		1,700		129,438
DuPont Fabros Technology, Inc.		4,579		123,816
National Health Investors, Inc.		2,160		123,422
Washington Real Estate Investment Trust		4,620		117,256
Potlatch Corp.		2,879		115,765
New Residential Investment Corp.		19,510		113,743
American Assets Trust, Inc.		3,280		108,142
STAG Industrial, Inc.		5,020		103,964
Total REITs-Diversified				4,761,879
REITs-OFFICE PROPERTY - 12.0%
Boston Properties, Inc.		3,286		380,386
American Realty Capital Properties, Inc.		24,912		300,439
SL Green Realty Corp.		2,786		282,278
Alexandria Real Estate Equities, Inc.		2,831		208,786
Kilroy Realty Corp.		3,406		202,453
BioMed Realty Trust, Inc.		8,958		180,952
Douglas Emmett, Inc.		6,826		175,223
Equity Commonwealth*		6,572		168,966
Highwoods Properties, Inc.		4,310		167,659
Columbia Property Trust, Inc.		6,610		157,781
Piedmont Office Realty Trust, Inc. — Class A		8,406		148,282
Brandywine Realty Trust		10,114		142,304
Corporate Office Properties Trust		5,284		135,904
Parkway Properties, Inc.		6,536		122,746
Hudson Pacific Properties, Inc.		4,770		117,628
New York REIT, Inc.		11,440		117,603
Mack-Cali Realty Corp.		6,141		117,355
Government Properties Income Trust		5,105		111,851
Empire State Realty Trust, Inc. — Class A		7,350		110,397
Total REITs-Office Property				3,348,993
REITs-APARTMENTS - 10.7%
Equity Residential		7,050		434,139
AvalonBay Communities, Inc.		2,825		398,240
Essex Property Trust, Inc.		1,710		305,663
UDR, Inc.		8,748		238,383
Camden Property Trust		3,260		223,408
Mid-America Apartment Communities, Inc.		3,074		201,808
Apartment Investment & Management Co. — Class A		6,124		194,866
American Campus Communities, Inc.		4,903		178,714
American Homes 4 Rent — Class A		10,143		171,315
Home Properties, Inc.		2,839		165,343
Post Properties, Inc.		2,985		153,250
Education Realty Trust, Inc.		10,503		107,971
Starwood Waypoint Residential Trust		3,572		92,908
Associated Estates Realty Corp.		5,220		91,402
Total REITs-Apartments				2,957,410
REITs-MORTGAGE - 9.1%
Annaly Capital Management, Inc.		26,572		283,789
American Capital Agency Corp.		11,583		246,139
Starwood Property Trust, Inc.		9,077		199,331
NorthStar Realty Finance Corp.		11,058		195,395
Two Harbors Investment Corp.		17,530		169,515
MFA Financial, Inc.		19,551		152,107
Colony Financial, Inc.		6,340		141,889
Newcastle Investment Corp.		9,840		124,771
Invesco Mortgage Capital, Inc.		7,874		123,779
Hatteras Financial Corp.		6,547		117,584
PennyMac Mortgage Investment Trust		5,391		115,529
Redwood Trust, Inc.		6,330		104,951
Blackstone Mortgage Trust, Inc. — Class A		3,860		104,606
CYS Investments, Inc.		12,346		101,731
Capstead Mortgage Corp.		7,895		96,635
iStar Financial, Inc.*		7,070		95,445
American Capital Mortgage Investment Corp.		4,640		87,325
Western Asset Mortgage Capital Corp.		4,810		71,092
Total REITs-Mortgage				2,531,613
REITs-HEALTH CARE - 8.3%
Health Care REIT, Inc.		6,394		398,793
Ventas, Inc.		6,329		392,082
HCP, Inc.		9,825		390,151
Omega Healthcare Investors, Inc.		5,498		187,977
Senior Housing Properties Trust		8,935		186,920
Healthcare Trust of America, Inc. — Class A		12,911		149,768
Healthcare Realty Trust, Inc.		5,873		139,073
Medical Properties Trust, Inc.		10,659		130,679
American Realty Capital Healthcare Trust, Inc.		11,640		121,987
LTC Properties, Inc.		2,770		102,185
Sabra Health Care REIT, Inc.		3,940		95,821
Total REITs-Health Care				2,295,436
REITs-REGIONAL MALLS - 7.7%
Simon Property Group, Inc.		3,951		649,623
General Growth Properties, Inc.		17,564		413,632
Macerich Co.		4,250		271,278

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
REAL ESTATE FUND

	Shares		Value
Taubman Centers, Inc.		2,653	$	193,669
Tanger Factory Outlet Centers, Inc.		4,876		159,543
CBL & Associates Properties, Inc.		8,602		153,976
Glimcher Realty Trust		8,413		113,912
Pennsylvania Real Estate Investment Trust		5,179		103,269
Rouse Properties, Inc.		5,100		82,467
Total REITs-Regional Malls				2,141,369
REITs-SHOPPING CENTERS - 7.2%
Kimco Realty Corp.		12,446		272,691
Federal Realty Investment Trust		2,165		256,466
DDR Corp.		13,497		225,805
Brixmor Property Group, Inc.		9,550		212,583
Regency Centers Corp.		3,745		201,593
Weingarten Realty Investors		5,633		177,440
Washington Prime Group, Inc.		9,300		162,564
Equity One, Inc.		6,843		148,014
Kite Realty Group Trust		5,290		128,230
Acadia Realty Trust		4,210		116,112
Retail Opportunity Investments Corp.		7,180		105,546
Total REITs-Shopping Centers				2,007,044
REITs-HOTELS - 7.0%
Host Hotels & Resorts, Inc.		17,006		362,737
Hospitality Properties Trust		6,653		178,633
RLJ Lodging Trust		6,140		174,806
LaSalle Hotel Properties		4,896		167,639
Strategic Hotels & Resorts, Inc.*		13,398		156,087
Sunstone Hotel Investors, Inc.		11,061		152,863
Ryman Hospitality Properties, Inc.		3,020		142,846
DiamondRock Hospitality Co.		11,113		140,913
Pebblebrook Hotel Trust		3,750		140,025
Chesapeake Lodging Trust		3,950		115,143
Hersha Hospitality Trust		15,893		101,238
FelCor Lodging Trust, Inc.		10,383		97,185
Total REITs-Hotels				1,930,115
REITs-WAREHOUSE/INDUSTRIES - 3.6%
Prologis, Inc.		10,509		396,189
DCT Industrial Trust, Inc.		19,349		145,311
First Industrial Realty Trust, Inc.		7,636		129,125
EastGroup Properties, Inc.		2,100		127,239
Chambers Street Properties		16,158		121,670
CyrusOne, Inc.		3,670		88,227
Total REITs-Warehouse/Industries				1,007,761
REITs-STORAGE - 3.6%
Public Storage		2,963		491,385
Extra Space Storage, Inc.		4,327		223,143
CubeSmart		8,277		148,820
Sovran Self Storage, Inc.		1,928		143,366
Total REITs-Storage				1,006,714
REITs-SINGLE TENANT - 2.7%
Realty Income Corp.		6,669		272,029
National Retail Properties, Inc.		5,481		189,478
Spirit Realty Capital, Inc.		17,233		189,046
Select Income REIT		4,460		107,263
Total REITs-Single Tenant				757,816
REITs-MANUFACTURED HOMES - 1.1%
Equity Lifestyle Properties, Inc.		4,062		172,066
Sun Communities, Inc.		2,551		128,826
Total REITs-Manufactured Homes				300,892
Total REITs				25,047,042
REAL ESTATE - 8.4%
REAL ESTATE MANAGEMENT/SERVICES - 4.6%
CBRE Group, Inc. — Class A*		9,654		287,109
WP Carey, Inc.		3,532		225,236
Jones Lang LaSalle, Inc.		1,713		216,420
Realogy Holdings Corp.*		5,524		205,493
Altisource Residential Corp.		8,180		196,320
Kennedy-Wilson Holdings, Inc.		5,736		137,435
Total Real Estate Management/Services				1,268,013
REAL ESTATE OPERATIONS/DEVELOPMENT - 3.1%
Howard Hughes Corp.*		1,592		238,800
Brookfield Asset Management, Inc. — Class A		4,380		196,925
Forest City Enterprises, Inc. — Class A*		9,182		179,600
St. Joe Co.*		6,095		121,473
Alexander & Baldwin, Inc.		3,260		117,262
Total Real Estate Operations/Development				854,060
REAL ESTATE SERVICES - 0.7%
E-House China Holdings Ltd. ADR		21,030		200,206
Total Real Estate				2,322,279
DIVERSIFIED FINANCIAL SERVICES - 1.4%
INVESTMENT MANAGEMENT/ADVISORY SERVICES - 1.4%
Altisource Portfolio Solutions S.A.*,1		2,042		205,833
NorthStar Asset Management Group Incorporated*		9,178		169,059
Total Investment Management/Advisory Services				374,892
Total Diversified Financial Services				374,892
ENTERTAINMENT - 0.6%
CASINO SERVICES - 0.6%
Gaming and Leisure Properties, Inc.		5,473		169,116
CHEMICALS - 0.4%
CHEMICALS-FIBERS - 0.4%
Rayonier Advanced Materials, Inc.1		3,562		117,225
Total Common Stocks
(Cost $23,560,971)				28,030,554

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
REAL ESTATE FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.3%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	33,614	$	33,614
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		13,844		13,844
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		13,844		13,844
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		13,844		13,844
Total Repurchase Agreements
(Cost $75,146)				75,146
SECURITIES LENDING COLLATERAL††,3 - 0.7%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		157,308		157,308
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		25,788		25,788
Total Securities Lending Collateral
(Cost $183,096)				183,096
Total Investments - 101.9%
(Cost $23,819,213)			$	28,288,796
Other Assets & Liabilities, net - (1.9)%				(527,255	)
Total Net Assets - 100.0%			$	27,761,541

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	REIT — Real Estate Investment Trust

102  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

REAL ESTATE FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $210,024 of securities loaned (cost $23,560,971)	$	28,030,554
Repurchase agreements, at value (cost $258,242)		258,242
Total investments (cost $23,819,213)		28,288,796
Segregated cash with broker		30,004
Cash		752
Receivables:
Dividends		150,578
Fund shares sold		50,769
Securities lending income		180
Total assets		28,521,079
Liabilities:
Payable for:
Fund shares redeemed		485,220
Upon return of securities loaned		213,100
Management fees		24,440
Distribution and service fees		8,808
Transfer agent and administrative fees		7,188
Portfolio accounting fees		2,875
Miscellaneous		17,907
Total liabilities		759,538
Net assets	$	27,761,541
Net assets consist of:
Paid in capital	$	40,199,180
Undistributed net investment income		417,974
Accumulated net realized loss on investments		(17,325,196	)
Net unrealized appreciation on investments		4,469,583
Net assets	$	27,761,541
A-Class:
Net assets	$	2,626,113
Capital shares outstanding		77,264
Net asset value per share	$	33.99
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.69
C-Class:
Net assets	$	2,450,407
Capital shares outstanding		79,054
Net asset value per share	$	31.00
H-Class:
Net assets	$	22,685,021
Capital shares outstanding		668,885
Net asset value per share	$	33.91

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $920)	$	564,351
Income from securities lending, net		498
Interest		13
Total investment income		564,862
Expenses:
Management fees		165,884
Transfer agent and administrative fees		48,789
Distribution and service fees:
A-Class		5,791
C-Class		12,933
H-Class		39,765
Portfolio accounting fees		19,516
Custodian fees		2,279
Tax expense		1,794
Trustees' fees*		1,210
Line of credit interest expense		174
Miscellaneous		28,580
Total expenses		326,715
Net investment income		238,147
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(100,414	)
Net realized loss		(100,414	)
Net change in unrealized appreciation (depreciation) on:
Investments		421,115
Net change in unrealized appreciation (depreciation)		421,115
Net realized and unrealized gain		320,701
Net increase in net assets resulting from operations	$	558,848

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  103 

REAL ESTATE FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	238,147		$	260,925
Net realized gain (loss) on investments		(100,414	)		2,653,853
Net change in unrealized appreciation (depreciation) on investments		421,115			(2,954,093	)
Net increase (decrease) in net assets resulting from operations		558,848			(39,315	)
Distributions to shareholders from:
Net investment income
A-Class		—			(69,328	)
C-Class		—			(67,311	)
H-Class		—			(200,042	)
Total distributions to shareholders		—			(336,681	)
Capital share transactions:
Proceeds from sale of shares
A-Class		9,328,294			12,878,425
C-Class		14,951,507			28,309,538
H-Class		124,875,662			154,735,643
Distributions reinvested
A-Class		—			64,436
C-Class		—			64,791
H-Class		—			198,562
Cost of shares redeemed
A-Class		(11,001,511	)		(21,614,347	)
C-Class		(15,000,626	)		(28,623,424	)
H-Class		(122,324,721	)		(144,941,887	)
Net increase from capital share transactions		828,605			1,071,737
Net increase in net assets		1,387,453			695,741
Net assets:
Beginning of period		26,374,088			25,678,347
End of period	$	27,761,541		$	26,374,088
Undistributed net investment income at end of period	$	417,974		$	179,827
Capital share activity:
Shares sold
A-Class		266,745			388,565
C-Class		467,945			923,737
H-Class		3,587,727			4,583,841
Shares issued from reinvestment of distributions
A-Class		—			2,095
C-Class		—			2,296
H-Class		—			6,468
Shares redeemed
A-Class		(312,688	)		(630,360	)
C-Class		(470,399	)		(935,775	)
H-Class		(3,510,278	)		(4,297,722	)
Net increase in shares		29,052			43,145

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	33.47		$	34.43		$	30.27		$	29.06		$	24.24		$	12.83
Income (loss) from investment operations:
Net investment income (loss)b		.16			.65			.58			.45			.27			.44
Net gain (loss) on investments (realized and unrealized)		.36			(.14	)		4.18			1.07			5.17			11.11
Total from investment operations		.52			.51			4.76			1.52			5.44			11.55
Less distributions from:
Net investment income		—			(1.47	)		(.60	)		(.31	)		(.62	)		(.14	)
Total distributions		—			(1.47	)		(.60	)		(.31	)		(.62	)		(.14	)
Net asset value, end of period	$	33.99		$	33.47		$	34.43		$	30.27		$	29.06		$	24.24
Total Returnc		1.55	%		1.86	%		16.03	%		5.42	%		22.72	%		90.16	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,626		$	4,124		$	12,495		$	2,364		$	3,991		$	4,303
Ratios to average net assets:
Net investment income (loss)		0.94	%		1.92	%		1.82	%		1.59	%		1.07	%		2.15	%
Total expenses		1.63	%		1.65	%		1.61	%		1.61	%		1.63	%		1.65	%
Portfolio turnover rate		272	%		788	%		699	%		974	%		485	%		1,520	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	30.64		$	31.89		$	28.29		$	27.41		$	23.11		$	12.33
Income (loss) from investment operations:
Net investment income (loss)b		.13			.29			.27			.22			.10			.40
Net gain (loss) on investments (realized and unrealized)		.23			(.07	)		3.93			.97			4.82			10.52
Total from investment operations		.36			.22			4.20			1.19			4.92			10.92
Less distributions from:
Net investment income		—			(1.47	)		(.60	)		(.31	)		(.62	)		(.14	)
Total distributions		—			(1.47	)		(.60	)		(.31	)		(.62	)		(.14	)
Net asset value, end of period	$	31.00		$	30.64		$	31.89		$	28.29		$	27.41		$	23.11
Total Returnc		1.18	%		1.09	%		15.12	%		4.57	%		21.58	%		88.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,450		$	2,497		$	2,910		$	1,798		$	2,356		$	2,143
Ratios to average net assets:
Net investment income (loss)		0.82	%		0.93	%		0.92	%		0.83	%		0.42	%		2.06	%
Total expenses		2.37	%		2.38	%		2.35	%		2.36	%		2.39	%		2.41	%
Portfolio turnover rate		272	%		788	%		699	%		974	%		485	%		1,520	%

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

REAL ESTATE FUND

FINANCIAL HIGHLIGHTS(concluded)

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

H-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	33.40		$	34.38		$	30.23		$	29.02		$	24.22		$	12.82
Income (loss) from investment operations:
Net investment income (loss)b		.23			.52			.46			.42			.29			.50
Net gain (loss) on investments (realized and unrealized)		.28			(.03	)		4.29			1.10			5.13			11.04
Total from investment operations		.51			.49			4.75			1.52			5.42			11.54
Less distributions from:
Net investment income		—			(1.47	)		(.60	)		(.31	)		(.62	)		(.14	)
Total distributions		—			(1.47	)		(.60	)		(.31	)		(.62	)		(.14	)
Net asset value, end of period	$	33.91		$	33.40		$	34.38		$	30.23		$	29.02		$	24.22
Total Returnc		1.53	%		1.84	%		15.95	%		5.42	%		22.70	%		90.15	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,685		$	19,753		$	10,273		$	13,511		$	22,045		$	34,926
Ratios to average net assets:
Net investment income (loss)		1.29	%		1.52	%		1.45	%		1.48	%		1.13	%		2.41	%
Total expenses		1.62	%		1.64	%		1.60	%		1.61	%		1.63	%		1.68	%
Portfolio turnover rate		272	%		788	%		699	%		974	%		485	%		1,520	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE(Unaudited) September 30, 2014

RETAILING FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Wal-Mart Stores, Inc.	5.5%
Amazon.com, Inc.	4.3%
Home Depot, Inc.	3.9%
CVS Health Corp.	3.3%
Priceline Group, Inc.	2.7%
Costco Wholesale Corp.	2.6%
Walgreen Co.	2.5%
Lowe's Companies, Inc.	2.5%
TJX Companies, Inc.	2.2%
Target Corp.	2.2%
Top Ten Total	31.7%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  107 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
RETAILING FUND

	Shares		Value
COMMON STOCKS† - 99.8%
RETAIL-DISCOUNT - 15.0%
Wal-Mart Stores, Inc.		7,730	$	591,113
Costco Wholesale Corp.		2,217		277,834
Target Corp.		3,774		236,554
Dollar General Corp.*		2,611		159,558
Dollar Tree, Inc.*		2,270		127,279
Family Dollar Stores, Inc.		1,430		110,453
HSN, Inc.		1,120		68,734
Big Lots, Inc.		1,318		56,740
Total Retail-Discount				1,628,265
RETAIL-APPAREL/SHOE - 12.6%
L Brands, Inc.		2,507		167,920
The Gap, Inc.		3,789		157,964
Ross Stores, Inc.		1,980		149,648
Foot Locker, Inc.		1,883		104,789
Urban Outfitters, Inc.*		2,269		83,272
American Eagle Outfitters, Inc.		4,390		63,743
DSW, Inc. — Class A		2,030		61,123
Abercrombie & Fitch Co. — Class A		1,566		56,908
Chico's FAS, Inc.		3,796		56,067
Men's Wearhouse, Inc.		1,161		54,822
Buckle, Inc.		1,193		54,150
ANN, Inc.*		1,242		51,083
Guess?, Inc.		2,300		50,531
Genesco, Inc.*		661		49,410
Ascena Retail Group, Inc.*		3,676		48,891
Express, Inc.*		2,650		41,367
Finish Line, Inc. — Class A		1,466		36,694
Children's Place, Inc.		768		36,603
Francesca's Holdings Corp.*		2,070		28,835
Aeropostale, Inc.*		5,705		18,769
Total Retail-Apparel/Shoe				1,372,589
E-COMMERCE/SERVICES - 11.0%
Priceline Group, Inc.*		248		287,329
Netflix, Inc.*		441		198,970
Liberty Interactive Corp. — Class A*		4,863		138,693
TripAdvisor, Inc.*		1,475		134,845
Expedia, Inc.		1,465		128,363
Ctrip.com International Ltd. ADR*		1,590		90,248
Groupon, Inc. — Class A*		11,839		79,085
Liberty Ventures*		1,650		62,634
RetailMeNot, Inc.*		2,190		35,390
Orbitz Worldwide, Inc.*		4,400		34,628
Total E-Commerce/Services				1,190,185
E-COMMERCE/PRODUCTS - 7.2%
Amazon.com, Inc.*		1,437		463,346
Vipshop Holdings Ltd. ADR*		560		105,846
zulily, Inc. — Class A*,1		2,160		81,842
E-Commerce China Dangdang, Inc. — Class A ADR*,1		5,620		68,564
Shutterfly, Inc.*		1,088		53,029
Total E-Commerce/Products				772,627
RETAIL-BUILDING PRODUCTS - 6.8%
Home Depot, Inc.		4,523		414,940
Lowe's Companies, Inc.		5,065		268,040
Lumber Liquidators Holdings, Inc.*		790		45,330
Total Retail-Building Products				728,310
RETAIL-DRUG STORE - 6.4%
CVS Health Corp.		4,428		352,425
Walgreen Co.		4,586		271,812
Rite Aid Corp.*		14,380		69,599
Total Retail-Drug Store				693,836
RETAIL-MAJOR DEPARTMENT STORES - 4.7%
TJX Companies, Inc.		4,052		239,757
Nordstrom, Inc.		1,985		135,714
JC Penney Company, Inc.*		6,309		63,343
Sears Holdings Corp.*,1		2,440		61,561
Total Retail-Major Department Stores				500,375
RETAIL-AUTOMOBILE - 3.9%
CarMax, Inc.*		2,397		111,342
AutoNation, Inc.*		1,814		91,262
Penske Automotive Group, Inc.		1,720		69,815
Asbury Automotive Group, Inc.*		810		52,180
Lithia Motors, Inc. — Class A		670		50,712
Group 1 Automotive, Inc.		647		47,043
Total Retail-Automobile				422,354
RETAIL-AUTO PARTS - 3.8%
AutoZone, Inc.*		290		147,802
O'Reilly Automotive, Inc.*		973		146,300
Advance Auto Parts, Inc.		881		114,794
Total Retail-Auto Parts				408,896
DISTRIBUTION/WHOLESALE - 2.8%
Genuine Parts Co.		1,563		137,090
LKQ Corp.*		3,947		104,951
Pool Corp.		1,050		56,616
Total Distribution/Wholesale				298,657
RETAIL-REGIONAL DEPARTMENT STORES - 3.5%
Macy's, Inc.		2,848		165,696
Kohl's Corp.		2,159		131,764
Dillard's, Inc. — Class A		719		78,357
Total Retail-Regional Department Stores				375,817

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RETAILING FUND

	Shares		Value
RETAIL-MISCELLANEOUS/DIVERSIFIED - 2.3%
Sally Beauty Holdings, Inc.*		2,806	$	76,800
CST Brands, Inc.		1,700		61,115
PriceSmart, Inc.		700		59,948
Five Below, Inc.*		1,360		53,870
Total Retail-Misc/Diversified				251,733
RETAIL-JEWELRY - 2.1%
Tiffany & Co.		1,365		131,463
Signet Jewelers Ltd.		848		96,596
Total Retail-Jewelry				228,059
RETAIL-SPORTING GOODS - 1.9%
Dick's Sporting Goods, Inc.		1,957		85,872
Cabela's, Inc.*		1,274		75,039
Hibbett Sports, Inc.*		920		39,220
Total Retail-Sporting Goods				200,131
RETAIL-OFFICE SUPPLIES - 1.5%
Staples, Inc.		8,345		100,975
Office Depot, Inc.*		11,660		59,932
Total Retail-Office Supplies				160,907
RETAIL-BEDDING - 1.3%
Bed Bath & Beyond, Inc.*		2,118		139,428
RETAIL-CONSUMER ELECTRONICS - 1.2%
Best Buy Company, Inc.		3,743		125,727
RETAIL-VITAMINS/NUTRITIONAL SUPPLEMENTS - 1.1%
GNC Holdings, Inc. — Class A		1,821		70,546
Vitamin Shoppe, Inc.*		1,011		44,878
Total Retail-Vitamins/Nutritional Supplements				115,424
RETAIL-GARDENING PRODUCTS - 1.0%
Tractor Supply Co.		1,792		110,226
RETAIL-HOME FURNISHINGS - 1.0%
Restoration Hardware Holdings, Inc.*		860		68,413
Pier 1 Imports, Inc.		2,868		34,101
Total Retail-Home Furnishings				102,514
RETAIL-PERFUME & COSMETICS - 0.9%
Ulta Salon Cosmetics & Fragrance, Inc.*		865		102,217
RETAIL-PET FOOD & SUPPLIES - 0.9%
PetSmart, Inc.		1,402		98,266
RENTAL AUTO/EQUIPMENT - 0.9%
Aaron's, Inc.		1,997		48,566
Rent-A-Center, Inc.		1,599		48,530
Total Rental Auto/Equipment				97,096
RETAIL-MAIL ORDER - 0.9%
Williams-Sonoma, Inc.		1,378		91,733
RETAIL-COMPUTER EQUIPMENTS - 0.7%
GameStop Corp. — Class A		1,895		78,074
INTERNET INCUBATORS - 0.7%
HomeAway, Inc.*		2,020		71,710
FOOD-RETAIL - 0.6%
Cia Brasileira de Distribuicao ADR		1,542		67,247
TRAVEL SERVICES - 0.6%
Qunar Cayman Islands Ltd. ADR*		2,210		61,107
OIL REFINING & MARKETING - 0.5%
Murphy USA, Inc.*		1,080		57,305
AUTO REPAIR CENTERS - 0.4%
Monro Muffler Brake, Inc.		930		45,133
RETAIL-APPLIANCES - 0.4%
Conn's, Inc.*,1		1,360		41,167
RETAIL-BOOKSTORE - 0.4%
Barnes & Noble, Inc.*		1,994		39,362
HOME FURNISHINGS - 0.4%
Select Comfort Corp.*		1,857		38,848
FINANCE-OTHER SERVICES - 0.4%
Outerwall, Inc.*		690		38,709
Total Common Stocks
(Cost $5,210,189)				10,754,034
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.0%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	46,615		46,615
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		19,198		19,198
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		19,198		19,198
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		19,198		19,198
Total Repurchase Agreements
(Cost $104,209)				104,209

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
RETAILING FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 1.4%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	133,502	$	133,502
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		21,885		21,885
Total Securities Lending Collateral
(Cost $155,387)				155,387
Total Investments - 102.2%
(Cost $5,469,785)			$	11,013,630
Other Assets & Liabilities, net - (2.2)%				(238,217	)
Total Net Assets - 100.0%			$	10,775,413

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt

110  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RETAILING FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $172,410 of securities loaned (cost $5,210,189)	$	10,754,034
Repurchase agreements, at value (cost $259,596)		259,596
Total investments (cost $5,469,785)		11,013,630
Segregated cash with broker		25,463
Receivables:
Dividends		8,264
Fund shares sold		4,259
Securities lending income		808
Total assets		11,052,424
Liabilities:
Payable for:
Upon return of securities loaned		180,850
Fund shares redeemed		69,402
Management fees		11,218
Distribution and service fees		3,425
Transfer agent and administrative fees		3,299
Portfolio accounting fees		1,319
Miscellaneous		7,498
Total liabilities		277,011
Net assets	$	10,775,413
Net assets consist of:
Paid in capital	$	11,501,385
Accumulated net investment loss		(73,445	)
Accumulated net realized loss on investments		(6,196,372	)
Net unrealized appreciation on investments		5,543,845
Net assets	$	10,775,413
Investor Class:
Net assets	$	6,128,552
Capital shares outstanding		257,903
Net asset value per share	$	23.76
Advisor Class:
Net assets	$	1,082,169
Capital shares outstanding		48,762
Net asset value per share	$	22.19
A-Class:
Net assets	$	1,647,695
Capital shares outstanding		72,588
Net asset value per share	$	22.70
Maximum offering price per share (Net asset value divided by 95.25%)	$	23.83
C-Class:
Net assets	$	1,916,997
Capital shares outstanding		92,274
Net asset value per share	$	20.77

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $131)	$	85,089
Income from securities lending, net		7,595
Interest		6
Total investment income		92,690
Expenses:
Management fees		66,144
Transfer agent and administrative fees		19,454
Distribution and service fees:
Advisor Class		8,811
A-Class		4,053
C-Class		10,825
Portfolio accounting fees		7,782
Registration fees		10,598
Trustees' fees*		1,000
Custodian fees		906
Line of credit interest expense		171
Miscellaneous		232
Total expenses		129,976
Net investment loss		(37,286	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,296,273
Net realized gain		2,296,273
Net change in unrealized appreciation (depreciation) on:
Investments		(1,351,949	)
Net change in unrealized appreciation (depreciation)		(1,351,949	)
Net realized and unrealized gain		944,324
Net increase in net assets resulting from operations	$	907,038

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  111 

RETAILING FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(37,286	)	$	(67,490	)
Net realized gain (loss) on investments		2,296,273			(2,783,052	)
Net change in unrealized appreciation (depreciation) on investments		(1,351,949	)		558,351
Net increase (decrease) in net assets resulting from operations		907,038			(2,292,191	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		6,058,546			246,351,051
Advisor Class		12,371,012			32,015,902
A-Class		8,733,132			16,192,814
C-Class		10,060,042			25,676,530
Cost of shares redeemed
Investor Class		(66,005,489	)		(192,663,560	)
Advisor Class		(16,773,203	)		(29,499,902	)
A-Class		(9,045,198	)		(15,667,077	)
C-Class		(10,668,793	)		(25,431,108	)
Net increase (decrease) from capital share transactions		(65,269,951	)		56,974,650
Net increase (decrease) in net assets		(64,362,913	)		54,682,459
Net assets:
Beginning of period		75,138,326			20,455,867
End of period	$	10,775,413		$	75,138,326
Accumulated net investment loss at end of period	$	(73,445	)	$	(36,159	)
Capital share activity:
Shares sold
Investor Class		253,527			10,597,354
Advisor Class		565,194			1,535,340
A-Class		377,678			747,562
C-Class		486,626			1,307,238
Shares redeemed
Investor Class		(2,765,625	)		(8,575,213	)
Advisor Class		(761,457	)		(1,423,331	)
A-Class		(396,249	)		(736,239	)
C-Class		(515,588	)		(1,291,235	)
Net increase (decrease) in shares		(2,755,894	)		2,161,476

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

RETAILING FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	23.54		$	19.62		$	17.45		$	14.66		$	12.75		$	8.58
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		—	d		.09			.01			.05			.03
Net gain (loss) on investments (realized and unrealized)		.24			3.92			2.08			2.79			1.89			4.14
Total from investment operations		.22			3.92			2.17			2.80			1.94			4.17
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)		—
Total distributions		—			—			—			(.01	)		(.03	)		—
Net asset value, end of period	$	23.76		$	23.54		$	19.62		$	17.45		$	14.66		$	12.75
Total Returnc		0.93	%		19.98	%		12.44	%		19.14	%		15.20	%		48.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,129		$	65,195		$	14,671		$	34,802		$	3,776		$	12,060
Ratios to average net assets:
Net investment income (loss)		(0.16	%)		0.01	%		0.51	%		0.04	%		0.34	%		0.28	%
Total expenses		1.37	%		1.37	%		1.35	%		1.34	%		1.39	%		1.38	%
Portfolio turnover rate		142	%		671	%		472	%		822	%		1,062	%		1,049	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	22.00		$	18.45		$	16.45		$	13.91		$	12.14		$	8.20
Income (loss) from investment operations:
Net investment income (loss)b		(.08	)		(.14	)		(.01	)		(.09	)		(.07	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		.27			3.69			2.01			2.64			1.87			4.00
Total from investment operations		.19			3.55			2.00			2.55			1.80			3.94
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)		—
Total distributions		—			—			—			(.01	)		(.03	)		—
Net asset value, end of period	$	22.19		$	22.00		$	18.45		$	16.45		$	13.91		$	12.14
Total Returnc		0.86	%		19.24	%		12.16	%		18.38	%		14.81	%		48.05	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,082		$	5,391		$	2,454		$	3,979		$	1,583		$	2,350
Ratios to average net assets:
Net investment income (loss)		(0.70	%)		(0.64	%)		(0.05	%)		(0.66	%)		(0.58	%)		(0.57	%)
Total expenses		1.86	%		1.87	%		1.85	%		1.84	%		1.89	%		1.87	%
Portfolio turnover rate		142	%		671	%		472	%		822	%		1,062	%		1,049	%

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

RETAILING FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	22.48		$	18.79		$	16.77		$	14.14		$	12.31		$	8.30
Income (loss) from investment operations:
Net investment income (loss)b		(.05	)		(.09	)		.03			(.03	)		.18			(.01	)
Net gain (loss) on investments (realized and unrealized)		.27			3.78			1.99			2.67			1.68			4.02
Total from investment operations		.22			3.69			2.02			2.64			1.86			4.01
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)		—
Total distributions		—			—			—			(.01	)		(.03	)		—
Net asset value, end of period	$	22.70		$	22.48		$	18.79		$	16.77		$	14.14		$	12.31
Total Returnc		0.98	%		19.64	%		12.05	%		18.71	%		15.09	%		48.31	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,648		$	2,049		$	1,500		$	5,697		$	517		$	395
Ratios to average net assets:
Net investment income (loss)		(0.41	%)		(0.42	%)		0.20	%		(0.18	%)		1.42	%		(0.12	%)
Total expenses		1.62	%		1.62	%		1.59	%		1.58	%		1.64	%		1.62	%
Portfolio turnover rate		142	%		671	%		472	%		822	%		1,062	%		1,049	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	20.64		$	17.40		$	15.62		$	13.27		$	11.65		$	7.92
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.23	)		(.06	)		(.13	)		(.11	)		(.10	)
Net gain (loss) on investments (realized and unrealized)		.25			3.47			1.84			2.49			1.76			3.83
Total from investment operations		.13			3.24			1.78			2.36			1.65			3.73
Less distributions from:
Net investment income		—			—			—			(.01	)		(.03	)		—
Total distributions		—			—			—			(.01	)		(.03	)		—
Net asset value, end of period	$	20.77		$	20.64		$	17.40		$	15.62		$	13.27		$	11.65
Total Returnc		0.63	%		18.62	%		11.40	%		17.83	%		14.14	%		47.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,917		$	2,503		$	1,831		$	2,603		$	2,705		$	1,709
Ratios to average net assets:
Net investment income (loss)		(1.18	%)		(1.16	%)		(0.39	%)		(0.96	%)		(0.96	%)		(1.08	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.35	%		2.39	%		2.38	%
Portfolio turnover rate		142	%		671	%		472	%		822	%		1,062	%		1,049	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Net investment income (loss) is less than $0.01 per share.

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

FUND PROFILE(Unaudited) September 30, 2014

TECHNOLOGY FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	3.6%
Microsoft Corp.	2.9%
Facebook, Inc. — Class A	2.2%
International Business Machines Corp.	2.1%
Intel Corp.	1.9%
Oracle Corp.	1.9%
Cisco Systems, Inc.	1.7%
QUALCOMM, Inc.	1.7%
Visa, Inc. — Class A	1.7%
Google, Inc. — Class C	1.5%
Top Ten Total	21.2%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  115 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
TECHNOLOGY FUND

	Shares		Value
COMMON STOCKS† - 99.6%
ELECTRONIC COMPONENTS-SEMICONDUCTOR - 10.3%
Intel Corp.		21,266	$	740,482
Texas Instruments, Inc.		8,506		405,651
Micron Technology, Inc.*		10,311		353,255
Broadcom Corp. — Class A		6,873		277,807
Avago Technologies Ltd.		2,836		246,732
ARM Holdings plc ADR		4,942		215,916
Skyworks Solutions, Inc.		3,349		194,409
Xilinx, Inc.		4,448		188,373
Altera Corp.		5,210		186,414
NVIDIA Corp.		9,693		178,836
Microchip Technology, Inc.		3,701		174,798
First Solar, Inc.*		2,095		137,872
Freescale Semiconductor Ltd.*		6,660		130,070
Cree, Inc.*		3,080		126,126
SunEdison, Inc.*		6,602		124,646
ON Semiconductor Corp.*		12,011		107,378
Cavium, Inc.*		1,780		88,519
GT Advanced Technologies, Inc.*,1		6,580		71,261
Total Electronic Components-Semiconductor				3,948,545
APPLICATIONS SOFTWARE - 8.0%
Microsoft Corp.		23,957		1,110,646
salesforce.com, Inc.*		6,074		349,436
Intuit, Inc.		3,366		295,030
Check Point Software Technologies Ltd.*		3,060		211,874
Citrix Systems, Inc.*		2,681		191,263
Red Hat, Inc.*		3,207		180,073
NetSuite, Inc.*		1,840		164,754
ServiceNow, Inc.*		2,730		160,469
Tableau Software, Inc. — Class A*		1,910		138,762
Nuance Communications, Inc.*		8,260		127,328
PTC, Inc.*		3,280		121,032
Total Applications Software				3,050,667
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUIT - 6.8%
QUALCOMM, Inc.		8,538		638,387
Himax Technologies, Inc. ADR1		31,980		324,597
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		14,382		290,229
NXP Semiconductor N.V.*		3,630		248,401
Marvell Technology Group Ltd.		17,114		230,697
Analog Devices, Inc.		4,560		225,674
Linear Technology Corp.		4,176		185,373
Maxim Integrated Products, Inc.		5,472		165,473
TriQuint Semiconductor, Inc.*		5,560		106,029
Atmel Corp.*		12,493		100,943
Integrated Device Technology, Inc.*		5,420		86,449
Total Semiconductor Components-Integrated Circuit				2,602,252
WEB PORTALS/ISP - 6.3%
Google, Inc. — Class C*		1,021		589,484
Google, Inc. — Class A*		1,001		588,998
Baidu, Inc. ADR*		1,696		370,118
Yahoo!, Inc.*		8,840		360,230
Yandex N.V. — Class A*		7,697		213,938
SINA Corp.*		5,081		209,032
AOL, Inc.*		2,410		108,330
Total Web Portals/ISP				2,440,130
COMPUTERS - 5.4%
Apple, Inc.		13,792		1,389,544
Hewlett-Packard Co.		12,799		453,981
BlackBerry Ltd.*		21,209		210,817
Total Computers				2,054,342
ENTERPRISE SOFTWARE/SERVICES - 4.8%
Oracle Corp.		18,555		710,286
Workday, Inc. — Class A*		2,680		221,100
SAP SE ADR		2,718		196,131
CA, Inc.		6,612		184,739
Concur Technologies, Inc.*		1,410		178,816
Ultimate Software Group, Inc.*		850		120,284
Informatica Corp.*		3,318		113,608
Qlik Technologies, Inc.*		3,360		90,854
Total Enterprise Software/Services				1,815,818
COMPUTER SERVICES - 4.7%
International Business Machines Corp.		4,148		787,415
Cognizant Technology Solutions Corp. — Class A*		6,710		300,407
Accenture plc — Class A		3,687		299,827
Infosys Ltd. ADR		3,962		239,661
Computer Sciences Corp.		2,766		169,141
Total Computer Services				1,796,451
INTERNET CONTENT-ENTERTAINMENT - 4.4%
Facebook, Inc. — Class A*		10,520		831,500
Twitter, Inc.*		6,460		333,207
Youku Tudou, Inc. ADR*		11,279		202,120
NetEase, Inc. ADR		2,310		197,875
Pandora Media, Inc.*		5,030		121,525
Total Internet Content-Entertainment				1,686,227
COMMERCIAL SERVICES-FINANCE - 4.2%
MasterCard, Inc. — Class A		7,064		522,170
Automatic Data Processing, Inc.		4,393		364,970
Alliance Data Systems Corp.*		929		230,643
FleetCor Technologies, Inc.*		1,440		204,653
Western Union Co.		10,000		160,400
Total System Services, Inc.		4,460		138,082
Total Commercial Services-Finance				1,620,918

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
TECHNOLOGY FUND

	Shares		Value
COMPUTERS-MEMORY DEVICES - 3.8%
EMC Corp.		14,965	$	437,876
Western Digital Corp.		2,750		267,630
SanDisk Corp.		2,613		255,943
Seagate Technology plc		4,463		255,596
NetApp, Inc.		4,929		211,750
Total Computers-Memory Devices				1,428,795
SEMICONDUCTOR EQUIPMENT - 2.6%
Applied Materials, Inc.		13,179		284,799
ASML Holding N.V. — Class G		2,148		212,265
KLA-Tencor Corp.		2,518		198,368
Lam Research Corp.		2,524		188,543
Teradyne, Inc.		5,706		110,639
Total Semiconductor Equipment				994,614
NETWORKING PRODUCTS - 2.4%
Cisco Systems, Inc.		25,529		642,565
Palo Alto Networks, Inc.*		1,700		166,770
Fortinet, Inc.*		4,557		115,133
Total Networking Products				924,468
DATA PROCESSING/MANAGEMENT - 2.4%
Paychex, Inc.		5,283		233,509
Fiserv, Inc.*		3,576		231,135
Fidelity National Information Services, Inc.		4,104		231,055
Broadridge Financial Solutions, Inc.		3,080		128,220
CommVault Systems, Inc.*		1,820		91,728
Total Data Processing/Management				915,647
WIRELESS EQUIPMENT - 2.2%
Motorola Solutions, Inc.		3,680		232,871
Nokia Oyj ADR		27,451		232,235
RF Micro Devices, Inc.*		9,192		106,076
Ubiquiti Networks, Inc. *,1		2,590		97,203
Aruba Networks, Inc.*		4,100		88,478
Gogo, Inc.*,1		4,190		70,643
Total Wireless Equipment				827,506
E-COMMERCE/SERVICES - 2.0%
SouFun Holdings Ltd. ADR		22,750		226,363
Bitauto Holdings Ltd. ADR*		2,530		197,340
IAC/InterActiveCorp		1,950		128,505
Zillow, Inc. — Class A*		1,040		120,630
Trulia, Inc.*,1		1,536		75,110
Total E-Commerce/Services				747,948
INTERNET CONTENT-INFO/NETWORK - 1.9%
LinkedIn Corp. — Class A*		1,515		314,802
YY, Inc. ADR*		2,680		200,705
Yelp, Inc. — Class A*		1,780		121,485
WebMD Health Corp. — Class A*		1,760		73,586
Total Internet Content-Info/Network				710,578
INTERNET SECURITY - 1.9%
Symantec Corp.		9,538		224,238
Qihoo 360 Technology Company Ltd. ADR*		3,310		223,326
VeriSign, Inc.*		2,653		146,233
FireEye, Inc.*		3,730		113,989
Total Internet Security				707,786
E-COMMERCE/PRODUCTS - 1.9%
eBay, Inc.*		8,934		505,932
MercadoLibre, Inc.1		1,837		199,590
Total E-Commerce/Products				705,522
FINANCE-CREDIT CARD - 1.7%
Visa, Inc. — Class A		2,986		637,123
COMPUTERS-INTEGRATED SYSTEMS - 1.6%
Teradata Corp.*		3,455		144,833
NCR Corp.*		3,960		132,304
Brocade Communications Systems, Inc.		11,582		125,896
VeriFone Systems, Inc.*		3,170		108,985
Riverbed Technology, Inc.*		5,273		97,788
Total Computers-Integrated Systems				609,806
ELECTRONIC COMPONENTS-MISCELLANEOUS - 1.4%
TE Connectivity Ltd.		4,237		234,264
Flextronics International Ltd.*		13,340		137,669
Jabil Circuit, Inc.		5,530		111,540
InvenSense, Inc. — Class A*,1		3,640		71,817
Total Electronic Components-Miscellaneous				555,290
TELECOMMUNICATION EQUIPMENTS FIBER OPTICS - 1.3%
Corning, Inc.		14,190		274,435
JDS Uniphase Corp.*		7,469		95,603
Ciena Corp.*		4,356		72,832
Finisar Corp.*		4,200		69,846
Total Telecommunication Equipments Fiber Optics				512,716
ENTERTAINMENT SOFTWARE - 1.3%
Activision Blizzard, Inc.		10,850		225,572
Electronic Arts, Inc.*		5,395		192,116
Take-Two Interactive Software, Inc.*		3,530		81,437
Total Entertainment Software				499,125
COMPUTER AIDED DESIGN - 1.2%
Autodesk, Inc.*		3,678		202,658
ANSYS, Inc.*		1,900		143,773
Aspen Technology, Inc.*		2,710		102,221
Total Computer Aided Design				448,652

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
TECHNOLOGY FUND

	Shares		Value
TELECOMMUNICATION EQUIPMENTS - 1.1%
Juniper Networks, Inc.		8,162	$	180,789
Harris Corp.		2,160		143,424
ARRIS Group, Inc.*		3,970		112,569
Total Telecommunication Equipments				436,782
SOFTWARE TOOLS - 1.0%
VMware, Inc. — Class A*		3,936		369,354
ENERGY-ALTERNATE SOURCES - 0.9%
Trina Solar Ltd. ADR*,1		14,640		176,705
JinkoSolar Holding Company Ltd. ADR*,1		6,422		176,541
Total Energy-Alternate Sources				353,246
ELECTRONIC FORMS - 0.9%
Adobe Systems, Inc.*		5,088		352,039
WEB HOSTING/DESIGN - 0.9%
Equinix, Inc.*		955		202,918
Rackspace Hosting, Inc.*		4,200		136,710
Total Web Hosting/Design				339,628
POWER CONVERTER/SUPPLY EQUIPMENT - 0.8%
Canadian Solar, Inc.*		5,470		195,662
SunPower Corp. — Class A*		3,440		116,547
Total Power Converter/Supply Equipment				312,209
INTERNET INFRASTRUCTURE SOFTWARE - 0.8%
F5 Networks, Inc.*		1,468		174,310
TIBCO Software, Inc.*		5,254		124,152
Total Internet Infrastructure Software				298,462
ELECTRONIC MEASURING INSTRUMENTS - 0.7%
Trimble Navigation Ltd.*		5,293		161,436
FLIR Systems, Inc.		3,770		118,152
Total Electronic Measuring Instruments				279,588
COMPUTERS-OTHER - 0.7%
Stratasys Ltd.*		1,180		142,521
3D Systems Corp.*,1		2,625		121,721
Total Computers-Other				264,242
COMPUTER SOFTWARE - 0.7%
Akamai Technologies, Inc.*		2,975		177,905
Cornerstone OnDemand, Inc.*		2,180		75,014
Total Computer Software				252,919
DISTRIBUTION/WHOLESALE - 0.6%
Arrow Electronics, Inc.*		2,250		124,537
Ingram Micro, Inc. — Class A*		4,290		110,725
Total Distribution/Wholesale				235,262
INTERNET APPLICATION SOFTWARE - 0.6%
Splunk, Inc.*		2,630		145,597
Zynga, Inc. — Class A*		29,173		78,767
Total Internet Application Software				224,364
ELECTRONIC CONNECTORS - 0.6%
Amphenol Corp. — Class A		2,161		215,797
OFFICE AUTOMATION & EQUIPMENTS - 0.6%
Xerox Corp.		16,164		213,850
COMPUTERS-PERIPHERAL EQUIPMENT - 0.5%
Synaptics, Inc.*		1,300		95,160
Lexmark International, Inc. — Class A		2,060		87,550
Total Computers-Peripheral Equipment				182,710
ELECTRONIC DESIGN AUTOMATIC - 0.4%
Synopsys, Inc.*		3,610		143,299
CONSULTING SERVICES - 0.4%
Gartner, Inc.*		1,930		141,797
MULTIMEDIA - 0.4%
FactSet Research Systems, Inc.		1,140		138,544
COMMERCIAL SERVICES - 0.4%
CoStar Group, Inc.*		870		135,320
ELECTRONIC PARTS DISTRIBUTION - 0.4%
Avnet, Inc.		3,240		134,460
COMMERICAL SERVICES-FINANCE - 0.3%
Global Payments, Inc.		1,870		130,676
ELECTRONIC DESIGN AUTOMATIC - 0.3%
Cadence Design Systems, Inc.*		7,400		127,354
COMMERCIAL SERVICES-FINANCE - 0.3%
Vantiv, Inc. — Class A*		4,000		123,600
INSTRUMENTS-SCIENTIFIC - 0.3%
FEI Co.		1,380		104,080
COMMUNICATIONS SOFTWARE - 0.3%
SolarWinds, Inc.*		2,320		97,556
TELECOMMUNICATION SERVICES - 0.2%
NeuStar, Inc. — Class A*		2,570		63,813
Total Common Stocks
(Cost $25,889,979)				37,911,877

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
TECHNOLOGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.7%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	118,648	$	118,648
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		48,863		48,863
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		48,863		48,863
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		48,863		48,863
Total Repurchase Agreements
(Cost $265,237)				265,237
SECURITIES LENDING COLLATERAL††,3 - 2.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		668,521		668,521
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		109,594		109,594
Total Securities Lending Collateral
(Cost $778,115)				778,115
Total Investments - 102.3%
(Cost $26,933,331)			$	38,955,229
Other Assets & Liabilities, net - (2.3)%				(860,095	)
Total Net Assets - 100.0%			$	38,095,134

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6 .
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  119 

TECHNOLOGY FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $866,599 of securities loaned (cost $25,889,979)	$	37,911,877
Repurchase agreements, at value (cost $1,043,352)		1,043,352
Total investments (cost $26,933,331)		38,955,229
Segregated cash with broker		127,510
Cash		1,179
Receivables:
Fund shares sold		531,063
Dividends		18,189
Securities lending income		2,070
Foreign taxes reclaim		209
Total assets		39,635,449
Liabilities:
Payable for:
Upon return of securities loaned		905,625
Fund shares redeemed		572,995
Management fees		27,081
Transfer agent and administrative fees		7,965
Distribution and service fees		5,810
Portfolio accounting fees		3,186
Miscellaneous		17,653
Total liabilities		1,540,315
Net assets	$	38,095,134
Net assets consist of:
Paid in capital	$	33,531,687
Accumulated net investment loss		(122,838	)
Accumulated net realized loss on investments		(7,335,613	)
Net unrealized appreciation on investments		12,021,898
Net assets	$	38,095,134
Investor Class:
Net assets	$	23,150,783
Capital shares outstanding		398,671
Net asset value per share	$	58.07
Advisor Class:
Net assets	$	6,284,183
Capital shares outstanding		116,897
Net asset value per share	$	53.76
A-Class:
Net assets	$	6,485,421
Capital shares outstanding		118,413
Net asset value per share	$	54.77
Maximum offering price per share (Net asset value divided by 95.25%)	$	57.50
C-Class:
Net assets	$	2,174,747
Capital shares outstanding		42,649
Net asset value per share	$	50.99

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $2,859)	$	191,480
Income from securities lending, net		10,711
Interest		13
Total investment income		202,204
Expenses:
Management fees		148,648
Transfer agent and administrative fees		43,720
Distribution and service fees:
Advisor Class		12,527
A-Class		4,363
C-Class		10,736
Portfolio accounting fees		17,488
Registration fees		13,739
Custodian fees		2,041
Trustees' fees*		1,524
Line of credit interest expense		148
Tax expense		85
Miscellaneous		11,495
Total expenses		266,514
Net investment loss		(64,310	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		929,997
Net realized gain		929,997
Net change in unrealized appreciation (depreciation) on:
Investments		(383,731	)
Net change in unrealized appreciation (depreciation)		(383,731	)
Net realized and unrealized gain		546,266
Net increase in net assets resulting from operations	$	481,956

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

120  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TECHNOLOGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(64,310	)	$	(99,486	)
Net realized gain on investments		929,997			1,519,835
Net change in unrealized appreciation (depreciation) on investments		(383,731	)		5,854,636
Net increase in net assets resulting from operations		481,956			7,274,985
Capital share transactions:
Proceeds from sale of shares
Investor Class		38,482,413			90,386,817
Advisor Class		18,893,027			19,872,814
A-Class		5,740,531			17,950,430
C-Class		10,957,566			25,610,311
Cost of shares redeemed
Investor Class		(48,664,793	)		(70,456,671	)
Advisor Class		(19,484,605	)		(15,430,118	)
A-Class		(5,087,954	)		(15,058,469	)
C-Class		(11,696,065	)		(25,000,548	)
Net increase (decrease) from capital share transactions		(10,859,880	)		27,874,566
Net increase (decrease) in net assets		(10,377,924	)		35,149,551
Net assets:
Beginning of period		48,473,058			13,323,507
End of period	$	38,095,134		$	48,473,058
Accumulated net investment loss at end of period	$	(122,838	)	$	(58,528	)
Capital share activity:
Shares sold
Investor Class		683,517			1,785,118	*
Advisor Class		364,785			400,929	*
A-Class		104,518			363,346	*
C-Class		220,692			589,677	*
Shares redeemed
Investor Class		(872,641	)		(1,388,328	)*
Advisor Class		(381,200	)		(299,244	)*
A-Class		(97,360	)		(300,472	)*
C-Class		(235,374	)		(576,511	)*
Net increase (decrease) in shares		(213,063	)		574,515

* Capital share activity for the periods presented through February 7, 2014 has been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 9 in Notes to Financial Statements.

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	55.90		$	43.58		$	42.92		$	41.81		$	36.10		$	23.09
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.09	)		.03			(.03	)		(.18	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		2.23			12.41			.63			1.14			5.89			13.16
Total from investment operations		2.17			12.32			.66			1.11			5.71			13.01
Net asset value, end of period	$	58.07		$	55.90		$	43.58		$	42.92		$	41.81		$	36.10
Total Returnc		3.88	%		28.24	%		1.54	%		2.65	%		15.88	%		56.23	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	23,151		$	32,858		$	8,325		$	19,985		$	35,408		$	37,391
Ratios to average net assets:
Net investment income (loss)		(0.21	%)		(0.18	%)		0.10	%		(0.10	%)		(0.48	%)		(0.52	%)
Total expenses		1.37	%		1.37	%		1.35	%		1.36	%		1.39	%		1.38	%
Portfolio turnover rate		130	%		321	%		324	%		487	%		393	%		335	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	51.87		$	40.65		$	40.22		$	39.39		$	34.18		$	21.97
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.27	)		(.12	)		(.33	)		(.33	)		(.33	)
Net gain (loss) on investments (realized and unrealized)		2.08			11.49			.55			1.16			5.54			12.54
Total from investment operations		1.89			11.22			.43			.83			5.21			12.21
Net asset value, end of period	$	53.76		$	51.87		$	40.65		$	40.22		$	39.39		$	34.18
Total Returnc		3.64	%		27.60	%		1.04	%		2.13	%		15.28	%		55.60	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,284		$	6,915		$	1,286		$	2,361		$	6,565		$	17,969
Ratios to average net assets:
Net investment income (loss)		(0.72	%)		(0.54	%)		(0.33	%)		(0.87	%)		(0.94	%)		(1.04	%)
Total expenses		1.87	%		1.87	%		1.85	%		1.85	%		1.88	%		1.87	%
Portfolio turnover rate		130	%		321	%		324	%		487	%		393	%		335	%

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

TECHNOLOGY FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	52.79		$	41.30		$	40.76		$	39.83		$	34.47		$	22.11
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.23	)		(.09	)		(.30	)		(.27	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		2.11			11.72			.63			1.23			5.63			12.60
Total from investment operations		1.98			11.49			.54			.93			5.36			12.36
Net asset value, end of period	$	54.77		$	52.79		$	41.30		$	40.76		$	39.83		$	34.47
Total Returnc		3.75	%		27.79	%		1.32	%		2.33	%		15.58	%		55.90	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,485		$	5,873		$	1,998		$	7,367		$	1,725		$	3,936
Ratios to average net assets:
Net investment income (loss)		(0.47	%)		(0.47	%)		(0.27	%)		(0.76	%)		(0.73	%)		(0.78	%)
Total expenses		1.62	%		1.62	%		1.59	%		1.59	%		1.64	%		1.63	%
Portfolio turnover rate		130	%		321	%		324	%		487	%		393	%		335	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	49.30		$	38.84		$	38.65		$	38.07		$	33.15		$	21.42
Income (loss) from investment operations:
Net investment income (loss)b		(.29	)		(.50	)		(.33	)		(.51	)		(.51	)		(.42	)
Net gain (loss) on investments (realized and unrealized)		1.98			10.96			.52			1.09			5.43			12.15
Total from investment operations		1.69			10.46			.19			.58			4.92			11.73
Net asset value, end of period	$	50.99		$	49.30		$	38.84		$	38.65		$	38.07		$	33.15
Total Returnc		3.43	%		26.90	%		0.54	%		1.50	%		14.84	%		54.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,175		$	2,827		$	1,715		$	2,743		$	2,618		$	3,719
Ratios to average net assets:
Net investment income (loss)		(1.15	%)		(1.13	%)		(0.90	%)		(1.45	%)		(1.53	%)		(1.49	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.36	%		2.39	%		2.38	%
Portfolio turnover rate		130	%		321	%		324	%		487	%		393	%		335	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split - Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 9 in Notes to Financial Statements.

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

FUND PROFILE(Unaudited) September 30, 2014

TELECOMMUNICATIONS FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Verizon Communications, Inc.	8.8%
AT&T, Inc.	8.2%
Cisco Systems, Inc.	6.9%
QUALCOMM, Inc.	6.8%
Crown Castle International Corp.	3.2%
Sprint Corp.	3.0%
CenturyLink, Inc.	2.9%
T-Mobile US, Inc.	2.9%
Motorola Solutions, Inc.	2.5%
SBA Communications Corp. — Class A	2.3%
Top Ten Total	47.5%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

124  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
TELECOMMUNICATIONS FUND

	Shares		Value
COMMON STOCKS† - 99.4%
TELEPHONE-INTEGRATED - 26.1%
Verizon Communications, Inc.		13,984	$	699,060
AT&T, Inc.		18,555		653,878
CenturyLink, Inc.		5,714		233,645
Frontier Communications Corp.		18,871		122,850
Windstream Holdings, Inc.1		11,126		119,938
Telefonica Brasil S.A. ADR		4,544		89,426
Telefonica S.A. ADR		5,405		83,075
Telephone & Data Systems, Inc.		3,154		75,570
Total Telephone-Integrated				2,077,442
CELLULAR TELECOMMUNICATIONS - 15.6%
Sprint Corp.*		38,175		242,029
T-Mobile US, Inc.*		7,970		230,094
Vodafone Group plc ADR		4,875		160,339
America Movil SAB de CV ADR		5,819		146,639
China Mobile Ltd. ADR		1,929		113,329
SK Telecom Company Ltd. ADR		3,097		93,963
Mobile Telesystems OJSC ADR		6,193		92,523
Tim Participacoes S.A. ADR		3,192		83,630
Rogers Communications, Inc. — Class B		2,094		78,357
Total Cellular Telecommunications				1,240,903
WIRELESS EQUIPMENT - 13.4%
Motorola Solutions, Inc.		3,084		195,156
SBA Communications Corp. — Class A*		1,637		181,543
Nokia Oyj ADR		16,029		135,605
Telefonaktiebolaget LM Ericsson ADR		7,304		91,957
Ubiquiti Networks, Inc.1		2,250		84,443
ViaSat, Inc.*		1,388		76,507
Aruba Networks, Inc.*		3,445		74,343
Sierra Wireless, Inc.*,1		2,745		73,401
InterDigital, Inc.		1,526		60,765
Ruckus Wireless, Inc.*		3,759		50,220
CalAmp Corp.*		2,157		38,006
Total Wireless Equipment				1,061,946
NETWORKING PRODUCTS - 10.7%
Cisco Systems, Inc.		21,836		549,613
Palo Alto Networks, Inc.*		1,368		134,201
Polycom, Inc.*		4,987		61,265
Infinera Corp.*		5,148		54,929
NETGEAR, Inc.*		1,625		50,781
Total Networking Products				850,789
TELECOMMUNICATION EQUIPMENTS - 7.9%
Juniper Networks, Inc.		6,880		152,392
Harris Corp.		1,876		124,566
CommScope Holding Company, Inc.*		4,347		103,937
ARRIS Group, Inc.*		3,330		94,422
Plantronics, Inc.		1,387		66,271
ADTRAN, Inc.		2,405		49,375
8x8, Inc.*		5,663		37,829
Total Telecommunication Equipments				628,792
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUIT - 6.8%
QUALCOMM, Inc.		7,197		538,120
TELECOMMUNICATION SERVICES - 5.6%
Level 3 Communications, Inc.*		3,457		158,088
tw telecom, Inc. — Class A*		2,765		115,052
BCE, Inc.		2,258		96,552
VimpelCom Ltd. ADR		10,726		77,442
Total Telecommunication Services				447,134
REITs-DIVERSIFIED - 3.2%
Crown Castle International Corp.		3,119		251,173
TELECOMMUNICATION EQUIPMENTS FIBER OPTICS - 2.5%
JDS Uniphase Corp.*		6,294		80,564
Ciena Corp.*		3,650		61,028
Finisar Corp.*		3,526		58,637
Total Telecommunication Equipments Fiber Optics				200,229
COMPUTERS-INTEGRATED SYSTEMS - 2.4%
Brocade Communications Systems, Inc.		9,906		107,678
Riverbed Technology, Inc.*		4,439		82,321
Total Computers-Integrated Systems				189,999
INTERNET INFRASTRUCTURE SOFTWARE - 1.8%
F5 Networks, Inc.*		1,180		140,114
COMPUTERS - 1.3%
BlackBerry Ltd.*		10,187		101,259
SATELLITE TELECOMMUNICATIONS - 1.3%
EchoStar Corp. — Class A*		2,051		100,007
INTERNET CONNECTIVITY SERVICES - 0.8%
Cogent Communications Holdings, Inc.		1,814		60,969
Total Common Stocks (Cost $6,943,324)				7,888,876
RIGHTS††† - 0.1%
Leap Wireless International
Expires 03/17/15		1,848		4,657
Total Rights
(Cost $4,327)				4,657

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
TELECOMMUNICATIONS FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,2 - 0.5%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	17,340	$	17,340
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		7,141		7,141
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		7,141		7,141
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		7,141		7,141
Total Repurchase Agreements
(Cost $38,763)				38,763
SECURITIES LENDING COLLATERAL††,3 - 1.1%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		75,406		75,406
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		12,362		12,362
Total Securities Lending Collateral
(Cost $87,768)				87,768
Total Investments - 101.1%
(Cost $7,074,182)			$	8,020,064
Other Assets & Liabilities, net - (1.1)%				(85,487	)
Total Net Assets - 100.0%			$	7,934,577

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

TELECOMMUNICATIONS FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $97,652 of securities loaned (cost $6,947,651)	$	7,893,533
Repurchase agreements, at value (cost $126,531)		126,531
Total investments (cost $7,074,182)		8,020,064
Segregated cash with broker		14,382
Cash		677
Receivables:
Securities sold		216,609
Fund shares sold		22,300
Dividends		9,390
Foreign taxes reclaim		184
Securities lending income		74
Total assets		8,283,680
Liabilities:
Payable for:
Fund shares redeemed		236,274
Upon return of securities loaned		102,150
Management fees		3,927
Distribution and service fees		1,649
Transfer agent and administrative fees		1,155
Portfolio accounting fees		462
Miscellaneous		3,486
Total liabilities		349,103
Net assets	$	7,934,577
Net assets consist of:
Paid in capital	$	11,572,827
Undistributed net investment income		170,227
Accumulated net realized loss on investments		(4,754,359	)
Net unrealized appreciation on investments		945,882
Net assets	$	7,934,577
Investor Class:
Net assets	$	1,936,816
Capital shares outstanding		41,374
Net asset value per share	$	46.81
Advisor Class:
Net assets	$	4,708,981
Capital shares outstanding		109,653
Net asset value per share	$	42.94
A-Class:
Net assets	$	611,924
Capital shares outstanding		13,929
Net asset value per share	$	43.93
Maximum offering price per share (Net asset value divided by 95.25%)	$	46.12
C-Class:
Net assets	$	676,856
Capital shares outstanding		16,587
Net asset value per share	$	40.81

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $3,874)	$	142,528
Income from securities lending, net		1,895
Interest		3
Total investment income		144,426
Expenses:
Management fees		37,016
Transfer agent and administrative fees		10,887
Distribution and service fees:
Advisor Class		8,482
A-Class		2,018
C-Class		2,320
Portfolio accounting fees		4,355
Custodian fees		510
Trustees' fees*		294
Tax expense		85
Line of credit interest expense		23
Miscellaneous		6,328
Total expenses		72,318
Net investment income		72,108
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		426,771
Net realized gain		426,771
Net change in unrealized appreciation (depreciation) on:
Investments		(290,801	)
Net change in unrealized appreciation (depreciation)		(290,801	)
Net realized and unrealized gain		135,970
Net increase in net assets resulting from operations	$	208,078

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  127 

TELECOMMUNICATIONS FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	72,108		$	98,119
Net realized gain (loss) on investments		426,771			(73,912	)
Net change in unrealized appreciation (depreciation) on investments		(290,801	)		134,687
Net increase in net assets resulting from operations		208,078			158,894
Distributions to shareholders from:
Net investment income
Investor Class		—			(77,513	)
Advisor Class		—			(7,191	)
A-Class		—			(8,359	)
C-Class		—			(4,990	)
Total distributions to shareholders		—			(98,053	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		12,474,154			40,052,105
Advisor Class		11,709,748			2,201,898
A-Class		4,033,911			7,692,352
C-Class		13,448,827			28,694,832
Distributions reinvested
Investor Class		—			76,714
Advisor Class		—			6,218
A-Class		—			8,202
C-Class		—			4,877
Cost of shares redeemed
Investor Class		(13,201,379	)		(40,533,973	)
Advisor Class		(7,412,249	)		(2,014,866	)
A-Class		(6,010,691	)		(5,702,771	)
C-Class		(13,031,210	)		(29,271,944	)
Net increase from capital share transactions		2,011,111			1,213,644
Net increase in net assets		2,219,189			1,274,485
Net assets:
Beginning of period		5,715,388			4,440,903
End of period	$	7,934,577		$	5,715,388
Undistributed net investment income at end of period	$	170,227		$	98,119
Capital share activity:
Shares sold
Investor Class		271,494			934,805	*
Advisor Class		274,941			55,119	*
A-Class		92,264			186,923	*
C-Class		331,113			759,823	*
Shares issued from reinvestment of distributions
Investor Class		—			1,788	*
Advisor Class		—			157	*
A-Class		—			203	*
C-Class		—			129	*
Shares redeemed
Investor Class		(284,997	)		(954,582	)*
Advisor Class		(172,844	)		(51,252	)*
A-Class		(139,896	)		(139,957	)*
C-Class		(321,309	)		(774,952	)*
Net increase in shares		50,766			18,204	*

* Capital share activity for the periods presented through February 7, 2014 has been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 9 in Notes to Financial Statements.

128  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	45.51		$	40.76		$	41.52		$	47.13		$	41.18		$	30.86
Income (loss) from investment operations:
Net investment income (loss)b		.44			1.06			.81			1.23			.30			.78
Net gain (loss) on investments (realized and unrealized)		.86			4.26			(.67	)		(5.52	)		5.89			10.56
Total from investment operations		1.30			5.32			(.14	)		(4.29	)		6.19			11.34
Less distributions from:
Net investment income		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Total distributions		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Net asset value, end of period	$	46.81		$	45.51		$	40.76		$	41.52		$	47.13		$	41.18
Total Returnc		2.86	%		13.12	%		0.50	%		(8.77	%)		15.06	%		36.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,937		$	2,497		$	2,970		$	7,028		$	48,089		$	4,677
Ratios to average net assets:
Net investment income (loss)		1.90	%		2.47	%		2.06	%		2.86	%		0.73	%		2.03	%
Total expenses		1.37	%		1.38	%		1.35	%		1.36	%		1.39	%		1.39	%
Portfolio turnover rate		367	%		1,271	%		1,550	%		793	%		1,008	%		867	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	41.86		$	37.75		$	38.69		$	44.21		$	38.82		$	29.26
Income (loss) from investment operations:
Net investment income (loss)b		.32			.29			.57			.66			.09			.69
Net gain (loss) on investments (realized and unrealized)		.76			4.39			(.61	)		(4.86	)		5.54			9.89
Total from investment operations		1.08			4.68			(.04	)		(4.20	)		5.63			10.58
Less distributions from:
Net investment income		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Total distributions		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Net asset value, end of period	$	42.94		$	41.86		$	37.75		$	38.69		$	44.21		$	38.82
Total Returnc		2.58	%		12.53	%		(0.01	%)		(9.15	%)		14.59	%		36.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,709		$	316		$	133		$	200		$	695		$	279
Ratios to average net assets:
Net investment income (loss)		1.47	%		0.74	%		1.59	%		1.65	%		0.25	%		1.94	%
Total expenses		1.87	%		1.88	%		1.86	%		1.85	%		1.88	%		1.89	%
Portfolio turnover rate		367	%		1,271	%		1,550	%		793	%		1,008	%		867	%

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

TELECOMMUNICATIONS FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	42.74		$	38.44		$	39.27		$	44.72		$	39.21		$	29.48
Income (loss) from investment operations:
Net investment income (loss)b		.41			.72			.72			.54			.42			.51
Net gain (loss) on investments (realized and unrealized)		.78			4.15			(.65	)		(4.67	)		5.33			10.24
Total from investment operations		1.19			4.87			.07			(4.13	)		5.75			10.75
Less distributions from:
Net investment income		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Total distributions		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Net asset value, end of period	$	43.93		$	42.74		$	38.44		$	39.27		$	44.72		$	39.21
Total Returnc		2.78	%		12.80	%		0.30	%		(8.91	%)		14.75	%		36.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	612		$	2,631		$	553		$	1,566		$	699		$	1,093
Ratios to average net assets:
Net investment income (loss)		1.88	%		1.79	%		1.98	%		1.41	%		1.01	%		1.45	%
Total expenses		1.61	%		1.63	%		1.61	%		1.60	%		1.64	%		1.63	%
Portfolio turnover rate		367	%		1,271	%		1,550	%		793	%		1,008	%		867	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	39.89		$	36.00		$	37.04		$	42.57		$	37.49		$	28.44
Income (loss) from investment operations:
Net investment income (loss)b		.12			.54			.48			.15			(.03	)		.30
Net gain (loss) on investments (realized and unrealized)		.80			3.92			(.62	)		(4.36	)		5.35			9.77
Total from investment operations		.92			4.46			(.14	)		(4.21	)		5.32			10.07
Less distributions from:
Net investment income		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Total distributions		—			(.57	)		(.90	)		(1.32	)		(.24	)		(1.02	)
Net asset value, end of period	$	40.81		$	39.89		$	36.00		$	37.04		$	42.57		$	37.49
Total Returnc		2.31	%		12.49	%		(0.24	%)		(9.52	%)		14.22	%		35.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	677		$	271		$	784		$	672		$	2,896		$	1,141
Ratios to average net assets:
Net investment income (loss)		0.57	%		1.42	%		1.41	%		0.39	%		(0.07	%)		0.86	%
Total expenses		2.37	%		2.38	%		2.36	%		2.36	%		2.39	%		2.39	%
Portfolio turnover rate		367	%		1,271	%		1,550	%		793	%		1,008	%		867	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split - Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 9 in Notes to Financial Statements.

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

FUND PROFILE (Unaudited) September 30, 2014

TRANSPORTATION FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Union Pacific Corp.	5.1%
United Parcel Service, Inc. — Class B	4.9%
General Motors Co.	3.6%
FedEx Corp.	3.5%
Norfolk Southern Corp.	3.0%
CSX Corp.	2.9%
Tesla Motors, Inc.	2.9%
Delta Air Lines, Inc.	2.8%
Ford Motor Co.	2.8%
Johnson Controls, Inc.	2.8%
Top Ten Total	34.3%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  131 

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
TRANSPORTATION FUND

	Shares		Value
COMMON STOCKS† - 99.6%
AUTO/TRUCK PARTS & EQUIPMENTS - 17.9%
Johnson Controls, Inc.		52,187	$	2,296,228
Delphi Automotive plc		24,400		1,496,696
BorgWarner, Inc.		27,900		1,467,819
TRW Automotive Holdings Corp.*		14,340		1,451,925
Autoliv, Inc.		12,080		1,110,394
Lear Corp.		12,437		1,074,681
Magna International, Inc.		10,640		1,009,842
Allison Transmission Holdings, Inc.		33,205		946,010
Visteon Corp.*		8,835		859,204
Tenneco, Inc.*		14,410		753,787
Dana Holding Corp.		37,880		726,160
Dorman Products, Inc.*		13,700		548,821
Gentherm, Inc.*		11,900		502,537
American Axle & Manufacturing Holdings, Inc.*		28,730		481,802
Total Auto/Truck Parts & Equipments				14,725,906
TRANSPORT-RAIL - 17.3%
Union Pacific Corp.		38,812		4,207,997
Norfolk Southern Corp.		22,442		2,504,527
CSX Corp.		75,075		2,406,905
Kansas City Southern		12,707		1,540,088
Canadian Pacific Railway Ltd.		7,368		1,528,639
Canadian National Railway Co.		16,500		1,170,840
Genesee & Wyoming, Inc. — Class A*		10,054		958,247
Total Transport-Rail				14,317,243
AIRLINES - 16.9%
Delta Air Lines, Inc.		64,497		2,331,567
American Airlines Group, Inc.		60,294		2,139,231
Southwest Airlines Co.		60,766		2,052,068
United Continental Holdings, Inc.*		38,510		1,801,883
Copa Holdings S.A. — Class A		10,862		1,165,384
Ryanair Holdings plc ADR*		18,500		1,043,955
Alaska Air Group, Inc.		23,708		1,032,246
Spirit Airlines, Inc.*		14,200		981,788
JetBlue Airways Corp.*		73,100		776,322
Allegiant Travel Co. — Class A		5,200		643,032
Total Airlines				13,967,476
TRANSPORT-SERVICES - 14.5%
United Parcel Service, Inc. — Class B		41,313		4,060,655
FedEx Corp.		17,920		2,893,184
CH Robinson Worldwide, Inc.		20,093		1,332,568
Expeditors International of Washington, Inc.		29,531		1,198,368
Ryder System, Inc.		10,391		934,878
XPO Logistics, Inc.*		15,500		583,885
Hub Group, Inc. — Class A*		13,100		530,943
UTI Worldwide, Inc.*,1		42,000		446,460
Total Transport-Services				11,980,941
AUTO-CARS/LIGHT TRUCKS - 13.8%
General Motors Co.		93,740		2,994,056
Tesla Motors, Inc.*		9,818		2,382,632
Ford Motor Co.		156,517		2,314,886
Kandi Technologies Group, Inc.*,1		114,100		1,482,159
Tata Motors Ltd. ADR		27,000		1,180,170
Toyota Motor Corp. ADR		9,390		1,103,607
Total Auto-Cars/Light Trucks				11,457,510
TRANSPORT-TRUCK - 8.3%
J.B. Hunt Transport Services, Inc.		17,412		1,289,360
Old Dominion Freight Line, Inc.*		14,960		1,056,774
Landstar System, Inc.		10,748		775,898
Swift Transportation Co. — Class A*		36,480		765,350
Con-way, Inc.		15,142		719,245
Knight Transportation, Inc.		23,800		651,882
Heartland Express, Inc.		26,200		627,752
Werner Enterprises, Inc.		23,130		582,876
ArcBest Corp.		11,700		436,410
Total Transport-Truck				6,905,547
RENTAL AUTO/EQUIPMENT - 2.9%
Hertz Global Holdings, Inc.*		55,539		1,410,135
Avis Budget Group, Inc.*		17,374		953,659
Total Rental Auto/Equipment				2,363,794
RUBBER-TIRES - 1.9%
Goodyear Tire & Rubber Co.		45,842		1,035,342
Cooper Tire & Rubber Co.		20,070		576,009
Total Rubber-Tires				1,611,351
MOTORCYCLE/MOTOR SCOOTER - 1.8%
Harley-Davidson, Inc.		26,081		1,517,914
TRANSPORT-MARINE - 1.3%
Kirby Corp.*		9,325		1,098,951
COMMERCIAL SERVICES - 1.1%
Macquarie Infrastructure Company LLC		13,600		907,120
ELECTRONIC COMPONENT-MISCELLANEOUS - 1.0%
Gentex Corp.		30,660		820,768
BUILDING-MOBILE HOME/MANUFACTURED HOUSES - 0.9%
Thor Industries, Inc.		13,780		709,670
Total Common Stocks
(Cost $59,266,288)				82,384,191

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
TRANSPORTATION FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,2 - 1.7%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	1,238,384	$	1,238,384
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		203,014		203,014
Total Securities Lending Collateral
(Cost $1,441,398)				1,441,398
Total Investments - 101.3%
(Cost $60,707,686)			$	83,825,589
Other Assets & Liabilities, net - (1.3)%				(1,070,882	)
Total Net Assets - 100.0%			$	82,754,707

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

TRANSPORTATION FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $1,578,224 of securities loaned (cost $59,266,288)	$	82,384,191
Repurchase agreements, at value (cost $1,441,398)		1,441,398
Total investments (cost $60,707,686)		83,825,589
Segregated cash with broker		236,202
Receivables:
Fund shares sold		750,605
Securities sold		565,012
Dividends		40,525
Securities lending income		31,732
Total assets		85,449,665
Liabilities:
Overdraft Due to custodian bank		171,735
Payable for:
Upon return of securities loaned		1,677,600
Fund shares redeemed		708,225
Management fees		59,543
Transfer agent and administrative fees		17,513
Distribution and service fees		10,643
Portfolio accounting fees		7,005
Miscellaneous		42,694
Total liabilities		2,694,958
Net assets	$	82,754,707
Net assets consist of:
Paid in capital	$	82,527,870
Accumulated net investment loss		(25,483	)
Accumulated net realized loss on investments		(22,865,583	)
Net unrealized appreciation on investments		23,117,903
Net assets	$	82,754,707
Investor Class:
Net assets	$	54,758,799
Capital shares outstanding		1,171,554
Net asset value per share	$	46.74
Advisor Class:
Net assets	$	6,955,323
Capital shares outstanding		163,947
Net asset value per share	$	42.42
A-Class:
Net assets	$	15,197,771
Capital shares outstanding		349,182
Net asset value per share	$	43.52
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.69
C-Class:
Net assets	$	5,842,814
Capital shares outstanding		141,881
Net asset value per share	$	41.18

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $5,222)	$	529,296
Income from securities lending, net		144,560
Interest		41
Total investment income		673,897
Expenses:
Management fees		363,885
Transfer agent and administrative fees		107,025
Distribution and service fees:
Advisor Class		14,159
A-Class		20,272
C-Class		26,722
Portfolio accounting fees		42,810
Custodian fees		4,999
Trustees' fees*		3,044
Line of credit interest expense		64
Miscellaneous		62,743
Total expenses		645,723
Net investment income		28,174
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,047,012	)
Net realized loss		(1,047,012	)
Net change in unrealized appreciation (depreciation) on:
Investments		3,349,241
Net change in unrealized appreciation (depreciation)		3,349,241
Net realized and unrealized gain		2,302,229
Net increase in net assets resulting from operations	$	2,330,403

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

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

TRANSPORTATION FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	28,174		$	(121,576	)
Net realized gain (loss) on investments		(1,047,012	)		2,214,194
Net change in unrealized appreciation (depreciation) on investments		3,349,241			12,043,472
Net increase in net assets resulting from operations		2,330,403			14,136,090
Capital share transactions:
Proceeds from sale of shares
Investor Class		112,487,501			442,197,154
Advisor Class		25,179,935			15,406,895
A-Class		21,858,825			35,299,972
C-Class		13,744,308			20,204,027
Cost of shares redeemed
Investor Class		(103,582,417	)		(486,392,760	)
Advisor Class		(20,768,375	)		(18,129,650	)
A-Class		(19,997,290	)		(29,905,841	)
C-Class		(11,774,894	)		(19,951,182	)
Net increase (decrease) from capital share transactions		17,147,593			(41,271,385	)
Net increase (decrease) in net assets		19,477,996			(27,135,295	)
Net assets:
Beginning of period		63,276,711			90,412,006
End of period	$	82,754,707		$	63,276,711
Accumulated net investment loss at end of period	$	(25,483	)	$	(53,657	)
Capital share activity:
Shares sold
Investor Class		2,390,857			11,397,922
Advisor Class		581,025			430,435
A-Class		500,368			957,561
C-Class		331,596			587,228
Shares redeemed
Investor Class		(2,205,710	)		(12,864,102	)
Advisor Class		(480,692	)		(519,741	)
A-Class		(462,135	)		(798,761	)
C-Class		(284,211	)		(587,841	)
Net increase (decrease) in shares		371,098			(1,397,299	)

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

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	44.63		$	32.07		$	26.96		$	27.85		$	23.79		$	14.38
Income (loss) from investment operations:
Net investment income (loss)b		.05			(.04	)		(.07	)		(.06	)		—	c		(.15	)
Net gain (loss) on investments (realized and unrealized)		2.06			12.60			5.18			(.83	)		4.06			9.70
Total from investment operations		2.11			12.56			5.11			(.89	)		4.06			9.55
Less distributions from:
Net investment income		—			—			—			—			—			(.14	)
Total distributions		—			—			—			—			—			(.14	)
Net asset value, end of period	$	46.74		$	44.63		$	32.07		$	26.96		$	27.85		$	23.79
Total Returnd		4.73	%		39.16	%		18.95	%		(3.20	%)		17.07	%		66.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	54,759		$	44,021		$	78,644		$	8,031		$	5,320		$	22,292
Ratios to average net assets:
Net investment income (loss)		0.20	%		(0.09	%)		(0.25	%)		(0.22	%)		0.02	%		(0.68	%)
Total expenses		1.37	%		1.37	%		1.37	%		1.35	%		1.38	%		1.37	%
Portfolio turnover rate		115	%		593	%		737	%		1,082	%		1,217	%		1,073	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	40.61		$	29.32		$	24.76		$	25.70		$	22.05		$	13.40
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.18	)		(.15	)		(.14	)		(.17	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		1.88			11.47			4.71			(.80	)		3.82			8.97
Total from investment operations		1.81			11.29			4.56			(.94	)		3.65			8.79
Less distributions from:
Net investment income		—			—			—			—			—			(.14	)
Total distributions		—			—			—			—			—			(.14	)
Net asset value, end of period	$	42.42		$	40.61		$	29.32		$	24.76		$	25.70		$	22.05
Total Returnd		4.46	%		38.51	%		18.42	%		(3.66	%)		16.55	%		65.70	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,955		$	2,583		$	4,483		$	2,355		$	2,902		$	2,795
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.50	%)		(0.57	%)		(0.55	%)		(0.74	%)		(0.95	%)
Total expenses		1.87	%		1.87	%		1.86	%		1.86	%		1.89	%		1.88	%
Portfolio turnover rate		115	%		593	%		737	%		1,082	%		1,217	%		1,073	%

136  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

TRANSPORTATION FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	41.61		$	29.96		$	25.25		$	26.15		$	22.37		$	13.55
Income (loss) from investment operations:
Net investment income (loss)b		(—	)c		(.11	)		(.01	)		(.12	)		(.10	)		(.04	)
Net gain (loss) on investments (realized and unrealized)		1.91			11.76			4.72			(.78	)		3.88			9.00
Total from investment operations		1.91			11.65			4.71			(.90	)		3.78			8.96
Less distributions from:
Net investment income		—			—			—			—			—			(.14	)
Total distributions		—			—			—			—			—			(.14	)
Net asset value, end of period	$	43.52		$	41.61		$	29.96		$	25.25		$	26.15		$	22.37
Total Returnd		4.59	%		38.89	%		18.70	%		(3.48	%)		16.90	%		66.22	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,198		$	12,938		$	4,558		$	1,600		$	1,239		$	1,842
Ratios to average net assets:
Net investment income (loss)		(0.01	%)		(0.28	%)		(0.05	%)		(0.51	%)		(0.42	%)		(0.22	%)
Total expenses		1.62	%		1.62	%		1.60	%		1.61	%		1.64	%		1.62	%
Portfolio turnover rate		115	%		593	%		737	%		1,082	%		1,217	%		1,073	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	39.52		$	28.67		$	24.34		$	25.38		$	21.87		$	13.40
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.37	)		(.26	)		(.29	)		(.24	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		1.83			11.22			4.59			(.75	)		3.75			8.85
Total from investment operations		1.66			10.85			4.33			(1.04	)		3.51			8.61
Less distributions from:
Net investment income		—			—			—			—			—			(.14	)
Total distributions		—			—			—			—			—			(.14	)
Net asset value, end of period	$	41.18		$	39.52		$	28.67		$	24.34		$	25.38		$	21.87
Total Returnd		4.20	%		37.84	%		17.79	%		(4.10	%)		16.05	%		64.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,843		$	3,734		$	2,727		$	2,729		$	2,069		$	3,375
Ratios to average net assets:
Net investment income (loss)		(0.80	%)		(1.07	%)		(1.06	%)		(1.24	%)		(1.04	%)		(1.31	%)
Total expenses		2.37	%		2.37	%		2.35	%		2.35	%		2.39	%		2.38	%
Portfolio turnover rate		115	%		593	%		737	%		1,082	%		1,217	%		1,073	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Net investment income (loss) is less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  137 

FUND PROFILE(Unaudited) September 30, 2014

UTILITIES FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Duke Energy Corp.	3.9%
Dominion Resources, Inc.	3.4%
NextEra Energy, Inc.	3.4%
Southern Co.	3.3%
Exelon Corp.	2.9%
Sempra Energy	2.7%
American Electric Power Company, Inc.	2.7%
PPL Corp.	2.4%
PG&E Corp.	2.4%
Public Service Enterprise Group, Inc.	2.3%
Top Ten Total	29.4%

"Ten Largest Holdings" exclude any temporary cash or derivative investments.

138  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
UTILITIES FUND

	Shares		Value
COMMON STOCKS† - 99.8%
ELECTRIC-INTEGRATED - 68.5%
Duke Energy Corp.		23,358	$	1,746,479
Dominion Resources, Inc.		22,101		1,526,958
NextEra Energy, Inc.		16,230		1,523,672
Southern Co.		34,530		1,507,235
Exelon Corp.		38,088		1,298,420
American Electric Power Company, Inc.		22,929		1,197,123
PPL Corp.		33,595		1,103,260
PG&E Corp.		24,462		1,101,768
Public Service Enterprise Group, Inc.		27,456		1,022,461
Edison International		17,893		1,000,577
Consolidated Edison, Inc.		17,210		975,119
Xcel Energy, Inc.		30,712		933,645
Entergy Corp.		11,621		898,652
FirstEnergy Corp.		26,364		885,039
Northeast Utilities		19,877		880,551
DTE Energy Co.		11,526		876,898
Wisconsin Energy Corp.		17,044		732,892
Ameren Corp.		19,006		728,500
CMS Energy Corp.		23,194		687,934
OGE Energy Corp.		17,886		663,749
SCANA Corp.		12,734		631,734
Pepco Holdings, Inc.		23,169		620,002
Alliant Energy Corp.		10,566		585,462
Pinnacle West Capital Corp.		10,541		575,960
MDU Resources Group, Inc.		20,059		557,841
Integrys Energy Group, Inc.		8,251		534,830
Westar Energy, Inc.		14,637		499,414
TECO Energy, Inc.		27,742		482,156
Great Plains Energy, Inc.		18,891		456,595
Cia Energetica de Minas Gerais ADR		71,615		446,161
Hawaiian Electric Industries, Inc.1		15,221		404,118
IDACORP, Inc.		7,273		389,906
Cleco Corp.		7,961		383,322
Portland General Electric Co.		11,703		375,900
Enersis S.A. ADR		23,139		365,133
Black Hills Corp.		7,161		342,869
Avista Corp.		10,909		333,052
UIL Holdings Corp.		9,403		332,866
PNM Resources, Inc.		13,257		330,232
ALLETE, Inc.		7,335		325,601
NorthWestern Corp.		6,965		315,932
El Paso Electric Co.		8,040		293,862
Total Electric-Integrated				30,873,880
GAS-DISTRIBUTION - 19.7%
Sempra Energy		11,567		1,218,930
NiSource, Inc.		21,510		881,480
CenterPoint Energy, Inc.		31,995		782,918
AGL Resources, Inc.		11,411		585,841
UGI Corp.		16,928		577,076
National Fuel Gas Co.		8,137		569,509
Atmos Energy Corp.		10,809		515,589
Questar Corp.		20,957		467,132
National Grid plc ADR		6,040		434,155
Vectren Corp.		10,787		430,401
Piedmont Natural Gas Company, Inc.		11,365		381,068
Southwest Gas Corp.		7,350		357,063
WGL Holdings, Inc.		8,354		351,870
New Jersey Resources Corp.		6,949		350,994
Laclede Group, Inc.		7,209		334,498
South Jersey Industries, Inc.		5,970		318,559
ONE Gas, Inc.		9,137		312,942
Total Gas-Distribution				8,870,025
INDEPENDENT POWER PRODUCER - 5.2%
NRG Energy, Inc.		25,261		769,955
Calpine Corp.*		32,583		707,051
NRG Yield, Inc. — Class A		9,360		440,388
Dynegy, Inc.*		14,125		407,648
Total Independent Power Producer				2,325,042
WATER - 3.5%
American Water Works Co., Inc.		14,527		700,638
Aqua America, Inc.		20,666		486,271
Cia de Saneamento Basico do Estado de Sao Paulo ADR		47,895		388,428
Total Water				1,575,337
ELECTRIC-GENERATION - 1.7%
AES Corp.		53,864		763,792
ELECTRIC-TRANSMISSION - 1.2%
ITC Holdings Corp.		15,715		559,925
Total Common Stocks
(Cost $33,948,060)				44,968,001
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.8%
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14	$	165,479		165,479
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		68,149		68,149
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		68,149		68,149
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		68,149		68,149
Total Repurchase Agreements
(Cost $369,926)				369,926

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
UTILITIES FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 0.4%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	152,879	$	152,879
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		25,062		25,062
Total Securities Lending Collateral
(Cost $177,941)				177,941
Total Investments - 101.0%
(Cost $34,495,927)			$	45,515,868
Other Assets & Liabilities, net - (1.0)%				(436,280	)
Total Net Assets - 100.0%			$	45,079,588

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

UTILITIES FUND

STATEMENT OF ASSETS AND LIABILITIES(Unaudited)
September 30, 2014
Assets:
Investments, at value - including $201,780 of securities loaned (cost $33,948,060)	$	44,968,001
Repurchase agreements, at value (cost $547,867)		547,867
Total investments (cost $34,495,927)		45,515,868
Segregated cash with broker		29,159
Cash		20,057
Receivables:
Fund shares sold		116,663
Dividends		101,081
Securities lending income		798
Total assets		45,783,626
Liabilities:
Payable for:
Fund shares redeemed		410,571
Upon return of securities loaned		207,100
Management fees		31,698
Distribution and service fees		13,371
Transfer agent and administrative fees		9,323
Portfolio accounting fees		3,729
Miscellaneous		28,246
Total liabilities		704,038
Net assets	$	45,079,588
Net assets consist of:
Paid in capital	$	34,111,445
Undistributed net investment income		1,364,624
Accumulated net realized loss on investments		(1,416,422	)
Net unrealized appreciation on investments		11,019,941
Net assets	$	45,079,588
Investor Class:
Net assets	$	16,409,465
Capital shares outstanding		475,388
Net asset value per share	$	34.52
Advisor Class:
Net assets	$	13,111,223
Capital shares outstanding		416,753
Net asset value per share	$	31.46
A-Class:
Net assets	$	6,431,115
Capital shares outstanding		198,180
Net asset value per share	$	32.45
Maximum offering price per share (Net asset value divided by 95.25%)	$	34.07
C-Class:
Net assets	$	9,127,785
Capital shares outstanding		316,686
Net asset value per share	$	28.82

STATEMENT OF OPERATIONS(Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $8,642)	$	1,603,095
Income from securities lending, net		4,179
Interest		15
Total investment income		1,607,289
Expenses:
Management fees		360,712
Transfer agent and administrative fees		106,092
Distribution and service fees:
Advisor Class		17,726
A-Class		11,160
C-Class		46,935
Portfolio accounting fees		42,436
Custodian fees		4,953
Tax expense		3,490
Trustees' fees*		3,385
Line of credit interest expense		554
Miscellaneous		59,831
Total expenses		657,274
Net investment income		950,015
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,090,148
Net realized gain		4,090,148
Net change in unrealized appreciation (depreciation) on:
Investments		(2,675,130	)
Net change in unrealized appreciation (depreciation)		(2,675,130	)
Net realized and unrealized gain		1,415,018
Net increase in net assets resulting from operations	$	2,365,033

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

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

UTILITIES FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period Ended September 30, 2014 (Unaudited)			Year Ended March 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	950,015		$	1,150,415
Net realized gain on investments		4,090,148			3,726,063
Net change in unrealized appreciation (depreciation) on investments		(2,675,130	)		(345,635	)
Net increase in net assets resulting from operations		2,365,033			4,530,843
Distributions to shareholders from:
Net investment income
Investor Class		—			(653,403	)
Advisor Class		—			(166,669	)
A-Class		—			(161,160	)
C-Class		—			(302,460	)
Total distributions to shareholders		—			(1,283,692	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		84,445,431			273,458,616
Advisor Class		96,944,420			89,095,236
A-Class		7,950,540			23,091,679
C-Class		16,606,617			36,830,999
Distributions reinvested
Investor Class		—			639,026
Advisor Class		—			162,897
A-Class		—			143,241
C-Class		—			277,036
Cost of shares redeemed
Investor Class		(166,415,205	)		(224,424,635	)
Advisor Class		(85,729,117	)		(91,124,222	)
A-Class		(13,105,883	)		(19,091,917	)
C-Class		(15,909,949	)		(36,035,250	)
Net increase (decrease) from capital share transactions		(75,213,146	)		53,022,706
Net increase (decrease) in net assets		(72,848,113	)		56,269,857
Net assets:
Beginning of period		117,927,701			61,657,844
End of period	$	45,079,588		$	117,927,701
Undistributed net investment income at end of period	$	1,364,624		$	414,609
Capital share activity:
Shares sold
Investor Class		2,413,727			8,321,501
Advisor Class		3,017,541			2,982,830
A-Class		240,002			747,486
C-Class		564,623			1,344,893
Shares issued from reinvestment of distributions
Investor Class		—			20,594
Advisor Class		—			5,732
A-Class		—			4,900
C-Class		—			10,603
Shares redeemed
Investor Class		(4,756,375	)		(6,835,762	)
Advisor Class		(2,673,787	)		(3,074,956	)
A-Class		(398,409	)		(619,975	)
C-Class		(541,737	)		(1,312,120	)
Net increase (decrease) in shares		(2,134,415	)		1,595,726

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

UTILITIES FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	34.01		$	32.71		$	29.13		$	27.00		$	24.80		$	20.56
Income (loss) from investment operations:
Net investment income (loss)b		.43			.78			.74			.73			.86			.61
Net gain (loss) on investments (realized and unrealized)		.08			1.98			3.96			1.80			2.96			4.85
Total from investment operations		.51			2.76			4.70			2.53			3.82			5.46
Less distributions from:
Net investment income		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Total distributions		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Net asset value, end of period	$	34.52		$	34.01		$	32.71		$	29.13		$	27.00		$	24.80
Total Returnc		1.50	%		8.88	%		16.75	%		9.44	%		15.94	%		26.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,409		$	95,854		$	42,907		$	37,469		$	9,328		$	9,912
Ratios to average net assets:
Net investment income (loss)		2.45	%		2.38	%		2.45	%		2.59	%		3.35	%		2.49	%
Total expenses		1.37	%		1.40	%		1.35	%		1.35	%		1.37	%		1.39	%
Portfolio turnover rate		156	%		508	%		534	%		549	%		800	%		758	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	31.09		$	30.19		$	27.10		$	25.26		$	23.40		$	19.56
Income (loss) from investment operations:
Net investment income (loss)b		.30			.69			.48			.56			.62			.47
Net gain (loss) on investments (realized and unrealized)		.07			1.67			3.73			1.68			2.86			4.59
Total from investment operations		.37			2.36			4.21			2.24			3.48			5.06
Less distributions from:
Net investment income		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Total distributions		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Net asset value, end of period	$	31.46		$	31.09		$	30.19		$	27.10		$	25.26		$	23.40
Total Returnc		1.19	%		8.29	%		16.23	%		8.90	%		15.43	%		25.89	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	13,111		$	2,269		$	4,812		$	8,036		$	1,240		$	1,184
Ratios to average net assets:
Net investment income (loss)		1.89	%		2.30	%		1.70	%		2.11	%		2.53	%		2.07	%
Total expenses		1.87	%		1.88	%		1.85	%		1.84	%		1.87	%		1.88	%
Portfolio turnover rate		156	%		508	%		534	%		549	%		800	%		758	%

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

UTILITIES FUND

FINANCIAL HIGHLIGHTS(concluded)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	32.02		$	30.95		$	27.69		$	25.75		$	23.77		$	19.80
Income (loss) from investment operations:
Net investment income (loss)b		.33			.63			.65			.67			.54			.65
Net gain (loss) on investments (realized and unrealized)		.10			1.90			3.73			1.67			3.06			4.54
Total from investment operations		.43			2.53			4.38			2.34			3.60			5.19
Less distributions from:
Net investment income		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Total distributions		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Net asset value, end of period	$	32.45		$	32.02		$	30.95		$	27.69		$	25.75		$	23.77
Total Returnc		1.34	%		8.64	%		16.46	%		9.16	%		15.70	%		26.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,431		$	11,417		$	6,938		$	7,912		$	3,289		$	1,721
Ratios to average net assets:
Net investment income (loss)		2.01	%		2.05	%		2.26	%		2.47	%		2.23	%		2.81	%
Total expenses		1.62	%		1.63	%		1.61	%		1.60	%		1.63	%		1.64	%
Portfolio turnover rate		156	%		508	%		534	%		549	%		800	%		758	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	28.55		$	27.96		$	25.31		$	23.76		$	22.21		$	18.71
Income (loss) from investment operations:
Net investment income (loss)b		.20			.34			.42			.42			.39			.39
Net gain (loss) on investments (realized and unrealized)		.07			1.71			3.35			1.53			2.78			4.33
Total from investment operations		.27			2.05			3.77			1.95			3.17			4.72
Less distributions from:
Net investment income		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Total distributions		—			(1.46	)		(1.12	)		(.40	)		(1.62	)		(1.22	)
Net asset value, end of period	$	28.82		$	28.55		$	27.96		$	25.31		$	23.76		$	22.21
Total Returnc		0.95	%		7.83	%		15.58	%		8.28	%		14.85	%		25.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	9,128		$	8,387		$	7,001		$	6,961		$	4,751		$	7,306
Ratios to average net assets:
Net investment income (loss)		1.38	%		1.22	%		1.62	%		1.70	%		1.72	%		1.77	%
Total expenses		2.37	%		2.38	%		2.36	%		2.35	%		2.38	%		2.39	%
Portfolio turnover rate		156	%		508	%		534	%		549	%		800	%		758	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

144  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOTES TO FINANCIAL STATEMENTS(Unaudited)

1. Organization and Significant Accounting Policies

Organization

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

The Trust offers a combination of eight separate classes of shares: Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share ("NAV"), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge ("CDSC") if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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 CDSC. At September 30, 2014, the Trust consisted of fifty-one Funds.

This report covers the Banking Fund, Basic Materials Fund, Biotechnology Fund, Consumer Products Fund, Electronics Fund, Energy Fund, Energy Services Fund, Financial Services Fund, Health Care Fund, Internet Fund, Leisure Fund, Precious Metals Fund, Real Estate Fund, Retailing Fund, Technology Fund, Telecommunications Fund, Transportation Fund and Utilities Fund (the "Funds"). Only Investor Class, Advisor Class, A-Class, C-Class and H-Class shares have been issued by the Funds.

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

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

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

Guggenheim Investments ("GI") provides advisory services, and Rydex Fund Services, LLC ("RFS") provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC ("GFD") acts as principal underwriter for the Trust. GI, RFS and GFD are affiliated entities.

Significant Accounting Policies

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

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

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

Valuations of the Funds' securities are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation Procedures. The Valuation Committee convenes monthly, or more frequently

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  145 

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

as needed and will review the valuation of all assets which have been fair valued for reasonableness. The Funds' officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used by, and valuations provided by, the pricing services.

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

Equity securities listed on an exchange (New York Stock Exchange ("NYSE") or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Exchange-traded funds ("ETFs") are valued at the last quoted sales price.

Repurchase agreements are valued at amortized cost, which approximates market value.

Investments for which market quotations are not readily available are fair valued as determined in good faith by GI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) obtaining general information as to how these securities and assets trade; and (ii) obtaining other information and considerations, including current values in related markets.

B. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments.

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

C. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

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

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

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

G. Under the Funds' organizational documents, its Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain

146  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Fees and Other Transactions with Affiliates

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

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

RFS provides transfer agent and administrative services to the Funds for fees calculated at the annualized rate of 0.25% based on the average daily net assets of each Fund.

RFS also provides accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund.

Fund Accounting Fees	(as a % of Net Assets)
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

RFS engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Trust has adopted a Distribution and Shareholder Services Plan applicable to its Advisor Class shares and a Distribution Plan applicable to A-Class shares and H-Class shares for which GFD and other firms that provide distribution and/or shareholder services ("Service Providers") may receive compensation. The Funds pay distribution fees to GFD at an annual rate not to exceed 0.25% of average daily net assets, pursuant to Rule 12b-1 of the 1940 Act. GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services. With regard to Advisor Class shares only, GFD receives shareholder servicing fees from the Funds at an annual rate not to exceed 0.25% of average daily net assets. GFD, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs.

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

For the period ended September 30, 2014, GFD retained sales charges of $31,232 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI, RFS and GFD.

3. Federal Income Tax Information

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  147 

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

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

The RIC Modernization Act of 2010 was signed into law on December 22, 2010, and simplified some of the tax provisions applicable to regulated investment companies, the tax reporting to their shareholders and improved the tax efficiency of certain fund structures. The greatest impact to the disclosure in the financial reports for the Funds was on the treatment of net capital losses, effective for tax years beginning after December 22, 2010.

One of the more prominent changes addresses capital loss carryforwards. The Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. As a result of this ordering rule, pre-enactment capital carryforwards may potentially expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

At September 30, 2014, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
Banking Fund	$	17,706,604	$	1,103,161	$	(376,686	)	$	726,475
Basic Materials Fund		34,560,270		8,463,236		(997,971	)		7,465,265
Biotechnology Fund		328,219,889		183,136,311		(16,193,585	)		166,942,726
Consumer Products Fund		190,124,559		51,149,146		(2,661,765	)		48,487,381
Electronics Fund		56,255,867		2,742,747		(1,944,919	)		797,828
Energy Fund		34,293,213		19,603,127		(1,132,629	)		18,470,498
Energy Services Fund		30,201,604		16,748,640		(1,244,729	)		15,503,911
Financial Services Fund		25,037,499		3,177,773		(663,797	)		2,513,976
Health Care Fund		103,337,050		38,019,645		(1,717,221	)		36,302,424
Internet Fund		17,625,824		4,454,267		(340,019	)		4,114,248
Leisure Fund		6,414,067		3,219,532		(31,938	)		3,187,594
Precious Metals Fund		70,814,239		—		(14,112,586	)		(14,112,586	)
Real Estate Fund		27,725,568		901,916		(338,688	)		563,228
Retailing Fund		6,871,809		4,178,875		(37,053	)		4,141,822
Technology Fund		29,989,999		9,609,445		(644,215	)		8,965,230
Telecommunications Fund		7,767,635		494,674		(242,247	)		252,427
Transportation Fund		66,121,654		19,161,719		(1,457,784	)		17,703,935
Utilities Fund		39,381,384		6,444,622		(310,138	)		6,134,484

148  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

4. Fair Value Measurement

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

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

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

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

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

The following table summarizes the inputs used to value the Funds' net assets at September 30, 2014:

	Level 1 Investments In Securities		Level 2 Investments In Securities		Level 3 Investments In Securities		Total
Assets
Banking Fund	$	18,160,761	$	272,318	$	—	$	18,433,079
Basic Materials Fund		40,570,785		1,454,749		—		42,025,534
Biotechnology Fund		425,243,351		69,898,169		21,096		495,162,616
Consumer Products Fund		234,786,720		3,825,220		—		238,611,940
Electronics Fund		54,574,833		2,478,862		—		57,053,695
Energy Fund		50,823,881		1,939,830		—		52,763,711
Energy Services Fund		43,113,760		2,591,755		—		45,705,515
Financial Services Fund		27,254,569		296,906		—		27,551,475
Health Care Fund		135,831,258		3,808,216		—		139,639,474
Internet Fund		21,063,010		677,061		—		21,740,071
Leisure Fund		9,442,543		159,118		—		9,601,661
Precious Metals Fund		53,462,985		3,238,668		—		56,701,653
Real Estate Fund		28,030,554		258,242		—		28,288,796
Retailing Fund		10,754,034		259,596		—		11,013,630
Technology Fund		37,911,877		1,043,352		—		38,955,229
Telecommunications Fund		7,888,876		126,531		4,657		8,020,064
Transportation Fund		82,384,191		1,441,398		—		83,825,589
Utilities Fund		44,968,001		547,867		—		45,515,868

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in the investment's valuation changes. The Funds recognize transfers between the levels as of the beginning of the period. As of September 30, 2014, Biotechnology Fund and Telecommunications Fund had securities with a total value of $21,096 and $4,657 respectively, transfer from Level 2 to Level 3 based on a change in availability of market information.

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  149 

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds' custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2014, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
UMB Financial Corp.			U.S. Treasury Note
0.00%			1.25%
Due 10/01/14	$4,856,405	$4,856,405	10/31/15	$4,871,200	$4,953,575
RBC Capital Markets			U.S. Treasury Strips
(0.05)%			0.00%
Due 10/01/14	2,000,000	1,999,997	11/15/27	2,957,000	2,040,330
HSBC Group			U.S. Treasury Strips
0.00%			0.00%
Due 10/01/14	2,000,000	2,000,000	11/15/22	2,491,600	2,040,027
Mizuho Financial Group, Inc.			U.S. Treasury Strips
0.01%			0.00%
Due 10/01/14	2,000,000	2,000,000	08/15/19 - 11/15/42	3,888,500	2,040,015

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

6. Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, Credit Suisse acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds' securities lending agreement with Credit Suisse, cash collateral is invested in one or more joint repurchase agreements collateralized by obligations of the U.S. Treasury or Government Agencies and cash. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

150  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

At September 30, 2014, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
Banking Fund	$	125,400	$	128,700
Basic Materials Fund		1,278,930		1,319,200
Biotechnology Fund		74,951,920		79,553,381
Consumer Products Fund		3,338,207		3,402,159
Electronics Fund		2,194,294		2,369,550
Energy Fund		1,715,322		1,795,135
Energy Services Fund		2,459,912		2,635,163
Financial Services Fund		185,651		190,175
Health Care Fund		3,255,831		3,415,930
Internet Fund		601,939		633,000
Leisure Fund		103,761		108,050
Precious Metals Fund		2,769,297		3,050,900
Real Estate Fund		210,024		213,100
Retailing Fund		172,410		180,850
Technology Fund		866,599		905,625
Telecommunications Fund		97,652		102,150
Transportation Fund		1,578,224		1,617,600
Utilities Fund		201,780		207,100

Cash collateral received was invested in the following joint repurchase agreements at September 30, 2014:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.00%			0.00%
Due 10/01/14	$75,212,340	$75,212,340	11/15/19 - 11/15/30	$91,252,226	$62,887,439
			U.S. Treasury Note
			1.38%
			11/30/18	13,884,292	13,835,190
BNP Paribas Securities Corp.			U.S. TIP Bond
0.00%			2.13%
Due 10/01/14	12,329,892	12,329,892	02/15/41	9,225,162	12,577,252

There is also $14,345,535 in segregated cash held as collateral.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  151 

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

7. Securities Transactions

For the period ended September 30, 2014, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Banking Fund	$	35,719,531	$	40,710,989
Basic Materials Fund		86,150,149		100,085,681
Biotechnology Fund		195,217,567		237,997,471
Consumer Products Fund		153,820,906		95,215,412
Electronics Fund		89,604,727		54,381,285
Energy Fund		188,580,653		194,531,807
Energy Services Fund		120,409,220		126,931,527
Financial Services Fund		43,512,070		46,644,830
Health Care Fund		110,460,771		135,861,933
Internet Fund		54,373,663		88,907,488
Leisure Fund		40,560,436		62,006,986
Precious Metals Fund		110,065,803		111,014,047
Real Estate Fund		101,120,859		99,391,989
Retailing Fund		32,877,114		97,822,884
Technology Fund		47,475,255		58,476,777
Telecommunications Fund		33,339,876		31,270,771
Transportation Fund		113,666,446		96,916,515
Utilities Fund		132,876,842		206,634,209

8. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted, $75,000,000 line of credit from U.S. Bank, N.A., which expires June 13, 2015. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2014. On September 30, 2014, the Transportation Fund borrowed $176,000 under this agreement. The Funds did not have any other borrowings under this agreement at September 30, 2014.

The average daily balances borrowed for the period ended September 30, 2014, were as follows:

Fund	Average Daily Balance
Banking Fund	$	28,274
Basic Materials Fund		3,961
Biotechnology Fund		366,400
Consumer Products Fund		21,117
Electronics Fund		13,416
Energy Fund		12,410
Energy Services Fund		20,421
Financial Services Fund		10,780
Health Care Fund		33,414
Internet Fund		26,881
Leisure Fund		9,039
Precious Metals Fund		25,630
Retailing Fund		33,482
Technology Fund		16,366
Telecommunications Fund		8,085
Transportation Fund		13,674
Utilities Fund		62,205

152  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS(Unaudited)(continued)

9. Reverse Share Splits

A reverse share split occurred for the following Funds at the close of business:

Fund	Effective Date	Split Type
Technology Fund	February 7, 2014	One-for-Three Reverse Split
Telecommunications Fund	February 7, 2014	One-for-Three Reverse Split

The effect of these transactions was to divide the number of outstanding shares of the Funds by the respective split ratio, resulting in a corresponding increase in the NAV. The share transactions presented in the statements of changes in net assets and the per share data in the financial highlights for each of the periods presented through February 7, 2014 have been restated to reflect these reverse share splits. There were no changes in net assets, results of operations or total return as a result of these transactions.

10. Legal Proceedings

Tribune Company

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2696 (S.D.N.Y.) (the "MDL Proceeding").

On September 23, 2013, the District Court granted the defendants' omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. The appeals have been fully briefed, and oral argument in front of the U.S. Court of Appeals for the Second Circuit occurred on November 5, 2014.

On May 23, 2014, the Shareholder Liaison Counsel filed a "global" motion to dismiss Count I of the FitzSimons action on behalf of all Shareholder Defendants. Count I is the claim for intentional fraudulent conveyance brought under federal law, and the global motion, if granted, would result in the dismissal of all Shareholder Defendants from the lawsuit. The District Court has not yet issued a decision on the motion.

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  153 

NOTES TO FINANCIAL STATEMENTS(Unaudited)(concluded)

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the "Creditor Trust action").

Similar to the claims made in the Tribune matter, the Weisfelner complaint seeks to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company ("Lyondell") shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008.

On April 7, 2014, the plaintiff filed a Third Amended Complaint. In the related action entitled Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adversary Proceeding No. 10-5525 (Bankr. S.D.N.Y.) (the "Litigation Trust action"), the plaintiff also filed a Second Amended Complaint that alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On May 8, 2014, the plaintiff in the Litigation Trust action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction. If the Court agrees to certify a defendant class, a judgment could bind all members of the group (whether or not individually named in the litigation). The defendants plan to oppose the motion.

On July 30, 2014, the defendants filed a motion to dismiss all three lawsuits. The Court will hold an oral argument on the motions to dismiss and on the motion for class certification on January 14, and, if necessary, January 15, 2015. The Court further ordered that, with certain exceptions, all discovery in the actions shall be stayed until the briefing of the class certification motion has concluded. Discovery shall begin promptly after the completion of all briefing on the class certification motion in late December 2014.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund's net asset value.

154  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION(Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds' portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC's website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC's website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Office Locations

The offices of Guggenheim Investments can be found in the following locations:

330 Madison Avenue

10th Floor

New York, NY 10017

(Headquarters)

Four Irvington Centre

805 King Farm Boulevard

Suite 600

Rockville, MD 20850

9401 Indian Creek Parkway

40 Corporate Woods

Suite 850

Overland Park, KS 66210

Distributor Change

Effective March 3, 2014, Guggenheim Distributors, LLC ("GD"), the distributor for shares of the Funds was consolidated into and with Guggenheim Funds Distributors, LLC ("GFD"). Following the consolidation, GFD serves as the Funds' distributor.

GD and GFD are both indirect, wholly-owned subsidiaries of Guggenheim Capital, LLC and, therefore, the consolidation will not result in a change of actual control of the Funds' distributor. The primary goal of the consolidation is to achieve greater operational efficiencies and allow all of the Guggenheim funds, including funds that are not series of the Trusts, to be distributed by a single distributor.

The consolidation is not expected to affect the day-to-day management of the Funds or result in any material changes to the distribution of the Funds, including any changes to the distribution fees paid by the Funds.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  155 

OTHER INFORMATION(Unaudited)(continued)

Board Considerations in Approving the Investment Advisory Agreement

At in-person meetings of the Board of Trustees (the "Board") of Rydex Series Funds (the "Trust") held on May 15 and June 4, 2014 (each, a "Meeting" and, together, the "Meetings"), called for the purpose of, among other things, consideration of, and voting on, the approval and continuation of the investment advisory agreement applicable to each series of the Trust (each, a "Fund" and, collectively, the "Funds"), the Board, including the Trustees who are not "interested persons," as defined by the Investment Company Act of 1940, of the Trust (the "Independent Trustees"), unanimously approved the continuation of the investment advisory agreement (the "Investment Advisory Agreement") between the Trust and Security Investors, LLC (the "Advisor") with respect to each of the Funds for an additional one-year period, based on the Board's review of qualitative and quantitative information provided by the Advisor.

In reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. The Advisor provided the Board with a wide variety of information, including comparisons of Fund performance and fees relative to comparable peer funds in advance of the May 15, 2014 Meeting. The Independent Trustees carefully evaluated the information provided as well as information they received throughout the year as part of their regular oversight of the Funds. At the Meetings, independent legal counsel advised the Independent Trustees with respect to their deliberations and their fiduciary responsibilities associated with the Board's consideration of the continuation of the Investment Advisory Agreement. The Board also received a memorandum from Fund counsel regarding the Board's responsibilities when considering the approval of an investment advisory agreement.

During the Meetings, the Board, including the Independent Trustees, evaluated a number of considerations, including among others: (a) the nature, extent and quality of the Advisor's investment advisory and other services; (b) the Advisor's investment management personnel; (c) the Advisor's operations and financial condition; (d) the Advisor's brokerage practices (including any soft dollar arrangements) and investment strategies; (e) a comparison of the Funds' advisory fees to the fees charged to comparable funds or accounts, paying special attention to the absence of breakpoints in these fees and the Advisor's rationale for not including breakpoints; (f) each Fund's overall fees and operating expenses compared with those of peer funds; (g) the Advisor's profitability with respect to its Fund-related operations; (h) the Advisor's compliance systems; (i) the Advisor's policies and compliance procedures applicable to personal securities transactions; (j) the Advisor's reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of peer funds and/or appropriate benchmarks. In its deliberations, the Board did not identify any particular factor as controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board's deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor's fees were reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

• Nature, Extent and Quality of Services Provided by the Advisor. At the Meetings, the Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor's representations to the Board that the Advisor would continue to provide investment and related services that were of materially 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 Funds' operations, the competitive landscape of the investment company business and investor needs.

• Fund Expenses and Performance of the Funds and the Advisor. At the Meetings, the Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC ("FUSE"), an independent, third party research provider, to prepare advisory contract renewal reports to help the Board fulfill its advisory contract renewal responsibilities. The reports compared the Funds' fees, expenses and total return performance to those of comparable funds in the Funds' peer group and the broader peer universe, as determined by FUSE. Statistical information in the FUSE reports related to the expense ratio components was based on a comparison of the Funds' and peer funds' actual advisory fees, waivers/reimbursements, and gross and net total expenses. The Board also considered the Advisor's representation

156  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION(Unaudited)(concluded)

that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one, three, and five year performance for the Fund compared to its peers and its appropriate benchmark.

• Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. At the Meetings, the Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. At the Meetings, the Board also analyzed the Funds' expenses, including the investment advisory fees paid to the Advisor, and reviewed reports comparing the expense ratios of the Funds to those of other comparable funds. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor's profit margin as reflected in the Advisor's profitability analysis.

• Economies of Scale. In connection with its review of the Funds' profitability analysis at the Meetings, the Board considered the absence of breakpoints in the Advisor's fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds' asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex increases and decreases significantly from time to time due to unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that economies of scale were not likely to be directly realized as a result of increases in the asset levels of the individual Funds, and accordingly, fee breakpoints were not currently appropriate for the Funds.

• Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the services provided by the Advisor, the Board considered the nature and amount of other benefits received by the Advisor and its affiliates as a result of their relationship with the Funds. In particular, the Board considered the nature, extent and quality of the administrative, distribution, and shareholder services performed by the Advisor's affiliates and the fees paid to the Advisor's affiliates for those services under separate agreements. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor's and its affiliates' commitment to the Funds, the ancillary benefits the Advisor and its affiliates received were considered reasonable. The Board also noted that the Advisor reports portfolio transactions on behalf of the Funds, including the cost of such transactions, placed through an affiliate of the Funds or the Advisor at each quarterly Board meeting.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the approval of the Investment Advisory Agreement would enable Fund shareholders to continue receiving high quality services at a cost that was appropriate, reasonable, and in the best interests of the Funds and their shareholders. The Board, including the Independent Trustees, unanimously approved the continuation of the existing Investment Advisory Agreement.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  157 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS(Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	220	Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	131	None.
J. Kenneth Dalton (1941)	Trustee, Member and Chairman of the Audit Committee, and Member of the Governance and Nominating Committees from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	Trustee of Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board of Trustees from 2014 to present; Trustee from 1998 to present and Chairman of the Board from 2006 to 2014; Member and Chairman of the Audit Committee from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present; Vice Chairman of the Board of Trustees from 2010 to 2014; Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present; and Chairman and Member of the Risk Oversight Committee from 2010 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	131	None.

��

158  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS(Unaudited)(continued)

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	131	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee, Member of the Audit Committee, and Chairman and Member of the Governance and Nominating Committees from 1998 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	131	None.

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Nikolaos Bonos (1963)	Vice President and Treasurer (2003-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); Chief Executive Officer, Guggenheim Specialized Products, LLC (2009-present); Chief Executive Officer & President, Rydex Fund Services, LLC (2009-present); Vice President, Rydex Holdings, LLC (2008-present). Former: Senior Vice President, Security Global Investors, LLC (2010-2011); and Senior Vice President, Rydex Advisors, LLC and Rydex Advisors II, LLC (2006-2011).

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  159 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS(Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Vice President, Guggenheim Funds Distributors, LLC (March 2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-March 2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Joseph M. Arruda (1966)	Assistant Treasurer (2006-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2006-present); Vice President, Security Investors, LLC (2010-present); CFO and Manager, Guggenheim Specialized Products, LLC (2009-present). Former: Vice President, Security Global Investors, LLC (2010-2011); Vice President, Rydex Advisors, LLC (2010); Vice President, Rydex Advisors II, LLC (2010).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.
**	Mr. Cacciapaglia is an "interested" person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser's parent company.
***	The "Fund Complex" includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.

160  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES(Unaudited)

Rydex Funds, Guggenheim Funds, Rydex Investments, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Security Distributors, Inc., Guggenheim Partners Investment Managers, LLC, and Rydex Advisory Services (Collectively "Guggenheim Investments").

Our Commitment to You

When you become a Guggenheim Investments 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 Guggenheim Investments 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 Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Investments funds or one of the Guggenheim Investments 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 Guggenheim Investments. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. To alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new Rydex and Guggenheim Investments funds or the services offered through another Guggenheim Investments 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  161 

GUGGENHEIM INVESTMENTS PRIVACY POLICIES(Unaudited)(concluded)

How We Protect Privacy Online

Our concern for the privacy of our shareholders also extends to those who use our web site, guggenheiminvestments.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 Guggenheim Investments 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 Guggenheim Investments 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.

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 guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us at 800.820.0888 or 301.296.5100.

162  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

9.30.2014

Rydex Funds Semi-Annual Report

Domestic Equity Funds

Nova Fund

S&P 500^® Fund

Inverse S&P 500^® Strategy Fund

Inverse NASDAQ-100^® Strategy Fund

Mid-Cap 1.5x Strategy Fund

Inverse Mid-Cap Strategy Fund

Russell 2000^® 1.5x Strategy Fund

Russell 2000^® Fund

Inverse Russell 2000^® Strategy Fund

Fixed Income Funds

Government Long Bond 1.2x Strategy Fund

High Yield Strategy Fund

Inverse High Yield Strategy Fund

Money Market Fund

U.S. Government Money Market Fund

RBENF-SEMI-0914x0315 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	5
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
NOVA FUND	11
S&P 500® FUND	23
INVERSE S&P 500® STRATEGY FUND	34
INVERSE NASDAQ-100® STRATEGY FUND	41
MID-CAP 1.5x STRATEGY FUND	48
INVERSE MID-CAP STRATEGY FUND	58
RUSSELL 2000® 1.5x STRATEGY FUND	64
RUSSELL 2000® FUND	90
INVERSE RUSSELL 2000® STRATEGY FUND	116
GOVERNMENT LONG BOND 1.2x STRATEGY FUND	122
HIGH YIELD STRATEGY FUND	130
INVERSE HIGH YIELD STRATEGY FUND	136
U.S. GOVERNMENT MONEY MARKET FUND	142
NOTES TO FINANCIAL STATEMENTS	148
OTHER INFORMATION	164
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	167
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	170

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  1 

September 30, 2014

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for one or more of our Funds (the “Funds”) for the six-month period ended September 30, 2014.

The Investment Adviser is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC, a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

 

Donald C. CacciapagliaPresidentOctober 31, 2014

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

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2014

Despite market volatility rising in October, for the period ended September 30, data on everything from hiring to housing conveys that the U.S. economy is firing on all cylinders. Overcoming a first-quarter weather-related soft patch, second-quarter GDP was revised upward to 4.6%, led by business investment. Durable goods orders surged over the summer and consumer confidence was at multi-year highs, despite a lower reading for the last part of the period. With tailwinds for economic growth gathering, we could see a strong third quarter GDP reading.

September’s addition of 248,000 non-farm payroll jobs was, on the surface, at least a strong figure and certainly not something to be discounted. However, investor optimism about the report, which also showed the unemployment rate falling to 5.9%—its lowest level since 2008—masked the fact that average hourly earnings were unchanged. Economic data late in the period included disappointing factory orders, poor construction spending, and weaker-than-expected ISM manufacturing data. The most recent decline in the U.S. Conference Board Consumer Confidence Index was worrisome.

The U.S. economy is certainly doing well enough to suggest higher interest rates ahead. With quantitative easing ending in the U.S. in October 2014 and the Fed preparing investors for a higher federal funds rate, the stage is set for U.S. interest rates to move higher. However, our view is that, despite a strengthening U.S. economy, the greater risk is that interest rates head lower in the near term.

Following the "taper tantrum" last year, before rates were able to reach historical norms, the average rate on a 30-year mortgage spiked almost a full percentage point in two months—the sharpest rise since the late 1990s—resulting in an abrupt housing slowdown, which slowed the U.S. economy materially.

In addition, U.S. Treasury yields are still materially higher than those in any other developed market. The spread between 10-year U.S. Treasuries and comparable German bunds reached 157 basis points in September, its widest level since 1999, and the spread between 10-year Treasuries and 10-year Japanese government bonds was recently 189 basis points. With developments in the Middle East increasingly troubling and turbulence continuing elsewhere from Ukraine to Hong Kong, the relative price value of U.S. government bonds versus other safe haven investments should continue to be a factor keeping U.S. interest rates low.

International economic data remain weak. Euro zone economic confidence is falling as the entire region continues to battle below-target inflation. At the start of September, the European Central Bank cut interest rates and signaled their intent to launch a program to purchase asset-backed securities and covered bonds to stimulate the dismal economy. In Japan, retail sales fell month-over-month in August, while industrial production falters.

Economic data around the world confirms our view that central banks are likely to renew efforts to force liquidity into the global financial system, which in turn further supports our positive outlook for risk assets. However, positive returns are unlikely without volatility. While markets continue to rally, gains are becoming more grudging. The upward momentum in U.S. stocks has deteriorated meaningfully while credit spreads, specifically high-yield spreads, have widened significantly over the past number of weeks. While the bull market trend remains intact, as the appreciation in risk assets continues it becomes more likely that this ageing advance will, at some point, experience a correction.

For the six-month period ended September 30, 2014, the return of the Standard & Poor’s 500^® Index* (“S&P 500”) was 6.42%. The Barclays U.S. Aggregate Bond Index* returned 2.21% for the period, while the Barclays U.S. Corporate High Yield Index* returned 0.49%. The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index* returned 0.02%. The MSCI World Index* returned 2.59%, while the MSCI Emerging Markets Index* returned 2.87%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  3 

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2014

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

*Index Definitions:

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

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

Barclays U.S. Aggregate Bond Indexrepresents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Barclays U.S. Corporate High Yield Index covers the universe of dollar denominated, fixed rate, non-investment grade debt, taxable corporate debt.

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

MSCI World Index (Net) is calculated with net dividends reinvested. It is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

S&P 500^® Index is a market-weighted stock market index comprised of the stocks of 500 U.S. corporations; the index is owned and maintained by Standard & Poor’s.

4  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value per share (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index Level	Index Performance	Fund Expectation	Fund NAV	Fund Performance	Assessment
Start	100			$10.00
Day 1	106	6.0%	9.0%	$10.90	9.0%	In line
Day 2	99	-6.6%	-9.9%	$9.82	-9.9%	In line
Cumulative		-1.0%	-1.5%		-1.8%	-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  5 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2014 and ending September 30, 2014.

The following tables illustrate a Fund’s costs in two ways:

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

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

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

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

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

6  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Nova Fund
Investor Class	1.29%	8.75%	$1,000.00	$1,087.50	$6.75
Advisor Class	1.79%	8.49%	1,000.00	1,084.90	9.36
A-Class	1.54%	8.62%	1,000.00	1,086.20	8.05
C-Class	2.29%	8.19%	1,000.00	1,081.90	11.95
H-Class4	1.55%	(2.95%)	1,000.00	970.50	0.50
S&P 500® Fund
A-Class	1.61%	5.56%	1,000.00	1,055.60	8.30
C-Class	2.36%	5.15%	1,000.00	1,051.50	12.14
H-Class	1.60%	5.58%	1,000.00	1,055.80	8.25
Inverse S&P 500® Strategy Fund
Investor Class	1.42%	(6.90%)	1,000.00	931.00	6.87
Advisor Class	1.92%	(7.10%)	1,000.00	929.00	9.28
A-Class	1.67%	(7.00%)	1,000.00	930.00	8.08
C-Class	2.42%	(7.32%)	1,000.00	926.80	11.69
H-Class4	1.68%	1.88%	1,000.00	1,018.80	0.56
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.47%	(12.96%)	1,000.00	870.40	6.89
Advisor Class	1.97%	(13.28%)	1,000.00	867.20	9.22
A-Class	1.72%	(13.06%)	1,000.00	869.40	8.06
C-Class	2.47%	(13.41%)	1,000.00	865.90	11.55
H-Class4	1.72%	1.13%	1,000.00	1,011.30	0.57
Mid-Cap 1.5x Strategy Fund
A-Class	1.67%	(1.09%)	1,000.00	989.10	8.33
C-Class	2.42%	(1.48%)	1,000.00	985.20	12.04
H-Class	1.67%	(1.11%)	1,000.00	988.90	8.33
Inverse Mid-Cap Strategy Fund
A-Class	1.67%	(1.52%)	1,000.00	984.80	8.31
C-Class	2.42%	(1.89%)	1,000.00	981.10	12.02
H-Class	1.67%	(1.55%)	1,000.00	984.50	8.31

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  7 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Russell 2000® 1.5x Strategy Fund
A-Class	1.71%	(9.37%)	$1,000.00	$906.30	$8.17
C-Class	2.46%	(9.71%)	1,000.00	902.90	11.73
H-Class	1.71%	(9.37%)	1,000.00	906.30	8.17
Russell 2000® Fund
A-Class	1.60%	(6.16%)	1,000.00	938.40	7.77
C-Class	2.49%	(6.50%)	1,000.00	935.00	12.08
H-Class	1.60%	(6.18%)	1,000.00	938.20	7.77
Inverse Russell 2000® Strategy Fund
A-Class	1.71%	3.64%	1,000.00	1,036.40	8.73
C-Class	2.46%	3.24%	1,000.00	1,032.40	12.53
H-Class	1.71%	3.62%	1,000.00	1,036.20	8.73
Government Long Bond 1.2x Strategy Fund
Investor Class	0.97%	10.52%	1,000.00	1,105.20	5.12
Advisor Class	1.47%	10.38%	1,000.00	1,103.80	7.75
A-Class	1.22%	10.38%	1,000.00	1,103.80	6.43
C-Class	1.97%	9.97%	1,000.00	1,099.70	10.37
H-Class4	1.22%	3.56%	1,000.00	1,035.60	0.41
High Yield Strategy Fund
A-Class	1.51%	0.04%	1,000.00	1,000.40	7.57
C-Class	2.26%	(0.33%)	1,000.00	996.70	11.31
H-Class	1.51%	0.09%	1,000.00	1,000.90	7.57
Inverse High Yield Strategy Fund
A-Class	1.52%	(2.35%)	1,000.00	976.50	7.53
C-Class	2.27%	(2.76%)	1,000.00	972.40	11.22
H-Class	1.52%	(2.34%)	1,000.00	976.60	7.53
U.S. Government Money Market Fund	0.08%	0.00%	1,000.00	1,000.00	0.40

8  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Nova Fund
Investor Class	1.29%	5.00%	$1,000.00	$1,018.60	$6.53
Advisor Class	1.79%	5.00%	1,000.00	1,016.09	9.05
A-Class	1.54%	5.00%	1,000.00	1,017.35	7.79
C-Class	2.29%	5.00%	1,000.00	1,013.59	11.56
H-Class4	1.55%	5.00%	1,000.00	1,017.30	7.84
S&P 500® Fund
A-Class	1.61%	5.00%	1,000.00	1,017.00	8.14
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
Inverse S&P 500® Strategy Fund
Investor Class	1.42%	5.00%	1,000.00	1,017.95	7.18
Advisor Class	1.92%	5.00%	1,000.00	1,015.44	9.70
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.42%	5.00%	1,000.00	1,012.94	12.21
H-Class4	1.68%	5.00%	1,000.00	1,016.65	8.49
Inverse NASDAQ-100® Strategy Fund
Investor Class	1.47%	5.00%	1,000.00	1,017.70	7.44
Advisor Class	1.97%	5.00%	1,000.00	1,015.19	9.95
A-Class	1.72%	5.00%	1,000.00	1,016.44	8.69
C-Class	2.47%	5.00%	1,000.00	1,012.68	12.46
H-Class4	1.72%	5.00%	1,000.00	1,016.44	8.69
Mid-Cap 1.5x Strategy Fund
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.42%	5.00%	1,000.00	1,012.94	12.21
H-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
Inverse Mid-Cap Strategy Fund
A-Class	1.67%	5.00%	1,000.00	1,016.70	8.44
C-Class	2.42%	5.00%	1,000.00	1,012.94	12.21
H-Class	1.67%	5.00%	1,000.00	1,016.70	8.44

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  9 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Russell 2000® 1.5x Strategy Fund
A-Class	1.71%	5.00%	$1,000.00	$1,016.50	$8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
Russell 2000® Fund
A-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.60%	5.00%	1,000.00	1,017.05	8.09
Inverse Russell 2000® Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
Government Long Bond 1.2x Strategy Fund
Investor Class	0.97%	5.00%	1,000.00	1,020.21	4.91
Advisor Class	1.47%	5.00%	1,000.00	1,017.70	7.44
A-Class	1.22%	5.00%	1,000.00	1,018.95	6.17
C-Class	1.97%	5.00%	1,000.00	1,015.19	9.95
H-Class4	1.22%	5.00%	1,000.00	1,018.95	6.17
High Yield Strategy Fund
A-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
C-Class	2.26%	5.00%	1,000.00	1,013.74	11.41
H-Class	1.51%	5.00%	1,000.00	1,017.50	7.64
Inverse High Yield Strategy Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
U.S. Government Money Market Fund	0.08%	5.00%	1,000.00	1,024.67	0.41

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2014 to September 30, 2014.
4	Since commencement of operations: September 18, 2014. Expenses paid based on actual fund return are calculated using 12 days from the commencement of operations. Expenses paid based on the hypothetical 5% return are calculated using 183 days.

10  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 2014

NOVA FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P 500^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	July 12, 1993
Advisor Class	October 15, 1998
A-Class	March 31, 2004
C-Class	March 14, 2001
H-Class	September 18, 2014

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	2.1%
Exxon Mobil Corp.	1.4%
Microsoft Corp.	1.3%
Johnson & Johnson	1.1%
General Electric Co.	0.9%
Berkshire Hathaway, Inc. — Class B	0.9%
Wells Fargo & Co.	0.9%
Procter & Gamble Co.	0.8%
JPMorgan Chase & Co.	0.8%
Chevron Corp.	0.8%
Top Ten Total	11.0%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  11 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
NOVA FUND

	Shares		Value
COMMON STOCKS† - 61.4%
CONSUMER, NON-CYCLICAL - 13.8%
Johnson & Johnson		12,967	$	1,382,152
Procter & Gamble Co.		12,449		1,042,480
Pfizer, Inc.		29,154		862,083
Merck & Company, Inc.		13,263		786,231
Coca-Cola Co.		18,149		774,236
Gilead Sciences, Inc.*		6,950		739,828
PepsiCo, Inc.		6,928		644,928
Philip Morris International, Inc.		7,182		598,979
Amgen, Inc.		3,493		490,627
AbbVie, Inc.		7,318		422,688
Altria Group, Inc.		9,119		418,927
Bristol-Myers Squibb Co.		7,623		390,145
UnitedHealth Group, Inc.		4,467		385,278
Biogen Idec, Inc.*		1,086		359,260
Celgene Corp.*		3,676		348,411
MasterCard, Inc. — Class A		4,525		334,488
Eli Lilly & Co.		4,521		293,187
Actavis plc*		1,215		293,155
Abbott Laboratories		6,914		287,553
Medtronic, Inc.		4,504		279,023
Mondelez International, Inc. — Class A		7,751		265,588
Colgate-Palmolive Co.		3,947		257,423
Allergan, Inc.		1,366		243,408
Express Scripts Holding Co.*		3,427		242,049
McKesson Corp.		1,065		207,324
Kimberly-Clark Corp.		1,719		184,913
Automatic Data Processing, Inc.		2,211		183,690
Covidien plc		2,077		179,682
Baxter International, Inc.		2,491		178,780
Kraft Foods Group, Inc.		2,731		154,028
Archer-Daniels-Midland Co.		2,968		151,665
Alexion Pharmaceuticals, Inc.*		910		150,896
WellPoint, Inc.		1,261		150,841
General Mills, Inc.		2,816		142,067
Aetna, Inc.		1,630		132,030
Vertex Pharmaceuticals, Inc.*		1,095		122,979
Regeneron Pharmaceuticals, Inc.*		339		122,216
Kroger Co.		2,248		116,895
Cardinal Health, Inc.		1,548		115,976
Stryker Corp.		1,375		111,031
Cigna Corp.		1,213		110,007
McGraw Hill Financial, Inc.		1,246		105,224
Sysco Corp.		2,698		102,389
Becton Dickinson and Co.		882		100,380
Lorillard, Inc.		1,655		99,151
Humana, Inc.		709		92,376
Perrigo Company plc		615		92,367
Mead Johnson Nutrition Co. — Class A		930		89,485
Zoetis, Inc.		2,304		85,133
Reynolds American, Inc.		1,417		83,603
Moody’s Corp.		855		80,798
St. Jude Medical, Inc.		1,309		78,710
Mylan, Inc.*		1,720		78,243
Zimmer Holdings, Inc.		777		78,127
Estee Lauder Companies, Inc. — Class A		1,034		77,260
Intuitive Surgical, Inc.*		165		76,200
AmerisourceBergen Corp. — Class A		980		75,754
Keurig Green Mountain, Inc.		560		72,873
Kellogg Co.		1,176		72,442
Boston Scientific Corp.*		6,095		71,982
Constellation Brands, Inc. — Class A*		770		67,113
Brown-Forman Corp. — Class B		726		65,500
Hershey Co.		686		65,465
ConAgra Foods, Inc.		1,943		64,197
Alliance Data Systems Corp.*		255		63,309
Whole Foods Market, Inc.		1,661		63,301
Monster Beverage Corp.*		661		60,594
DaVita HealthCare Partners, Inc.*		790		57,781
Dr Pepper Snapple Group, Inc.		897		57,686
Clorox Co.		592		56,856
Molson Coors Brewing Co. — Class B		732		54,490
Tyson Foods, Inc. — Class A		1,347		53,031
Edwards Lifesciences Corp.*		488		49,849
United Rentals, Inc.*		441		48,995
CR Bard, Inc.		343		48,950
Mallinckrodt plc*		521		46,968
JM Smucker Co.		468		46,327
Coca-Cola Enterprises, Inc.		1,039		46,090
Universal Health Services, Inc. — Class B		419		43,785
CareFusion Corp.*		933		42,218
Equifax, Inc.		560		41,854
Hospira, Inc.*		776		40,375
Quest Diagnostics, Inc.		664		40,291
McCormick & Company, Inc.		597		39,939
Laboratory Corporation of America Holdings*		390		39,683
H&R Block, Inc.		1,265		39,228
Western Union Co.		2,436		39,073
Varian Medical Systems, Inc.*		474		37,977
Safeway, Inc.		1,059		36,324
Quanta Services, Inc.*		997		36,181
Campbell Soup Co.		823		35,167
Hormel Foods Corp.		618		31,759
Cintas Corp.		444		31,342
Robert Half International, Inc.		632		30,968
DENTSPLY International, Inc.		652		29,731
ADT Corp.		800		28,368
Tenet Healthcare Corp.*		450		26,726
Avon Products, Inc.		1,998		25,175
Total System Services, Inc.		760		23,530
Avery Dennison Corp.		431		19,244
Patterson Companies, Inc.		398		16,489
Total Consumer, Non-cyclical				18,061,573

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
NOVA FUND

	Shares		Value
FINANCIAL - 10.2%
Berkshire Hathaway, Inc. — Class B*		8,382	$	1,157,889
Wells Fargo & Co.		21,842		1,132,945
JPMorgan Chase & Co.		17,294		1,041,791
Bank of America Corp.		48,350		824,368
Citigroup, Inc.		13,939		722,319
Visa, Inc. — Class A		2,263		482,856
American Express Co.		4,138		362,241
American International Group, Inc.		6,561		354,426
U.S. Bancorp		8,285		346,562
Goldman Sachs Group, Inc.		1,884		345,846
MetLife, Inc.		5,171		277,787
Morgan Stanley		7,041		243,407
Simon Property Group, Inc.		1,429		234,956
PNC Financial Services Group, Inc.		2,485		212,666
Capital One Financial Corp.		2,581		210,661
Bank of New York Mellon Corp.		5,203		201,511
BlackRock, Inc. — Class A		580		190,425
Prudential Financial, Inc.		2,115		185,993
American Tower Corp. — Class A		1,821		170,500
ACE Ltd.		1,543		161,814
Charles Schwab Corp.		5,273		154,973
Travelers Companies, Inc.		1,559		146,453
State Street Corp.		1,947		143,319
Discover Financial Services		2,124		136,764
Marsh & McLennan Companies, Inc.		2,503		131,007
Crown Castle International Corp.		1,535		123,614
BB&T Corp.		3,308		123,090
Allstate Corp.		1,993		122,310
Aflac, Inc.		2,083		121,335
Aon plc		1,335		117,039
CME Group, Inc. — Class A		1,452		116,095
Public Storage		667		110,615
Ameriprise Financial, Inc.		861		106,230
Equity Residential		1,663		102,407
Intercontinental Exchange, Inc.		522		101,816
Chubb Corp.		1,106		100,734
Franklin Resources, Inc.		1,811		98,899
T. Rowe Price Group, Inc.		1,209		94,786
Health Care REIT, Inc.		1,490		92,932
SunTrust Banks, Inc.		2,441		92,831
Prologis, Inc.		2,299		86,672
AvalonBay Communities, Inc.		603		85,005
Ventas, Inc.		1,353		83,818
HCP, Inc.		2,110		83,788
Boston Properties, Inc.		704		81,495
Vornado Realty Trust		802		80,168
Invesco Ltd.		1,989		78,526
Weyerhaeuser Co.		2,429		77,388
Fifth Third Bancorp		3,836		76,797
Hartford Financial Services Group, Inc.		2,059		76,698
M&T Bank Corp.		607		74,837
Host Hotels & Resorts, Inc.		3,480		74,228
Northern Trust Corp.		1,018		69,255
General Growth Properties, Inc.		2,885		67,942
Principal Financial Group, Inc.		1,257		65,955
Lincoln National Corp.		1,200		64,296
Regions Financial Corp.		6,338		63,634
Progressive Corp.		2,475		62,568
Loews Corp.		1,402		58,407
KeyCorp		4,031		53,733
Essex Property Trust, Inc.		292		52,195
Affiliated Managers Group, Inc.*		255		51,092
Comerica, Inc.		831		41,434
Kimco Realty Corp.		1,890		41,410
Macerich Co.		647		41,298
XL Group plc — Class A		1,221		40,501
Unum Group		1,172		40,293
CBRE Group, Inc. — Class A*		1,283		38,156
Huntington Bancshares, Inc.		3,756		36,546
Navient Corp.		1,928		34,145
Cincinnati Financial Corp.		677		31,853
Plum Creek Timber Company, Inc.		814		31,754
Torchmark Corp.		600		31,422
E*TRADE Financial Corp.*		1,327		29,977
Genworth Financial, Inc. — Class A*		2,283		29,907
Zions Bancorporation		932		27,084
Iron Mountain, Inc.		790		25,794
Legg Mason, Inc.		469		23,994
NASDAQ OMX Group, Inc.		543		23,034
Hudson City Bancorp, Inc.		2,212		21,500
Apartment Investment & Management Co. — Class A		672		21,383
Assurant, Inc.		328		21,090
People’s United Financial, Inc.		1,427		20,649
Total Financial				13,419,933
TECHNOLOGY - 8.3%
Apple, Inc.		27,531		2,773,747
Microsoft Corp.		37,885		1,756,349
International Business Machines Corp.		4,266		809,815
Intel Corp.		22,764		792,642
QUALCOMM, Inc.		7,706		576,178
Oracle Corp.		14,952		572,362
Hewlett-Packard Co.		8,581		304,368
EMC Corp.		9,327		272,908
Accenture plc — Class A		2,902		235,991
Texas Instruments, Inc.		4,908		234,063
Micron Technology, Inc.*		4,923		168,662
salesforce.com, Inc.*		2,647		152,282
Adobe Systems, Inc.*		2,172		150,281
Cognizant Technology Solutions Corp. — Class A*		2,795		125,132
Applied Materials, Inc.		5,602		121,059

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
NOVA FUND

	Shares		Value
Intuit, Inc.		1,305	$	114,383
SanDisk Corp.		1,031		100,986
Avago Technologies Ltd.		1,157		100,659
Broadcom Corp. — Class A		2,473		99,959
Western Digital Corp.		1,011		98,391
Seagate Technology plc		1,503		86,077
Cerner Corp.*		1,396		83,160
Fiserv, Inc.*		1,146		74,071
Fidelity National Information Services, Inc.		1,312		73,866
Analog Devices, Inc.		1,445		71,513
Paychex, Inc.		1,503		66,433
Xerox Corp.		4,984		65,938
NetApp, Inc.		1,468		63,065
KLA-Tencor Corp.		760		59,873
Autodesk, Inc.*		1,045		57,580
Lam Research Corp.		745		55,652
Citrix Systems, Inc.*		756		53,933
Xilinx, Inc.		1,234		52,260
Electronic Arts, Inc.*		1,437		51,172
Altera Corp.		1,421		50,843
Akamai Technologies, Inc.*		819		48,976
Red Hat, Inc.*		869		48,794
Linear Technology Corp.		1,097		48,696
NVIDIA Corp.		2,367		43,671
Microchip Technology, Inc.		921		43,499
CA, Inc.		1,473		41,156
Computer Sciences Corp.		667		40,787
Teradata Corp.*		713		29,889
Pitney Bowes, Inc.		932		23,291
First Solar, Inc.*		345		22,704
Dun & Bradstreet Corp.		167		19,617
Total Technology				10,936,733
COMMUNICATIONS - 7.3%
Verizon Communications, Inc.		19,059		952,759
AT&T, Inc.		23,844		840,263
Google, Inc. — Class A*		1,306		768,463
Google, Inc. — Class C*		1,306		754,032
Facebook, Inc. — Class A*		8,966		708,673
Walt Disney Co.		7,261		646,447
Comcast Corp. — Class A		11,900		639,982
Cisco Systems, Inc.		23,445		590,111
Amazon.com, Inc.*		1,742		561,690
Twenty-First Century Fox, Inc. — Class A		8,660		296,951
Time Warner, Inc.		3,930		295,575
eBay, Inc.*		5,193		294,080
Priceline Group, Inc.*		241		279,217
DIRECTV*		2,309		199,775
Time Warner Cable, Inc.		1,281		183,811
Yahoo!, Inc.*		4,253		173,310
Viacom, Inc. — Class B		1,751		134,722
Netflix, Inc.*		276		124,526
CBS Corp. — Class B		2,228		119,198
Corning, Inc.		5,936		114,802
CenturyLink, Inc.		2,622		107,214
Omnicom Group, Inc.		1,155		79,533
Symantec Corp.		3,175		74,644
Motorola Solutions, Inc.		1,015		64,229
Nielsen N.V.		1,399		62,018
Discovery Communications, Inc. — Class C*		1,256		46,824
TripAdvisor, Inc.*		512		46,807
Juniper Networks, Inc.		1,846		40,889
F5 Networks, Inc.*		341		40,490
Expedia, Inc.		456		39,955
News Corp. — Class A*		2,290		37,441
Scripps Networks Interactive, Inc. — Class A		477		37,249
Interpublic Group of Companies, Inc.		1,937		35,486
Harris Corp.		482		32,005
Gannett Company, Inc.		1,037		30,768
Frontier Communications Corp.		4,607		29,992
Windstream Holdings, Inc.		2,771		29,871
VeriSign, Inc.*		517		28,497
Discovery Communications, Inc. — Class A*		680		25,704
Cablevision Systems Corp. — Class A		997		17,457
Total Communications				9,585,460
INDUSTRIAL - 6.3%
General Electric Co.		46,134		1,181,952
Union Pacific Corp.		4,126		447,341
3M Co.		2,979		422,065
United Technologies Corp.		3,912		413,107
Boeing Co.		3,081		392,457
Honeywell International, Inc.		3,598		335,046
United Parcel Service, Inc. — Class B		3,234		317,869
Caterpillar, Inc.		2,887		285,899
Lockheed Martin Corp.		1,240		226,647
Thermo Fisher Scientific, Inc.		1,834		223,199
Danaher Corp.		2,803		212,972
Emerson Electric Co.		3,209		200,820
FedEx Corp.		1,220		196,969
General Dynamics Corp.		1,460		185,551
Norfolk Southern Corp.		1,423		158,807
Precision Castparts Corp.		660		156,341
CSX Corp.		4,596		147,348
Raytheon Co.		1,429		145,215
Illinois Tool Works, Inc.		1,677		141,572
Eaton Corporation plc		2,188		138,654
Deere & Co.		1,648		135,120
Northrop Grumman Corp.		956		125,963
TE Connectivity Ltd.		1,882		104,056
Cummins, Inc.		786		103,736
Waste Management, Inc.		1,994		94,775
Tyco International Ltd.		2,039		90,878
Agilent Technologies, Inc.		1,533		87,350
Parker-Hannifin Corp.		684		78,079
Amphenol Corp. — Class A		721		71,999
Rockwell Automation, Inc.		634		69,664
Ingersoll-Rand plc		1,230		69,323

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
NOVA FUND

	Shares		Value
Roper Industries, Inc.		460	$	67,293
Stanley Black & Decker, Inc.		719		63,840
Dover Corp.		766		61,533
Kansas City Southern		507		61,448
Pentair plc		885		57,959
AMETEK, Inc.		1,130		56,737
Rockwell Collins, Inc.		621		48,749
Fluor Corp.		724		48,356
L-3 Communications Holdings, Inc.		396		47,092
Textron, Inc.		1,284		46,211
Stericycle, Inc.*		390		45,458
Republic Services, Inc. — Class A		1,161		45,302
CH Robinson Worldwide, Inc.		677		44,899
Flowserve Corp.		629		44,357
Pall Corp.		491		41,097
Ball Corp.		637		40,303
Masco Corp.		1,639		39,205
Waters Corp.*		386		38,260
Martin Marietta Materials, Inc.		283		36,490
Expeditors International of Washington, Inc.		897		36,400
Vulcan Materials Co.		602		36,258
Sealed Air Corp.		975		34,008
Snap-on, Inc.		267		32,328
Jacobs Engineering Group, Inc.*		612		29,878
Xylem, Inc.		840		29,812
Garmin Ltd.		558		29,010
Joy Global, Inc.		451		24,598
PerkinElmer, Inc.		519		22,628
Leggett & Platt, Inc.		631		22,035
Ryder System, Inc.		244		21,953
Allegion plc		442		21,057
FLIR Systems, Inc.		652		20,434
Owens-Illinois, Inc.*		758		19,746
Jabil Circuit, Inc.		919		18,536
Bemis Company, Inc.		459		17,451
Total Industrial				8,311,495
ENERGY - 6.0%
Exxon Mobil Corp.		19,608		1,844,131
Chevron Corp.		8,731		1,041,783
Schlumberger Ltd.		5,961		606,174
ConocoPhillips		5,653		432,568
Occidental Petroleum Corp.		3,585		344,698
Halliburton Co.		3,911		252,299
EOG Resources, Inc.		2,517		249,233
Anadarko Petroleum Corp.		2,326		235,949
Phillips 66		2,570		208,967
Williams Companies, Inc.		3,092		171,142
Apache Corp.		1,759		165,117
National Oilwell Varco, Inc.		1,978		150,525
Baker Hughes, Inc.		2,000		130,120
Pioneer Natural Resources Co.		658		129,606
Spectra Energy Corp.		3,085		121,117
Devon Energy Corp.		1,768		120,542
Marathon Oil Corp.		3,101		116,567
Kinder Morgan, Inc.		3,025		115,979
Hess Corp.		1,203		113,467
Noble Energy, Inc.		1,656		113,204
Valero Energy Corp.		2,427		112,298
Marathon Petroleum Corp.		1,303		110,325
Equities Corp.		697		63,803
Cabot Oil & Gas Corp. — Class A		1,919		62,732
ONEOK, Inc.		956		62,666
Cameron International Corp.*		933		61,933
FMC Technologies, Inc.*		1,080		58,655
Southwestern Energy Co.*		1,624		56,759
Chesapeake Energy Corp.		2,388		54,900
Range Resources Corp.		776		52,621
Cimarex Energy Co.		400		50,612
Transocean Ltd.		1,565		50,034
Helmerich & Payne, Inc.		498		48,739
Ensco plc — Class A		1,075		44,408
Murphy Oil Corp.		767		43,650
CONSOL Energy, Inc.		1,058		40,056
Tesoro Corp.		590		35,978
Nabors Industries Ltd.		1,330		30,271
Noble Corporation plc		1,169		25,975
Denbury Resources, Inc.		1,620		24,349
QEP Resources, Inc.		762		23,454
Newfield Exploration Co.*		628		23,280
Diamond Offshore Drilling, Inc.1		309		10,589
Total Energy				7,811,275
CONSUMER, CYCLICAL - 5.6%
Home Depot, Inc.		6,188		567,687
Wal-Mart Stores, Inc.		7,260		555,171
McDonald’s Corp.		4,515		428,067
CVS Health Corp.		5,325		423,817
NIKE, Inc. — Class B		3,234		288,473
Ford Motor Co.		17,832		263,735
Starbucks Corp.		3,454		260,639
Costco Wholesale Corp.		2,015		252,520
Lowe’s Companies, Inc.		4,539		240,204
Walgreen Co.		4,046		239,806
General Motors Co.		6,198		197,964
TJX Companies, Inc.		3,186		188,516
Target Corp.		2,914		182,650
Yum! Brands, Inc.		2,021		145,472
Delta Air Lines, Inc.		3,876		140,117
Johnson Controls, Inc.		3,062		134,727
Southwest Airlines Co.		3,150		106,376
VF Corp.		1,586		104,723
Chipotle Mexican Grill, Inc. — Class A*		143		95,322
Macy’s, Inc.		1,624		94,485
PACCAR, Inc.		1,631		92,763
Dollar General Corp.*		1,395		85,248
Delphi Automotive plc		1,378		84,527
Carnival Corp.		2,071		83,192

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
NOVA FUND

	Shares		Value
AutoZone, Inc.*		150	$	76,449
L Brands, Inc.		1,129		75,621
Ross Stores, Inc.		965		72,935
Starwood Hotels & Resorts Worldwide, Inc.		876		72,891
O’Reilly Automotive, Inc.*		477		71,722
WW Grainger, Inc.		280		70,461
Marriott International, Inc. — Class A		1,002		70,040
Wynn Resorts Ltd.		373		69,781
Michael Kors Holdings Ltd.*		944		67,392
Genuine Parts Co.		704		61,748
Bed Bath & Beyond, Inc.*		929		61,156
Harley-Davidson, Inc.		1,000		58,200
Kohl’s Corp.		941		57,429
Fastenal Co.		1,255		56,350
BorgWarner, Inc.		1,050		55,241
Dollar Tree, Inc.*		945		52,986
Under Armour, Inc. — Class A*		765		52,862
The Gap, Inc.		1,260		52,529
Whirlpool Corp.		359		52,288
Tiffany & Co.		517		49,792
Mattel, Inc.		1,553		47,600
CarMax, Inc.*		1,008		46,821
Wyndham Worldwide Corp.		575		46,725
Ralph Lauren Corp. — Class A		279		45,960
PVH Corp.		379		45,916
Coach, Inc.		1,263		44,975
Best Buy Company, Inc.		1,334		44,809
Nordstrom, Inc.		655		44,782
Newell Rubbermaid, Inc.		1,259		43,322
Tractor Supply Co.		633		38,936
Mohawk Industries, Inc.*		285		38,424
Staples, Inc.		2,962		35,840
Family Dollar Stores, Inc.		440		33,986
PetSmart, Inc.		457		32,031
Lennar Corp. — Class A		818		31,763
DR Horton, Inc.		1,525		31,293
Darden Restaurants, Inc.		608		31,288
Harman International Industries, Inc.		313		30,687
Hasbro, Inc.		528		29,037
Goodyear Tire & Rubber Co.		1,266		28,593
PulteGroup, Inc.		1,556		27,479
GameStop Corp. — Class A		518		21,342
Fossil Group, Inc.*		214		20,095
AutoNation, Inc.*		360		18,112
Urban Outfitters, Inc.*		469		17,212
Total Consumer, Cyclical				7,391,102
BASIC MATERIALS - 2.0%
EI du Pont de Nemours & Co.		4,208		301,967
Monsanto Co.		2,412		271,375
Dow Chemical Co.		5,161		270,643
LyondellBasell Industries N.V. — Class A		1,955		212,430
Praxair, Inc.		1,343		173,247
Freeport-McMoRan, Inc.		4,777		155,969
Ecolab, Inc.		1,240		142,389
PPG Industries, Inc.		634		124,733
Air Products & Chemicals, Inc.		881		114,689
International Paper Co.		1,963		93,713
Alcoa, Inc.		5,408		87,015
Sherwin-Williams Co.		382		83,654
Nucor Corp.		1,466		79,574
Sigma-Aldrich Corp.		547		74,397
Mosaic Co.		1,464		65,016
CF Industries Holdings, Inc.		228		63,662
Eastman Chemical Co.		686		55,491
Newmont Mining Corp.		2,293		52,854
International Flavors & Fragrances, Inc.		373		35,763
FMC Corp.		612		35,000
Airgas, Inc.		308		34,080
MeadWestvaco Corp.		775		31,729
Allegheny Technologies, Inc.		500		18,550
Total Basic Materials				2,577,940
UTILITIES - 1.9%
Duke Energy Corp.		3,252		243,152
NextEra Energy, Inc.		2,006		188,323
Dominion Resources, Inc.		2,679		185,092
Southern Co.		4,118		179,751
Exelon Corp.		3,950		134,656
American Electric Power Company, Inc.		2,247		117,316
Sempra Energy		1,063		112,018
PPL Corp.		3,055		100,326
PG&E Corp.		2,167		97,602
Public Service Enterprise Group, Inc.		2,326		86,620
Edison International		1,498		83,768
Consolidated Edison, Inc.		1,347		76,321
Xcel Energy, Inc.		2,324		70,650
FirstEnergy Corp.		1,933		64,891
Northeast Utilities		1,453		64,368
Entergy Corp.		826		63,875
DTE Energy Co.		814		61,929
NiSource, Inc.		1,450		59,421
CenterPoint Energy, Inc.		1,976		48,353
NRG Energy, Inc.		1,553		47,335
Wisconsin Energy Corp.		1,037		44,591
AES Corp.		3,059		43,377
Ameren Corp.		1,116		42,776
CMS Energy Corp.		1,264		37,490
SCANA Corp.		653		32,395
Pepco Holdings, Inc.		1,154		30,881
AGL Resources, Inc.		549		28,186
Pinnacle West Capital Corp.		508		27,757
Integrys Energy Group, Inc.		368		23,854
TECO Energy, Inc.		1,073		18,649
Total Utilities				2,415,723

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
NOVA FUND

	Shares		Value
DIVERSIFIED - 0.0%
Leucadia National Corp.		1,457	$	34,735
Total Common Stocks
(Cost $51,624,072)				80,545,969
MUTUAL FUNDS† - 24.5%
Guggenheim Strategy Fund I2		1,289,957		32,132,831
Total Mutual Funds
(Cost $32,158,981)				32,132,831
	Face Amount
REPURCHASE AGREEMENTS††,3 - 6.7%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	3,813,079		3,813,079
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		2,229,548		2,229,548
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		1,576,632		1,576,632
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		983,807		983,807
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/144		163,960		163,960
Total Repurchase Agreements
(Cost $8,767,026)				8,767,026

SECURITIES LENDING COLLATERAL††,5 - 0.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		5,315		5,315
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		871		871
Total Securities Lending Collateral
(Cost $6,186)				6,186
Total Investments - 92.6%
(Cost $92,556,265)			$	121,452,012
Other Assets & Liabilities, net - 7.4%				9,736,006
Total Net Assets - 100.0%			$	131,188,018
	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $56,486,563)		575	$	(686,745	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2014 S&P 500 Index Swap, Terminating 10/28/146 (Notional Value $3,595,730)		1,823	$	6,149
Credit Suisse Capital, LLC October 2014 S&P 500 Index Swap, Terminating 10/29/146 (Notional Value $2,926,334)		1,484		1,432
Barclays Bank plc October 2014 S&P 500 Index Swap, Terminating 10/31/146 (Notional Value $53,157,037)		26,952		(278,588	)
(Total Notional Value $59,679,101)			$	(271,007	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
3	Repurchase Agreements — See Note 5.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
5	Securities lending collateral — See Note 6.
6	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

NOVA FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $6,854 of securities loaned (cost $83,783,053)	$	112,678,800
Repurchase agreements, at value (cost $8,773,212)		8,773,212
Total investments (cost $92,556,265)		121,452,012
Segregated cash with broker		8,745,972
Unrealized appreciation on swap agreements		7,581
Cash		1,334
Receivables:
Securities sold		1,499,401
Fund shares sold		153,095
Dividends		120,391
Swap settlement		43,575
Foreign taxes reclaim		180
Securities lending income		29
Total assets		132,023,570
Liabilities:
Unrealized depreciation on swap agreements		278,588
Payable for:
Fund shares redeemed		193,071
Variation margin		136,562
Management fees		79,664
Transfer agent and administrative fees		26,555
Distribution and service fees		14,026
Portfolio accounting fees		10,622
Upon return of securities loaned		7,200
Miscellaneous		89,264
Total liabilities		835,552
Net assets	$	131,188,018
Net assets consist of:
Paid in capital	$	116,578,117
Undistributed net investment income		309,072
Accumulated net realized loss on investments		(13,637,166	)
Net unrealized appreciation on investments		27,937,995
Net assets	$	131,188,018
Investor Class:
Net assets	$	108,747,452
Capital shares outstanding		2,372,288
Net asset value per share	$	45.84
Advisor Class:
Net assets	$	8,654,758
Capital shares outstanding		206,442
Net asset value per share	$	41.92
A-Class:
Net assets	$	3,004,154
Capital shares outstanding		69,712
Net asset value per share	$	43.09
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.24
C-Class:
Net assets	$	10,771,870
Capital shares outstanding		271,850
Net asset value per share	$	39.62
H-Class:
Net assets	$	9,784
Capital shares outstanding		227
Net asset value per share	$	43.09

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014 **
Investment Income:
Dividends (net of foreign withholding tax of $13)	$	1,077,578
Interest		742
Income from securities lending, net		240
Total investment income		1,078,560
Expenses:
Management fees		487,697
Transfer agent and administrative fees		162,566
Distribution and service fees:
Advisor Class		42,543
A-Class		2,240
C-Class		53,913
H-Class		10
Portfolio accounting fees		65,026
Custodian fees		7,653
Trustees’ fees*		4,550
Line of credit interest expense		86
Miscellaneous		112,355
Total expenses		938,639
Net investment income		139,921
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,603,419
Swap agreements		3,500,877
Futures contracts		3,737,986
Net realized gain		9,842,282
Net change in unrealized appreciation (depreciation) on:
Investments		2,397,259
Swap agreements		(607,610	)
Futures contracts		(959,002	)
Net change in unrealized appreciation (depreciation)		830,647
Net realized and unrealized gain		10,672,929
Net increase in net assets resulting from operations	$	10,812,850

*	Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.
**	Since commencement of operations: September 18, 2014 — H-Class.

18  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NOVA FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	139,921		$	179,996
Net realized gain on investments		9,842,282			11,012,089
Net change in unrealized appreciation (depreciation) on investments		830,647			11,266,770
Net increase in net assets resulting from operations		10,812,850			22,458,855
Capital share transactions:
Proceeds from sale of shares
Investor Class		226,389,579			498,203,037
Advisor Class		123,113,708			225,410,140
A-Class		2,275,498			1,020,317
C-Class		2,024,804			2,942,771
H-Class*		1,378,923			—
Cost of shares redeemed
Investor Class		(228,504,333	)		(464,394,553	)
Advisor Class		(124,900,437	)		(232,200,336	)
A-Class		(606,520	)		(1,333,344	)
C-Class		(2,478,257	)		(3,860,568	)
H-Class*		(1,385,096	)		—
Net increase (decrease) from capital share transactions		(2,692,131	)		25,787,464
Net increase in net assets		8,120,719			48,246,319
Net assets:
Beginning of period		123,067,299			74,820,980
End of period	$	131,188,018		$	123,067,299
Undistributed net investment income at end of period	$	309,072		$	169,151
Capital share activity:
Shares sold
Investor Class		5,129,067			13,162,417
Advisor Class		3,057,279			6,534,602
A-Class		52,929			29,025
C-Class		52,257			92,387
H-Class*		31,735			—
Shares redeemed
Investor Class		(5,206,431	)		(12,359,847	)
Advisor Class		(3,062,629	)		(6,734,244	)
A-Class		(14,385	)		(37,200	)
C-Class		(64,260	)		(118,184	)
H-Class*		(31,508	)		—
Net increase (decrease) in shares		(55,946	)		568,956

* Since commencement of operations: September 18, 2014.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  19 

NOVA FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	42.15		$	32.05		$	26.82		$	24.59		$	20.28		$	11.40
Income (loss) from investment operations:
Net investment income (loss)b		.08			.14			.05			.08			.02			.06
Net gain (loss) on investments (realized and unrealized)		3.61			9.96			5.21			2.15			4.31			8.97
Total from investment operations		3.69			10.10			5.26			2.23			4.33			9.03
Less distributions from:
Net investment income		—			—			(.03	)		—			(.02	)		(.15	)
Total distributions		—			—			(.03	)		—			(.02	)		(.15	)
Net asset value, end of period	$	45.84		$	42.15		$	32.05		$	26.82		$	24.59		$	20.28
Total Returnc		8.75	%		31.51	%		19.62	%		9.07	%		21.38	%		79.36	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	108,747		$	103,254		$	52,785		$	54,598		$	65,102		$	77,268
Ratios to average net assets:
Net investment income (loss)		0.38	%		0.37	%		0.20	%		0.36	%		0.11	%		0.33	%
Total expensesd		1.29	%		1.28	%		1.26	%		1.26	%		1.29	%		1.28	%
Portfolio turnover rate		169	%		259	%		137	%		116	%		53	%		68	%

Advisor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	38.64		$	29.51		$	24.85		$	22.88		$	18.97		$	10.73
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)		(.04	)		(.11	)		(.04	)		(.07	)		(.01	)
Net gain (loss) on investments (realized and unrealized)		3.32			9.17			4.80			2.01			4.00			8.40
Total from investment operations		3.28			9.13			4.69			1.97			3.93			8.39
Less distributions from:
Net investment income		—			—			(.03	)		—			(.02	)		(.15	)
Total distributions		—			—			(.03	)		—			(.02	)		(.15	)
Net asset value, end of period	$	41.92		$	38.64		$	29.51		$	24.85		$	22.88		$	18.97
Total Returnc		8.49	%		30.94	%		18.93	%		8.57	%		20.75	%		78.35	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,655		$	8,183		$	12,141		$	11,112		$	6,318		$	11,746
Ratios to average net assets:
Net investment income (loss)		(0.19	%)		(0.12	%)		(0.43	%)		(0.18	%)		(0.37	%)		(0.03	%)
Total expensesd		1.79	%		1.78	%		1.75	%		1.75	%		1.79	%		1.78	%
Portfolio turnover rate		169	%		259	%		137	%		116	%		53	%		68	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	39.67		$	30.23		$	25.38		$	23.32		$	19.28		$	10.88
Income (loss) from investment operations:
Net investment income (loss)b		.02			.05			(.01	)		.01			(.02	)		.03
Net gain (loss) on investments (realized and unrealized)		3.40			9.39			4.89			2.05			4.08			8.52
Total from investment operations		3.42			9.44			4.88			2.06			4.06			8.55
Less distributions from:
Net investment income		—			—			(.03	)		—			(.02	)		(.15	)
Total distributions		—			—			(.03	)		—			(.02	)		(.15	)
Net asset value, end of period	$	43.09		$	39.67		$	30.23		$	25.38		$	23.32		$	19.28
Total Returnc		8.62	%		31.23	%		19.28	%		8.79	%		21.09	%		78.74	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,004		$	1,237		$	1,189		$	1,472		$	5,843		$	1,876
Ratios to average net assets:
Net investment income (loss)		0.09	%		0.14	%		(0.04	%)		0.06	%		(0.11	%)		0.18	%
Total expensesd		1.54	%		1.53	%		1.50	%		1.51	%		1.54	%		1.54	%
Portfolio turnover rate		169	%		259	%		137	%		116	%		53	%		68	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	36.62		$	28.11		$	23.77		$	22.01		$	18.33		$	10.42
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.20	)		(.19	)		(.13	)		(.16	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		3.12			8.71			4.56			1.89			3.86			8.15
Total from investment operations		3.00			8.51			4.37			1.76			3.70			8.06
Less distributions from:
Net investment income		—			—			(.03	)		—			(.02	)		(.15	)
Total distributions		—			—			(.03	)		—			(.02	)		(.15	)
Net asset value, end of period	$	39.62		$	36.62		$	28.11		$	23.77		$	22.01		$	18.33
Total Returnc		8.19	%		30.27	%		18.39	%		8.00	%		20.22	%		77.51	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,772		$	10,394		$	8,705		$	8,829		$	10,461		$	10,661
Ratios to average net assets:
Net investment income (loss)		(0.63	%)		(0.62	%)		(0.79	%)		(0.62	%)		(0.85	%)		(0.61	%)
Total expensesd		2.29	%		2.28	%		2.25	%		2.26	%		2.29	%		2.28	%
Portfolio turnover rate		169	%		259	%		137	%		116	%		53	%		68	%

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

NOVA FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014e
Per Share Data
Net asset value, beginning of period	$	44.40
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)
Net gain (loss) on investments (realized and unrealized)		(1.29	)
Total from investment operations		(1.31	)
Net asset value, end of period	$	43.09
Total Returnc		(2.95	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10
Ratios to average net assets:
Net investment income (loss)		(1.05	%)
Total expensesd		1.55	%
Portfolio turnover rate		169	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.

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

FUND PROFILE (Unaudited) September 30, 2014

S&P 500^® Fund

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the S&P 500^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	2.9%
Exxon Mobil Corp.	1.9%
Microsoft Corp.	1.8%
Johnson & Johnson	1.4%
General Electric Co.	1.2%
Berkshire Hathaway, Inc. — Class B	1.2%
Wells Fargo & Co.	1.2%
Procter & Gamble Co.	1.1%
JPMorgan Chase & Co.	1.1%
Chevron Corp.	1.1%
Top Ten Total	14.9%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  23 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
S&P 500® Fund

	Shares		Value
COMMON STOCKS† - 83.3%
CONSUMER, NON-CYCLICAL - 18.7%
Johnson & Johnson		36,272	$	3,866,232
Procter & Gamble Co.		34,823		2,916,078
Pfizer, Inc.		81,550		2,411,434
Merck & Company, Inc.		37,099		2,199,229
Coca-Cola Co.		50,767		2,165,720
Gilead Sciences, Inc.*		19,442		2,069,601
PepsiCo, Inc.		19,379		1,803,991
Philip Morris International, Inc.		20,091		1,675,590
Amgen, Inc.		9,769		1,372,154
AbbVie, Inc.		20,471		1,182,405
Altria Group, Inc.		25,509		1,171,883
Bristol-Myers Squibb Co.		21,322		1,091,260
UnitedHealth Group, Inc.		12,496		1,077,780
Biogen Idec, Inc.*		3,037		1,004,670
Celgene Corp.*		10,283		974,623
MasterCard, Inc. — Class A		12,659		935,752
Actavis plc*		3,399		820,111
Eli Lilly & Co.		12,645		820,028
Abbott Laboratories		19,339		804,309
Medtronic, Inc.		12,598		780,445
Mondelez International, Inc. — Class A		21,682		742,933
Colgate-Palmolive Co.		11,041		720,094
Allergan, Inc.		3,822		681,042
Express Scripts Holding Co.*		9,587		677,130
McKesson Corp.		2,979		579,922
Kimberly-Clark Corp.		4,809		517,304
Automatic Data Processing, Inc.		6,185		513,850
Covidien plc		5,810		502,623
Baxter International, Inc.		6,966		499,950
Kraft Foods Group, Inc.		7,639		430,840
Archer-Daniels-Midland Co.		8,302		424,232
WellPoint, Inc.		3,527		421,900
Alexion Pharmaceuticals, Inc.*		2,544		421,846
General Mills, Inc.		7,878		397,445
Aetna, Inc.		4,561		369,441
Vertex Pharmaceuticals, Inc.*		3,062		343,893
Regeneron Pharmaceuticals, Inc.*		949		342,133
Kroger Co.		6,288		326,976
Cardinal Health, Inc.		4,330		324,404
Stryker Corp.		3,846		310,565
Cigna Corp.		3,393		307,711
McGraw Hill Financial, Inc.		3,484		294,224
Sysco Corp.		7,546		286,371
Becton Dickinson and Co.		2,467		280,769
Lorillard, Inc.		4,630		277,383
Humana, Inc.		1,984		258,495
Perrigo Company plc		1,721		258,477
Mead Johnson Nutrition Co. — Class A		2,600		250,172
Zoetis, Inc.		6,446		238,180
Reynolds American, Inc.		3,963		233,817
Moody’s Corp.		2,390		225,855
St. Jude Medical, Inc.		3,661		220,136
Mylan, Inc.*		4,811		218,852
Zimmer Holdings, Inc.		2,172		218,395
Estee Lauder Companies, Inc. — Class A		2,893		216,165
Intuitive Surgical, Inc.*		462		213,361
AmerisourceBergen Corp. — Class A		2,741		211,879
Keurig Green Mountain, Inc.		1,567		203,914
Kellogg Co.		3,288		202,541
Boston Scientific Corp.*		17,050		201,361
Constellation Brands, Inc. — Class A*		2,155		187,830
Brown-Forman Corp. — Class B		2,032		183,327
Hershey Co.		1,919		183,130
ConAgra Foods, Inc.		5,434		179,539
Alliance Data Systems Corp.*		714		177,265
Whole Foods Market, Inc.		4,646		177,059
Monster Beverage Corp.*		1,849		169,498
DaVita HealthCare Partners, Inc.*		2,210		161,639
Dr Pepper Snapple Group, Inc.		2,510		161,418
Clorox Co.		1,657		159,138
Molson Coors Brewing Co. — Class B		2,047		152,379
Tyson Foods, Inc. — Class A		3,767		148,307
Edwards Lifesciences Corp.*		1,364		139,333
CR Bard, Inc.		960		137,002
United Rentals, Inc.*		1,233		136,986
Mallinckrodt plc*		1,457		131,349
JM Smucker Co.		1,309		129,578
Coca-Cola Enterprises, Inc.		2,905		128,866
Universal Health Services, Inc. — Class B		1,173		122,579
CareFusion Corp.*		2,609		118,057
Equifax, Inc.		1,566		117,043
Hospira, Inc.*		2,170		112,905
Quest Diagnostics, Inc.		1,857		112,683
McCormick & Company, Inc.		1,670		111,723
Laboratory Corporation of America Holdings*		1,092		111,111
H&R Block, Inc.		3,538		109,713
Western Union Co.		6,813		109,281
Varian Medical Systems, Inc.*		1,327		106,319
Safeway, Inc.		2,963		101,631
Quanta Services, Inc.*		2,788		101,177
Campbell Soup Co.		2,301		98,322
Hormel Foods Corp.		1,728		88,802
Cintas Corp.		1,243		87,743
Robert Half International, Inc.		1,768		86,632
DENTSPLY International, Inc.		1,823		83,128
ADT Corp.		2,238		79,359
Tenet Healthcare Corp.*		1,259		74,772
Avon Products, Inc.		5,590		70,434
Total System Services, Inc.		2,125		65,790
Avery Dennison Corp.		1,205		53,803
Patterson Companies, Inc.		1,113		46,112
Total Consumer, Non-cyclical				50,522,638

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
S&P 500® Fund

	Shares		Value
FINANCIAL - 13.9%
Berkshire Hathaway, Inc. — Class B*		23,446	$	3,238,830
Wells Fargo & Co.		61,097		3,169,102
JPMorgan Chase & Co.		48,374		2,914,050
Bank of America Corp.		135,245		2,305,927
Citigroup, Inc.		38,992		2,020,565
Visa, Inc. — Class A		6,331		1,350,846
American Express Co.		11,576		1,013,363
American International Group, Inc.		18,351		991,320
U.S. Bancorp		23,175		969,410
Goldman Sachs Group, Inc.		5,270		967,414
MetLife, Inc.		14,465		777,060
Morgan Stanley		19,696		680,891
Simon Property Group, Inc.		3,997		657,187
PNC Financial Services Group, Inc.		6,952		594,952
Capital One Financial Corp.		7,219		589,215
Bank of New York Mellon Corp.		14,554		563,677
BlackRock, Inc. — Class A		1,622		532,536
Prudential Financial, Inc.		5,916		520,252
American Tower Corp. — Class A		5,095		477,044
ACE Ltd.		4,317		452,724
Charles Schwab Corp.		14,751		433,532
Travelers Companies, Inc.		4,360		409,579
State Street Corp.		5,447		400,954
Discover Financial Services		5,941		382,541
Marsh & McLennan Companies, Inc.		7,000		366,380
Crown Castle International Corp.		4,294		345,796
BB&T Corp.		9,255		344,379
Allstate Corp.		5,574		342,076
Aflac, Inc.		5,827		339,423
Aon plc		3,736		327,535
CME Group, Inc. — Class A		4,062		324,777
Public Storage		1,865		309,291
Ameriprise Financial, Inc.		2,408		297,099
Equity Residential		4,652		286,470
Intercontinental Exchange, Inc.		1,459		284,578
Chubb Corp.		3,093		281,710
Franklin Resources, Inc.		5,066		276,654
T. Rowe Price Group, Inc.		3,383		265,227
Health Care REIT, Inc.		4,168		259,958
SunTrust Banks, Inc.		6,828		259,669
Prologis, Inc.		6,430		242,411
AvalonBay Communities, Inc.		1,687		237,816
Ventas, Inc.		3,785		234,481
HCP, Inc.		5,901		234,329
Boston Properties, Inc.		1,969		227,931
Vornado Realty Trust		2,245		224,410
Invesco Ltd.		5,565		219,706
Weyerhaeuser Co.		6,795		216,489
Fifth Third Bancorp		10,729		214,795
Hartford Financial Services Group, Inc.		5,759		214,523
M&T Bank Corp.		1,697		209,223
Host Hotels & Resorts, Inc.		9,735		207,648
Northern Trust Corp.		2,848		193,749
General Growth Properties, Inc.		8,071		190,072
Principal Financial Group, Inc.		3,515		184,432
Lincoln National Corp.		3,358		179,922
Regions Financial Corp.		17,729		177,999
Progressive Corp.		6,922		174,988
Loews Corp.		3,921		163,349
KeyCorp		11,277		150,322
Essex Property Trust, Inc.		816		145,860
Affiliated Managers Group, Inc.*		714		143,057
Comerica, Inc.		2,326		115,974
Kimco Realty Corp.		5,286		115,816
Macerich Co.		1,809		115,468
XL Group plc — Class A		3,415		113,276
Unum Group		3,277		112,663
CBRE Group, Inc. — Class A*		3,588		106,707
Huntington Bancshares, Inc.		10,508		102,243
Navient Corp.		5,394		95,528
Cincinnati Financial Corp.		1,894		89,113
Plum Creek Timber Company, Inc.		2,278		88,865
Torchmark Corp.		1,680		87,982
E*TRADE Financial Corp.*		3,713		83,877
Genworth Financial, Inc. — Class A*		6,387		83,670
Zions Bancorporation		2,608		75,788
Iron Mountain, Inc.		2,210		72,157
Legg Mason, Inc.		1,311		67,071
NASDAQ OMX Group, Inc.		1,519		64,436
Hudson City Bancorp, Inc.		6,188		60,147
Apartment Investment & Management Co. — Class A		1,879		59,790
Assurant, Inc.		918		59,027
People’s United Financial, Inc.		3,991		57,750
Total Financial				37,538,853
TECHNOLOGY - 11.3%
Apple, Inc.		77,010		7,758,757
Microsoft Corp.		105,973		4,912,908
International Business Machines Corp.		11,932		2,265,051
Intel Corp.		63,675		2,217,163
QUALCOMM, Inc.		21,555		1,611,667
Oracle Corp.		41,825		1,601,061
Hewlett-Packard Co.		24,002		851,351
EMC Corp.		26,091		763,422
Accenture plc — Class A		8,118		660,156
Texas Instruments, Inc.		13,730		654,784
Micron Technology, Inc.*		13,772		471,829
salesforce.com, Inc.*		7,404		425,952
Adobe Systems, Inc.*		6,077		420,468
Cognizant Technology Solutions Corp. — Class A*		7,819		350,057
Applied Materials, Inc.		15,670		338,629
Intuit, Inc.		3,651		320,010
SanDisk Corp.		2,884		282,488
Avago Technologies Ltd.		3,237		281,619

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
S&P 500® Fund

	Shares		Value
Broadcom Corp. — Class A		6,917	$	279,585
Western Digital Corp.		2,829		275,318
Seagate Technology plc		4,203		240,706
Cerner Corp.*		3,904		232,561
Fiserv, Inc.*		3,205		207,155
Fidelity National Information Services, Inc.		3,671		206,677
Analog Devices, Inc.		4,041		199,989
Paychex, Inc.		4,203		185,773
Xerox Corp.		13,941		184,439
NetApp, Inc.		4,106		176,394
KLA-Tencor Corp.		2,127		167,565
Autodesk, Inc.*		2,922		161,002
Lam Research Corp.		2,084		155,675
Citrix Systems, Inc.*		2,115		150,884
Xilinx, Inc.		3,453		146,235
Electronic Arts, Inc.*		4,021		143,188
Altera Corp.		3,974		142,190
Akamai Technologies, Inc.*		2,291		137,002
Red Hat, Inc.*		2,432		136,557
Linear Technology Corp.		3,068		136,189
NVIDIA Corp.		6,621		122,157
Microchip Technology, Inc.		2,577		121,712
CA, Inc.		4,121		115,141
Computer Sciences Corp.		1,866		114,106
Teradata Corp.*		1,993		83,547
Pitney Bowes, Inc.		2,608		65,174
First Solar, Inc.*		966		63,572
Dun & Bradstreet Corp.		468		54,976
Total Technology				30,592,841
COMMUNICATIONS - 9.9%
Verizon Communications, Inc.		53,312		2,665,067
AT&T, Inc.		66,698		2,350,438
Google, Inc. — Class A*		3,654		2,150,051
Google, Inc. — Class C*		3,653		2,109,096
Facebook, Inc. — Class A*		25,080		1,982,323
Walt Disney Co.		20,310		1,808,199
Comcast Corp. — Class A		33,286		1,790,120
Cisco Systems, Inc.		65,581		1,650,674
Amazon.com, Inc.*		4,873		1,571,250
Twenty-First Century Fox, Inc. — Class A		24,223		830,607
Time Warner, Inc.		10,994		826,859
eBay, Inc.*		14,527		822,664
Priceline Group, Inc.*		674		780,884
DIRECTV*		6,459		558,833
Time Warner Cable, Inc.		3,583		514,125
Yahoo!, Inc.*		11,896		484,762
Viacom, Inc. — Class B		4,897		376,775
Netflix, Inc.*		773		348,762
CBS Corp. — Class B		6,233		333,466
Corning, Inc.		16,604		321,121
CenturyLink, Inc.		7,333		299,846
Omnicom Group, Inc.		3,230		222,418
Symantec Corp.		8,880		208,768
Motorola Solutions, Inc.		2,839		179,652
Nielsen N.V.		3,913		173,463
Discovery Communications, Inc. — Class C*		3,514		131,002
TripAdvisor, Inc.*		1,432		130,913
Juniper Networks, Inc.		5,164		114,382
F5 Networks, Inc.*		953		113,159
Expedia, Inc.		1,276		111,803
News Corp. — Class A*		6,404		104,706
Scripps Networks Interactive, Inc. — Class A		1,334		104,172
Interpublic Group of Companies, Inc.		5,420		99,294
Harris Corp.		1,347		89,441
Gannett Company, Inc.		2,902		86,102
Frontier Communications Corp.		12,888		83,901
Windstream Holdings, Inc.1		7,751		83,556
VeriSign, Inc.*		1,447		79,759
Discovery Communications, Inc. — Class A*		1,903		71,933
Cablevision Systems Corp. — Class A		2,790		48,853
Total Communications				26,813,199
INDUSTRIAL - 8.6%
General Electric Co.		129,047		3,306,183
Union Pacific Corp.		11,542		1,251,383
3M Co.		8,334		1,180,761
United Technologies Corp.		10,942		1,155,475
Boeing Co.		8,619		1,097,887
Honeywell International, Inc.		10,064		937,160
United Parcel Service, Inc. — Class B		9,046		889,131
Caterpillar, Inc.		8,075		799,667
Lockheed Martin Corp.		3,470		634,247
Thermo Fisher Scientific, Inc.		5,131		624,443
Danaher Corp.		7,840		595,683
Emerson Electric Co.		8,976		561,718
FedEx Corp.		3,414		551,190
General Dynamics Corp.		4,085		519,163
Norfolk Southern Corp.		3,981		444,280
Precision Castparts Corp.		1,845		437,044
CSX Corp.		12,856		412,163
Raytheon Co.		3,996		406,074
Illinois Tool Works, Inc.		4,692		396,099
Eaton Corporation plc		6,121		387,888
Deere & Co.		4,610		377,974
Northrop Grumman Corp.		2,674		352,326
TE Connectivity Ltd.		5,264		291,047
Cummins, Inc.		2,200		290,356
Waste Management, Inc.		5,579		265,170
Tyco International Ltd.		5,704		254,227
Agilent Technologies, Inc.		4,289		244,387
Parker-Hannifin Corp.		1,914		218,483
Amphenol Corp. — Class A		2,017		201,418
Rockwell Automation, Inc.		1,773		194,817
Ingersoll-Rand plc		3,440		193,878
Roper Industries, Inc.		1,287		188,275
Stanley Black & Decker, Inc.		2,010		178,468
Dover Corp.		2,142		172,067

26  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
S&P 500® Fund

	Shares		Value
Kansas City Southern		1,419	$	171,983
Pentair plc		2,477		162,219
AMETEK, Inc.		3,161		158,714
Rockwell Collins, Inc.		1,738		136,433
Fluor Corp.		2,026		135,317
L-3 Communications Holdings, Inc.		1,109		131,882
Textron, Inc.		3,591		129,240
Stericycle, Inc.*		1,091		127,167
Republic Services, Inc. — Class A		3,248		126,737
CH Robinson Worldwide, Inc.		1,893		125,544
Flowserve Corp.		1,759		124,045
Pall Corp.		1,374		115,004
Ball Corp.		1,780		112,621
Masco Corp.		4,584		109,649
Waters Corp.*		1,080		107,050
Martin Marietta Materials, Inc.		792		102,121
Expeditors International of Washington, Inc.		2,509		101,815
Vulcan Materials Co.		1,684		101,427
Sealed Air Corp.		2,727		95,117
Snap-on, Inc.		747		90,447
Jacobs Engineering Group, Inc.*		1,711		83,531
Xylem, Inc.		2,349		83,366
Garmin Ltd.		1,561		81,156
Joy Global, Inc.		1,263		68,884
PerkinElmer, Inc.		1,452		63,307
Leggett & Platt, Inc.		1,765		61,634
Ryder System, Inc.		683		61,450
Allegion plc		1,236		58,883
FLIR Systems, Inc.		1,823		57,133
Owens-Illinois, Inc.*		2,120		55,226
Jabil Circuit, Inc.		2,570		51,837
Bemis Company, Inc.		1,285		48,856
Total Industrial				23,250,327
ENERGY - 8.1%
Exxon Mobil Corp.		54,849		5,158,548
Chevron Corp.		24,422		2,914,033
Schlumberger Ltd.		16,674		1,695,579
ConocoPhillips		15,814		1,210,087
Occidental Petroleum Corp.		10,027		964,096
Halliburton Co.		10,939		705,675
EOG Resources, Inc.		7,041		697,200
Anadarko Petroleum Corp.		6,507		660,070
Phillips 66		7,188		584,456
Williams Companies, Inc.		8,650		478,778
Apache Corp.		4,919		461,747
National Oilwell Varco, Inc.		5,533		421,061
Baker Hughes, Inc.		5,595		364,011
Pioneer Natural Resources Co.		1,840		362,425
Spectra Energy Corp.		8,628		338,735
Devon Energy Corp.		4,946		337,218
Marathon Oil Corp.		8,675		326,093
Kinder Morgan, Inc.		8,461		324,395
Hess Corp.		3,364		317,292
Noble Energy, Inc.		4,633		316,712
Valero Energy Corp.		6,790		314,174
Marathon Petroleum Corp.		3,644		308,537
Equities Corp.		1,948		178,320
Cabot Oil & Gas Corp. — Class A		5,367		175,447
ONEOK, Inc.		2,675		175,346
Cameron International Corp.*		2,610		173,252
FMC Technologies, Inc.*		3,021		164,071
Southwestern Energy Co.*		4,542		158,743
Chesapeake Energy Corp.		6,679		153,550
Range Resources Corp.		2,170		147,148
Cimarex Energy Co.		1,119		141,587
Transocean Ltd.1		4,379		139,997
Helmerich & Payne, Inc.		1,392		136,235
Ensco plc — Class A		3,006		124,178
Murphy Oil Corp.		2,147		122,186
CONSOL Energy, Inc.		2,960		112,066
Tesoro Corp.		1,649		100,556
Nabors Industries Ltd.		3,722		84,713
Noble Corporation plc		3,270		72,659
Denbury Resources, Inc.		4,531		68,101
QEP Resources, Inc.		2,131		65,592
Newfield Exploration Co.*		1,758		65,169
Diamond Offshore Drilling, Inc.1		864		29,609
Total Energy				21,849,447
CONSUMER, CYCLICAL - 7.6%
Home Depot, Inc.		17,310		1,588,019
Wal-Mart Stores, Inc.		20,308		1,552,952
McDonald’s Corp.		12,629		1,197,355
CVS Health Corp.		14,895		1,185,492
NIKE, Inc. — Class B		9,045		806,814
Ford Motor Co.		49,881		737,740
Starbucks Corp.		9,661		729,019
Costco Wholesale Corp.		5,637		706,429
Lowe’s Companies, Inc.		12,695		671,819
Walgreen Co.		11,318		670,818
General Motors Co.		17,336		553,712
TJX Companies, Inc.		8,912		527,323
Target Corp.		8,150		510,842
Yum! Brands, Inc.		5,654		406,975
Delta Air Lines, Inc.		10,842		391,939
Johnson Controls, Inc.		8,565		376,861
Southwest Airlines Co.		8,812		297,581
VF Corp.		4,436		292,909
Chipotle Mexican Grill, Inc. — Class A*		399		265,969
Macy’s, Inc.		4,542		264,254
PACCAR, Inc.		4,563		259,521
Dollar General Corp.*		3,902		238,451
Delphi Automotive plc		3,854		236,404
Carnival Corp.		5,793		232,705
AutoZone, Inc.*		419		213,547
L Brands, Inc.		3,158		211,523
Ross Stores, Inc.		2,699		203,990

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  27 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
S&P 500® Fund

	Shares		Value
Starwood Hotels & Resorts Worldwide, Inc.		2,450	$	203,864
O’Reilly Automotive, Inc.*		1,335		200,731
WW Grainger, Inc.		783		197,042
Marriott International, Inc. — Class A		2,803		195,930
Wynn Resorts Ltd.		1,043		195,124
Michael Kors Holdings Ltd.*		2,640		188,470
Genuine Parts Co.		1,969		172,701
Bed Bath & Beyond, Inc.*		2,597		170,961
Harley-Davidson, Inc.		2,797		162,785
Kohl’s Corp.		2,632		160,631
Fastenal Co.		3,511		157,644
BorgWarner, Inc.		2,938		154,568
Dollar Tree, Inc.*		2,645		148,305
Under Armour, Inc. — Class A*		2,140		147,874
The Gap, Inc.		3,523		146,874
Whirlpool Corp.		1,003		146,087
Tiffany & Co.		1,447		139,361
Mattel, Inc.		4,345		133,174
CarMax, Inc.*		2,820		130,989
Wyndham Worldwide Corp.		1,610		130,829
Ralph Lauren Corp. — Class A		780		128,489
PVH Corp.		1,060		128,419
Coach, Inc.		3,532		125,775
Best Buy Company, Inc.		3,732		125,358
Nordstrom, Inc.		1,833		125,322
Newell Rubbermaid, Inc.		3,521		121,158
Tractor Supply Co.		1,771		108,934
Mohawk Industries, Inc.*		796		107,317
Staples, Inc.		8,285		100,249
Family Dollar Stores, Inc.		1,231		95,082
PetSmart, Inc.		1,278		89,575
Lennar Corp. — Class A		2,287		88,805
Darden Restaurants, Inc.		1,702		87,585
DR Horton, Inc.		4,266		87,538
Harman International Industries, Inc.		876		85,883
Hasbro, Inc.		1,476		81,173
Goodyear Tire & Rubber Co.		3,541		79,973
PulteGroup, Inc.		4,352		76,856
GameStop Corp. — Class A		1,449		59,699
Fossil Group, Inc.*		599		56,246
AutoNation, Inc.*		1,006		50,612
Urban Outfitters, Inc.*		1,313		48,187
Total Consumer, Cyclical				20,673,142
BASIC MATERIALS - 2.7%
EI du Pont de Nemours & Co.		11,771		844,687
Monsanto Co.		6,747		759,105
Dow Chemical Co.		14,436		757,024
LyondellBasell Industries N.V. — Class A		5,469		594,262
Praxair, Inc.		3,756		484,524
Freeport-McMoRan, Inc.		13,363		436,302
Ecolab, Inc.		3,468		398,230
PPG Industries, Inc.		1,773		348,820
Air Products & Chemicals, Inc.		2,466		321,024
International Paper Co.		5,492		262,188
Alcoa, Inc.		15,129		243,426
Sherwin-Williams Co.		1,069		234,100
Nucor Corp.		4,101		222,602
Sigma-Aldrich Corp.		1,530		208,095
Mosaic Co.		4,096		181,903
CF Industries Holdings, Inc.		639		178,422
Eastman Chemical Co.		1,918		155,147
Newmont Mining Corp.		6,415		147,866
International Flavors & Fragrances, Inc.		1,044		100,099
FMC Corp.		1,713		97,966
Airgas, Inc.		863		95,491
MeadWestvaco Corp.		2,167		88,717
Allegheny Technologies, Inc.		1,398		51,866
Total Basic Materials				7,211,866
UTILITIES - 2.5%
Duke Energy Corp.		9,096		680,108
NextEra Energy, Inc.		5,612		526,855
Dominion Resources, Inc.		7,494		517,760
Southern Co.		11,520		502,848
Exelon Corp.		11,050		376,695
American Electric Power Company, Inc.		6,285		328,140
Sempra Energy		2,973		313,294
PPL Corp.		8,545		280,618
PG&E Corp.		6,063		273,078
Public Service Enterprise Group, Inc.		6,507		242,321
Edison International		4,190		234,305
Consolidated Edison, Inc.		3,767		213,438
Xcel Energy, Inc.		6,500		197,600
FirstEnergy Corp.		5,406		181,479
Northeast Utilities		4,064		180,035
Entergy Corp.		2,310		178,632
DTE Energy Co.		2,276		173,158
NiSource, Inc.		4,055		166,174
CenterPoint Energy, Inc.		5,528		135,270
NRG Energy, Inc.		4,343		132,375
Wisconsin Energy Corp.		2,900		124,700
AES Corp.		8,558		121,352
Ameren Corp.		3,121		119,628
CMS Energy Corp.		3,536		104,878
SCANA Corp.		1,827		90,637
Pepco Holdings, Inc.		3,228		86,381
AGL Resources, Inc.		1,537		78,910
Pinnacle West Capital Corp.		1,420		77,589
Integrys Energy Group, Inc.		1,028		66,635
TECO Energy, Inc.		3,000		52,140
Total Utilities				6,757,033

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
S&P 500® Fund

	Shares		Value
DIVERSIFIED - 0.0%
Leucadia National Corp.		4,076	$	97,172
Total Common Stocks
(Cost $141,995,209)				225,306,518
	Face Amount
REPURCHASE AGREEMENTS††,2 - 11.9%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	14,171,843		14,171,843
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		8,286,429		8,286,429
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		5,859,776		5,859,776
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		3,656,457		3,656,457
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/143		214,919		214,919
Total Repurchase Agreements
(Cost $32,189,424)				32,189,424
SECURITIES LENDING COLLATERAL††,4 - 0.1%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		97,109		97,109
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		15,919		15,919
Total Securities Lending Collateral
(Cost $113,028)				113,028
Total Investments - 95.3%
(Cost $174,297,661)			$	257,608,970
Other Assets & Liabilities, net - 4.7%				12,828,360
Total Net Assets - 100.0%			$	270,437,330

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $26,524,125)		270	$	(42,745	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse Capital, LLC October 2014 S&P 500 Index Swap, Terminating 10/29/145 (Notional Value $939,431)		476	$	3,577
Goldman Sachs International October 2014 S&P 500 Index Swap, Terminating 10/28/145 (Notional Value $941,037)		477		3,570
Barclays Bank plc October 2014 S&P 500 Index Swap, Terminating 10/31/145 (Notional Value $18,429,881)		9,344		(95,862	)
(Total Notional Value $20,310,349)			$	(88,715	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
4	Securities lending collateral — See Note 6.
5	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

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

S&P 500^® Fund

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $127,162 of securities loaned (cost $141,995,209)	$	225,306,518
Repurchase agreements, at value (cost $32,302,452)		32,302,452
Total investments (cost $174,297,661)		257,608,970
Segregated cash with broker		3,344,856
Unrealized appreciation on swap agreements		7,147
Cash		2,498
Receivables:
Securities sold		7,994,077
Fund shares sold		5,950,068
Dividends		242,520
Swap settlement		7,390
Foreign taxes reclaim		425
Securities lending income		158
Total assets		275,158,109
Liabilities:
Unrealized depreciation on swap agreements		95,862
Payable for:
Fund shares redeemed		3,891,272
Management fees		172,596
Upon return of securities loaned		131,550
Distribution and service fees		68,612
Transfer agent and administrative fees		57,532
Portfolio accounting fees		34,519
Variation margin		32,514
Miscellaneous		236,322
Total liabilities		4,720,779
Net assets	$	270,437,330
Net assets consist of:
Paid in capital	$	196,866,090
Accumulated net investment loss		(32,095	)
Accumulated net realized loss on investments		(9,576,514	)
Net unrealized appreciation on investments		83,179,849
Net assets	$	270,437,330
A-Class:
Net assets	$	31,845,675
Capital shares outstanding		798,533
Net asset value per share	$	39.88
Maximum offering price per share (Net asset value divided by 95.25%)	$	41.87
C-Class:
Net assets	$	17,575,469
Capital shares outstanding		470,711
Net asset value per share	$	37.34
H-Class:
Net assets	$	221,016,186
Capital shares outstanding		5,541,266
Net asset value per share	$	39.89

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	2,479,099
Interest		4,112
Income from securities lending, net		1,335
Total investment income		2,484,546
Expenses:
Management fees		1,137,421
Transfer agent and administrative fees		379,141
Distribution and service fees:
A-Class		33,743
C-Class		88,755
H-Class		323,211
Portfolio accounting fees		227,486
Custodian fees		17,706
Trustees’ fees*		12,826
Tax expense		3,540
Miscellaneous		276,531
Total expenses		2,500,360
Net investment loss		(15,814	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		5,783,709
Swap agreements		2,597,009
Futures contracts		262,484
Net realized gain		8,643,202
Net change in unrealized appreciation (depreciation) on:
Investments		5,261,682
Swap agreements		(699,081	)
Futures contracts		(517,616	)
Net change in unrealized appreciation (depreciation)		4,044,985
Net realized and unrealized gain		12,688,187
Net increase in net assets resulting from operations	$	12,672,373

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

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

S&P 500^® Fund

STATEMENTS OF CHANGES IN NET ASSETS

	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(15,814	)	$	386,849
Net realized gain on investments		8,643,202			26,564,556
Net change in unrealized appreciation (depreciation) on investments		4,044,985			13,292,846
Net increase in net assets resulting from operations		12,672,373			40,244,251
Distributions to shareholders from:
Net investment income
A-Class		—			(27,498	)
C-Class		—			(17,900	)
H-Class		—			(356,867	)
Total distributions to shareholders		—			(402,265	)
Capital share transactions:
Proceeds from sale of shares
A-Class		26,904,634			67,031,023
C-Class		25,820,919			69,955,990
H-Class		736,453,970			1,826,152,142
Distributions reinvested
A-Class		—			20,158
C-Class		—			17,263
H-Class		—			258,190
Cost of shares redeemed
A-Class		(24,459,897	)		(54,708,718	)
C-Class		(25,229,231	)		(66,380,612	)
H-Class		(781,846,403	)		(1,869,669,239	)
Net decrease from capital share transactions		(42,356,008	)		(27,323,803	)
Net increase (decrease) in net assets		(29,683,635	)		12,518,183
Net assets:
Beginning of period		300,120,965			287,602,782
End of period	$	270,437,330		$	300,120,965
Accumulated net investment loss at end of period	$	(32,095	)	$	(16,281	)
Capital share activity:
Shares sold
A-Class		692,972			1,949,686
C-Class		702,270			2,155,638
H-Class		18,718,316			52,445,747
Shares issued from reinvestment of distributions
A-Class		—			563
C-Class		—			512
H-Class		—			7,212
Shares redeemed
A-Class		(636,303	)		(1,589,203	)
C-Class		(687,312	)		(2,042,904	)
H-Class		(19,949,936	)		(54,091,461	)
Net decrease in shares		(1,159,993	)		(1,164,210	)

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

S&P 500^® Fund

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	37.78		$	31.55		$	28.20		$	26.41		$	23.18		$	15.79
Income (loss) from investment operations:
Net investment income (loss)b		.01			.07			.06			.01			(.06	)		.07
Net gain (loss) on investments (realized and unrealized)		2.09			6.20			3.36			1.78			3.29			7.43
Total from investment operations		2.10			6.27			3.42			1.79			3.23			7.50
Less distributions from:
Net investment income		—			(.04	)		(.07	)		—			(—	)c		(.11	)
Total distributions		—			(.04	)		(.07	)		—			(—	)		(.11	)
Net asset value, end of period	$	39.88		$	37.78		$	31.55		$	28.20		$	26.41		$	23.18
Total Returnd		5.56	%		19.87	%		12.16	%		6.78	%		13.94	%		47.55	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	31,846		$	28,028		$	12,014		$	13,413		$	10,288		$	46,312
Ratios to average net assets:
Net investment income (loss)		0.04	%		0.19	%		0.22	%		0.05	%		(0.25	%)		0.34	%
Total expenses		1.61	%		1.57	%		1.50	%		1.51	%		1.54	%		1.53	%
Portfolio turnover rate		125	%		157	%		76	%		196	%		202	%		58	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	35.51		$	29.87		$	26.91		$	25.41		$	22.50		$	15.44
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.19	)		(.14	)		(.20	)		(.27	)		(.08	)
Net gain (loss) on investments (realized and unrealized)		1.95			5.87			3.17			1.70			3.18			7.25
Total from investment operations		1.83			5.68			3.03			1.50			2.91			7.17
Less distributions from:
Net investment income		—			(.04	)		(.07	)		—			(—	)c		(.11	)
Total distributions		—			(.04	)		(.07	)		—			(—	)		(.11	)
Net asset value, end of period	$	37.34		$	35.51		$	29.87		$	26.91		$	25.41		$	22.50
Total Returnd		5.15	%		19.01	%		11.29	%		5.90	%		12.93	%		46.49	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17,575		$	16,182		$	10,231		$	10,110		$	10,032		$	11,456
Ratios to average net assets:
Net investment income (loss)		(0.68	%)		(0.59	%)		(0.52	%)		(0.80	%)		(1.11	%)		(0.41	%)
Total expenses		2.36	%		2.32	%		2.28	%		2.26	%		2.29	%		2.28	%
Portfolio turnover rate		125	%		157	%		76	%		196	%		202	%		58	%

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

S&P 500^® Fund

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	37.78		$	31.55		$	28.20		$	26.39		$	23.17		$	15.78
Income (loss) from investment operations:
Net investment income (loss)b		.01			.05			.07			(.02	)		(.09	)		.06
Net gain (loss) on investments (realized and unrealized)		2.10			6.22			3.35			1.83			3.31			7.44
Total from investment operations		2.11			6.27			3.42			1.81			3.22			7.50
Less distributions from:
Net investment income		—			(.04	)		(.07	)		—			(—	)c		(.11	)
Total distributions		—			(.04	)		(.07	)		—			(—	)		(.11	)
Net asset value, end of period	$	39.89		$	37.78		$	31.55		$	28.20		$	26.39		$	23.17
Total Returnd		5.58	%		19.87	%		12.16	%		6.86	%		13.90	%		47.58	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	221,016		$	255,912		$	265,358		$	240,847		$	249,090		$	194,193
Ratios to average net assets:
Net investment income (loss)		0.03	%		0.15	%		0.24	%		(0.07	%)		(0.37	%)		0.29	%
Total expenses		1.60	%		1.56	%		1.50	%		1.50	%		1.54	%		1.53	%
Portfolio turnover rate		125	%		157	%		76	%		196	%		202	%		58	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Distributions from net investment income are less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

INVERSE S&P 500^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P 500^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	January 7, 1994
Advisor Class	August 5, 1998
A-Class	March 31, 2004
C-Class	March 15, 2001
H-Class	September 18, 2014

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

34  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INVERSE S&P 500® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 24.1%
Guggenheim Strategy Fund I1		868,710	$	21,639,562
Total Mutual Funds
(Cost $21,707,282)				21,639,562
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 39.0%
Freddie Mac2
0.09% due 10/29/14	$	15,000,000		14,999,865
0.10% due 11/12/14		10,000,000		9,999,850
Total Freddie Mac				24,999,715
Farmer Mac3
0.07% due 10/24/14		5,000,000		4,999,960
Federal Home Loan Bank3
0.07% due 11/19/14		5,000,000		4,999,910
Total Federal Agency Discount Notes
(Cost $34,997,083)				34,999,585
REPURCHASE AGREEMENTS††,4 - 22.2%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		7,997,699		7,997,699
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		4,676,340		4,676,340
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		3,306,890		3,306,890
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		2,063,475		2,063,475
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/145		1,812,305		1,812,305
Total Repurchase Agreements
(Cost $19,856,709)				19,856,709
Total Investments - 85.3%
(Cost $76,561,074)			$	76,495,856
Other Assets & Liabilities, net - 14.7%				13,152,467
Total Net Assets - 100.0%			$	89,648,323

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2014 S&P 500 Index Mini Futures Contracts (Aggregate Value of Contracts $1,964,750)		20	$	3,463
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc October 2014 S&P 500 Index Swap, Terminating 10/31/146 (Notional Value $1,127,921)		572	$	5,887
Credit Suisse Capital, LLC October 2014 S&P 500 Index Swap, Terminating 10/29/146 (Notional Value $9,093,362)		4,611		(31,456	)
Goldman Sachs International October 2014 S&P 500 Index Swap, Terminating 10/28/146 (Notional Value $77,424,674)		39,256		(256,932	)
(Total Notional Value $87,645,957)			$	(282,501	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
2	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
3	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
4	Repurchase Agreements — See Note 5.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
6	Total Return based on S&P 500 Index +/- financing at a variable rate.
	plc — Public Limited Company

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  35 

INVERSE S&P 500^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $56,704,365)	$	56,639,147
Repurchase agreements, at value (cost $19,856,709)		19,856,709
Total investments (cost $76,561,074)		76,495,856
Segregated cash with broker		11,464,931
Unrealized appreciation on swap agreements		5,887
Receivables:
Fund shares sold		2,743,548
Dividends		21,977
Variation margin		4,750
Total assets		90,736,949
Liabilities:
Unrealized depreciation on swap agreements		288,388
Payable for:
Fund shares redeemed		638,381
Management fees		63,218
Transfer agent and administrative fees		17,560
Swap settlement		10,203
Distribution and service fees		7,031
Portfolio accounting fees		7,024
Miscellaneous		56,821
Total liabilities		1,088,626
Net assets	$	89,648,323
Net assets consist of:
Paid in capital	$	462,259,599
Accumulated net investment loss		(919,843	)
Accumulated net realized loss on investments		(371,347,177	)
Net unrealized depreciation on investments		(344,256	)
Net assets	$	89,648,323
Investor Class:
Net assets	$	72,827,419
Capital shares outstanding		4,650,477
Net asset value per share	$	15.66
Advisor Class:
Net assets	$	4,460,183
Capital shares outstanding		312,541
Net asset value per share	$	14.27
A-Class:
Net assets	$	6,297,659
Capital shares outstanding		430,977
Net asset value per share	$	14.61
Maximum offering price per share (Net asset value divided by 95.25%)	$	15.34
C-Class:
Net assets	$	6,052,876
Capital shares outstanding		446,831
Net asset value per share	$	13.55
H-Class:
Net assets	$	10,186
Capital shares outstanding		697
Net asset value per share	$	14.62

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014**
Investment Income:
Dividends	$	135,922
Interest		19,895
Total investment income		155,817
Expenses:
Management fees		408,381
Transfer agent and administrative fees		113,439
Distribution and service fees:
Advisor Class		12,443
A-Class		6,778
C-Class		28,712
H-Class		1
Portfolio accounting fees		45,375
Registration fees		48,198
Custodian fees		5,298
Trustees’ fees*		4,462
Line of credit interest expense		1,065
Miscellaneous		18,930
Total expenses		693,082
Net investment loss		(537,265	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(20,032	)
Swap agreements		(7,424,255	)
Futures contracts		(129,732	)
Net realized loss		(7,574,019	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(72,281	)
Investments in affiliated issuers		9,200
Swap agreements		306,618
Futures contracts		66,454
Net change in unrealized appreciation (depreciation)		309,991
Net realized and unrealized loss		(7,264,028	)
Net decrease in net assets resulting from operations	$	(7,801,293	)

*	Relates to Trustees not deemed “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act.
**	Since commencement of operations: September 18, 2014 — H-Class.

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

INVERSE S&P 500^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(537,265	)	$	(2,280,355	)
Net realized loss on investments		(7,574,019	)		(37,250,140	)
Net change in unrealized appreciation (depreciation) on investments		309,991			(23,921	)
Net decrease in net assets resulting from operations		(7,801,293	)		(39,554,416	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		78,956,204			396,150,082
Advisor Class		14,569,130			43,312,714
A-Class		6,799,348			24,186,917
C-Class		4,742,533			13,040,917
H-Class*		10,000			—
Cost of shares redeemed
Investor Class		(78,944,061	)		(388,967,563	)
Advisor Class		(12,622,900	)		(47,807,585	)
A-Class		(5,522,037	)		(23,182,304	)
C-Class		(4,417,326	)		(12,185,135	)
H-Class*		—			—
Net increase from capital share transactions		3,570,891			4,548,043
Net decrease in net assets		(4,230,402	)		(35,006,373	)
Net assets:
Beginning of period		93,878,725			128,885,098
End of period	$	89,648,323		$	93,878,725
Accumulated net investment loss at end of period	$	(919,843	)	$	(382,578	)
Capital share activity:
Shares sold
Investor Class		4,872,234			20,629,628
Advisor Class		982,323			2,483,798
A-Class		450,763			1,354,080
C-Class		343,089			790,782
H-Class*		697			—
Shares redeemed
Investor Class		(4,929,618	)		(20,970,317	)
Advisor Class		(869,040	)		(2,790,831	)
A-Class		(367,803	)		(1,306,326	)
C-Class		(318,756	)		(749,635	)
Net increase (decrease) in shares		163,889			(558,821	)

* Since commencement of operations: September 18, 2014

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	16.82		$	21.03		$	24.61		$	28.50		$	34.38		$	54.23
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.25	)		(.30	)		(.38	)		(.41	)		(.47	)
Net gain (loss) on investments (realized and unrealized)		(1.07	)		(3.96	)		(3.28	)		(3.51	)		(5.47	)		(19.32	)
Total from investment operations		(1.16	)		(4.21	)		(3.58	)		(3.89	)		(5.88	)		(19.79	)
Less distributions from:
Net investment income		—			—			—			—			—			(.06	)
Total distributions		—			—			—			—			—			(.06	)
Net asset value, end of period	$	15.66		$	16.82		$	21.03		$	24.61		$	28.50		$	34.38
Total Returnc		(6.90	%)		(20.02	%)		(14.55	%)		(13.65	%)		(17.10	%)		(36.51	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	72,827		$	79,172		$	106,158		$	112,334		$	118,410		$	171,423
Ratios to average net assets:
Net investment income (loss)		(1.08	%)		(1.35	%)		(1.27	%)		(1.31	%)		(1.22	%)		(1.16	%)
Total expensesd		1.42	%		1.42	%		1.41	%		1.41	%		1.44	%		1.43	%
Portfolio turnover rate		—			—			—			—			—			—

Advisor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	15.36		$	19.31		$	22.71		$	26.44		$	32.06		$	50.83
Income (loss) from investment operations:
Net investment income (loss)b		(.12	)		(.32	)		(.39	)		(.48	)		(.54	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		(.97	)		(3.63	)		(3.01	)		(3.25	)		(5.08	)		(18.08	)
Total from investment operations		(1.09	)		(3.95	)		(3.40	)		(3.73	)		(5.62	)		(18.71	)
Less distributions from:
Net investment income		—			—			—			—			—			(.06	)
Total distributions		—			—			—			—			—			(.06	)
Net asset value, end of period	$	14.27		$	15.36		$	19.31		$	22.71		$	26.44		$	32.06
Total Returnc		(7.10	%)		(20.46	%)		(14.97	%)		(14.11	%)		(17.53	%)		(36.82	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,460		$	3,061		$	9,775		$	5,978		$	6,434		$	9,607
Ratios to average net assets:
Net investment income (loss)		(1.58	%)		(1.85	%)		(1.77	%)		(1.81	%)		(1.72	%)		(1.63	%)
Total expensesd		1.92	%		1.93	%		1.90	%		1.91	%		1.93	%		1.93	%
Portfolio turnover rate		—			—			—			—			—			—

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	15.71		$	19.69		$	23.10		$	26.82		$	32.43		$	51.30
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.28	)		(.34	)		(.42	)		(.48	)		(.53	)
Net gain (loss) on investments (realized and unrealized)		(1.00	)		(3.70	)		(3.07	)		(3.30	)		(5.13	)		(18.28	)
Total from investment operations		(1.10	)		(3.98	)		(3.41	)		(3.72	)		(5.61	)		(18.81	)
Less distributions from:
Net investment income		—			—			—			—			—			(.06	)
Total distributions		—			—			—			—			—			(.06	)
Net asset value, end of period	$	14.61		$	15.71		$	19.69		$	23.10		$	26.82		$	32.43
Total Returnc		(7.00	%)		(20.21	%)		(14.76	%)		(13.87	%)		(17.30	%)		(36.68	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,298		$	5,468		$	5,912		$	7,915		$	5,029		$	28,565
Ratios to average net assets:
Net investment income (loss)		(1.33	%)		(1.58	%)		(1.52	%)		(1.56	%)		(1.47	%)		(1.42	%)
Total expensesd		1.67	%		1.68	%		1.65	%		1.66	%		1.68	%		1.67	%
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	14.62		$	18.46		$	21.83		$	25.53		$	31.12		$	49.59
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.38	)		(.48	)		(.59	)		(.67	)		(.79	)
Net gain (loss) on investments (realized and unrealized)		(.92	)		(3.46	)		(2.89	)		(3.11	)		(4.92	)		(17.62	)
Total from investment operations		(1.07	)		(3.84	)		(3.37	)		(3.70	)		(5.59	)		(18.41	)
Less distributions from:
Net investment income		—			—			—			—			—			(.06	)
Total distributions		—			—			—			—			—			(.06	)
Net asset value, end of period	$	13.55		$	14.62		$	18.46		$	21.83		$	25.53		$	31.12
Total Returnc		(7.32	%)		(20.80	%)		(15.44	%)		(14.49	%)		(17.96	%)		(37.14	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,053		$	6,177		$	7,041		$	7,870		$	11,817		$	16,041
Ratios to average net assets:
Net investment income (loss)		(2.08	%)		(2.34	%)		(2.27	%)		(2.31	%)		(2.23	%)		(2.15	%)
Total expensesd		2.42	%		2.42	%		2.40	%		2.42	%		2.44	%		2.43	%
Portfolio turnover rate		—			—			—			—			—			—

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

INVERSE S&P 500^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014e
Per Share Data
Net asset value, beginning of period	$	14.35
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)
Net gain (loss) on investments (realized and unrealized)		.28
Total from investment operations		.27
Net asset value, end of period	$	14.62
Total Returnc		1.88	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10
Ratios to average net assets:
Net investment income (loss)		(1.39	%)
Total expensesd		1.68	%
Portfolio turnover rate		—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.

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

FUND PROFILE (Unaudited) September 30, 2014

INVERSE NASDAQ-100^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the NASDAQ-100 Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	September 3, 1998
Advisor Class	August 1, 2003
A-Class	March 31, 2004
C-Class	March 7, 2001
H-Class	September 18, 2014

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  41 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INVERSE NASDAQ-100® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 23.2%
Guggenheim Strategy Fund I1		148,815	$	3,706,990
Total Mutual Funds
(Cost $3,714,696)				3,706,990
	Face Amount
REPURCHASE AGREEMENTS††,2 - 69.5%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	4,804,604		4,804,604
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		2,809,304		2,809,304
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		1,986,608		1,986,608
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		1,239,629		1,239,629
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/143		237,487		237,487
Total Repurchase Agreements
(Cost $11,077,632)				11,077,632
Total Investments - 92.7%
(Cost $14,792,328)			$	14,784,622
Other Assets & Liabilities, net - 7.3%				1,162,268
Total Net Assets - 100.0%			$	15,946,890

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2014 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $6,713,040)		83	$	64,317
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc October 2014 NASDAQ-100 Index Swap, Terminating 10/31/144 (Notional Value $2,324,545)		574	$	1,712
Goldman Sachs International October 2014 NASDAQ-100 Index Swap, Terminating 10/28/144 (Notional Value $2,149,846)		531		(16,059	)
Credit Suisse Capital, LLC October 2014 NASDAQ-100 Index Swap, Terminating 10/29/144 (Notional Value $4,709,825)		1,163		(49,907	)
(Total Notional Value $9,184,216)			$	(64,254	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
4	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
	plc — Public Limited Company

42  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $3,714,696)	$	3,706,990
Repurchase agreements, at value (cost $11,077,632)		11,077,632
Total investments (cost $14,792,328)		14,784,622
Segregated cash with broker		1,226,838
Unrealized appreciation on swap agreements		1,712
Receivables:
Fund shares sold		80,682
Swap settlement		6,118
Dividends		2,674
Total assets		16,102,646
Liabilities:
Unrealized depreciation on swap agreements		65,966
Payable for:
Fund shares redeemed		57,085
Variation margin		14,110
Management fees		7,373
Transfer agent and administrative fees		2,048
Distribution and service fees		1,493
Portfolio accounting fees		819
Miscellaneous		6,862
Total liabilities		155,756
Net assets	$	15,946,890
Net assets consist of:
Paid in capital	$	82,141,141
Accumulated net investment loss		(69,210	)
Accumulated net realized loss on investments		(66,117,398	)
Net unrealized depreciation on investments		(7,643	)
Net assets	$	15,946,890
Investor Class:
Net assets	$	7,224,008
Capital shares outstanding		250,825
Net asset value per share	$	28.80
Advisor Class:
Net assets	$	274,159
Capital shares outstanding		10,112
Net asset value per share	$	27.11
A-Class:
Net assets	$	7,265,475
Capital shares outstanding		261,165
Net asset value per share	$	27.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.21
C-Class:
Net assets	$	1,173,134
Capital shares outstanding		47,317
Net asset value per share	$	24.79
H-Class:
Net assets	$	10,114
Capital shares outstanding		364
Net asset value per share	$	27.81

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014**
Investment Income:
Dividends	$	17,691
Interest		506
Total investment income		18,197
Expenses:
Management fees		48,569
Transfer agent and administrative fees		13,491
Distribution and service fees:
Advisor Class		2,003
A-Class		1,293
C-Class		4,755
H-Class		1
Portfolio accounting fees		5,397
Custodian fees		630
Trustees’ fees*		442
Miscellaneous		10,826
Total expenses		87,407
Net investment loss		(69,210	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(321	)
Swap agreements		(1,661,582	)
Futures contracts		9,892
Net realized loss		(1,652,011	)
Net change in unrealized appreciation (depreciation) on:
Investments		(7,706	)
Swap agreements		(84,579	)
Futures contracts		64,317
Net change in unrealized appreciation (depreciation)		(27,968	)
Net realized and unrealized loss		(1,679,979	)
Net decrease in net assets resulting from operations	$	(1,749,189	)

*	Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.
**	Since commencement of operations: September 18, 2014 — H-Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  43 

INVERSE NASDAQ-100^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(69,210	)	$	(179,288	)
Net realized loss on investments		(1,652,011	)		(3,424,508	)
Net change in unrealized appreciation (depreciation) on investments		(27,968	)		65,013
Net decrease in net assets resulting from operations		(1,749,189	)		(3,538,783	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		76,169,735			152,933,607
Advisor Class		13,106,084			38,354,968
A-Class		7,354,240			646,006
C-Class		2,189,988			1,338,850
H-Class**		10,340			—
Cost of shares redeemed
Investor Class		(74,534,423	)		(150,997,216	)
Advisor Class		(12,813,888	)		(39,937,666	)
A-Class		(270,304	)		(371,971	)
C-Class		(1,430,949	)		(1,253,224	)
H-Class**		(344	)		—
Net increase from capital share transactions		9,780,479			713,354
Net increase (decrease) in net assets		8,031,290			(2,825,429	)
Net assets:
Beginning of period		7,915,600			10,741,029
End of period	$	15,946,890		$	7,915,600
Accumulated net investment loss at end of period	$	(69,210	)	$	—
Capital share activity:
Shares sold
Investor Class		2,451,232			4,127,092	*
Advisor Class		447,612			1,099,075	*
A-Class		258,627			17,551	*
C-Class		79,635			37,993	*
H-Class**		376			—
Shares redeemed
Investor Class		(2,407,849	)		(4,095,216	)*
Advisor Class		(441,284	)		(1,147,177	)*
A-Class		(9,080	)		(10,220	)*
C-Class		(51,912	)		(36,051	)*
H-Class**		(12	)		—
Net increase (decrease) in shares		327,345			(6,953	)*

*	Capital share activity for the period presented through February 21, 2014 has been restated to reflect a 1:5 reverse share split effective February 21, 2014. See Note 14 in Notes to Financial Statements.
**	Since commencement of operations: September 18, 2014

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014f			Year EndedMarch 28,2013f			Year EndedMarch 31,2012f			Year EndedMarch 31,2011f			Year EndedMarch 31,2010f
Per Share Data
Net asset value, beginning of period	$	33.09		$	43.91		$	46.95		$	59.62		$	75.34		$	125.44
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.54	)		(.60	)		(.80	)		(.90	)		(1.25	)
Net gain (loss) on investments (realized and unrealized)		(4.11	)		(10.28	)		(2.44	)		(11.87	)		(14.82	)		(48.85	)
Total from investment operations		(4.29	)		(10.82	)		(3.04	)		(12.67	)		(15.72	)		(50.10	)
Net asset value, end of period	$	28.80		$	33.09		$	43.91		$	46.95		$	59.62		$	75.34
Total Returnc		(12.96	%)		(24.62	%)		(6.50	%)		(21.22	%)		(20.90	%)		(39.94	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,224		$	6,865		$	7,709		$	8,792		$	32,978		$	21,137
Ratios to average net assets:
Net investment income (loss)		(1.14	%)		(1.44	%)		(1.32	%)		(1.38	%)		(1.30	%)		(1.35	%)
Total expensesd		1.47	%		1.46	%		1.44	%		1.45	%		1.47	%		1.47	%
Portfolio turnover rate		—			—			—			—			—			—

Advisor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014f			Year EndedMarch 28,2013f			Year EndedMarch 31,2012f			Year EndedMarch 31,2011f			Year EndedMarch 31,2010f
Per Share Data
Net asset value, beginning of period	$	31.26		$	41.85		$	45.01		$	57.15		$	72.70		$	121.83
Income (loss) from investment operations:
Net investment income (loss)b		(.24	)		(.73	)		(.80	)		(1.05	)		(1.20	)		(1.60	)
Net gain (loss) on investments (realized and unrealized)		(3.91	)		(9.86	)		(2.36	)		(11.09	)		(14.35	)		(47.53	)
Total from investment operations		(4.15	)		(10.59	)		(3.16	)		(12.14	)		(15.55	)		(49.13	)
Net asset value, end of period	$	27.11		$	31.26		$	41.85		$	45.01		$	57.15		$	72.70
Total Returnc		(13.28	%)		(25.30	%)		(7.00	%)		(21.26	%)		(21.39	%)		(40.34	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	274		$	118		$	2,171		$	207		$	642		$	916
Ratios to average net assets:
Net investment income (loss)		(1.65	%)		(1.93	%)		(1.83	%)		(1.91	%)		(1.80	%)		(1.84	%)
Total expensesd		1.97	%		1.96	%		1.95	%		1.95	%		1.97	%		1.97	%
Portfolio turnover rate		—			—			—			—			—			—

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014f			Year EndedMarch 28,2013f			Year EndedMarch 31,2012f			Year EndedMarch 31,2011f			Year EndedMarch 31,2010f
Per Share Data
Net asset value, beginning of period	$	32.00		$	42.61		$	45.77		$	58.30		$	73.88		$	123.33
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.60	)		(.70	)		(.90	)		(1.05	)		(1.30	)
Net gain (loss) on investments (realized and unrealized)		(3.98	)		(10.01	)		(2.46	)		(11.63	)		(14.53	)		(48.15	)
Total from investment operations		(4.18	)		(10.61	)		(3.16	)		(12.53	)		(15.58	)		(49.45	)
Net asset value, end of period	$	27.82		$	32.00		$	42.61		$	45.77		$	58.30		$	73.88
Total Returnc		(13.06	%)		(24.88	%)		(6.89	%)		(21.53	%)		(21.11	%)		(40.09	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,265		$	372		$	183		$	474		$	946		$	1,041
Ratios to average net assets:
Net investment income (loss)		(1.36	%)		(1.69	%)		(1.56	%)		(1.62	%)		(1.54	%)		(1.37	%)
Total expensesd		1.72	%		1.71	%		1.68	%		1.69	%		1.72	%		1.71	%
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014f			Year EndedMarch 28,2013f			Year EndedMarch 31,2012f			Year EndedMarch 31,2011f			Year EndedMarch 31,2010f
Per Share Data
Net asset value, beginning of period	$	28.63		$	38.42		$	41.58		$	53.34		$	68.10		$	114.53
Income (loss) from investment operations:
Net investment income (loss)b		(.28	)		(.80	)		(.95	)		(1.20	)		(1.45	)		(1.95	)
Net gain (loss) on investments (realized and unrealized)		(3.56	)		(8.99	)		(2.21	)		(10.56	)		(13.31	)		(44.48	)
Total from investment operations		(3.84	)		(9.79	)		(3.16	)		(11.76	)		(14.76	)		(46.43	)
Net asset value, end of period	$	24.79		$	28.63		$	38.42		$	41.58		$	53.34		$	68.10
Total Returnc		(13.41	%)		(25.44	%)		(7.58	%)		(22.12	%)		(21.66	%)		(40.55	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,173		$	561		$	678		$	752		$	2,435		$	1,858
Ratios to average net assets:
Net investment income (loss)		(2.11	%)		(2.44	%)		(2.32	%)		(2.37	%)		(2.29	%)		(2.33	%)
Total expensesd		2.47	%		2.46	%		2.44	%		2.45	%		2.47	%		2.47	%
Portfolio turnover rate		—			—			—			—			—			—

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

INVERSE NASDAQ-100^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014e
Per Share Data
Net asset value, beginning of period	$	27.50
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)
Net gain (loss) on investments (realized and unrealized)		.32
Total from investment operations		.31
Net asset value, end of period	$	27.81
Total Returnc		1.13	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10
Ratios to average net assets:
Net investment income (loss)		(1.49	%)
Total expensesd		1.72	%
Portfolio turnover rate		—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.
f	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014. See Note 14 in Notes to Financial Statements.

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

FUND PROFILE (Unaudited) September 30, 2014

MID-CAP 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for mid-cap securities on a daily basis. The Fund’s current benchmark is 150% of the performance of the S&P MidCap 400^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	August 20, 2001
H-Class	August 16, 2001

Ten Largest Holdings (% of Total Net Assets)
Equinix, Inc.	0.6%
Skyworks Solutions, Inc.	0.5%
Hanesbrands, Inc.	0.5%
Endo International plc	0.5%
Salix Pharmaceuticals Ltd.	0.5%
Henry Schein, Inc.	0.5%
SL Green Realty Corp.	0.5%
Advance Auto Parts, Inc.	0.5%
Church & Dwight Company, Inc.	0.5%
Signet Jewelers Ltd.	0.5%
Top Ten Total	5.1%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

48  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 76.8%
FINANCIAL - 16.6%
SL Green Realty Corp.		1,004	$	101,725
Realty Income Corp.		2,337		95,327
Federal Realty Investment Trust		711		84,224
Everest Re Group Ltd.		477		77,278
Arthur J Gallagher & Co.		1,669		75,705
New York Community Bancorp, Inc.		4,648		73,764
UDR, Inc.		2,643		72,021
Alleghany Corp.*		172		71,922
Raymond James Financial, Inc.		1,320		70,726
Camden Property Trust		898		61,540
Duke Realty Corp.		3,582		61,540
SVB Financial Group*		533		59,743
Extra Space Storage, Inc.		1,157		59,666
Jones Lang LaSalle, Inc.		471		59,506
Signature Bank*		528		59,167
Reinsurance Group of America, Inc. — Class A		720		57,694
Protective Life Corp.		828		57,472
Alexandria Real Estate Equities, Inc.		753		55,534
Regency Centers Corp.		970		52,215
Kilroy Realty Corp.		873		51,891
Mid-America Apartment Communities, Inc.		790		51,864
Liberty Property Trust		1,555		51,719
East West Bancorp, Inc.		1,506		51,204
WR Berkley Corp.		1,071		51,194
HCC Insurance Holdings, Inc.		1,050		50,705
Taubman Centers, Inc.		665		48,545
CBOE Holdings, Inc.		895		47,905
Eaton Vance Corp.		1,247		47,049
Waddell & Reed Financial, Inc. — Class A		887		45,849
Omega Healthcare Investors, Inc.		1,336		45,678
American Financial Group, Inc.		787		45,559
National Retail Properties, Inc.		1,313		45,390
Senior Housing Properties Trust		2,139		44,748
Cullen/Frost Bankers, Inc.		575		43,993
RenaissanceRe Holdings Ltd.		425		42,496
Hospitality Properties Trust		1,573		42,235
Corrections Corporation of America		1,222		41,988
PacWest Bancorp		1,017		41,931
BioMed Realty Trust, Inc.		2,049		41,390
Rayonier, Inc.		1,329		41,385
American Campus Communities, Inc.		1,102		40,168
Brown & Brown, Inc.		1,244		39,995
City National Corp.		503		38,062
SLM Corp.		4,441		38,015
LaSalle Hotel Properties		1,093		37,424
Weingarten Realty Investors		1,181		37,202
Commerce Bancshares, Inc.		827		36,921
Highwoods Properties, Inc.		949		36,916
Old Republic International Corp.		2,547		36,371
Prosperity Bancshares, Inc.		630		36,017
Home Properties, Inc.		600		34,944
Synovus Financial Corp.		1,460		34,514
Umpqua Holdings Corp.		1,962		32,314
First Niagara Financial Group, Inc.		3,716		30,954
First Horizon National Corp.		2,490		30,577
FirstMerit Corp.		1,736		30,554
First American Financial Corp.		1,125		30,510
Federated Investors, Inc. — Class B		1,002		29,419
Aspen Insurance Holdings Ltd.		687		29,383
StanCorp Financial Group, Inc.		459		29,000
Washington Prime Group, Inc.		1,629		28,475
Hanover Insurance Group, Inc.		463		28,437
Associated Banc-Corp.		1,626		28,325
Webster Financial Corp.		948		27,625
Hancock Holding Co.		860		27,563
Primerica, Inc.		570		27,485
TCF Financial Corp.		1,752		27,209
Bank of Hawaii Corp.		465		26,417
Corporate Office Properties Trust		921		23,688
Janus Capital Group, Inc.		1,559		22,668
Fulton Financial Corp.		1,972		21,850
Washington Federal, Inc.		1,045		21,276
Valley National Bancorp		2,001		19,390
Cathay General Bancorp		778		19,318
Mercury General Corp.		381		18,597
BancorpSouth, Inc.		898		18,086
Kemper Corp.		525		17,929
Equity One, Inc.		806		17,434
Potlatch Corp.		426		17,129
Alexander & Baldwin, Inc.		476		17,122
Mack-Cali Realty Corp.		878		16,779
Trustmark Corp.		708		16,309
International Bancshares Corp.		611		15,070
Astoria Financial Corp.		920		11,399
Total Financial				3,486,327
INDUSTRIAL - 14.3%
B/E Aerospace, Inc.*		1,106		92,838
Trimble Navigation Ltd.*		2,729		83,235
Wabtec Corp.		1,011		81,932
Energizer Holdings, Inc.		648		79,840
Mettler-Toledo International, Inc.*		303		77,608
Trinity Industries, Inc.		1,639		76,573
J.B. Hunt Transport Services, Inc.		967		71,606
Rock-Tenn Co. — Class A		1,503		71,513
Kirby Corp.*		599		70,592
Hubbell, Inc. — Class B		571		68,823
Fortune Brands Home & Security, Inc.		1,664		68,407
Packaging Corporation of America		1,033		65,926
Waste Connections, Inc.		1,303		63,222
IDEX Corp.		841		60,863
Avnet, Inc.		1,452		60,258
Lincoln Electric Holdings, Inc.		834		57,659
Donaldson Company, Inc.		1,396		56,720
Carlisle Companies, Inc.		673		54,096

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Eagle Materials, Inc.		527	$	53,664
Acuity Brands, Inc.		454		53,440
Huntington Ingalls Industries, Inc.		510		53,147
Genesee & Wyoming, Inc. — Class A*		536		51,086
Old Dominion Freight Line, Inc.*		715		50,508
Nordson Corp.		616		46,859
Graco, Inc.		631		46,050
ITT Corp.		962		43,232
Alliant Techsystems, Inc.		335		42,759
SPX Corp.		447		41,987
Sonoco Products Co.		1,068		41,962
URS Corp.		726		41,825
AptarGroup, Inc.		684		41,519
Gentex Corp.		1,535		41,091
AGCO Corp.		896		40,732
Zebra Technologies Corp. — Class A*		533		37,827
AO Smith Corp.		794		37,540
Esterline Technologies Corp.*		335		37,275
Valmont Industries, Inc.		275		37,106
Terex Corp.		1,157		36,758
Cognex Corp.*		911		36,686
Lennox International, Inc.		469		36,052
AECOM Technology Corp.*		1,044		35,235
Triumph Group, Inc.		540		35,127
Kennametal, Inc.		826		34,122
Timken Co.		801		33,954
Landstar System, Inc.		469		33,857
CLARCOR, Inc.		530		33,432
FEI Co.		441		33,260
Crane Co.		520		32,869
Exelis, Inc.		1,977		32,700
National Instruments Corp.		1,056		32,662
Clean Harbors, Inc.*		579		31,220
Regal-Beloit Corp.		474		30,455
Woodward, Inc.		612		29,143
Belden, Inc.		454		29,065
KBR, Inc.		1,525		28,716
Con-way, Inc.		604		28,690
GATX Corp.		470		27,434
Knowles Corp.*		893		23,665
Tech Data Corp.*		402		23,662
Silgan Holdings, Inc.		459		21,573
Tidewater, Inc.		522		20,374
Vishay Intertechnology, Inc.		1,424		20,349
Louisiana-Pacific Corp.*		1,485		20,181
Worthington Industries, Inc.		534		19,875
TimkenSteel Corp.		400		18,596
Harsco Corp.		848		18,156
MSA Safety, Inc.		330		16,302
Itron, Inc.*		412		16,196
Greif, Inc. — Class A		356		15,596
Granite Construction, Inc.		378		12,024
Werner Enterprises, Inc.		468		11,794
Total Industrial				3,011,100
CONSUMER, NON-CYCLICAL - 13.3%
Endo International plc*		1,611		110,106
Salix Pharmaceuticals Ltd.*		669		104,525
Henry Schein, Inc.*		891		103,776
Church & Dwight Company, Inc.		1,403		98,434
Cooper Companies, Inc.		507		78,965
Jarden Corp.*		1,252		75,258
Towers Watson & Co. — Class A		737		73,332
ResMed, Inc.1		1,472		72,525
Gartner, Inc.*		933		68,548
WhiteWave Foods Co. — Class A*		1,828		66,411
Community Health Systems, Inc.*		1,210		66,296
Omnicare, Inc.		1,027		63,941
United Therapeutics Corp.*		496		63,810
IDEXX Laboratories, Inc.*		528		62,214
Hologic, Inc.*		2,537		61,725
Ingredion, Inc.		783		59,344
Manpowergroup, Inc.		837		58,674
MEDNAX, Inc.*		1,052		57,671
Hain Celestial Group, Inc.*		529		54,143
Cubist Pharmaceuticals, Inc.*		795		52,740
CDK Global, Inc.*		1,683		51,483
Centene Corp.*		615		50,866
Global Payments, Inc.		716		50,034
SEI Investments Co.		1,374		49,684
Service Corporation International		2,217		46,867
Covance, Inc.*		594		46,748
Teleflex, Inc.		435		45,692
WEX, Inc.*		407		44,900
Sirona Dental Systems, Inc.*		581		44,551
Align Technology, Inc.*		763		39,432
Health Net, Inc.*		843		38,871
Tupperware Brands Corp.		529		36,522
Live Nation Entertainment, Inc.*		1,516		36,414
Techne Corp.		389		36,391
VCA, Inc.*		905		35,594
Flowers Foods, Inc.		1,936		35,545
RR Donnelley & Sons Co.		2,098		34,533
STERIS Corp.		623		33,617
LifePoint Hospitals, Inc.*		474		32,796
United Natural Foods, Inc.*		521		32,021
Charles River Laboratories International, Inc.*		490		29,273
Deluxe Corp.		523		28,849
WellCare Health Plans, Inc.*		461		27,817
CoreLogic, Inc.*		957		25,906
Scotts Miracle-Gro Co. — Class A		469		25,795
Apollo Education Group, Inc. — Class A*		1,025		25,778
DeVry Education Group, Inc.		602		25,772
Hill-Rom Holdings, Inc.		602		24,941
Bio-Rad Laboratories, Inc. — Class A*		215		24,381
Sotheby’s		645		23,039

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Leidos Holdings, Inc.		653	$	22,417
Corporate Executive Board Co.		354		21,265
Rollins, Inc.		673		19,705
SUPERVALU, Inc.*		2,163		19,337
Convergys Corp.		1,062		18,925
Lancaster Colony Corp.		204		17,397
HMS Holdings Corp.*		921		17,361
Rent-A-Center, Inc.		555		16,845
Aaron’s, Inc.		676		16,440
Thoratec Corp.*		591		15,797
Post Holdings, Inc.*		471		15,628
FTI Consulting, Inc.*		429		14,998
Dean Foods Co.		985		13,051
Civeo Corp.		1,120		13,003
Universal Corp.		243		10,787
Tootsie Roll Industries, Inc.		210		5,878
Total Consumer, Non-cyclical				2,795,384
CONSUMER, CYCLICAL - 9.8%
Hanesbrands, Inc.		1,046		112,382
Advance Auto Parts, Inc.		766		99,810
Signet Jewelers Ltd.		842		95,912
Polaris Industries, Inc.		637		95,416
LKQ Corp.*		3,169		84,263
Foot Locker, Inc.		1,509		83,975
Alaska Air Group, Inc.		1,416		61,653
Williams-Sonoma, Inc.		919		61,178
Arrow Electronics, Inc.*		1,038		57,453
Toll Brothers, Inc.*		1,700		52,972
NVR, Inc.*		42		47,461
MSC Industrial Direct Company, Inc. — Class A		537		45,892
Dick’s Sporting Goods, Inc.		1,044		45,811
Domino’s Pizza, Inc.		579		44,559
Panera Bread Co. — Class A*		270		43,934
International Game Technology		2,595		43,778
Carter’s, Inc.		558		43,256
Ingram Micro, Inc. — Class A*		1,634		42,174
Brunswick Corp.		975		41,087
Oshkosh Corp.		893		39,426
Copart, Inc.*		1,191		37,296
Cinemark Holdings, Inc.		1,093		37,206
Tempur Sealy International, Inc.*		639		35,893
Deckers Outdoor Corp.*		364		35,374
Kate Spade & Co.*		1,332		34,938
Brinker International, Inc.		678		34,436
Bally Technologies, Inc.*		402		32,441
JC Penney Company, Inc.*		3,201		32,138
World Fuel Services Corp.		759		30,299
Cabela’s, Inc.*		500		29,450
CST Brands, Inc.		794		28,544
JetBlue Airways Corp.*		2,574		27,336
Abercrombie & Fitch Co. — Class A		749		27,219
American Eagle Outfitters, Inc.		1,837		26,673
Office Depot, Inc.*		5,080		26,111
Big Lots, Inc.		588		25,314
Thor Industries, Inc.		487		25,081
Watsco, Inc.		286		24,647
Wendy’s Co.		2,889		23,863
Chico’s FAS, Inc.		1,604		23,691
Cheesecake Factory, Inc.		484		22,022
Owens & Minor, Inc.		662		21,674
HSN, Inc.		341		20,927
DreamWorks Animation SKG, Inc. — Class A*		756		20,616
ANN, Inc.*		480		19,742
Life Time Fitness, Inc.*		378		19,066
Herman Miller, Inc.		624		18,627
Ascena Retail Group, Inc.*		1,375		18,288
HNI Corp.		474		17,059
Guess?, Inc.		671		14,742
KB Home		955		14,268
MDC Holdings, Inc.		410		10,381
International Speedway Corp. — Class A		293		9,271
Total Consumer, Cyclical				2,067,025
TECHNOLOGY - 7.3%
Skyworks Solutions, Inc.		1,990		115,521
ANSYS, Inc.*		966		73,097
Synopsys, Inc.*		1,636		64,941
Concur Technologies, Inc.*		503		63,791
NCR Corp.*		1,764		58,935
MSCI, Inc. — Class A*		1,224		57,552
Cadence Design Systems, Inc.*		3,045		52,405
Broadridge Financial Solutions, Inc.		1,255		52,245
Cree, Inc.*		1,260		51,597
3D Systems Corp.*,1		1,085		50,311
SunEdison, Inc.*		2,626		49,579
Jack Henry & Associates, Inc.		866		48,202
PTC, Inc.*		1,232		45,461
Ultimate Software Group, Inc.*		297		42,028
Teradyne, Inc.		2,149		41,669
VeriFone Systems, Inc.*		1,187		40,809
Solera Holdings, Inc.		720		40,580
Informatica Corp.*		1,155		39,547
Atmel Corp.*		4,394		35,503
Riverbed Technology, Inc.*		1,677		31,100
International Rectifier Corp.*		751		29,469
SolarWinds, Inc.*		689		28,972
Lexmark International, Inc. — Class A		654		27,795
DST Systems, Inc.		321		26,938
Integrated Device Technology, Inc.*		1,562		24,914
Compuware Corp.		2,311		24,520
Diebold, Inc.		678		23,947
Allscripts Healthcare Solutions, Inc.*		1,778		23,852
CommVault Systems, Inc.*		447		22,529
ACI Worldwide, Inc.*		1,198		22,474
Advanced Micro Devices, Inc.*,1		6,531		22,271
Mentor Graphics Corp.		1,015		20,802
Rovi Corp.*		995		19,646

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  51 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
Fairchild Semiconductor International, Inc. — Class A*		1,261	$	19,583
Intersil Corp. — Class A		1,360		19,326
Semtech Corp.*		707		19,195
Science Applications International Corp.		425		18,798
Fair Isaac Corp.		338		18,623
Silicon Laboratories, Inc.*		424		17,231
Cypress Semiconductor Corp.		1,538		15,188
Advent Software, Inc.		466		14,707
Acxiom Corp.*		810		13,406
Total Technology				1,529,059
ENERGY - 4.1%
HollyFrontier Corp.		2,085		91,073
Oceaneering International, Inc.		1,134		73,903
Dresser-Rand Group, Inc.*		804		66,137
Energen Corp.		769		55,552
SM Energy Co.		707		55,145
Superior Energy Services, Inc.		1,624		53,381
WPX Energy, Inc.*		2,131		51,272
Patterson-UTI Energy, Inc.		1,534		49,902
Gulfport Energy Corp.*		898		47,953
Dril-Quip, Inc.*		420		37,548
Peabody Energy Corp.		2,850		35,283
Oil States International, Inc.*		568		35,159
NOW, Inc.*		1,124		34,181
Rowan Companies plc — Class A		1,307		33,080
Rosetta Resources, Inc.*		646		28,786
Unit Corp.*		484		28,387
Atwood Oceanics, Inc.*		628		27,437
Murphy USA, Inc.*		451		23,930
Helix Energy Solutions Group, Inc.*		1,031		22,744
CARBO Ceramics, Inc.		206		12,201
Total Energy				863,054
COMMUNICATIONS - 3.9%
Equinix, Inc.*		559		118,777
tw telecom, Inc. — Class A*		1,450		60,335
FactSet Research Systems, Inc.		411		49,949
Lamar Advertising Co. — Class A		840		41,370
Rackspace Hosting, Inc.*		1,246		40,557
ARRIS Group, Inc.*		1,383		39,215
TIBCO Software, Inc.*		1,600		37,808
AOL, Inc.*		826		37,129
Fortinet, Inc.*		1,444		36,482
AMC Networks, Inc. — Class A*		621		36,279
RF Micro Devices, Inc.*		3,020		34,850
Graham Holdings Co. — Class B		46		32,181
JDS Uniphase Corp.*		2,415		30,912
John Wiley & Sons, Inc. — Class A		493		27,662
Time, Inc.*		1,144		26,804
Telephone & Data Systems, Inc.		1,039		24,894
Conversant, Inc.*		632		21,646
Plantronics, Inc.		450		21,501
Ciena Corp.*		1,119		18,710
Polycom, Inc.*		1,438		17,666
InterDigital, Inc.		425		16,924
Meredith Corp.		383		16,392
New York Times Co. — Class A		1,373		15,405
NeuStar, Inc. — Class A*		589		14,625
ADTRAN, Inc.		574		11,784
Total Communications				829,857
BASIC MATERIALS - 3.9%
Ashland, Inc.		753		78,386
RPM International, Inc.		1,402		64,184
Valspar Corp.		800		63,192
United States Steel Corp.		1,524		59,694
Steel Dynamics, Inc.		2,520		56,977
Reliance Steel & Aluminum Co.		819		56,020
Albemarle Corp.		821		48,357
Royal Gold, Inc.		684		44,419
NewMarket Corp.		113		43,055
Cytec Industries, Inc.		754		35,657
PolyOne Corp.		969		34,477
Cabot Corp.		678		34,422
Compass Minerals International, Inc.		352		29,667
Sensient Technologies Corp.		506		26,489
Carpenter Technology Corp.		559		25,239
Domtar Corp.		682		23,959
Minerals Technologies, Inc.		362		22,339
Commercial Metals Co.		1,237		21,116
Olin Corp.		825		20,831
Cliffs Natural Resources, Inc.1		1,608		16,691
Rayonier Advanced Materials, Inc.1		447		14,711
Total Basic Materials				819,882
UTILITIES - 3.6%
OGE Energy Corp.		2,092		77,634
Alliant Energy Corp.		1,165		64,553
National Fuel Gas Co.		883		61,801
UGI Corp.		1,810		61,703
MDU Resources Group, Inc.		2,036		56,621
Atmos Energy Corp.		1,054		50,276
Westar Energy, Inc.		1,362		46,471
Aqua America, Inc.		1,860		43,766
Questar Corp.		1,840		41,014
Great Plains Energy, Inc.		1,618		39,107
Vectren Corp.		866		34,553
Cleco Corp.		634		30,527
Hawaiian Electric Industries, Inc.		1,077		28,594
IDACORP, Inc.		528		28,306
WGL Holdings, Inc.		545		22,955
Black Hills Corp.		469		22,456

52  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
MID-CAP 1.5x STRATEGY FUND

	Shares		Value
PNM Resources, Inc.		836	$	20,825
ONE Gas, Inc.		546		18,701
Total Utilities				749,863
Total Common Stocks
(Cost $10,738,183)				16,151,551
MUTUAL FUNDS† - 15.2%
Guggenheim Strategy Fund I2		128,746		3,207,066
Total Mutual Funds
(Cost $3,212,082)				3,207,066
	Face Amount
REPURCHASE AGREEMENT††,3 - 1.1%
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/144	$	230,789		230,789
Total Repurchase Agreement
(Cost $230,789)				230,789
SECURITIES LENDING COLLATERAL††,5 - 0.4%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		79,860		79,860
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		13,092		13,092
Total Securities Lending Collateral
(Cost $92,952)				92,952
Total Investments - 93.5%
(Cost $14,274,006)			$	19,682,358
Other Assets & Liabilities, net - 6.5%				1,362,102
Total Net Assets - 100.0%			$	21,044,460

	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $1,091,120)		8	$	(924	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse Capital, LLC October 2014 S&P MidCap 400 Index Swap,    Terminating 10/29/146 (Notional Value $2,382,917)		1,738	$	(8,004	)
Goldman Sachs International October 2014 S&P MidCap 400 Index Swap,    Terminating 10/28/146 (Notional Value $4,814,184)		3,512		(16,138	)
Barclays Bank plc October 2014 S&P MidCap 400 Index Swap,    Terminating 10/31/146 (Notional Value $7,219,208)		5,266		(77,667	)
(Total Notional Value $14,416,309)			$	(101,809	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
3	Repurchase Agreement — See Note 5.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
5	Securities lending collateral— See Note 6.
6	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
	plc — Public Limited Company

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

MID-CAP 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $102,320 of securities loaned (cost $13,950,265)	$	19,358,617
Repurchase agreements, at value (cost $323,741)		323,741
Total investments (cost $14,274,006)		19,682,358
Segregated cash with broker		1,714,603
Receivables:
Fund shares sold		1,198,135
Securities sold		850,876
Dividends		17,755
Securities lending income		423
Total assets		23,464,150
Liabilities:
Overdraft due to custodian bank		1,247,952
Unrealized depreciation on swap agreements		101,809
Payable for:
Fund shares redeemed		852,053
Upon return of securities loaned		108,184
Securities purchased		54,022
Management fees		17,405
Distribution and service fees		7,529
Swap settlement		6,097
Transfer agent and administrative fees		4,835
Portfolio accounting fees		1,934
Variation margin		924
Miscellaneous		16,946
Total liabilities		2,419,690
Net assets	$	21,044,460
Net assets consist of:
Paid in capital	$	15,758,544
Accumulated net investment loss		(165,359	)
Accumulated net realized gain on investments		145,656
Net unrealized appreciation on investments		5,305,619
Net assets	$	21,044,460
A-Class:
Net assets	$	1,258,027
Capital shares outstanding		21,751
Net asset value per share	$	57.84
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.72
C-Class:
Net assets	$	4,337,707
Capital shares outstanding		83,426
Net asset value per share	$	51.99
H-Class:
Net assets	$	15,448,726
Capital shares outstanding		266,765
Net asset value per share	$	57.91

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	123,451
Income from securities lending, net		2,281
Interest		301
Total investment income		126,033
Expenses:
Management fees		110,984
Transfer agent and administrative fees		30,829
Distribution and service fees:
A-Class		2,107
C-Class		22,126
H-Class		23,190
Portfolio accounting fees		12,331
Registration fees		15,294
Custodian fees		1,439
Trustees’ fees*		1,342
Line of credit interest expense		24
Miscellaneous		2,893
Total expenses		222,559
Net investment loss		(96,526	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,149,076
Swap agreements		(286,562	)
Futures contracts		291,085
Net realized gain		1,153,599
Net change in unrealized appreciation (depreciation) on:
Investments		(1,681,750	)
Swap agreements		(250,106	)
Futures contracts		(55,802	)
Net change in unrealized appreciation (depreciation)		(1,987,658	)
Net realized and unrealized loss		(834,059	)
Net decrease in net assets resulting from operations	$	(930,585	)

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

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

MID-CAP 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(96,526	)	$	(349,121	)
Net realized gain on investments		1,153,599			11,514,098
Net change in unrealized appreciation (depreciation) on investments		(1,987,658	)		(2,648,721	)
Net increase (decrease) in net assets resulting from operations		(930,585	)		8,516,256
Capital share transactions:
Proceeds from sale of shares
A-Class		640,809			5,147,333
C-Class		848,919			2,786,279
H-Class		111,844,012			351,619,280
Cost of shares redeemed
A-Class		(1,942,882	)		(5,193,473	)
C-Class		(973,413	)		(4,325,407	)
H-Class		(115,035,856	)		(396,329,575	)
Net decrease from capital share transactions		(4,618,411	)		(46,295,563	)
Net decrease in net assets		(5,548,996	)		(37,779,307	)
Net assets:
Beginning of period		26,593,456			64,372,763
End of period	$	21,044,460		$	26,593,456
Accumulated net investment loss at end of period	$	(165,359	)	$	(68,833	)
Capital share activity:
Shares sold
A-Class		10,606			98,241
C-Class		15,934			61,396
H-Class		1,887,488			6,703,452
Shares redeemed
A-Class		(33,860	)		(102,024	)
C-Class		(18,712	)		(99,832	)
H-Class		(1,952,244	)		(7,636,463	)
Net decrease in shares		(90,788	)		(975,230	)

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	58.48		$	45.07		$	36.23		$	37.14		$	26.89		$	13.33
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.35	)		(.16	)		(.23	)		(.26	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(.44	)		13.76			9.00			(.68	)		10.51			13.72
Total from investment operations		(.64	)		13.41			8.84			(.91	)		10.25			13.56
Net asset value, end of period	$	57.84		$	58.48		$	45.07		$	36.23		$	37.14		$	26.89
Total Returnc		(1.09	%)		29.75	%		24.40	%		(2.45	%)		38.12	%		101.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,258		$	2,632		$	2,199		$	1,997		$	1,877		$	1,567
Ratios to average net assets:
Net investment income (loss)		(0.69	%)		(0.68	%)		(0.43	%)		(0.68	%)		(0.88	%)		(0.79	%)
Total expensesd		1.67	%		1.67	%		1.66	%		1.66	%		1.70	%		1.69	%
Portfolio turnover rate		170	%		563	%		447	%		141	%		211	%		219	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	52.77		$	40.97		$	33.18		$	34.26		$	24.98		$	12.47
Income (loss) from investment operations:
Net investment income (loss)b		(.37	)		(.64	)		(.41	)		(.43	)		(.43	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(.41	)		12.44			8.20			(.65	)		9.71			12.78
Total from investment operations		(.78	)		11.80			7.79			(1.08	)		9.28			12.51
Net asset value, end of period	$	51.99		$	52.77		$	40.97		$	33.18		$	34.26		$	24.98
Total Returnc		(1.48	%)		28.80	%		23.48	%		(3.15	%)		37.15	%		100.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,338		$	4,549		$	5,107		$	4,815		$	6,045		$	4,069
Ratios to average net assets:
Net investment income (loss)		(1.38	%)		(1.40	%)		(1.23	%)		(1.42	%)		(1.59	%)		(1.43	%)
Total expensesd		2.42	%		2.42	%		2.40	%		2.41	%		2.44	%		2.44	%
Portfolio turnover rate		170	%		563	%		447	%		141	%		211	%		219	%

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

MID-CAP 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	58.56		$	45.13		$	36.27		$	37.12		$	26.89		$	13.33
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.34	)		(.15	)		(.24	)		(.28	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		(.46	)		13.77			9.01			(.61	)		10.51			13.71
Total from investment operations		(.65	)		13.43			8.86			(.85	)		10.23			13.56
Net asset value, end of period	$	57.91		$	58.56		$	45.13		$	36.27		$	37.12		$	26.89
Total Returnc		(1.11	%)		29.76	%		24.43	%		(2.29	%)		38.04	%		101.73	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,449		$	19,413		$	57,067		$	16,974		$	42,647		$	30,825
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(0.66	%)		(0.41	%)		(0.72	%)		(0.91	%)		(0.73	%)
Total expensesd		1.67	%		1.68	%		1.67	%		1.66	%		1.70	%		1.68	%
Portfolio turnover rate		170	%		563	%		447	%		141	%		211	%		219	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2014

INVERSE MID-CAP STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the S&P MidCap 400^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

58  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INVERSE MID-CAP STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 19.8%
Guggenheim Strategy Fund I1		40,223	$	1,001,960
Total Mutual Funds
(Cost $1,004,368)				1,001,960
	Face Amount
REPURCHASE AGREEMENTS††,2 - 73.8%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	1,640,487		1,640,487
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		959,210		959,210
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		678,309		678,309
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		423,260		423,260
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/143		43,052		43,052
Total Repurchase Agreements
(Cost $3,744,318)				3,744,318
Total Investments - 93.6%
(Cost $4,748,686)			$	4,746,278
Other Assets & Liabilities, net - 6.4%				325,359
Total Net Assets - 100.0%			$	5,071,637

	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2014 S&P MidCap 400 Index Mini Futures Contracts (Aggregate Value of Contracts $136,390)		1	$	3,045
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Barclays Bank plc October 2014 S&P MidCap 400 Index Swap, Terminating 10/31/144 (Notional Value $3,462,676)		2,526	$	36,373
Credit Suisse Capital, LLC October 2014 S&P MidCap 400 Index Swap, Terminating 10/29/144 (Notional Value $843,395)		615		2,833
Goldman Sachs International October 2014 S&P MidCap 400 Index Swap, Terminating 10/28/144 (Notional Value $584,645)		426		1,945
(Total Notional Value $4,890,716)			$	41,151

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
4	Total Return based on S&P MidCap 400 Index +/- financing at a variable rate.
	plc — Public Limited Company

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  59 

INVERSE MID-CAP STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $1,004,368)	$	1,001,960
Repurchase agreements, at value (cost $3,744,318)		3,744,318
Total investments (cost $4,748,686)		4,746,278
Segregated cash with broker		292,049
Unrealized appreciation on swap agreements		41,151
Receivables:
Variation margin		1,380
Dividends		815
Fund shares sold		410
Total assets		5,082,083
Liabilities:
Payable for:
Fund shares redeemed		3,837
Management fees		2,610
Distribution and service fees		802
Transfer agent and administrative fees		725
Portfolio accounting fees		290
Miscellaneous		2,182
Total liabilities		10,446
Net assets	$	5,071,637
Net assets consist of:
Paid in capital	$	22,004,167
Accumulated net investment loss		(42,713	)
Accumulated net realized loss on investments		(16,931,605	)
Net unrealized appreciation on investments		41,788
Net assets	$	5,071,637
A-Class:
Net assets	$	170,084
Capital shares outstanding		4,858
Net asset value per share	$	35.01
Maximum offering price per share (Net asset value divided by 95.25%)	$	36.76
C-Class:
Net assets	$	132,717
Capital shares outstanding		4,127
Net asset value per share	$	32.16
H-Class:
Net assets	$	4,768,836
Capital shares outstanding		136,480
Net asset value per share	$	34.94

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	5,183
Interest		212
Total investment income		5,395
Expenses:
Management fees		17,279
Transfer agent and administrative fees		4,800
Distribution and service fees:
A-Class		247
C-Class		652
H-Class		4,390
Portfolio accounting fees		1,920
Custodian fees		224
Trustees’ fees*		157
Miscellaneous		2,866
Total expenses		32,535
Net investment loss		(27,140	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		(30,255	)
Futures contracts		(28,607	)
Net realized loss		(58,862	)
Net change in unrealized appreciation (depreciation) on:
Investments		(2,408	)
Swap agreements		94,418
Futures contracts		3,045
Net change in unrealized appreciation (depreciation)		95,055
Net realized and unrealized gain		36,193
Net increase in net assets resulting from operations	$	9,053

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

60  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE MID-CAP STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS

	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(27,140	)	$	(65,876	)
Net realized loss on investments		(58,862	)		(1,019,261	)
Net change in unrealized appreciation (depreciation) on investments		95,055			(18,278	)
Net increase (decrease) in net assets resulting from operations		9,053			(1,103,415	)
Capital share transactions:
Proceeds from sale of shares
A-Class		326,405			581,605
C-Class		4,000			465,260
H-Class		11,635,579			36,107,700
Cost of shares redeemed
A-Class		(237,131	)		(499,127	)
C-Class		—			(494,432	)
H-Class		(10,715,328	)		(32,658,493	)
Net increase from capital share transactions		1,013,525			3,502,513
Net increase in net assets	��	1,022,578			2,399,098
Net assets:
Beginning of period		4,049,059			1,649,961
End of period	$	5,071,637		$	4,049,059
Accumulated net investment loss at end of period	$	(42,713	)	$	(15,573	)
Capital share activity:
Shares sold
A-Class		9,052			15,265	*
C-Class		128			11,703	*
H-Class		332,560			900,020	*
Shares redeemed
A-Class		(6,802	)		(13,229	)*
C-Class		—			(12,899	)*
H-Class		(303,875	)		(823,824	)*
Net increase in shares		31,063			77,036	*

* Capital share activity for the period presented through February 7, 2014 has been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in Notes to Financial Statements.

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	35.55		$	44.64		$	54.64		$	61.14		$	82.10		$	144.64
Income (loss) from investment operations:
Net investment income (loss)b		(.24	)		(.64	)		(.84	)		(1.02	)		(1.17	)		(1.56	)
Net gain (loss) on investments (realized and unrealized)		(.30	)		(8.45	)		(9.16	)		(5.48	)		(19.79	)		(60.98	)
Total from investment operations		(.54	)		(9.09	)		(10.00	)		(6.50	)		(20.96	)		(62.54	)
Net asset value, end of period	$	35.01		$	35.55		$	44.64		$	54.64		$	61.14		$	82.10
Total Returnc		(1.52	%)		(20.36	%)		(18.29	%)		(10.65	%)		(25.54	%)		(43.23	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	170		$	93		$	26		$	115		$	268		$	733
Ratios to average net assets:
Net investment income (loss)		(1.39	%)		(1.65	%)		(1.52	%)		(1.63	%)		(1.54	%)		(1.56	%)
Total expensesd		1.67	%		1.67	%		1.64	%		1.66	%		1.69	%		1.69	%
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	32.78		$	41.49		$	51.18		$	57.72		$	78.09		$	138.72
Income (loss) from investment operations:
Net investment income (loss)b		(.34	)		(.90	)		(1.14	)		(1.44	)		(1.65	)		(2.25	)
Net gain (loss) on investments (realized and unrealized)		(.28	)		(7.81	)		(8.55	)		(5.10	)		(18.72	)		(58.38	)
Total from investment operations		(.62	)		(8.71	)		(9.69	)		(6.54	)		(20.37	)		(60.63	)
Net asset value, end of period	$	32.16		$	32.78		$	41.49		$	51.18		$	57.72		$	78.09
Total Returnc		(1.89	%)		(20.99	%)		(18.93	%)		(11.33	%)		(26.09	%)		(43.71	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	133		$	131		$	216		$	121		$	337		$	268
Ratios to average net assets:
Net investment income (loss)		(2.13	%)		(2.40	%)		(2.29	%)		(2.39	%)		(2.29	%)		(2.30	%)
Total expensesd		2.42	%		2.42	%		2.40	%		2.42	%		2.44	%		2.43	%
Portfolio turnover rate		—			—			—			—			—			—

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

INVERSE MID-CAP STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	35.49		$	44.59		$	54.57		$	61.08		$	82.06		$	144.62
Income (loss) from investment operations:
Net investment income (loss)b		(.24	)		(.66	)		(.81	)		(1.05	)		(1.20	)		(1.65	)
Net gain (loss) on investments (realized and unrealized)		(.31	)		(8.44	)		(9.17	)		(5.46	)		(19.78	)		(60.91	)
Total from investment operations		(.55	)		(9.10	)		(9.98	)		(6.51	)		(20.98	)		(62.56	)
Net asset value, end of period	$	34.94		$	35.49		$	44.59		$	54.57		$	61.08		$	82.06
Total Returnc		(1.55	%)		(20.39	%)		(18.31	%)		(10.66	%)		(25.56	%)		(43.27	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,769		$	3,825		$	1,409		$	1,578		$	1,845		$	2,891
Ratios to average net assets:
Net investment income (loss)		(1.39	%)		(1.65	%)		(1.53	%)		(1.64	%)		(1.53	%)		(1.55	%)
Total expensesd		1.67	%		1.67	%		1.65	%		1.67	%		1.69	%		1.68	%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in Notes to Financial Statements.

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

FUND PROFILE (Unaudited) September 30, 2014

RUSSELL 2000^® 1.5x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark for small-cap securities on a daily basis. The Fund’s current benchmark is 150% of the performance of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	January 23, 2001
H-Class	November 1, 2000

Ten Largest Holdings (% of Total Net Assets)
Puma Biotechnology, Inc.	0.1%
Isis Pharmaceuticals, Inc.	0.1%
WEX, Inc.	0.1%
Team Health Holdings, Inc.	0.1%
Graphic Packaging Holding Co.	0.1%
Prosperity Bancshares, Inc.	0.1%
Ultimate Software Group, Inc.	0.1%
Brunswick Corp.	0.1%
RLJ Lodging Trust	0.1%
CNO Financial Group, Inc.	0.1%
Top Ten Total	1.0%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

64  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 33.3%
FINANCIAL - 7.9%
Prosperity Bancshares, Inc.		181	$	10,347
RLJ Lodging Trust		339		9,651
CNO Financial Group, Inc.		565		9,582
Investors Bancorp, Inc.		929		9,410
LaSalle Hotel Properties		270		9,245
Highwoods Properties, Inc.		234		9,102
Stifel Financial Corp.*		170		7,972
FirstMerit Corp.		429		7,550
First American Financial Corp.		277		7,511
Strategic Hotels & Resorts, Inc.*		641		7,468
Sunstone Hotel Investors, Inc.		533		7,366
Geo Group, Inc.		188		7,184
Umpqua Holdings Corp.		432		7,116
Radian Group, Inc.		495		7,059
EPR Properties		139		7,044
MGIC Investment Corp.*		878		6,857
Primerica, Inc.		142		6,847
Hancock Holding Co.		213		6,828
Webster Financial Corp.		234		6,818
Cousins Properties, Inc.		570		6,812
Portfolio Recovery Associates, Inc.*		130		6,789
CubeSmart		374		6,724
Bank of the Ozarks, Inc.		206		6,493
Texas Capital Bancshares, Inc.*		112		6,460
DiamondRock Hospitality Co.		507		6,429
DCT Industrial Trust, Inc.		853		6,407
Sovran Self Storage, Inc.		85		6,321
Colony Financial, Inc.		278		6,221
Pebblebrook Hotel Trust		166		6,198
MarketAxess Holdings, Inc.		98		6,063
Healthcare Realty Trust, Inc.		249		5,896
Janus Capital Group, Inc.		388		5,642
PrivateBancorp, Inc. — Class A		186		5,563
United Bankshares, Inc.		179		5,536
Medical Properties Trust, Inc.		447		5,480
Wintrust Financial Corp.		121		5,405
FNB Corp.		450		5,396
Washington Federal, Inc.		263		5,356
Sun Communities, Inc.		106		5,353
UMB Financial Corp.		98		5,346
Ryman Hospitality Properties, Inc.		113		5,345
Lexington Realty Trust		533		5,218
Cathay General Bancorp		206		5,115
Glimcher Realty Trust		376		5,092
IBERIABANK Corp.		81		5,063
Valley National Bancorp		520		5,039
BancorpSouth, Inc.		249		5,015
Invesco Mortgage Capital, Inc.		319		5,014
Glacier Bancorp, Inc.		193		4,991
National Health Investors, Inc.		86		4,914
EastGroup Properties, Inc.		81		4,908
Susquehanna Bancshares, Inc.		486		4,860
First Industrial Realty Trust, Inc.		285		4,819
RLI Corp.		111		4,805
MB Financial, Inc.		172		4,761
Western Alliance Bancorporation*		196		4,684
Chambers Street Properties		614		4,623
First Financial Bankshares, Inc.		166		4,613
American Realty Capital Healthcare Trust, Inc.		439		4,601
Financial Engines, Inc.		133		4,550
Symetra Financial Corp.		195		4,549
Alexander & Baldwin, Inc.		126		4,532
Hatteras Financial Corp.		250		4,490
DuPont Fabros Technology, Inc.		165		4,462
Kennedy-Wilson Holdings, Inc.		186		4,457
American Equity Investment Life Holding Co.		193		4,416
Blackhawk Network Holdings, Inc.*		136		4,406
Mack-Cali Realty Corp.		230		4,395
Washington Real Estate Investment Trust		173		4,391
Capitol Federal Financial, Inc.		371		4,386
First Citizens BancShares, Inc. — Class A		20		4,332
New York REIT, Inc.		420		4,318
New Residential Investment Corp.		731		4,262
Platinum Underwriters Holdings Ltd.		70		4,262
Potlatch Corp.		105		4,222
EverBank Financial Corp.		236		4,168
WageWorks, Inc.*		91		4,144
Home BancShares, Inc.		140		4,117
PennyMac Mortgage Investment Trust		192		4,115
Acadia Realty Trust		149		4,108
Kemper Corp.		120		4,098
Evercore Partners, Inc. — Class A		86		4,042
Trustmark Corp.		175		4,031
CVB Financial Corp.		275		3,946
Home Loan Servicing Solutions Ltd.		184		3,898
Government Properties Income Trust		177		3,878
Old National Bancorp		297		3,852
Altisource Portfolio Solutions S.A.*		38		3,830
PS Business Parks, Inc.		50		3,807
Chesapeake Lodging Trust		130		3,790
Education Realty Trust, Inc.		362		3,722
Empire State Realty Trust, Inc. — Class A		238		3,575
ARMOUR Residential REIT, Inc.		926		3,565
Redwood Trust, Inc.		215		3,565
Altisource Residential Corp.		148		3,552
Pennsylvania Real Estate Investment Trust		178		3,549
Hilltop Holdings, Inc.*		176		3,529
Community Bank System, Inc.		105		3,527
South State Corp.		63		3,522
Hudson Pacific Properties, Inc.		142		3,502
International Bancshares Corp.		141		3,477
CYS Investments, Inc.		420		3,461
Parkway Properties, Inc.		184		3,456
Retail Opportunity Investments Corp.		234		3,440

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Equity One, Inc.		159	$	3,439
Argo Group International Holdings Ltd.		68		3,421
Greenhill & Company, Inc.		73		3,394
Columbia Banking System, Inc.		136		3,373
BGC Partners, Inc. — Class A		452		3,358
Pinnacle Financial Partners, Inc.		92		3,320
LTC Properties, Inc.		90		3,320
Hersha Hospitality Trust		520		3,312
St. Joe Co.*		164		3,269
Ramco-Gershenson Properties Trust		200		3,250
Selective Insurance Group, Inc.		146		3,232
WisdomTree Investments, Inc.*		279		3,175
Montpelier Re Holdings Ltd.		102		3,171
Westamerica Bancorporation		68		3,163
First Midwest Bancorp, Inc.		195		3,138
Virtus Investment Partners, Inc.		18		3,127
AmTrust Financial Services, Inc.		78		3,106
American Assets Trust, Inc.		93		3,066
Capstead Mortgage Corp.		248		3,036
Horace Mann Educators Corp.		106		3,022
FelCor Lodging Trust, Inc.		322		3,014
BBCN Bancorp, Inc.		206		3,006
Enstar Group Ltd.*		22		2,999
Sabra Health Care REIT, Inc.		123		2,991
Outerwall, Inc.*		53		2,973
iStar Financial, Inc.*		220		2,970
Encore Capital Group, Inc.*		67		2,969
Northwest Bancshares, Inc.		245		2,964
National Penn Bancshares, Inc.		305		2,962
Astoria Financial Corp.		225		2,788
Sterling Bancorp		217		2,775
Union Bankshares Corp.		120		2,772
Aircastle Ltd.		168		2,749
Altisource Asset Management Corp.*		4		2,700
BofI Holding, Inc.*		37		2,690
Starwood Waypoint Residential Trust		101		2,627
Franklin Street Properties Corp.		233		2,614
STAG Industrial, Inc.		126		2,609
Associated Estates Realty Corp.		149		2,609
Ambac Financial Group, Inc.*		117		2,586
Boston Private Financial Holdings, Inc.		207		2,565
Provident Financial Services, Inc.		156		2,554
NBT Bancorp, Inc.		113		2,544
American Capital Mortgage Investment Corp.		133		2,503
ViewPoint Financial Group, Inc.		104		2,490
Park National Corp.		33		2,489
HFF, Inc. — Class A		85		2,462
Summit Hotel Properties, Inc.		222		2,393
Ellie Mae, Inc.*		73		2,380
First Financial Bancorp		150		2,375
Greenlight Capital Re Ltd. — Class A*		73		2,366
Nelnet, Inc. — Class A		54		2,327
Essent Group Ltd.*		108		2,312
Chemical Financial Corp.		85		2,286
Select Income REIT		95		2,285
Credit Acceptance Corp.*		18		2,269
Inland Real Estate Corp.		226		2,240
Investors Real Estate Trust		290		2,233
Renasant Corp.		82		2,218
Independent Bank Corp.		62		2,215
Piper Jaffray Cos.*		42		2,194
Walter Investment Management Corp.*		98		2,151
United Community Banks, Inc.		130		2,140
Third Point Reinsurance Ltd.*		147		2,139
WesBanco, Inc.		68		2,080
Kite Realty Group Trust		85		2,060
First Commonwealth Financial Corp.		244		2,047
Springleaf Holdings, Inc.*		64		2,044
CyrusOne, Inc.		85		2,043
Acacia Research Corp.		130		2,013
Banner Corp.		51		1,962
Cohen & Steers, Inc.		50		1,922
Infinity Property & Casualty Corp.		30		1,920
Northfield Bancorp, Inc.		139		1,893
Apollo Commercial Real Estate Finance, Inc.		120		1,885
First Merchants Corp.		93		1,880
Eagle Bancorp, Inc.*		59		1,877
AMERISAFE, Inc.		48		1,877
FXCM, Inc. — Class A		118		1,870
Alexander’s, Inc.		5		1,870
Ashford Hospitality Trust, Inc.		182		1,860
Excel Trust, Inc.		158		1,860
Safety Insurance Group, Inc.		34		1,833
S&T Bancorp, Inc.		77		1,806
First Potomac Realty Trust		152		1,786
CoreSite Realty Corp.		54		1,775
Gramercy Property Trust, Inc.		305		1,757
OFG Bancorp		117		1,753
United Financial Bancorp, Inc.		137		1,739
City Holding Co.		41		1,727
Tompkins Financial Corp.		39		1,719
New York Mortgage Trust, Inc.		235		1,699
Wilshire Bancorp, Inc.		182		1,680
Oritani Financial Corp.		119		1,677
Hanmi Financial Corp.		83		1,673
Navigators Group, Inc.*		27		1,661
WSFS Financial Corp.		23		1,647
Rexford Industrial Realty, Inc.		119		1,647
Stewart Information Services Corp.		56		1,644
Resource Capital Corp.		335		1,631
Southside Bancshares, Inc.		49		1,629
Silver Bay Realty Trust Corp.		100		1,621
Terreno Realty Corp.		86		1,620
Simmons First National Corp. — Class A		42		1,618
Forestar Group, Inc.*		91		1,612
Lakeland Financial Corp.		43		1,613

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Western Asset Mortgage Capital Corp.		108	$	1,596
Anworth Mortgage Asset Corp.		332		1,590
RAIT Financial Trust		213		1,583
TrustCo Bank Corp. NY		245		1,578
Chatham Lodging Trust		68		1,569
Brookline Bancorp, Inc.		183		1,565
Employers Holdings, Inc.		81		1,559
National General Holdings Corp.		92		1,554
Rouse Properties, Inc.		96		1,552
Berkshire Hills Bancorp, Inc.		65		1,527
American Residential Properties, Inc.*		83		1,522
Capital Bank Financial Corp. — Class A*		63		1,504
Sandy Spring Bancorp, Inc.		65		1,488
National Western Life Insurance Co. — Class A		6		1,482
United Fire Group, Inc.		53		1,472
Monmouth Real Estate Investment Corp.		145		1,467
Investment Technology Group, Inc.*		93		1,466
Maiden Holdings Ltd.		130		1,440
Ameris Bancorp		65		1,427
Flushing Financial Corp.		78		1,425
Cardinal Financial Corp.		83		1,417
Community Trust Bancorp, Inc.		41		1,379
World Acceptance Corp.*		20		1,350
State Bank Financial Corp.		83		1,348
Aviv REIT, Inc.		51		1,344
Urstadt Biddle Properties, Inc. — Class A		65		1,320
AG Mortgage Investment Trust, Inc.		74		1,317
Universal Health Realty Income Trust		31		1,292
First BanCorp*		270		1,283
Apollo Residential Mortgage, Inc.		83		1,281
First NBC Bank Holding Co.*		39		1,277
Arlington Asset Investment Corp. — Class A		50		1,271
Washington Trust Bancorp, Inc.		38		1,254
First Interstate BancSystem, Inc. — Class A		47		1,249
Cass Information Systems, Inc.		30		1,242
Heritage Financial Corp.		78		1,236
Dime Community Bancshares, Inc.		85		1,224
Physicians Realty Trust		89		1,221
Cedar Realty Trust, Inc.		205		1,210
GAMCO Investors, Inc. — Class A		17		1,203
Customers Bancorp, Inc.*		66		1,185
KCG Holdings, Inc. — Class A*		117		1,185
AmREIT, Inc.		51		1,171
Saul Centers, Inc.		25		1,169
Dynex Capital, Inc.		142		1,147
Stock Yards Bancorp, Inc.		38		1,144
Independent Bank Group, Inc.		24		1,139
NMI Holdings, Inc. — Class A*		131		1,133
BancFirst Corp.		18		1,126
ConnectOne Bancorp, Inc.		59		1,124
Getty Realty Corp.		66		1,122
Cowen Group, Inc. — Class A*		299		1,121
FBL Financial Group, Inc. — Class A		25		1,118
Caesars Acquisition Co. — Class A*		118		1,117
1st Source Corp.		39		1,111
eHealth, Inc.*		46		1,110
Ladenburg Thalmann Financial Services, Inc.*		259		1,098
Westwood Holdings Group, Inc.		19		1,077
Campus Crest Communities, Inc.		168		1,075
GFI Group, Inc.		198		1,071
Agree Realty Corp.		39		1,068
Universal Insurance Holdings, Inc.		81		1,047
First Busey Corp.		188		1,047
Towne Bank/Portsmouth VA		77		1,046
CoBiz Financial, Inc.		93		1,040
Waterstone Financial, Inc.		89		1,028
Federated National Holding Co.		36		1,011
Ashford Hospitality Prime, Inc.		66		1,005
Bryn Mawr Bank Corp.		35		992
Heartland Financial USA, Inc.		41		979
Beneficial Mutual Bancorp, Inc.*		76		971
Yadkin Financial Corp.*		53		962
Blue Hills Bancorp, Inc.*		73		958
Lakeland Bancorp, Inc.		98		956
Centerstate Banks, Inc.		92		952
Trico Bancshares		42		950
QTS Realty Trust, Inc. — Class A		31		941
First Financial Corp.		30		929
Peoples Financial Services Corp.		20		920
MainSource Financial Group, Inc.		53		914
OneBeacon Insurance Group Ltd. — Class A		59		909
Metro Bancorp, Inc.*		37		897
Flagstar Bancorp, Inc.*		53		892
German American Bancorp, Inc.		34		878
Clifton Bancorp, Inc.		69		869
Federal Agricultural Mortgage Corp. — Class C		27		868
Ares Commercial Real Estate Corp.		74		865
Diamond Hill Investment Group, Inc.		7		861
Enterprise Financial Services Corp.		51		853
Phoenix Companies, Inc.*		15		841
Mercantile Bank Corp.		44		838
Banc of California, Inc.		72		837
Southwest Bancorp, Inc.		51		836
RE/MAX Holdings, Inc. — Class A		28		832
HCI Group, Inc.		23		828
Great Southern Bancorp, Inc.		27		819
First Bancorp		51		817
BNC Bancorp		52		814
Financial Institutions, Inc.		36		809
Whitestone REIT — Class B		58		809
State Auto Financial Corp.		39		800
HomeTrust Bancshares, Inc.*		54		789
Central Pacific Financial Corp.		44		789
Univest Corporation of Pennsylvania		42		788
Gladstone Commercial Corp.		46		782
OmniAmerican Bancorp, Inc.		30		780

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  67 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Bank Mutual Corp.		121	$	776
NewStar Financial, Inc.*		69		775
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		56		774
Park Sterling Corp.		116		769
Meadowbrook Insurance Group, Inc.		130		761
CareTrust REIT, Inc.*		52		744
Bank of Kentucky Financial Corp.		16		740
Bancorp, Inc.*		86		739
Ladder Capital Corp. — Class A*		39		737
Citizens, Inc.*		114		736
Arrow Financial Corp.		29		726
First of Long Island Corp.		21		723
Bridge Bancorp, Inc.		30		710
Independent Bank Corp.		59		703
International. FCStone, Inc.*		40		693
Hudson Valley Holding Corp.		38		690
Bank of Marin Bancorp		15		688
Preferred Bank/Los Angeles CA		30		676
First Defiance Financial Corp.		25		675
Stonegate Bank		26		670
Peoples Bancorp, Inc.		28		665
Camden National Corp.		19		665
FBR & Co.*		24		660
NewBridge Bancorp*		87		660
1st United Bancorp, Inc.		77		656
HomeStreet, Inc.		38		649
Moelis & Co.		19		649
One Liberty Properties, Inc.		32		647
United Insurance Holdings Corp.		43		645
Walker & Dunlop, Inc.*		48		638
Talmer Bancorp, Inc. — Class A		46		636
Marcus & Millichap, Inc.*		21		635
Pacific Premier Bancorp, Inc.*		45		632
Fidelity & Guaranty Life		29		619
Republic Bancorp, Inc. — Class A		26		616
CorEnergy Infrastructure Trust, Inc.		82		613
United Community Financial Corp.		131		613
First Connecticut Bancorp, Inc.		42		609
Citizens & Northern Corp.		32		608
Pacific Continental Corp.		47		604
Crawford & Co. — Class B		73		602
First Community Bancshares, Inc.		42		600
Baldwin & Lyons, Inc. — Class B		24		593
Fidelity Southern Corp.		43		589
Manning & Napier, Inc. — Class A		35		588
Suffolk Bancorp		30		582
CNB Financial Corp.		37		581
West Bancorporation, Inc.		41		579
Bridge Capital Holdings*		25		569
Meta Financial Group, Inc.		16		564
Meridian Bancorp, Inc.*		53		560
OceanFirst Financial Corp.		35		557
Horizon Bancorp		24		553
Seacoast Banking Corporation of Florida*		50		547
Peapack Gladstone Financial Corp.		31		543
RCS Capital Corp. — Class A		24		540
Consolidated-Tomoka Land Co.		11		540
CatchMark Timber Trust, Inc. — Class A		49		537
Charter Financial Corp.		50		535
Global Indemnity plc — Class A*		21		530
Oppenheimer Holdings, Inc. — Class A		26		527
SWS Group, Inc.*		76		524
Sierra Bancorp		31		520
TriState Capital Holdings, Inc.*		57		517
Guaranty Bancorp		38		513
PennyMac Financial Services, Inc. — Class A*		35		513
Penns Woods Bancorp, Inc.		12		507
Fox Chase Bancorp, Inc.		31		506
Regional Management Corp.*		28		503
National Interstate Corp.		18		502
National Bankshares, Inc.		18		500
BankFinancial Corp.		48		498
Calamos Asset Management, Inc. — Class A		44		496
CU Bancorp*		26		489
Stonegate Mortgage Corp.*		37		481
Kearny Financial Corp.*		36		480
Northrim BanCorp, Inc.		18		476
UMH Properties, Inc.		50		475
Ames National Corp.		21		469
Territorial Bancorp, Inc.		23		467
Franklin Financial Corp.*		25		465
American National Bankshares, Inc.		20		455
Armada Hoffler Properties, Inc.		50		454
Kansas City Life Insurance Co.		10		444
Heritage Commerce Corp.		54		443
First Business Financial Services, Inc.		10		439
First Bancorp, Inc.		25		417
Atlas Financial Holdings, Inc.*		30		415
MidWestOne Financial Group, Inc.		18		414
MidSouth Bancorp, Inc.		22		411
Heritage Oaks Bancorp		58		406
Cascade Bancorp*		80		404
Marlin Business Services Corp.		22		403
Owens Realty Mortgage, Inc.		28		399
Sun Bancorp, Inc.*		22		398
Opus Bank*		13		398
First Financial Northwest, Inc.		38		388
ESB Financial Corp.		33		385
JG Wentworth Co.*		31		384
Gain Capital Holdings, Inc.		60		382
Hallmark Financial Services, Inc.*		37		381
Capital City Bank Group, Inc.		28		379
EMC Insurance Group, Inc.		13		375
Merchants Bancshares, Inc.		13		366
BBX Capital Corp. — Class A*		21		366

68  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares			Value
Enterprise Bancorp, Inc.		19	��	$	358
Consumer Portfolio Services, Inc.*		54			346
Square 1 Financial, Inc. — Class A*		18			346
Trade Street Residential, Inc.		48			343
Old Line Bancshares, Inc.		22			341
Macatawa Bank Corp.		68			326
Donegal Group, Inc. — Class A		21			323
Nicholas Financial, Inc.*		27			313
Century Bancorp, Inc. — Class A		9			312
Republic First Bancorp, Inc.*		80			311
Pzena Investment Management, Inc. — Class A		29			277
Heritage Insurance Holdings, Inc.*		18			271
Independence Holding Co.		20			266
CommunityOne Bancorp*		30			265
Higher One Holdings, Inc.*		88			217
Green Bancorp, Inc.*		12			206
Silvercrest Asset Management Group, Inc. — Class A		15			204
Trupanion, Inc.*		22			187
Palmetto Bancshares, Inc.		12			170
C1 Financial, Inc.*		8			145
CIFC Corp.		16			145
ServisFirst Bancshares, Inc.		5			144
Hampton Roads Bankshares, Inc.*		88			135
Total Financial					987,383
CONSUMER, NON-CYCLICAL - 6.7%
Puma Biotechnology, Inc.*		60			14,325
Isis Pharmaceuticals, Inc.*		305			11,842
WEX, Inc.*		100			11,033
Team Health Holdings, Inc.*		182			10,555
PAREXEL International Corp.*		147			9,275
Pacira Pharmaceuticals, Inc.*		92			8,916
TreeHouse Foods, Inc.*		109			8,774
HealthSouth Corp.		228			8,414
STERIS Corp.		153			8,256
West Pharmaceutical Services, Inc.		183			8,191
Cepheid*		181			7,970
United Natural Foods, Inc.*		129			7,928
DexCom, Inc.*		194			7,757
NPS Pharmaceuticals, Inc.*		276			7,175
Deluxe Corp.		130			7,170
MAXIMUS, Inc.		175			7,022
WellCare Health Plans, Inc.*		114			6,879
Euronet Worldwide, Inc.*		132			6,308
Akorn, Inc.*		162			5,875
Sotheby’s		158			5,644
Air Methods Corp.*		101			5,611
Amsurg Corp. — Class A*		110			5,505
Acadia Healthcare Company, Inc.*		111			5,383
Insulet Corp.*		144			5,306
Corporate Executive Board Co.		88			5,286
Avanir Pharmaceuticals, Inc. — Class A*		443			5,280
Sanderson Farms, Inc.		60			5,277
Healthcare Services Group, Inc.		182			5,207
ACADIA Pharmaceuticals, Inc.*		204			5,051
Grand Canyon Education, Inc.*		121			4,932
Boston Beer Company, Inc. — Class A*		22			4,879
Haemonetics Corp.*		135			4,714
Vistaprint N.V.*		86			4,712
SUPERVALU, Inc.*		526			4,703
Convergys Corp.		263			4,687
Chemed Corp.		45			4,631
Andersons, Inc.		73			4,590
Heartland Payment Systems, Inc.		93			4,438
Advisory Board Co.*		95			4,426
OPKO Health, Inc.*		511			4,349
Prestige Brands Holdings, Inc.*		134			4,338
Impax Laboratories, Inc.*		182			4,315
HMS Holdings Corp.*		227			4,279
NuVasive, Inc.*		121			4,219
Exact Sciences Corp.*,1		215			4,167
Rent-A-Center, Inc.		137			4,158
Lancaster Colony Corp.		48			4,094
Cardtronics, Inc.*		115			4,048
Ironwood Pharmaceuticals, Inc. — Class A*		310			4,016
Vector Group Ltd.		180			3,989
Monro Muffler Brake, Inc.		82			3,979
Nektar Therapeutics*		329			3,971
Thoratec Corp.*		147			3,929
Wright Medical Group, Inc.*		129			3,909
Helen of Troy Ltd.*		74			3,887
Magellan Health, Inc.*		71			3,886
Auxilium Pharmaceuticals, Inc.*		130			3,881
Fresh Market, Inc.*		111			3,877
B&G Foods, Inc.		139			3,829
EVERTEC, Inc.		170			3,798
On Assignment, Inc.*		141			3,786
Synageva BioPharma Corp.*		55			3,783
Post Holdings, Inc.*		114			3,783
Medicines Co.*		169			3,772
Neogen Corp.*		95			3,752
ABM Industries, Inc.		145			3,725
Huron Consulting Group, Inc.*		61			3,719
FTI Consulting, Inc.*		106			3,706
Acorda Therapeutics, Inc.*		108			3,659
J&J Snack Foods Corp.		39			3,648
Theravance, Inc.		213			3,640
Cyberonics, Inc.*		70			3,581
Cal-Maine Foods, Inc.		40			3,573
Dyax Corp.*		352			3,561
MannKind Corp.*		591			3,493
HeartWare International, Inc.*		44			3,416
Matthews International Corp. — Class A		77			3,379
Bright Horizons Family Solutions, Inc.*		80			3,364
Globus Medical, Inc. — Class A*		171			3,364
PHH Corp.*		149			3,332

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Molina Healthcare, Inc.*		78	$	3,299
H&E Equipment Services, Inc.		81		3,263
Snyder’s-Lance, Inc.		123		3,260
Keryx Biopharmaceuticals, Inc.*		237		3,259
Kindred Healthcare, Inc.		167		3,239
Integra LifeSciences Holdings Corp.*		65		3,227
Korn/Ferry International*		129		3,212
Dean Foods Co.		242		3,207
Catalent, Inc.*		126		3,154
PDL BioPharma, Inc.		416		3,108
Neurocrine Biosciences, Inc.*		197		3,087
Lannett Company, Inc.*		67		3,061
Brink’s Co.		126		3,029
Cantel Medical Corp.		88		3,025
Celldex Therapeutics, Inc.*		232		3,007
Fresh Del Monte Produce, Inc.		94		2,999
LifeLock, Inc.*		209		2,987
Receptos, Inc.*		48		2,981
ExamWorks Group, Inc.*		90		2,948
Abaxis, Inc.		58		2,941
Clovis Oncology, Inc.*		64		2,903
Spectranetics Corp.*		108		2,870
Civeo Corp.		243		2,821
Greatbatch, Inc.*		64		2,727
TrueBlue, Inc.*		107		2,703
Seaboard Corp.*		1		2,675
Tumi Holdings, Inc.*		131		2,666
Universal Corp.		60		2,663
Masimo Corp.*		125		2,660
WD-40 Co.		39		2,650
CONMED Corp.		71		2,616
ABIOMED, Inc.*		104		2,582
Novavax, Inc.*		617		2,573
PTC Therapeutics, Inc.*		58		2,552
Ligand Pharmaceuticals, Inc. — Class B*		54		2,537
Aegerion Pharmaceuticals, Inc.*		76		2,537
Achillion Pharmaceuticals, Inc.*		251		2,505
Select Medical Holdings Corp.		204		2,454
Natus Medical, Inc.*		83		2,449
Halozyme Therapeutics, Inc.*		268		2,439
Portola Pharmaceuticals, Inc.*		96		2,427
Arena Pharmaceuticals, Inc.*		569		2,384
ImmunoGen, Inc.*		222		2,351
ARIAD Pharmaceuticals, Inc.*		427		2,306
McGrath RentCorp		67		2,291
Depomed, Inc.*		150		2,279
ICU Medical, Inc.*		35		2,246
Merrimack Pharmaceuticals, Inc.*		255		2,238
Sarepta Therapeutics, Inc.*		105		2,216
Tornier N.V.*		92		2,199
Ascent Capital Group, Inc. — Class A*		36		2,167
Boulder Brands, Inc.*		158		2,154
Agios Pharmaceuticals, Inc.*		35		2,147
NxStage Medical, Inc.*		159		2,088
Anacor Pharmaceuticals, Inc.*		85		2,080
ExlService Holdings, Inc.*		85		2,075
Analogic Corp.		32		2,046
ACCO Brands Corp.*		296		2,042
Annie’s, Inc.*		44		2,020
Bluebird Bio, Inc.*		56		2,008
Team, Inc.*		53		2,009
Quidel Corp.*		74		1,988
Arrowhead Research Corp.*		134		1,979
Weight Watchers International, Inc.		72		1,976
IPC The Hospitalist Company, Inc.*		44		1,970
Chimerix, Inc.*		70		1,933
Meridian Bioscience, Inc.		108		1,911
SpartanNash Co.		98		1,906
PharMerica Corp.*		78		1,906
AMN Healthcare Services, Inc.*		121		1,900
Sangamo BioSciences, Inc.*		176		1,898
Luminex Corp.*		97		1,892
RPX Corp.*		137		1,881
Hanger, Inc.*		91		1,867
BioDelivery Sciences International, Inc.*		108		1,846
AMAG Pharmaceuticals, Inc.*		57		1,819
Ensign Group, Inc.		52		1,810	��
Bio-Reference Laboratories, Inc.*		64		1,796
BioCryst Pharmaceuticals, Inc.*		182		1,780
Sagent Pharmaceuticals, Inc.*		57		1,773
Navigant Consulting, Inc.*		127		1,767
Endologix, Inc.*		166		1,760
Xoom Corp.*		80		1,756
Capella Education Co.		28		1,753
Chiquita Brands International, Inc.*		122		1,732
MiMedx Group, Inc.*		241		1,718
Green Dot Corp. — Class A*		81		1,712
Intrexon Corp.*		92		1,709
Cardiovascular Systems, Inc.*		72		1,701
Zeltiq Aesthetics, Inc.*		75		1,697
Infinity Pharmaceuticals, Inc.*		126		1,691
Strayer Education, Inc.*		28		1,677
Insmed, Inc.*		128		1,670
Repligen Corp.*		83		1,653
Emergent Biosolutions, Inc.*		76		1,620
Insperity, Inc.		59		1,613
Diamond Foods, Inc.*		56		1,602
ICF International, Inc.*		52		1,601
Capital Senior Living Corp.*		75		1,592
Calavo Growers, Inc.		35		1,580
Raptor Pharmaceutical Corp.*		162		1,554
Inovio Pharmaceuticals, Inc.*		156		1,537
Prothena Corporation plc*		69		1,529
Affymetrix, Inc.*		189		1,508
National Healthcare Corp.		27		1,499
Orthofix International N.V.*		48		1,486

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Cambrex Corp.*		79	$	1,476
KYTHERA Biopharmaceuticals, Inc.*		45		1,474
Multi-Color Corp.		32		1,455
Providence Service Corp.*		30		1,451
Accuray, Inc.*		199		1,445
Amedisys, Inc.*		71		1,432
K12, Inc.*		89		1,420
Momenta Pharmaceuticals, Inc.*		125		1,418
Volcano Corp.*		133		1,415
Theravance Biopharma, Inc.*		61		1,406
Ophthotech Corp.*		36		1,401
Resources Connection, Inc.		100		1,394
Kforce, Inc.		71		1,389
Quad/Graphics, Inc.		72		1,386
Spectrum Pharmaceuticals, Inc.*		170		1,384
Gentiva Health Services, Inc.*		82		1,376
Tootsie Roll Industries, Inc.		49		1,372
Anika Therapeutics, Inc.*		37		1,356
Orexigen Therapeutics, Inc.*		318		1,355
Albany Molecular Research, Inc.*		61		1,346
TESARO, Inc.*		50		1,346
LDR Holding Corp.*		43		1,339
Merit Medical Systems, Inc.*		111		1,319
Acceleron Pharma, Inc.*		43		1,300
Monster Worldwide, Inc.*		236		1,298
Healthways, Inc.*		81		1,298
TherapeuticsMD, Inc.*		279		1,295
Triple-S Management Corp. — Class B*		65		1,294
Accelerate Diagnostics, Inc.*		59		1,267
BioScrip, Inc.*		177		1,223
Karyopharm Therapeutics, Inc.*		35		1,223
Atrion Corp.		4		1,220
Cynosure, Inc. — Class A*		58		1,218
Genomic Health, Inc.*		43		1,217
American Public Education, Inc.*		45		1,215
Inter Parfums, Inc.		43		1,182
USANA Health Sciences, Inc.*		16		1,179
Array BioPharma, Inc.*		327		1,167
Global Cash Access Holdings, Inc.*		171		1,154
NutriSystem, Inc.		75		1,153
Tetraphase Pharmaceuticals, Inc.*		57		1,137
US Physical Therapy, Inc.		32		1,132
Weis Markets, Inc.		29		1,132
Elizabeth Arden, Inc.*		67		1,122
Omeros Corp.*		88		1,119
Medifast, Inc.*		34		1,116
Kelly Services, Inc. — Class A		71		1,113
TeleTech Holdings, Inc.*		45		1,106
Viad Corp.		53		1,094
NewLink Genetics Corp.*		51		1,092
MacroGenics, Inc.*		52		1,087
Vascular Solutions, Inc.*		44		1,087
Enanta Pharmaceuticals, Inc.*		27		1,068
STAAR Surgical Co.*		100		1,063
TriNet Group, Inc.*		41		1,056
OraSure Technologies, Inc.*		145		1,047
AtriCure, Inc.*		71		1,045
Forrester Research, Inc.		28		1,032
Organovo Holdings, Inc.*		162		1,032
Ultragenyx Pharmaceutical, Inc.*		18		1,019
Insys Therapeutics, Inc.*		26		1,008
CorVel Corp.*		29		987
Tejon Ranch Co.*		35		981
Invacare Corp.		83		980
Symmetry Medical, Inc.*		97		979
Dynavax Technologies Corp.*		681		974
Rockwell Medical, Inc.*		106		969
GenMark Diagnostics, Inc.*		108		969
Heidrick & Struggles International, Inc.		47		965
Great Lakes Dredge & Dock Corp.*		155		958
MoneyGram International, Inc.*		76		953
Progenics Pharmaceuticals, Inc.*		180		934
Relypsa, Inc.*		44		928
Revlon, Inc. — Class A*		29		919
SciClone Pharmaceuticals, Inc.*		133		916
Sunesis Pharmaceuticals, Inc.*		128		914
XOMA Corp.*		217		914
Vanda Pharmaceuticals, Inc.*		88		913
Senomyx, Inc.*		110		902
Central Garden and Pet Co. — Class A*		112		900
VIVUS, Inc.*		233		899
Sequenom, Inc.*		302		897
Ennis, Inc.		68		896
Coca-Cola Bottling Company Consolidated		12		896
Epizyme, Inc.*		33		895
Universal American Corp.*		110		884
Career Education Corp.*		174		884
Hyperion Therapeutics, Inc.*		35		883
Surgical Care Affiliates, Inc.*		33		882
AngioDynamics, Inc.*		64		878
ARC Document Solutions, Inc.*		107		867
Phibro Animal Health Corp. — Class A		38		851
CBIZ, Inc.*		108		850
CTI BioPharma Corp.*		348		842
Lexicon Pharmaceuticals, Inc.*		592		835
Landauer, Inc.		25		825
Geron Corp.*		407		814
XenoPort, Inc.*		150		807
Ingles Markets, Inc. — Class A		34		805
Immunomedics, Inc.*		214		796
IGI Laboratories, Inc.*		83		774
Exelixis, Inc.*		505		773
Chefs’ Warehouse, Inc.*		47		764
SP Plus Corp.*		40		758
Cerus Corp.*		188		754
Cross Country Healthcare, Inc.*		81		752

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Barrett Business Services, Inc.		19	$	750
LHC Group, Inc.*		32		742
Pacific Biosciences of California, Inc.*		149		732
Carriage Services, Inc. — Class A		42		728
CryoLife, Inc.		73		721
ZS Pharma, Inc.*		18		706
RTI Surgical, Inc.*		147		703
Limoneira Co.		29		687
Foundation Medicine, Inc.*		36		683
John B Sanfilippo & Son, Inc.		21		680
Synergy Pharmaceuticals, Inc.*		243		677
Omega Protein Corp.*		54		675
OvaScience, Inc.*		40		664
CRA International, Inc.*		26		661
Pernix Therapeutics Holdings, Inc.*		86		660
Supernus Pharmaceuticals, Inc.*		76		660
TG Therapeutics, Inc.*		61		651
Cempra, Inc.*		59		647
SurModics, Inc.*		35		636
Aratana Therapeutics, Inc.*		63		633
Galena Biopharma, Inc.*		306		630
Kite Pharma, Inc.*		22		627
OncoMed Pharmaceuticals, Inc.*		33		625
Performant Financial Corp.*		77		622
Peregrine Pharmaceuticals, Inc.*		457		622
Osiris Therapeutics, Inc.*		49		617
Auspex Pharmaceuticals, Inc.*		24		616
Avalanche Biotechnologies, Inc.*		18		615
Unilife Corp.*,1		266		611
Tree.com, Inc.*		17		610
Intra-Cellular Therapies, Inc.*		44		603
Seneca Foods Corp. — Class A*		21		601
Almost Family, Inc.*		22		598
Dendreon Corp.*		415		598
Repros Therapeutics, Inc.*		60		594
Electro Rent Corp.		43		592
National Beverage Corp.*		30		585
Neuralstem, Inc.*		178		584
Endocyte, Inc.*		96		584
CSS Industries, Inc.		24		582
SFX Entertainment, Inc.*		115		577
Exactech, Inc.*		25		572
ServiceSource International, Inc.*		177		572
Pendrell Corp.*		425		570
RadNet, Inc.*		85		563
Aerie Pharmaceuticals, Inc.*		27		559
Antares Pharma, Inc.*		303		554
ZIOPHARM Oncology, Inc.*		210		554
Farmer Bros Co.*		19		550
Franklin Covey Co.*		28		549
CDI Corp.		37		537
Five Prime Therapeutics, Inc.*		45		528
Universal Technical Institute, Inc.		56		524
POZEN, Inc.		71		521
Oxford Immunotec Global plc*		34		519
Inventure Foods, Inc.*		40		518
Navidea Biopharmaceuticals, Inc.*		391		516
ANI Pharmaceuticals, Inc.*		18		509
Durata Therapeutics, Inc.*		40		507
Synta Pharmaceuticals Corp.*		168		506
Agenus, Inc.*		161		501
Heron Therapeutics, Inc.*		60		500
Retrophin, Inc.*		55		496
HealthEquity, Inc.*		27		494
Derma Sciences, Inc.*		59		491
Utah Medical Products, Inc.		10		488
Threshold Pharmaceuticals, Inc.*		135		487
Bridgepoint Education, Inc.*		43		480
Sage Therapeutics, Inc.*		15		473
Northwest Biotherapeutics, Inc.*		92		463
Verastem, Inc.*		54		460
Nutraceutical International Corp.*		22		460
Enzo Biochem, Inc.*		89		458
BioTelemetry, Inc.*		68		456
Otonomy, Inc.*		19		456
Potbelly Corp.*		39		455
Alliance One International, Inc.*		229		451
Akebia Therapeutics, Inc.*		20		443
Rigel Pharmaceuticals, Inc.*		227		440
Paylocity Holding Corp.*		22		432
Revance Therapeutics, Inc.*		22		425
BioTime, Inc.*		135		424
Five Star Quality Care, Inc.*		112		422
PRGX Global, Inc.*		72		422
Nature’s Sunshine Products, Inc.		28		415
Craft Brew Alliance, Inc.*		28		403
Merge Healthcare, Inc.*		183		403
Skilled Healthcare Group, Inc. — Class A*		61		403
Ohr Pharmaceutical, Inc.*		55		399
Collectors Universe, Inc.		18		396
Hackett Group, Inc.		65		387
Village Super Market, Inc. — Class A		17		387
Pain Therapeutics, Inc.*		99		387
Bio-Path Holdings, Inc.*		190		382
Radius Health, Inc.*		18		378
Natural Grocers by Vitamin Cottage, Inc.*		23		374
Ampio Pharmaceuticals, Inc.*		106		374
Stemline Therapeutics, Inc.*		30		374
Adeptus Health, Inc. — Class A*		15		374
Corcept Therapeutics, Inc.*		138		370
Alimera Sciences, Inc.*		68		369
Actinium Pharmaceuticals, Inc.*		55		369
CytRx Corp.*		145		368
Zogenix, Inc.*		318		366
Idera Pharmaceuticals, Inc.*		156		357
Cenveo, Inc.*		144		356

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Xencor, Inc.*		38	$	354
Zafgen, Inc.*		18		354
Oncothyreon, Inc.*		183		351
AcelRx Pharmaceuticals, Inc.*		64		351
Versartis, Inc.*		18		342
National Research Corp. — Class A*		26		338
NeoStem, Inc.*		61		337
Mirati Therapeutics, Inc.*		19		333
K2M Group Holdings, Inc.*		23		332
Information Services Group, Inc.*		85		323
Liberty Tax, Inc.*		10		323
TransEnterix, Inc.*		74		323
ChemoCentryx, Inc.*		71		320
BioSpecifics Technologies Corp.*		9		318
Cytokinetics, Inc.*		90		317
Addus HomeCare Corp.*		16		314
Hill International, Inc.*		78		312
NanoViricides, Inc.*		104		312
Alico, Inc.		8		305
Sucampo Pharmaceuticals, Inc. — Class A*		46		299
Tandem Diabetes Care, Inc.*		22		295
Alliance HealthCare Services, Inc.*		13		294
Esperion Therapeutics, Inc.*		12		294
NanoString Technologies, Inc.*		26		284
Immune Design Corp.*		16		283
Amphastar Pharmaceuticals, Inc.*		24		280
Applied Genetic Technologies Corp.*		15		279
TriVascular Technologies, Inc.*		19		275
T2 Biosystems, Inc.*		15		271
22nd Century Group, Inc.*		107		270
Inogen, Inc.*		13		268
Alder Biopharmaceuticals, Inc.*		21		266
Vital Therapies, Inc.*		13		265
ITT Educational Services, Inc.*		61		262
Liberator Medical Holdings, Inc.		82		257
Kindred Biosciences, Inc.*		27		250
Regulus Therapeutics, Inc.*		36		246
Galectin Therapeutics, Inc.*		47		236
Intersect ENT, Inc.*		15		233
Ocular Therapeutix, Inc.*		15		225
Flexion Therapeutics, Inc.*		12		219
PhotoMedex, Inc.*		34		211
Synutra International, Inc.*		45		204
Female Health Co.		56		195
Ardelyx, Inc.*		13		185
Fairway Group Holdings Corp.*		48		180
Cellular Dynamics International, Inc.*		25		176
Lifeway Foods, Inc.*		12		166
Veracyte, Inc.*		17		166
Achaogen, Inc.*		18		161
Adamas Pharmaceuticals, Inc.*		8		149
Care.com, Inc.*		17		139
Eleven Biotherapeutics, Inc.*		12		134
Roka Bioscience, Inc.*		13		131
Cytori Therapeutics, Inc.*		175		118
Loxo Oncology, Inc.*		9		118
Cara Therapeutics, Inc.*		14		117
Dicerna Pharmaceuticals, Inc.*		9		115
Marrone Bio Innovations, Inc.*		36		96
Genocea Biosciences, Inc.*		10		91
Corporate Resource Services, Inc.*		46		69
Education Management Corp.*		55		60
Egalet Corp.*		10		57
Regado Biosciences, Inc.*		40		45
Total Consumer, Non-cyclical				846,836
INDUSTRIAL - 4.5%
Graphic Packaging Holding Co.*		848		10,540
Esterline Technologies Corp.*		82		9,125
Teledyne Technologies, Inc.*		97		9,119
Cognex Corp.*		225		9,061
FEI Co.		110		8,296
CLARCOR, Inc.		131		8,264
Curtiss-Wright Corp.		125		8,241
Woodward, Inc.		172		8,190
HEICO Corp.		172		8,033
Moog, Inc. — Class A*		115		7,867
Darling Ingredients, Inc.*		427		7,823
Belden, Inc.		113		7,235
Generac Holdings, Inc.*		178		7,215
EnerSys		122		7,154
EMCOR Group, Inc.		174		6,953
Bristow Group, Inc.		92		6,183
Berry Plastics Group, Inc.*		233		5,881
Actuant Corp. — Class A		184		5,616
Rexnord Corp.*		195		5,548
Greenbrier Companies, Inc.		72		5,283
MasTec, Inc.*		170		5,206
XPO Logistics, Inc.*		136		5,123
Hillenbrand, Inc.		163		5,035
Louisiana-Pacific Corp.*		366		4,974
Worthington Industries, Inc.		133		4,950
Littelfuse, Inc.		58		4,940
Applied Industrial Technologies, Inc.		108		4,931
Chart Industries, Inc.*		79		4,830
Swift Transportation Co. — Class A*		220		4,617
Polypore International, Inc.*		117		4,552
Harsco Corp.		209		4,475
Sanmina Corp.*		213		4,443
Orbital Sciences Corp.*		157		4,365
Watts Water Technologies, Inc. — Class A		74		4,311
Franklin Electric Company, Inc.		124		4,308
Barnes Group, Inc.		141		4,279
Knight Transportation, Inc.		155		4,246
Masonite International Corp.*		76		4,209
Tetra Tech, Inc.		168		4,197
Mueller Industries, Inc.		147		4,195

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Proto Labs, Inc.*		59	$	4,071
Itron, Inc.*		102		4,009
Coherent, Inc.*		65		3,989
Hub Group, Inc. — Class A*		95		3,850
MSA Safety, Inc.		77		3,804
Scorpio Tankers, Inc.		446		3,705
Forward Air Corp.		81		3,631
InvenSense, Inc. — Class A*,1		184		3,630
TAL International Group, Inc.		88		3,630
Methode Electronics, Inc.		98		3,613
EnPro Industries, Inc.*		59		3,571
Measurement Specialties, Inc.*		41		3,510
Universal Display Corp.*		105		3,427
Mueller Water Products, Inc. — Class A		413		3,419
RBC Bearings, Inc.		60		3,402
Heartland Express, Inc.		141		3,378
OSI Systems, Inc.*		52		3,301
Plexus Corp.*		88		3,250
Tennant Co.		48		3,220
Granite Construction, Inc.		101		3,212
Saia, Inc.*		64		3,172
Simpson Manufacturing Company, Inc.		107		3,118
Benchmark Electronics, Inc.*		140		3,109
CIRCOR International, Inc.		46		3,097
Boise Cascade Co.*		102		3,074
Trex Company, Inc.*		87		3,008
Apogee Enterprises, Inc.		75		2,985
Werner Enterprises, Inc.		116		2,923
TriMas Corp.*		117		2,847
Kaman Corp.		71		2,790
Brady Corp. — Class A		124		2,782
Matson, Inc.		111		2,778
AZZ, Inc.		66		2,757
Dycom Industries, Inc.*		88		2,702
Calgon Carbon Corp.*		138		2,674
US Ecology, Inc.		56		2,618
Ship Finance International Ltd.		153		2,589
Rogers Corp.*		47		2,574
Drew Industries, Inc.		61		2,574
Tutor Perini Corp.*		97		2,561
UTI Worldwide, Inc.*		237		2,519
DXP Enterprises, Inc.*		34		2,505
ArcBest Corp.		67		2,499
AAR Corp.		103		2,487
Albany International Corp. — Class A		73		2,485
Cubic Corp.		53		2,480
GenCorp, Inc.*		155		2,475
Lindsay Corp.		33		2,467
Standex International Corp.		33		2,447
Sturm Ruger & Company, Inc.		50		2,435
Exponent, Inc.		34		2,410
ESCO Technologies, Inc.		69		2,400
GasLog Ltd.		109		2,399
Headwaters, Inc.*		190		2,383
Astronics Corp.*		49		2,336
Raven Industries, Inc.		94		2,294
FARO Technologies, Inc.*		45		2,284
Universal Forest Products, Inc.		52		2,221
Aegion Corp. — Class A*		98		2,181
Briggs & Stratton Corp.		121		2,180
Sun Hydraulics Corp.		58		2,180
Taser International, Inc.*		140		2,161
Federal Signal Corp.		163		2,158
Atlas Air Worldwide Holdings, Inc.*		65		2,146
John Bean Technologies Corp.		76		2,138
Altra Industrial Motion Corp.		70		2,041
Scorpio Bulkers, Inc.*		349		2,031
Advanced Energy Industries, Inc.*		107		2,011
Encore Wire Corp.		54		2,003
RTI International Metals, Inc.*		80		1,973
Blount International, Inc.*		128		1,937
Hyster-Yale Materials Handling, Inc.		27		1,934
General Cable Corp.		126		1,900
AAON, Inc.		110		1,871
Badger Meter, Inc.		37		1,867
Nordic American Tankers Ltd.		231		1,836
Newport Corp.*		103		1,825
Fluidigm Corp.*		73		1,789
Nortek, Inc.*		24		1,788
Astec Industries, Inc.		49		1,787
LSB Industries, Inc.*		50		1,786
American Railcar Industries, Inc.		24		1,774
Koppers Holdings, Inc.		53		1,757
Quanex Building Products Corp.		97		1,755
Textainer Group Holdings Ltd.		56		1,743
Rofin-Sinar Technologies, Inc.*		73		1,683
YRC Worldwide, Inc.*		81		1,646
Roadrunner Transportation Systems, Inc.*		72		1,641
II-VI, Inc.*		136		1,601
Aerovironment, Inc.*		49		1,473
Gorman-Rupp Co.		49		1,472
Haynes International, Inc.		32		1,472
Echo Global Logistics, Inc.*		61		1,437
NCI Building Systems, Inc.*		73		1,416
CTS Corp.		88		1,398
GrafTech International Ltd.*		305		1,397
PHI, Inc.*		33		1,358
Smith & Wesson Holding Corp.*		142		1,340
Fabrinet*		91		1,329
Comfort Systems USA, Inc.		98		1,328
MYR Group, Inc.*		55		1,324
Checkpoint Systems, Inc.*		108		1,321
Park Electrochemical Corp.		54		1,272
Myers Industries, Inc.		72		1,270
LB Foster Co. — Class A		27		1,240
Navios Maritime Holdings, Inc.		206		1,236

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
NN, Inc.		46	$	1,229
Advanced Emissions Solutions, Inc.*		56		1,191
Lydall, Inc.*		44		1,188
Tredegar Corp.		64		1,178
Griffon Corp.		103		1,173
Era Group, Inc.*		53		1,153
PGT, Inc.*		122		1,137
Kadant, Inc.		29		1,132
Columbus McKinnon Corp.		51		1,121
DHT Holdings, Inc.		180		1,109
American Science & Engineering, Inc.		20		1,108
Marten Transport Ltd.		62		1,104
Park-Ohio Holdings Corp.		23		1,101
Gibraltar Industries, Inc.*		80		1,095
GP Strategies Corp.*		38		1,091
Argan, Inc.		32		1,068
Celadon Group, Inc.		54		1,050
FreightCar America, Inc.		31		1,032
Air Transport Services Group, Inc.*		135		983
Powell Industries, Inc.		24		981
US Concrete, Inc.*		37		967
Insteel Industries, Inc.		47		966
TTM Technologies, Inc.*		140		953
Capstone Turbine Corp.*		852		912
GSI Group, Inc.*		79		908
Quality Distribution, Inc.*		71		907
Patrick Industries, Inc.*		21		890
Mistras Group, Inc.*		42		857
Northwest Pipe Co.*		25		853
NVE Corp.*		13		839
Nordic American Offshore Ltd.		47		828
Power Solutions International, Inc.*		12		828
Stoneridge, Inc.*		73		823
Advanced Drainage Systems, Inc.*		39		817
CAI International, Inc.*		42		813
Global Brass & Copper Holdings, Inc.		55		807
National Presto Industries, Inc.		13		789
Knightsbridge Tankers Ltd.		87		770
Ducommun, Inc.*		28		767
Kratos Defense & Security Solutions, Inc.*		116		761
Graham Corp.		26		748
Alamo Group, Inc.		18		738
CECO Environmental Corp.		55		737
Orion Marine Group, Inc.*		71		709
Dynamic Materials Corp.		36		686
M/A-COM Technology Solutions Holdings, Inc.*		31		677
Safe Bulkers, Inc.		101		673
Furmanite Corp.*		97		656
Global Power Equipment Group, Inc.		44		656
Bel Fuse, Inc. — Class B		26		643
Builders FirstSource, Inc.*		118		643
Sparton Corp.*		26		641
Hurco Companies, Inc.		17		640
Applied Optoelectronics, Inc.*		38		612
Teekay Tankers Ltd. — Class A		161		601
Stock Building Supply Holdings, Inc.*		38		597
Ply Gem Holdings, Inc.*		55		596
Navios Maritime Acquisition Corp.		213		577
Patriot Transportation Holding, Inc.*		17		577
Nuverra Environmental Solutions, Inc.*		39		575
Twin Disc, Inc.		21		566
PowerSecure International, Inc.*		58		556
ExOne Co.*		26		543
VSE Corp.		11		539
Baltic Trading Ltd.		128		530
Chase Corp.		17		529
Ardmore Shipping Corp.		47		512
Layne Christensen Co.*		51		495
Olympic Steel, Inc.		24		494
Vishay Precision Group, Inc.*		33		493
CHC Group Ltd.*		87		487
KEMET Corp.*		118		486
Trinseo S.A.*		30		472
Ampco-Pittsburgh Corp.		22		440
Continental Building Products, Inc.*		30		438
Electro Scientific Industries, Inc.		63		428
AM Castle & Co.*		49		418
AEP Industries, Inc.*		11		417
Intevac, Inc.*		62		414
Universal Truckload Services, Inc.		17		412
Manitex International, Inc.*		36		406
Mesa Laboratories, Inc.		7		404
Vicor Corp.*		43		404
Casella Waste Systems, Inc. — Class A*		101		389
Control4 Corp.*		30		388
CUI Global, Inc.*		53		384
Astronics Corp. — Class B*		8		380
Sterling Construction Company, Inc.*		49		376
LMI Aerospace, Inc.*		28		358
Heritage-Crystal Clean, Inc.*		24		357
Energy Recovery, Inc.*		100		354
UFP Technologies, Inc.*		16		352
Handy & Harman Ltd.*		13		341
LSI Industries, Inc.		56		340
Dorian LPG Ltd.*		19		339
PAM Transportation Services, Inc.*		8		290
USA Truck, Inc.*		16		280
International Shipholding Corp.		15		268
General Finance Corp.*		29		257
Imprivata, Inc.*		15		233
Frontline Ltd.*		172		217
Multi-Fineline Electronix, Inc.*		23		215
SIFCO Industries, Inc.		7		211
Erickson, Inc.*		16		208
Viasystems Group, Inc.*		13		204
Ultrapetrol Bahamas Ltd.*		55		172

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Revolution Lighting Technologies, Inc.*		85	$	143
Aspen Aerogels, Inc.*		14		141
Turtle Beach Corp.*		18		138
TCP International Holdings Ltd.*		18		137
Omega Flex, Inc.		7		136
NL Industries, Inc.		18		132
ARC Group Worldwide, Inc.*		8		125
Quest Resource Holding Corp.*		33		57
Total Industrial				568,965
CONSUMER, CYCLICAL - 4.3%
Brunswick Corp.		240		10,113
Tenneco, Inc.*		158		8,265
Vail Resorts, Inc.		94		8,155
Dana Holding Corp.		406		7,783
American Eagle Outfitters, Inc.		504		7,317
Casey’s General Stores, Inc.		100		7,170
Office Depot, Inc.*		1,386		7,124
Jack in the Box, Inc.		104		7,091
JetBlue Airways Corp.*		644		6,839
Wolverine World Wide, Inc.		263		6,590
Buffalo Wild Wings, Inc.*		49		6,578
Restoration Hardware Holdings, Inc.*		81		6,444
Pool Corp.		117		6,309
Cheesecake Factory, Inc.		129		5,869
Men’s Wearhouse, Inc.		124		5,854
Watsco, Inc.		67		5,774
Five Below, Inc.*		141		5,585
Skechers U.S.A., Inc. — Class A*		101		5,384
Owens & Minor, Inc.		164		5,369
Life Time Fitness, Inc.*		106		5,347
HSN, Inc.		86		5,278
Asbury Automotive Group, Inc.*		79		5,088
Cracker Barrel Old Country Store, Inc.		49		5,056
Texas Roadhouse, Inc. — Class A		181		5,039
ANN, Inc.*		121		4,977
TRI Pointe Homes, Inc.*		380		4,916
MWI Veterinary Supply, Inc.*		33		4,897
Steven Madden Ltd.*		151		4,867
Cooper Tire & Rubber Co.		165		4,736
Genesco, Inc.*		62		4,635
Marriott Vacations Worldwide Corp.		73		4,629
Herman Miller, Inc.		154		4,597
Group 1 Automotive, Inc.		63		4,581
Lithia Motors, Inc. — Class A		59		4,466
Allegiant Travel Co. — Class A		36		4,452
Iconix Brand Group, Inc.*		119		4,396
Mobile Mini, Inc.		121		4,232
HNI Corp.		117		4,211
First Cash Financial Services, Inc.*		75		4,199
PriceSmart, Inc.		49		4,196
G-III Apparel Group Ltd.*		50		4,143
Lumber Liquidators Holdings, Inc.*		71		4,074
Ryland Group, Inc.		122		4,055
Pinnacle Entertainment, Inc.*		154		3,864
Gentherm, Inc.*		91		3,843
United Stationers, Inc.		102		3,832
TiVo, Inc.*		298		3,814
UniFirst Corp.		38		3,670
Bloomin’ Brands, Inc.*		200		3,668
Meritage Homes Corp.*		101		3,586
Vitamin Shoppe, Inc.*		80		3,551
DineEquity, Inc.		43		3,508
Guess?, Inc.		159		3,493
Steelcase, Inc. — Class A		214		3,465
Fiesta Restaurant Group, Inc.*		69		3,428
Churchill Downs, Inc.		35		3,412
Express, Inc.*		218		3,403
Buckle, Inc.		73		3,313
Beacon Roofing Supply, Inc.*		128		3,261
KB Home		217		3,242
Cash America International, Inc.		73		3,197
Core-Mark Holding Company, Inc.		60		3,182
Papa John’s International, Inc.		79		3,159
Sonic Corp.		141		3,153
Finish Line, Inc. — Class A		125		3,129
Brown Shoe Company, Inc.		113		3,066
Bob Evans Farms, Inc.		64		3,030
Rush Enterprises, Inc. — Class A*		89		2,977
Select Comfort Corp.*		141		2,951
Burlington Stores, Inc.*		74		2,950
American Axle & Manufacturing Holdings, Inc.*		175		2,935
Belmond Ltd. — Class A*		250		2,915
Pier 1 Imports, Inc.		245		2,913
Krispy Kreme Doughnuts, Inc.*		169		2,900
G&K Services, Inc. — Class A		52		2,880
Hibbett Sports, Inc.*		67		2,857
Crocs, Inc.*		227		2,856
Standard Pacific Corp.*		375		2,809
Dorman Products, Inc.*		70		2,804
Interface, Inc. — Class A		172		2,776
Multimedia Games Holding Company, Inc.*		77		2,773
Meritor, Inc.*		254		2,756
Children’s Place, Inc.		57		2,717
La-Z-Boy, Inc.		136		2,691
Columbia Sportswear Co.		72		2,576
ScanSource, Inc.*		74		2,560
MDC Holdings, Inc.		101		2,557
Sonic Automotive, Inc. — Class A		103		2,525
Popeyes Louisiana Kitchen, Inc.*		61		2,471
Cato Corp. — Class A		71		2,447
Wabash National Corp.*		179		2,384
Wesco Aircraft Holdings, Inc.*		136		2,366
Mattress Firm Holding Corp.*		39		2,342
Oxford Industries, Inc.		38		2,318
iRobot Corp.*		76		2,314
National CineMedia, Inc.		158		2,293

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Penn National Gaming, Inc.*		204	$	2,287
International Speedway Corp. — Class A		72		2,278
BJ’s Restaurants, Inc.*		61		2,195
Tuesday Morning Corp.*		113		2,193
Cooper-Standard Holding, Inc.*		35		2,184
La Quinta Holdings, Inc.*		115		2,184
Knoll, Inc.		126		2,181
Conn’s, Inc.*		72		2,179
Red Robin Gourmet Burgers, Inc.*		37		2,105
Diamond Resorts International, Inc.*		92		2,094
Barnes & Noble, Inc.*		106		2,092
Boyd Gaming Corp.*		201		2,042
Universal Electronics, Inc.*		41		2,024
Interval Leisure Group, Inc.		103		1,962
Carmike Cinemas, Inc.*		63		1,952
Regis Corp.		113		1,803
Standard Motor Products, Inc.		51		1,756
Caesars Entertainment Corp.*		133		1,673
Denny’s Corp.*		226		1,589
Movado Group, Inc.		48		1,587
Rentrak Corp.*		26		1,584
Hawaiian Holdings, Inc.*		117		1,574
Cavco Industries, Inc.*		23		1,564
Winnebago Industries, Inc.*		71		1,546
Francesca’s Holdings Corp.*		109		1,518
Zumiez, Inc.*		54		1,517
Ethan Allen Interiors, Inc.		65		1,482
Modine Manufacturing Co.*		124		1,472
Libbey, Inc.*		56		1,471
Callaway Golf Co.		201		1,455
Republic Airways Holdings, Inc.*		129		1,433
Steiner Leisure Ltd.*		38		1,428
Scientific Games Corp. — Class A*		131		1,411
Stage Stores, Inc.		82		1,403
Biglari Holdings, Inc.*		4		1,359
Chuy’s Holdings, Inc.*		43		1,350
Titan International, Inc.		114		1,347
Fred’s, Inc. — Class A		96		1,344
Kimball International, Inc. — Class B		89		1,339
Tower International, Inc.*		53		1,335
EZCORP, Inc. — Class A*		133		1,318
AMC Entertainment Holdings, Inc. — Class A		55		1,264
M/I Homes, Inc.*		63		1,249
Pantry, Inc.*		61		1,234
Pep Boys-Manny Moe & Jack*		138		1,230
Daktronics, Inc.		98		1,204
American Woodmark Corp.*		32		1,180
Vera Bradley, Inc.*		57		1,179
Del Frisco’s Restaurant Group, Inc.*		61		1,168
Beazer Homes USA, Inc.*		69		1,158
Arctic Cat, Inc.		33		1,150
Haverty Furniture Companies, Inc.		52		1,133
Douglas Dynamics, Inc.		58		1,131
ClubCorp Holdings, Inc.		57		1,130
Federal-Mogul Holdings Corp.*		75		1,115
Hovnanian Enterprises, Inc. — Class A*		303		1,112
DTS, Inc.*		44		1,111
MarineMax, Inc.*		64		1,078
Superior Industries International, Inc.		61		1,069
Motorcar Parts of America, Inc.*		39		1,061
SkyWest, Inc.		132		1,027
Ruth’s Hospitality Group, Inc.		93		1,027
LeapFrog Enterprises, Inc. — Class A*		169		1,012
William Lyon Homes — Class A*		45		995
Unifi, Inc.*		38		984
Container Store Group, Inc.*		45		980
Nautilus, Inc.*		81		970
Ruby Tuesday, Inc.*		159		937
Christopher & Banks Corp.*		94		930
Citi Trends, Inc.*		40		884
Vince Holding Corp.*		29		878
Eros International plc*		58		847
Stein Mart, Inc.		72		832
America’s Car-Mart, Inc.*		20		792
Remy International, Inc.		37		760
El Pollo Loco Holdings, Inc.*		21		754
Marcus Corp.		47		743
Strattec Security Corp.		9		732
PetMed Express, Inc.		52		707
Shoe Carnival, Inc.		39		695
LGI Homes, Inc.*		37		679
Tile Shop Holdings, Inc.*		73		675
Aeropostale, Inc.*		204		671
Perry Ellis International, Inc.*		32		651
Bravo Brio Restaurant Group, Inc.*		50		649
Carrols Restaurant Group, Inc.*		91		647
NACCO Industries, Inc. — Class A		13		646
Jamba, Inc.*		45		640
Morgans Hotel Group Co.*		76		613
Kirkland’s, Inc.*		38		612
Quiksilver, Inc.*		352		605
Einstein Noah Restaurant Group, Inc.		29		585
Titan Machinery, Inc.*		45		585
Destination Maternity Corp.		36		556
WCI Communities, Inc.*		30		553
Houston Wire & Cable Co.		46		551
Sequential Brands Group, Inc.*		44		550
Nathan’s Famous, Inc.*		8		542
Noodles & Co.*		28		537
PC Connection, Inc.		25		536
Speedway Motorsports, Inc.		30		512
Miller Industries, Inc.		29		490
VOXX International Corp. — Class A*		50		465
Sears Hometown and Outlet Stores, Inc.*		30		465
Zoe’s Kitchen, Inc.*		15		461
Big 5 Sporting Goods Corp.		48		450

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  77 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Fox Factory Holding Corp.*		29	$	450
Black Diamond, Inc.*		59		446
Winmark Corp.		6		441
Flexsteel Industries, Inc.		13		438
Destination XL Group, Inc.*		91		430
Weyco Group, Inc.		17		427
Commercial Vehicle Group, Inc.*		69		426
AV Homes, Inc.*		29		425
Isle of Capri Casinos, Inc.*		56		420
Build-A-Bear Workshop, Inc. — Class A*		32		419
Culp, Inc.		23		418
Spartan Motors, Inc.		89		416
Lifetime Brands, Inc.		27		413
Malibu Boats, Inc. — Class A*		22		407
Skullcandy, Inc.*		52		405
West Marine, Inc.*		45		405
Accuride Corp.*		100		379
Reading International, Inc. — Class A*		45		378
Systemax, Inc.*		29		362
Speed Commerce, Inc.*		126		347
JAKKS Pacific, Inc.*		48		341
Intrawest Resorts Holdings, Inc.*		35		338
Dixie Group, Inc.*		39		338
Johnson Outdoors, Inc. — Class A		13		337
Fuel Systems Solutions, Inc.*		37		330
Famous Dave’s of America, Inc.*		12		323
Bon-Ton Stores, Inc.		38		318
Escalade, Inc.		26		314
Installed Building Products, Inc.*		22		309
Roundy’s, Inc.		102		305
Norcraft Companies, Inc.*		19		303
Monarch Casino & Resort, Inc.*		25		298
New Home Company, Inc.*		22		297
Gaiam, Inc. — Class A*		39		286
Empire Resorts, Inc.*		39		262
UCP, Inc. — Class A*		20		239
Pacific Sunwear of California, Inc.*		129		232
New York & Company, Inc.*		76		230
Marine Products Corp.		27		213
Tilly’s, Inc. — Class A*		27		203
hhgregg, Inc.*		31		196
bebe stores, Inc.		81		188
Century Communities, Inc.*		10		174
Sportsman’s Warehouse Holdings, Inc.*		25		168
Papa Murphy’s Holdings, Inc.*		15		153
Ignite Restaurant Group, Inc.*		20		120
Total Consumer, Cyclical				540,607
TECHNOLOGY - 3.5%
Ultimate Software Group, Inc.*		73		10,331
Aspen Technology, Inc.*		239		9,015
Verint Systems, Inc.*		155		8,620
TriQuint Semiconductor, Inc.*		444		8,466
Guidewire Software, Inc.*		176		7,805
SS&C Technologies Holdings, Inc.*		177		7,768
Tyler Technologies, Inc.*		86		7,603
International Rectifier Corp.*		185		7,258
Cavium, Inc.*		137		6,813
Synaptics, Inc.*		93		6,808
Manhattan Associates, Inc.*		196		6,549
Qlik Technologies, Inc.*		232		6,273
Microsemi Corp.*		246		6,251
Medidata Solutions, Inc.*		140		6,201
CommVault Systems, Inc.*		122		6,149
j2 Global, Inc.		123		6,071
Compuware Corp.		569		6,037
Dealertrack Technologies, Inc.*		139		6,034
ACI Worldwide, Inc.*		295		5,535
Integrated Device Technology, Inc.*		346		5,519
Electronics for Imaging, Inc.*		121		5,345
Mentor Graphics Corp.		251		5,144
Fairchild Semiconductor International, Inc. — Class A*		324		5,032
Take-Two Interactive Software, Inc.*		216		4,983
Science Applications International Corp.		109		4,821
SYNNEX Corp.		74		4,783
Cornerstone OnDemand, Inc.*		138		4,749
Intersil Corp. — Class A		334		4,746
Semtech Corp.*		174		4,724
Blackbaud, Inc.		120		4,715
MKS Instruments, Inc.		139		4,640
Silicon Laboratories, Inc.*		113		4,592
Fair Isaac Corp.		83		4,573
Monolithic Power Systems, Inc.		100		4,405
CACI International, Inc. — Class A*		61		4,347
NetScout Systems, Inc.*		94		4,306
Power Integrations, Inc.		79		4,259
Advent Software, Inc.		133		4,197
Synchronoss Technologies, Inc.*		91		4,166
Entegris, Inc.*		361		4,152
Cypress Semiconductor Corp.		409		4,039
EPAM Systems, Inc.*		92		4,029
Demandware, Inc.*		78		3,972
Envestnet, Inc.*		88		3,960
OmniVision Technologies, Inc.*		145		3,837
GT Advanced Technologies, Inc.*,1		354		3,834
Tessera Technologies, Inc.		139		3,695
Rambus, Inc.*		295		3,682
Veeco Instruments, Inc.*		104		3,635
Proofpoint, Inc.*		96		3,565
Spansion, Inc. — Class A*		156		3,555
Syntel, Inc.*		40		3,518
iGATE Corp.*		95		3,488
Cirrus Logic, Inc.*		161		3,357
PMC-Sierra, Inc.*		449		3,349
Acxiom Corp.*		199		3,293
Ambarella, Inc.*		75		3,275

78  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
MedAssets, Inc.*		158	$	3,274
Progress Software Corp.*		133		3,180
MicroStrategy, Inc. — Class A*		24		3,140
Unisys Corp.*		132		3,090
FleetMatics Group plc*		97		2,959
Monotype Imaging Holdings, Inc.		102		2,889
Bottomline Technologies de, Inc.*		102		2,814
Cray, Inc.*		105		2,755
MTS Systems Corp.		39		2,662
Super Micro Computer, Inc.*		89		2,618
Cabot Microelectronics Corp.*		63		2,611
Omnicell, Inc.*		95		2,596
Insight Enterprises, Inc.*		106		2,399
Virtusa Corp.*		67		2,383
CSG Systems International, Inc.		88		2,313
Lattice Semiconductor Corp.*		305		2,287
Diodes, Inc.*		94		2,248
RealPage, Inc.*		134		2,077
QLogic Corp.*		226		2,070
Infoblox, Inc.*		140		2,065
Sykes Enterprises, Inc.*		102		2,038
Amkor Technology, Inc.*		221		1,859
Brooks Automation, Inc.		173		1,818
Interactive Intelligence Group, Inc.*		43		1,797
Quality Systems, Inc.		129		1,777
LivePerson, Inc.*		140		1,763
Pegasystems, Inc.		92		1,758
Actua Corp.*		107		1,714
ManTech International Corp. — Class A		62		1,671
Computer Programs & Systems, Inc.		29		1,667
Ultratech, Inc.*		73		1,661
Imperva, Inc.*		57		1,638
PROS Holdings, Inc.*		61		1,537
AVG Technologies N.V.*		90		1,492
Kofax Ltd.*		192		1,486
Engility Holdings, Inc.*		46		1,434
Callidus Software, Inc.*		119		1,430
Epiq Systems, Inc.		81		1,422
Applied Micro Circuits Corp.*		202		1,414
Micrel, Inc.		116		1,395
Qualys, Inc.*		52		1,383
inContact, Inc.*		157		1,365
Tangoe, Inc.*		100		1,355
Photronics, Inc.*		160		1,288
Digital River, Inc.*		85		1,234
Xcerra Corp.*		125		1,224
Glu Mobile, Inc.*		233		1,205
Cvent, Inc.*		47		1,192
Inphi Corp.*		81		1,165
Ebix, Inc.		79		1,120
Integrated Silicon Solution, Inc.		78		1,072
SciQuest, Inc.*		71		1,068
FormFactor, Inc.*		144		1,032
Silicon Image, Inc.*		203		1,023
Emulex Corp.*		206		1,018
Violin Memory, Inc.*		208		1,013
Eastman Kodak Co.*		46		1,011
PDF Solutions, Inc.*		79		996
RealD, Inc.*		104		974
Mercury Systems, Inc.*		86		947
KEYW Holding Corp.*		85		941
Nanometrics, Inc.*		62		936
Exar Corp.*		102		913
Peregrine Semiconductor Corp.*		72		891
Silver Spring Networks, Inc.*		91		878
Silicon Graphics International Corp.*		90		831
Rudolph Technologies, Inc.*		86		778
Cohu, Inc.		65		778
Rally Software Development Corp.*		64		769
Luxoft Holding, Inc.*		20		744
InnerWorkings, Inc.*		91		736
CEVA, Inc.*		54		726
Ciber, Inc.*		201		689
Ultra Clean Holdings, Inc.*		76		680
Maxwell Technologies, Inc.*		78		680
IXYS Corp.		63		662
Quantum Corp.*		569		660
Jive Software, Inc.*		110		641
Immersion Corp.*		73		626
Nimble Storage, Inc.*		24		623
Entropic Communications, Inc.*		230		612
Seachange International, Inc.*		85		592
Dot Hill Systems Corp.*		156		590
Kopin Corp.*		171		581
Axcelis Technologies, Inc.*		288		573
American Software, Inc. — Class A		64		564
E2open, Inc.*		60		559
Pericom Semiconductor Corp.*		57		555
Datalink Corp.*		51		542
Barracuda Networks, Inc.*		21		539
Alpha & Omega Semiconductor Ltd.*		56		526
Vitesse Semiconductor Corp.*		143		515
DSP Group, Inc.*		57		506
MaxLinear, Inc. — Class A*		72		495
Digi International, Inc.*		66		495
Model N, Inc.*		50		493
Vocera Communications, Inc.*		59		476
Sapiens International Corporation N.V.*		64		474
Carbonite, Inc.*		46		471
Actuate Corp.*		119		464
Agilysys, Inc.*		38		446
Rosetta Stone, Inc.*		55		443
Castlight Health, Inc. — Class B*		34		440
Computer Task Group, Inc.		39		433
QuickLogic Corp.*		143		428
2U, Inc.*		27		421

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Amber Road, Inc.*		23	$	399
OPOWER, Inc.*		20		377
Mavenir Systems, Inc.*		30		377
MobileIron, Inc.*		32		356
Digimarc Corp.		17		352
Benefitfocus, Inc.*		13		350
Cascade Microtech, Inc.*		33		334
Guidance Software, Inc.*		46		310
A10 Networks, Inc.*		33		301
QAD, Inc. — Class A		16		298
Varonis Systems, Inc.*		14		295
Rubicon Technology, Inc.*		68		289
Paycom Software, Inc.*		17		282
Everyday Health, Inc.*		20		279
Audience, Inc.*		36		266
Park City Group, Inc.*		25		247
Globant SA*		17		239
Five9, Inc.*		32		209
Total Technology				437,729
COMMUNICATIONS - 2.2%
RF Micro Devices, Inc.*		742		8,562
Time, Inc.*		286		6,701
Aruba Networks, Inc.*		277		5,977
Conversant, Inc.*		174		5,959
Anixter International, Inc.		70		5,938
ViaSat, Inc.*		107		5,897
DigitalGlobe, Inc.*		196		5,585
Houghton Mifflin Harcourt Co.*		283		5,502
Plantronics, Inc.		110		5,257
Shutterfly, Inc.*		100		4,875
Trulia, Inc.*		96		4,693
Sinclair Broadcast Group, Inc. — Class A		178		4,643
Ciena Corp.*		272		4,548
Polycom, Inc.*		358		4,397
InterDigital, Inc.		105		4,181
WebMD Health Corp. — Class A*		100		4,181
Finisar Corp.*		251		4,174
Sapient Corp.*		297		4,158
Cogent Communications Holdings, Inc.		121		4,067
New York Times Co. — Class A		359		4,027
Meredith Corp.		93		3,980
NeuStar, Inc. — Class A*		145		3,600
Infinera Corp.*		318		3,393
comScore, Inc.*		90		3,277
Nexstar Broadcasting Group, Inc. — Class A		79		3,193
ADTRAN, Inc.		146		2,997
NETGEAR, Inc.*		95		2,969
West Corp.		100		2,946
NIC, Inc.		169		2,910
LogMeIn, Inc.*		63		2,902
Ubiquiti Networks, Inc.		77		2,890
Shutterstock, Inc.*		39		2,784
Web.com Group, Inc.*		134		2,675
Globalstar, Inc.*		712		2,606
Consolidated Communications Holdings, Inc.		104		2,605
Gogo, Inc.*		145		2,445
Loral Space & Communications, Inc.*		34		2,442
Ruckus Wireless, Inc.*		168		2,244
SPS Commerce, Inc.*		42		2,232
Scholastic Corp.		69		2,230
Constant Contact, Inc.*		81		2,198
Sonus Networks, Inc.*		637		2,179
Move, Inc.*		103		2,158
Marketo, Inc.*		66		2,132
MDC Partners, Inc. — Class A		110		2,111
Bankrate, Inc.*		174		1,976
Iridium Communications, Inc.*		209		1,850
Media General, Inc. — Class A*		141		1,849
Cincinnati Bell, Inc.*		542		1,826
Lands’ End, Inc.*		43		1,768
Blucora, Inc.*		110		1,676
FTD Companies, Inc.*		49		1,671
CalAmp Corp.*		93		1,639
Harmonic, Inc.*		246		1,561
BroadSoft, Inc.*		74		1,557
Shenandoah Telecommunications Co.		62		1,538
8x8, Inc.*		230		1,536
Cumulus Media, Inc. — Class A*		375		1,512
Premiere Global Services, Inc.*		125		1,496
Comtech Telecommunications Corp.		40		1,486
Vonage Holdings Corp.*		452		1,483
VASCO Data Security International, Inc.*		76		1,427
Ixia*		149		1,362
Perficient, Inc.*		90		1,349
EW Scripps Co. — Class A*		81		1,321
HealthStream, Inc.*		55		1,321
New Media Investment Group, Inc.		78		1,297
Comverse, Inc.*		58		1,295
Atlantic Tele-Network, Inc.		24		1,294
RetailMeNot, Inc.*		80		1,293
Endurance International Group Holdings, Inc.*		78		1,269
Textura Corp.*		48		1,267
RigNet, Inc.*		31		1,254
Intelsat S.A.*		71		1,217
Extreme Networks, Inc.*		250		1,198
Chegg, Inc.*		191		1,192
Stamps.com, Inc.*		37		1,175
Global Eagle Entertainment, Inc.*		99		1,111
ShoreTel, Inc.*		162		1,077
World Wrestling Entertainment, Inc. — Class A		77		1,060
Orbitz Worldwide, Inc.*		134		1,055
Inteliquent, Inc.		84		1,046
Calix, Inc.*		108		1,034
General Communication, Inc. — Class A*		93		1,015
Gray Television, Inc.*		128		1,009
Journal Communications, Inc. — Class A*		116		978

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Safeguard Scientifics, Inc.*		53	$	975
Internap Network Services Corp.*		141		973
Bazaarvoice, Inc.*		130		961
Black Box Corp.		40		933
RingCentral, Inc. — Class A*		73		928
EarthLink Holdings Corp.		265		906
ChannelAdvisor Corp.*		54		886
Blue Nile, Inc.*		31		885
Liquidity Services, Inc.*		64		880
Dice Holdings, Inc.*		100		838
Intralinks Holdings, Inc.*		102		826
FairPoint Communications, Inc.*		54		819
Harte-Hanks, Inc.		128		816
Oplink Communications, Inc.		48		807
Lumos Networks Corp.		49		796
GrubHub, Inc.*		23		788
ePlus, Inc.*		14		785
XO Group, Inc.*		70		785
Rocket Fuel, Inc.*		48		758
Lionbridge Technologies, Inc.*		168		756
Spok Holdings, Inc.		56		729
Angie’s List, Inc.*		113		720
IDT Corp. — Class B		44		707
Hawaiian Telcom Holdco, Inc.*		27		694
ORBCOMM, Inc.*		115		661
VirnetX Holding Corp.*		110		660
Gigamon, Inc.*		63		660
Enventis Corp.		35		636
Zendesk, Inc.*		29		626
Entravision Communications Corp. — Class A		150		594
Wix.com Ltd.*		36		585
Marin Software, Inc.*		68		584
ValueVision Media, Inc. — Class A*		111		569
Daily Journal Corp.*		3		542
McClatchy Co. — Class A*		158		531
Zix Corp.*		154		527
AH Belo Corp. — Class A		49		523
Procera Networks, Inc.*		54		517
Entercom Communications Corp. — Class A*		64		514
Overstock.com, Inc.*		30		506
Reis, Inc.		21		495
Telenav, Inc.*		71		476
Unwired Planet, Inc.*		254		472
Lee Enterprises, Inc.*		139		470
NTELOS Holdings Corp.		44		468
KVH Industries, Inc.*		41		464
Brightcove, Inc.*		83		463
1-800-Flowers.com, Inc. — Class A*		64		460
magicJack VocalTec Ltd.*		46		453
Sizmek, Inc.*		57		441
GTT Communications, Inc.*		37		441
Tessco Technologies, Inc.		15		435
Boingo Wireless, Inc.*		60		428
RealNetworks, Inc.*		60		417
Central European Media Enterprises Ltd. — Class A*		183		412
Alliance Fiber Optic Products, Inc.		33		410
Numerex Corp. — Class A*		38		398
Clearfield, Inc.*		30		382
QuinStreet, Inc.*		90		374
Dex Media, Inc.*		39		373
Coupons.com, Inc.*		31		371
TechTarget, Inc.*		43		369
Preformed Line Products Co.		7		369
Limelight Networks, Inc.*		156		364
Q2 Holdings, Inc.*		26		364
Millennial Media, Inc.*		195		363
TrueCar, Inc.*		20		359
Marchex, Inc. — Class B		85		353
TeleCommunication Systems, Inc. — Class A*		125		349
Oclaro, Inc.*		243		347
ModusLink Global Solutions, Inc.*		96		343
Cinedigm Corp. — Class A*		198		307
Saga Communications, Inc. — Class A		9		302
Travelzoo, Inc.*		19		295
Crown Media Holdings, Inc. — Class A*		90		288
ParkerVision, Inc.*		251		286
Martha Stewart Living Omnimedia, Inc. — Class A*		77		277
Townsquare Media, Inc.*		23		276
Global Sources Ltd.*		39		262
Rubicon Project, Inc.*		21		246
YuMe, Inc.*		47		235
Hemisphere Media Group, Inc.*		22		235
Rightside Group Ltd.*		23		224
Cyan, Inc.*		71		222
Tremor Video, Inc.*		92		215
Salem Communications Corp. — Class A		28		213
Demand Media, Inc.*		23		204
Aerohive Networks, Inc.*		25		201
Borderfree, Inc.*		15		194
Radio One, Inc. — Class D*		60		191
Vringo, Inc.*		185		175
ReachLocal, Inc.*		34		123
TubeMogul, Inc.*		9		104
Covisint Corp.*		19		79
Total Communications				274,783
ENERGY - 1.8%
Kodiak Oil & Gas Corp.*		691		9,376
SemGroup Corp. — Class A		110		9,160
Diamondback Energy, Inc.*		109		8,150
Rosetta Resources, Inc.*		159		7,085
Exterran Holdings, Inc.		152		6,734
Carrizo Oil & Gas, Inc.*		118		6,351
Helix Energy Solutions Group, Inc.*		274		6,044
Western Refining, Inc.		138		5,795

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
Delek US Holdings, Inc.		154	$	5,100
Matador Resources Co.*		190		4,912
Bonanza Creek Energy, Inc.*		85		4,837
Forum Energy Technologies, Inc.*		154		4,714
PDC Energy, Inc.*		93		4,677
Stone Energy Corp.*		146		4,579
SunCoke Energy, Inc.*		181		4,063
SEACOR Holdings, Inc.*		53		3,964
C&J Energy Services, Inc.*		119		3,635
Green Plains, Inc.		97		3,626
Flotek Industries, Inc.*		139		3,624
McDermott International, Inc.*		616		3,524
Sanchez Energy Corp.*		132		3,466
Pattern Energy Group, Inc.		102		3,153
Hornbeck Offshore Services, Inc.*		94		3,077
CARBO Ceramics, Inc.		51		3,021
Parsley Energy, Inc. — Class A*		138		2,944
Magnum Hunter Resources Corp.*		515		2,869
Bill Barrett Corp.*		129		2,843
Energy XXI Bermuda Ltd.		243		2,758
Newpark Resources, Inc.*		220		2,737
Halcon Resources Corp.*		676		2,676
Primoris Services Corp.		98		2,630
Comstock Resources, Inc.		124		2,309
Pioneer Energy Services Corp.*		163		2,285
Northern Oil and Gas, Inc.*		158		2,247
TETRA Technologies, Inc.*		205		2,218
Gulfmark Offshore, Inc. — Class A		70		2,195
Penn Virginia Corp.*		170		2,161
Triangle Petroleum Corp.*		196		2,158
Synergy Resources Corp.*		173		2,109
Thermon Group Holdings, Inc.*		83		2,026
Cloud Peak Energy, Inc.*		158		1,994
Plug Power, Inc.*		433		1,986
Tesco Corp.		90		1,787
Basic Energy Services, Inc.*		82		1,779
TerraForm Power, Inc. — Class A*		59		1,703
Key Energy Services, Inc.*		340		1,646
Matrix Service Co.*		68		1,640
Rex Energy Corp.*		125		1,584
RSP Permian, Inc.*		61		1,559
Parker Drilling Co.*		314		1,551
Contango Oil & Gas Co.*		45		1,496
Approach Resources, Inc.*		102		1,479
Solazyme, Inc.*		197		1,470
Westmoreland Coal Co.*		39		1,459
Clayton Williams Energy, Inc.*		15		1,447
Alpha Natural Resources, Inc.*		574		1,424
Clean Energy Fuels Corp.*,1		182		1,420
Goodrich Petroleum Corp.*		90		1,334
EXCO Resources, Inc.1		394		1,316
Eclipse Resources Corp.*		78		1,296
Abraxas Petroleum Corp.*		240		1,267
Resolute Energy Corp.*		202		1,267
North Atlantic Drilling Ltd.		185		1,232
FuelCell Energy, Inc.*		573		1,198
Geospace Technologies Corp.*		34		1,195
REX American Resources Corp.*		16		1,166
Arch Coal, Inc.		550		1,166
VAALCO Energy, Inc.*		129		1,097
Swift Energy Co.*		114		1,094
Panhandle Oil and Gas, Inc. — Class A		18		1,075
Warren Resources, Inc.*		191		1,012
W&T Offshore, Inc.		91		1,001
Alon USA Energy, Inc.		68		976
ION Geophysical Corp.*		335		935
Callon Petroleum Co.*		105		925
Hercules Offshore, Inc.*		416		915
Renewable Energy Group, Inc.*		90		914
Emerald Oil, Inc.*		148		910
Willbros Group, Inc.*		104		866
Pacific Ethanol, Inc.*		62		866
PetroQuest Energy, Inc.*		152		854
Gastar Exploration, Inc.*		143		839
Natural Gas Services Group, Inc.*		32		770
Enphase Energy, Inc.*		47		705
Vantage Drilling Co.*		533		677
FutureFuel Corp.		56		666
Gulf Island Fabrication, Inc.		38		654
Trecora Resources*		51		631
BPZ Resources, Inc.*		307		586
Jones Energy, Inc. — Class A*		29		545
TransAtlantic Petroleum Ltd.*		59		530
Midstates Petroleum Company, Inc.*		96		485
Evolution Petroleum Corp.		51		468
FX Energy, Inc.*		140		426
Walter Energy, Inc.		171		400
Harvest Natural Resources, Inc.*		109		400
Dawson Geophysical Co.		21		382
Mitcham Industries, Inc.*		33		365
Forest Oil Corp.*		309		362
Miller Energy Resources, Inc.*		78		343
American Eagle Energy Corp.*		79		322
Hallador Energy Co.		27		320
Independence Contract Drilling, Inc.*		27		317
Apco Oil and Gas International, Inc.*		24		309
Adams Resources & Energy, Inc.		6		266
Amyris, Inc.*		70		265
Glori Energy, Inc.*		32		253
Isramco, Inc.*		2		244
Vertex Energy, Inc.*		34		237
Quicksilver Resources, Inc.*		326		197
Profire Energy, Inc.*		38		158
Total Energy				228,255

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
BASIC MATERIALS - 1.2%
US Silica Holdings, Inc.		139	$	8,689
PolyOne Corp.		244		8,682
Sensient Technologies Corp.		128		6,701
Axiall Corp.		181		6,482
KapStone Paper and Packaging Corp.*		219		6,126
Minerals Technologies, Inc.		89		5,492
Chemtura Corp.*		235		5,483
Commercial Metals Co.		305		5,207
Olin Corp.		205		5,176
HB Fuller Co.		130		5,161
Stillwater Mining Co.*		311		4,674
Balchem Corp.		79		4,469
Tronox Ltd. — Class A		159		4,142
Kaiser Aluminum Corp.		47		3,582
Century Aluminum Co.*		133		3,454
Schweitzer-Mauduit International, Inc.		79		3,264
Clearwater Paper Corp.*		53		3,186
Innophos Holdings, Inc.		57		3,140
Globe Specialty Metals, Inc.		165		3,001
AK Steel Holding Corp.*		354		2,836
A. Schulman, Inc.		76		2,748
Ferro Corp.*		186		2,695
Resolute Forest Products, Inc.*		169		2,643
PH Glatfelter Co.		112		2,458
Quaker Chemical Corp.		34		2,437
Neenah Paper, Inc.		43		2,300
Innospec, Inc.		63		2,262
Intrepid Potash, Inc.*		145		2,240
Stepan Co.		50		2,219
Hecla Mining Co.		889		2,205
Horsehead Holding Corp.*		131		2,165
OM Group, Inc.		83		2,154
Taminco Corp.*		74		1,931
Deltic Timber Corp.		29		1,807
Schnitzer Steel Industries, Inc. — Class A		68		1,635
Materion Corp.		53		1,626
Kraton Performance Polymers, Inc.*		85		1,514
Aceto Corp.		74		1,430
Coeur Mining, Inc.*		268		1,329
Rentech, Inc.*		590		1,009
Hawkins, Inc.		28		1,007
Allied Nevada Gold Corp.*		270		893
Wausau Paper Corp.		109		864
Landec Corp.*		69		845
Zep, Inc.		60		841
American Vanguard Corp.		75		840
Ring Energy, Inc.*		52		766
Kronos Worldwide, Inc.		54		744
OMNOVA Solutions, Inc.*		123		661
Molycorp, Inc.*		472		562
Noranda Aluminum Holding Corp.		115		520
Orchids Paper Products Co.		21		516
Gold Resource Corp.		98		502
Universal Stainless & Alloy Products, Inc.*		18		474
Xerium Technologies, Inc.*		28		409
KMG Chemicals, Inc.		25		407
Shiloh Industries, Inc.*		22		374
Ryerson Holding Corp.*		28		358
Oil-Dri Corporation of America		13		339
United States Lime & Minerals, Inc.		5		291
Total Basic Materials				151,967
UTILITIES - 1.1%
Cleco Corp.		156		7,512
Dynegy, Inc.*		260		7,504
IDACORP, Inc.		130		6,970
Piedmont Natural Gas Company, Inc.		202		6,772
Portland General Electric Co.		203		6,520
Southwest Gas Corp.		121		5,878
WGL Holdings, Inc.		135		5,686
Black Hills Corp.		116		5,554
New Jersey Resources Corp.		109		5,506
UIL Holdings Corp.		147		5,204
Laclede Group, Inc.		112		5,197
PNM Resources, Inc.		206		5,131
ALLETE, Inc.		110		4,883
Avista Corp.		156		4,763
ONE Gas, Inc.		135		4,624
NorthWestern Corp.		101		4,581
South Jersey Industries, Inc.		85		4,536
El Paso Electric Co.		104		3,801
MGE Energy, Inc.		90		3,353
American States Water Co.		101		3,071
Northwest Natural Gas Co.		70		2,958
NRG Yield, Inc. — Class A		62		2,917
California Water Service Group		124		2,783
Empire District Electric Co.		112		2,705
Abengoa Yield plc*		74		2,633
Otter Tail Corp.		95		2,534
Chesapeake Utilities Corp.		38		1,583
Ormat Technologies, Inc.		46		1,208
EnerNOC, Inc.*		70		1,187
PICO Holdings, Inc.*		59		1,177
Unitil Corp.		36		1,119
SJW Corp.		41		1,102
Connecticut Water Service, Inc.		28		910
Pike Corp.*		71		844
Middlesex Water Co.		41		804
Atlantic Power Corp.		313		745
York Water Co.		34		680
Artesian Resources Corp. — Class A		20		403
Ameresco, Inc. — Class A*		51		349
Spark Energy, Inc. — Class A*		8		139
Total Utilities				135,826

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Shares		Value
DIVERSIFIED - 0.1%
Harbinger Group, Inc.*		216	$	2,834
Horizon Pharma plc*		169		2,075
National Bank Holdings Corp. — Class A		107		2,046
FCB Financial Holdings, Inc. — Class A*		21		477
Resource America, Inc. — Class A		35		326
Tiptree Financial, Inc. — Class A*		20		165
Total Diversified				7,923
GOVERNMENT - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		77		2,362
Total Common Stocks
(Cost $2,454,081)				4,182,636
WARRANTS†† - 0.0%
Tejon Ranch Co.
$10.50, 08/31/16*,†		54		109
Magnum Hunter Resources Corp.
$8.50, 04/15/16*,1		282		—
Total Warrants
(Cost $344)				109
RIGHTS† - 0.0%
Leap Wireless International
Expires 03/17/15*,†††		513		1,294
Furiex Pharmaceuticals, Inc.
Expires 07/03/17*,†††		46		449
Cubist Pharmaceuticals, Inc.
Expires 12/31/16*		729		80
Omthera Pharmaceuticals, Inc.
Expires 12/31/20*,†††		57		34
Total Rights
(Cost $1,842)				1,857
MUTUAL FUNDS† - 26.3%
Guggenheim Strategy Fund I2		132,721		3,306,082
Total Mutual Funds
(Cost $3,307,774)				3,306,082

	Face Amount
REPURCHASE AGREEMENTS††,3 - 33.3%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	1,738,171		1,738,171
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		1,016,327		1,016,327
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		718,699		718,699
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		448,463		448,463
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/144		253,782		253,782
Total Repurchase Agreements
(Cost $4,175,442)				4,175,442
SECURITIES LENDING COLLATERAL††,5 - 0.1%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		6,850		6,850
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		1,123		1,123
Total Securities Lending Collateral
(Cost $7,973)				7,973
Total Investments - 93.0%
(Cost $9,947,456)			$	11,674,099
Other Assets & Liabilities, net - 7.0%				875,611
Total Net Assets - 100.0%			$	12,549,710

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
RUSSELL 2000® 1.5x STRATEGY FUND

	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $1,424,800)		13	$	(75,363	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse Capital, LLC October 2014 Russell 2000 Index Swap,    Terminating 10/29/146 (Notional Value $1,899,645)		1,724	$	(13,246	)
Goldman Sachs International October 2014 Russell 2000 Index Swap,    Terminating 10/28/146 (Notional Value $5,648,733)		5,127		(45,608	)
Barclays Bank plc October 2014 Russell 2000 Index Swap,    Terminating 10/31/146 (Notional Value $5,788,499)		5,254		(92,078	)
(Total Notional Value $13,336,877)			$	(150,932	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs, unless otherwise noted — See Note 4.
††	Value determined based on Level 2 inputs, unless otherwise noted — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
3	Repurchase Agreements — See Note 5.
4	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
5	Securities lending collateral — See Note 6.
6	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  85 

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $8,838 of securities loaned (cost $5,764,041)	$	7,490,684
Repurchase agreements, at value (cost $4,183,415)		4,183,415
Total investments (cost $9,947,456)		11,674,099
Foreign currency, at value (cost $16)		16
Segregated cash with broker		1,572,189
Cash		21,721
Receivables:
Dividends		8,997
Fund shares sold		3,131
Securities lending income		75
Total assets		13,280,228
Liabilities:
Unrealized depreciation on swap agreements		150,932
Payable for:
Fund shares redeemed		492,694
Securities purchased		22,311
Variation margin		21,060
Management fees		10,653
Upon return of securities loaned		9,280
Swap settlement		6,252
Distribution and service fees		3,974
Transfer agent and administrative fees		2,959
Portfolio accounting fees		1,184
Miscellaneous		9,219
Total liabilities		730,518
Net assets	$	12,549,710
Net assets consist of:
Paid in capital	$	9,010,291
Accumulated net investment loss		(134,740	)
Accumulated net realized gain on investments		2,173,811
Net unrealized appreciation on investments		1,500,348
Net assets	$	12,549,710
A-Class:
Net assets	$	504,515
Capital shares outstanding		10,457
Net asset value per share	$	48.24
Maximum offering price per share (Net asset value divided by 95.25%)	$	50.65
C-Class:
Net assets	$	1,592,220
Capital shares outstanding		36,676
Net asset value per share	$	43.41
H-Class:
Net assets	$	10,452,975
Capital shares outstanding		217,091
Net asset value per share	$	48.15

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $63)	$	73,596
Income from securities lending, net		1,379
Interest		145
Total investment income		75,120
Expenses:
Management fees		71,818
Transfer agent and administrative fees		19,950
Distribution and service fees:
A-Class		745
C-Class		8,666
H-Class		17,038
Portfolio accounting fees		7,980
Registration fees		11,582
Trustees’ fees*		1,000
Custodian fees		931
Line of credit interest expense		486
Miscellaneous		2,727
Total expenses		142,923
Net investment loss		(67,803	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,058,228
Swap agreements		(904,881	)
Futures contracts		(138,592	)
Net realized gain		3,014,755
Net change in unrealized appreciation (depreciation) on:
Investments		(4,614,316	)
Swap agreements		(244,208	)
Futures contracts		27,250
Net change in unrealized appreciation (depreciation)		(4,831,274	)
Net realized and unrealized loss		(1,816,519	)
Net decrease in net assets resulting from operations	$	(1,884,322	)

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

86  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

RUSSELL 2000^® 1.5x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(67,803	)	$	(310,218	)
Net realized gain on investments		3,014,755			7,120,234
Net change in unrealized appreciation (depreciation) on investments		(4,831,274	)		2,110,677
Net increase (decrease) in net assets resulting from operations		(1,884,322	)		8,920,693
Capital share transactions:
Proceeds from sale of shares
A-Class		1,641,496			1,668,443
C-Class		39,929			452,183
H-Class		47,303,653			344,982,687
Cost of shares redeemed
A-Class		(1,664,990	)		(1,740,054	)
C-Class		(136,450	)		(787,292	)
H-Class		(54,283,294	)		(378,994,862	)
Net decrease from capital share transactions		(7,099,656	)		(34,418,895	)
Net decrease in net assets		(8,983,978	)		(25,498,202	)
Net assets:
Beginning of period		21,533,688			47,031,890
End of period	$	12,549,710		$	21,533,688
Accumulated net investment loss at end of period	$	(134,740	)	$	(66,937	)
Capital share activity:
Shares sold
A-Class		32,808			37,199
C-Class		887			10,755
H-Class		928,106			7,350,452
Shares redeemed
A-Class		(33,885	)		(35,645	)
C-Class		(2,977	)		(19,078	)
H-Class		(1,069,684	)		(8,137,425	)
Net decrease in shares		(144,745	)		(793,742	)

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	53.23		$	39.32		$	32.20		$	34.37		$	25.24		$	12.49
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.37	)		(.16	)		(.39	)		(.35	)		(.11	)
Net gain (loss) on investments (realized and unrealized)		(4.80	)		14.28			7.28			(1.78	)		9.48			12.86
Total from investment operations		(4.99	)		13.91			7.12			(2.17	)		9.13			12.75
Net asset value, end of period	$	48.24		$	53.23		$	39.32		$	32.20		$	34.37		$	25.24
Total Returnc		(9.37	%)		35.38	%		22.11	%		(6.31	%)		36.17	%		102.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	505		$	614		$	392		$	1,355		$	2,312		$	585
Ratios to average net assets:
Net investment income (loss)		(0.74	%)		(0.78	%)		(0.51	%)		(1.24	%)		(1.25	%)		(0.59	%)
Total expensesd		1.71	%		1.72	%		1.71	%		1.73	%		1.72	%		1.71	%
Portfolio turnover rate		246	%		472	%		527	%		177	%		211	%		109	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	48.08		$	35.78		$	29.52		$	31.75		$	23.50		$	11.71
Income (loss) from investment operations:
Net investment income (loss)b		(.35	)		(.65	)		(.34	)		(.54	)		(.47	)		(.24	)
Net gain (loss) on investments (realized and unrealized)		(4.32	)		12.95			6.60			(1.69	)		8.72			12.03
Total from investment operations		(4.67	)		12.30			6.26			(2.23	)		8.25			11.79
Net asset value, end of period	$	43.41		$	48.08		$	35.78		$	29.52		$	31.75		$	23.50
Total Returnc		(9.71	%)		34.38	%		21.21	%		(7.02	%)		35.11	%		100.68	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,592		$	1,864		$	1,685		$	1,839		$	2,786		$	2,782
Ratios to average net assets:
Net investment income (loss)		(1.49	%)		(1.55	%)		(1.15	%)		(1.99	%)		(1.90	%)		(1.36	%)
Total expensesd		2.46	%		2.47	%		2.46	%		2.49	%		2.47	%		2.46	%
Portfolio turnover rate		246	%		472	%		527	%		177	%		211	%		109	%

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

RUSSELL 2000^® 1.5x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	53.13		$	39.24		$	32.13		$	34.29		$	25.21		$	12.47
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.37	)		(.08	)		(.37	)		(.35	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(4.78	)		14.26			7.19			(1.79	)		9.43			12.93
Total from investment operations		(4.98	)		13.89			7.11			(2.16	)		9.08			12.74
Net asset value, end of period	$	48.15		$	53.13		$	39.24		$	32.13		$	34.29		$	25.21
Total Returnc		(9.37	%)		35.40	%		22.13	%		(6.30	%)		36.02	%		102.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,453		$	19,056		$	44,955		$	14,902		$	37,780		$	23,320
Ratios to average net assets:
Net investment income (loss)		(0.77	%)		(0.81	%)		(0.25	%)		(1.24	%)		(1.25	%)		(0.94	%)
Total expensesd		1.71	%		1.72	%		1.71	%		1.73	%		1.72	%		1.71	%
Portfolio turnover rate		246	%		472	%		527	%		177	%		211	%		109	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2014

RUSSELL 2000^® FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the Russell 2000^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 31, 2006
C-Class	May 31, 2006
H-Class	May 31, 2006

Ten Largest Holdings (% of Total Net Assets)
Puma Biotechnology, Inc.	0.2%
Isis Pharmaceuticals, Inc.	0.2%
WEX, Inc.	0.2%
Graphic Packaging Holding Co.	0.2%
Team Health Holdings, Inc.	0.2%
Ultimate Software Group, Inc.	0.2%
Prosperity Bancshares, Inc.	0.2%
Brunswick Corp.	0.2%
RLJ Lodging Trust	0.1%
CNO Financial Group, Inc.	0.1%
Top Ten Total	1.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

90  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
COMMON STOCKS† - 61.8%
FINANCIAL - 14.6%
Prosperity Bancshares, Inc.		539	$	30,815
RLJ Lodging Trust		1,015		28,897
CNO Financial Group, Inc.		1,690		28,663
Investors Bancorp, Inc.		2,779		28,152
LaSalle Hotel Properties		807		27,632
Highwoods Properties, Inc.		699		27,191
Stifel Financial Corp.*		507		23,773
FirstMerit Corp.		1,283		22,581
First American Financial Corp.		829		22,483
Strategic Hotels & Resorts, Inc.*		1,918		22,345
Sunstone Hotel Investors, Inc.		1,590		21,974
Geo Group, Inc.		563		21,518
Umpqua Holdings Corp.		1,291		21,262
Radian Group, Inc.		1,478		21,076
EPR Properties		415		21,032
MGIC Investment Corp.*		2,626		20,509
Hancock Holding Co.		638		20,449
Primerica, Inc.		424		20,445
Webster Financial Corp.		701		20,427
Cousins Properties, Inc.		1,707		20,399
Portfolio Recovery Associates, Inc.*		388		20,264
CubeSmart		1,119		20,120
Bank of the Ozarks, Inc.		618		19,479
Texas Capital Bancshares, Inc.*		334		19,265
DiamondRock Hospitality Co.		1,514		19,198
DCT Industrial Trust, Inc.		2,551		19,158
Sovran Self Storage, Inc.		256		19,036
Colony Financial, Inc.		833		18,642
Pebblebrook Hotel Trust		496		18,521
MarketAxess Holdings, Inc.		293		18,125
Healthcare Realty Trust, Inc.		745		17,641
Janus Capital Group, Inc.		1,158		16,838
United Bankshares, Inc.		536		16,578
PrivateBancorp, Inc. — Class A		554		16,570
Medical Properties Trust, Inc.		1,338		16,404
Wintrust Financial Corp.		361		16,126
FNB Corp.		1,341		16,079
Sun Communities, Inc.		318		16,059
Washington Federal, Inc.		786		16,003
UMB Financial Corp.		293		15,983
Ryman Hospitality Properties, Inc.		337		15,940
Lexington Realty Trust		1,595		15,615
Cathay General Bancorp		618		15,345
Glimcher Realty Trust		1,126		15,246
IBERIABANK Corp.		243		15,190
Valley National Bancorp		1,555		15,068
Invesco Mortgage Capital, Inc.		955		15,012
BancorpSouth, Inc.		745		15,004
Glacier Bancorp, Inc.		578		14,947
EastGroup Properties, Inc.		243		14,724
National Health Investors, Inc.		255		14,571
Susquehanna Bancshares, Inc.		1,452		14,520
First Industrial Realty Trust, Inc.		854		14,441
RLI Corp.		333		14,416
MB Financial, Inc.		515		14,255
Western Alliance Bancorporation*		585		13,982
Chambers Street Properties		1,839		13,848
American Realty Capital Healthcare Trust, Inc.		1,313		13,760
First Financial Bankshares, Inc.		494		13,728
Financial Engines, Inc.		399		13,651
Symetra Financial Corp.		585		13,648
Alexander & Baldwin, Inc.		378		13,597
Hatteras Financial Corp.		749		13,452
DuPont Fabros Technology, Inc.		495		13,385
Kennedy-Wilson Holdings, Inc.		557		13,346
American Equity Investment Life Holding Co.		577		13,202
Blackhawk Network Holdings, Inc.*		406		13,154
Mack-Cali Realty Corp.		688		13,148
Washington Real Estate Investment Trust		517		13,121
Capitol Federal Financial, Inc.		1,110		13,120
New York REIT, Inc.		1,258		12,932
New Residential Investment Corp.		2,187		12,750
Platinum Underwriters Holdings Ltd.		209		12,723
Potlatch Corp.		315		12,666
First Citizens BancShares, Inc. — Class A		58		12,564
EverBank Financial Corp.		707		12,486
WageWorks, Inc.*		272		12,384
Kemper Corp.		361		12,328
Home BancShares, Inc.		419		12,323
PennyMac Mortgage Investment Trust		574		12,301
Acadia Realty Trust		443		12,217
Trustmark Corp.		523		12,047
Evercore Partners, Inc. — Class A		255		11,985
CVB Financial Corp.		820		11,767
Home Loan Servicing Solutions Ltd.		551		11,676
Government Properties Income Trust		529		11,590
Old National Bancorp		888		11,517
PS Business Parks, Inc.		151		11,497
Chesapeake Lodging Trust		388		11,310
Education Realty Trust, Inc.		1,078		11,082
Redwood Trust, Inc.		644		10,678
ARMOUR Residential REIT, Inc.		2,770		10,665
Altisource Residential Corp.		443		10,632
Empire State Realty Trust, Inc. — Class A		707		10,619
Community Bank System, Inc.		316		10,614
Pennsylvania Real Estate Investment Trust		531		10,588
Hilltop Holdings, Inc.*		524		10,506
Hudson Pacific Properties, Inc.		426		10,505
South State Corp.		187		10,456
International Bancshares Corp.		422		10,408
Equity One, Inc.		477		10,318
CYS Investments, Inc.		1,252		10,316
Parkway Properties, Inc.		549		10,310
Retail Opportunity Investments Corp.		700		10,290

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Argo Group International Holdings Ltd.		203	$	10,213
Greenhill & Company, Inc.		219		10,181
Columbia Banking System, Inc.		406		10,072
BGC Partners, Inc. — Class A		1,352		10,045
LTC Properties, Inc.		270		9,960
Pinnacle Financial Partners, Inc.		275		9,928
Hersha Hospitality Trust		1,552		9,886
St. Joe Co.*		490		9,766
Ramco-Gershenson Properties Trust		599		9,734
Selective Insurance Group, Inc.		436		9,653
Altisource Portfolio Solutions S.A.		95		9,576
Virtus Investment Partners, Inc.		55		9,554
WisdomTree Investments, Inc.*		835		9,502
Westamerica Bancorporation		204		9,490
Montpelier Re Holdings Ltd.		304		9,451
First Midwest Bancorp, Inc.		584		9,397
AmTrust Financial Services, Inc.		232		9,238
American Assets Trust, Inc.		278		9,166
Capstead Mortgage Corp.		743		9,094
FelCor Lodging Trust, Inc.		963		9,014
Horace Mann Educators Corp.		316		9,009
BBCN Bancorp, Inc.		617		9,002
Enstar Group Ltd.		66		8,997
iStar Financial, Inc.*		658		8,883
Northwest Bancshares, Inc.		734		8,882
Sabra Health Care REIT, Inc.		365		8,877
Outerwall, Inc.*		158		8,864
National Penn Bancshares, Inc.		912		8,856
Encore Capital Group, Inc.*		199		8,818
Astoria Financial Corp.		672		8,326
Union Bankshares Corp.		359		8,293
Sterling Bancorp		648		8,288
Aircastle Ltd.		501		8,196
BofI Holding, Inc.*		110		7,998
Starwood Waypoint Residential Trust		302		7,855
STAG Industrial, Inc.		379		7,849
Franklin Street Properties Corp.		698		7,832
Associated Estates Realty Corp.		445		7,792
Boston Private Financial Holdings, Inc.		621		7,694
Ambac Financial Group, Inc.*		348		7,691
Provident Financial Services, Inc.		467		7,645
NBT Bancorp, Inc.		339		7,633
American Capital Mortgage Investment Corp.		397		7,472
Park National Corp.		99		7,466
Altisource Asset Management Corp.*		11		7,425
ViewPoint Financial Group, Inc.		310		7,420
HFF, Inc. — Class A		255		7,382
Summit Hotel Properties, Inc.		664		7,158
Greenlight Capital Re Ltd. — Class A		220		7,130
Ellie Mae, Inc.*		218		7,107
First Financial Bancorp		447		7,076
Nelnet, Inc. — Class A		161		6,937
Credit Acceptance Corp.*		55		6,934
Essent Group Ltd.		323		6,915
Select Income REIT		285		6,854
Chemical Financial Corp.		253		6,803
Inland Real Estate Corp.		677		6,709
Investors Real Estate Trust		868		6,684
Independent Bank Corp.		185		6,607
Renasant Corp.		243		6,573
Piper Jaffray Cos.*		125		6,530
Walter Investment Management Corp.*		292		6,409
Third Point Reinsurance Ltd.		440		6,402
United Community Banks, Inc.		387		6,370
WesBanco, Inc.		204		6,240
Kite Realty Group Trust		254		6,157
First Commonwealth Financial Corp.		729		6,116
CyrusOne, Inc.		254		6,106
Springleaf Holdings, Inc.*		190		6,067
Acacia Research Corp.		387		5,991
Alexander’s, Inc.		16		5,983
Banner Corp.		152		5,847
Cohen & Steers, Inc.		149		5,728
Infinity Property & Casualty Corp.		89		5,697
Northfield Bancorp, Inc.		415		5,652
First Merchants Corp.		279		5,639
Eagle Bancorp, Inc.*		177		5,632
AMERISAFE, Inc.		144		5,632
Apollo Commercial Real Estate Finance, Inc.		358		5,624
FXCM, Inc. — Class A		353		5,595
Excel Trust, Inc.		474		5,579
Ashford Hospitality Trust, Inc.		541		5,529
S&T Bancorp, Inc.		231		5,419
Safety Insurance Group, Inc.		100		5,391
First Potomac Realty Trust		456		5,358
CoreSite Realty Corp.		163		5,358
Gramercy Property Trust, Inc.		910		5,242
OFG Bancorp		348		5,213
United Financial Bancorp, Inc.		409		5,190
City Holding Co.		121		5,098
New York Mortgage Trust, Inc.		703		5,083
Tompkins Financial Corp.		115		5,069
Wilshire Bancorp, Inc.		542		5,003
Navigators Group, Inc.*		81		4,982
Hanmi Financial Corp.		247		4,980
Oritani Financial Corp.		353		4,974
Rexford Industrial Realty, Inc.		356		4,927
Stewart Information Services Corp.		167		4,901
Simmons First National Corp. — Class A		127		4,892
Resource Capital Corp.		1,000		4,870
WSFS Financial Corp.		68		4,869
Southside Bancshares, Inc.		146		4,855
Terreno Realty Corp.		257		4,839
Silver Bay Realty Trust Corp.		298		4,831
Lakeland Financial Corp.		128		4,800
Western Asset Mortgage Capital Corp.		324		4,789

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Forestar Group, Inc.*		270	$	4,784
Anworth Mortgage Asset Corp.		992		4,752
RAIT Financial Trust		638		4,740
Chatham Lodging Trust		205		4,731
TrustCo Bank Corp. NY		734		4,727
Employers Holdings, Inc.		243		4,678
Brookline Bancorp, Inc.		546		4,668
Rouse Properties, Inc.		288		4,657
National General Holdings Corp.		274		4,628
American Residential Properties, Inc.*		250		4,585
Berkshire Hills Bancorp, Inc.		194		4,557
Capital Bank Financial Corp. — Class A*		188		4,489
United Fire Group, Inc.		160		4,443
Sandy Spring Bancorp, Inc.		194		4,441
Investment Technology Group, Inc.*		279		4,397
Monmouth Real Estate Investment Corp.		434		4,392
Maiden Holdings Ltd.		388		4,299
Flushing Financial Corp.		235		4,293
Ameris Bancorp		194		4,258
Cardinal Financial Corp.		247		4,216
World Acceptance Corp.*		61		4,118
Community Trust Bancorp, Inc.		121		4,069
State Bank Financial Corp.		249		4,044
Aviv REIT, Inc.		153		4,032
Universal Health Realty Income Trust		94		3,918
Urstadt Biddle Properties, Inc. — Class A		193		3,918
AG Mortgage Investment Trust, Inc.		220		3,916
Apollo Residential Mortgage, Inc.		249		3,842
First BanCorp*		806		3,829
First NBC Bank Holding Co.*		116		3,799
Arlington Asset Investment Corp. — Class A		147		3,735
Washington Trust Bancorp, Inc.		113		3,728
First Interstate BancSystem, Inc. — Class A		140		3,720
Heritage Financial Corp.		234		3,707
Cass Information Systems, Inc.		89		3,685
Dime Community Bancshares, Inc.		254		3,658
Physicians Realty Trust		266		3,650
Cedar Realty Trust, Inc.		611		3,605
Customers Bancorp, Inc.*		198		3,556
GAMCO Investors, Inc. — Class A		50		3,537
KCG Holdings, Inc. — Class A*		348		3,525
AmREIT, Inc.		153		3,514
Saul Centers, Inc.		74		3,459
BancFirst Corp.		55		3,441
Stock Yards Bancorp, Inc.		114		3,431
Dynex Capital, Inc.		424		3,426
NMI Holdings, Inc. — Class A*		391		3,382
Independent Bank Group, Inc.		71		3,369
Getty Realty Corp.		198		3,366
Cowen Group, Inc. — Class A*		895		3,356
Caesars Acquisition Co. — Class A*		353		3,343
ConnectOne Bancorp, Inc.		175		3,334
eHealth, Inc.*		138		3,330
FBL Financial Group, Inc. — Class A		74		3,308
1st Source Corp.		116		3,304
Ladenburg Thalmann Financial Services, Inc.*		774		3,282
National Western Life Insurance Co. — Class A		13		3,211
GFI Group, Inc.		592		3,203
Campus Crest Communities, Inc.		500		3,200
Agree Realty Corp.		116		3,176
Westwood Holdings Group, Inc.		56		3,175
First Busey Corp.		562		3,130
Universal Insurance Holdings, Inc.		241		3,116
CoBiz Financial, Inc.		278		3,108
Towne Bank/Portsmouth VA		228		3,096
Waterstone Financial, Inc.		267		3,084
Federated National Holding Co.		107		3,006
Bryn Mawr Bank Corp.		106		3,003
Ashford Hospitality Prime, Inc.		197		3,000
Beneficial Mutual Bancorp, Inc.*		228		2,914
Heartland Financial USA, Inc.		122		2,913
Blue Hills Bancorp, Inc.*		219		2,873
Lakeland Bancorp, Inc.		294		2,869
Centerstate Banks, Inc.		276		2,857
Yadkin Financial Corp.*		157		2,851
Trico Bancshares		125		2,828
QTS Realty Trust, Inc. — Class A		92		2,792
MainSource Financial Group, Inc.		158		2,726
First Financial Corp.		88		2,724
OneBeacon Insurance Group Ltd. — Class A		174		2,681
Metro Bancorp, Inc.*		110		2,668
Peoples Financial Services Corp.		58		2,667
German American Bancorp, Inc.		102		2,633
Flagstar Bancorp, Inc.*		156		2,625
Federal Agricultural Mortgage Corp. — Class C		81		2,603
Ares Commercial Real Estate Corp.		221		2,583
Clifton Bancorp, Inc.		205		2,581
Enterprise Financial Services Corp.		153		2,558
Southwest Bancorp, Inc.		153		2,509
Banc of California, Inc.		215		2,500
HCI Group, Inc.		69		2,483
Mercantile Bank Corp.		130		2,477
RE/MAX Holdings, Inc. — Class A		83		2,468
Phoenix Companies, Inc.*		44		2,467
First Bancorp		152		2,435
Great Southern Bancorp, Inc.		80		2,427
Whitestone REIT — Class B		174		2,426
BNC Bancorp		154		2,412
Financial Institutions, Inc.		107		2,405
State Auto Financial Corp.		117		2,400
Central Pacific Financial Corp.		132		2,367
Univest Corporation of Pennsylvania		126		2,363
HomeTrust Bancshares, Inc.*		161		2,352
OmniAmerican Bancorp, Inc.		90		2,339
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		169		2,335

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  93 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Gladstone Commercial Corp.		137	$	2,328
NewStar Financial, Inc.*		207		2,327
Bank Mutual Corp.		361		2,314
Park Sterling Corp.		346		2,294
Meadowbrook Insurance Group, Inc.		387		2,264
Ladder Capital Corp. — Class A*		118		2,230
Bank of Kentucky Financial Corp.		48		2,219
Bancorp, Inc.*		257		2,208
Citizens, Inc.*		341		2,203
CareTrust REIT, Inc.*		154		2,202
First of Long Island Corp.		62		2,136
Bridge Bancorp, Inc.		90		2,129
Arrow Financial Corp.		85		2,122
Independent Bank Corp.		178		2,122
Bank of Marin Bancorp		46		2,111
Diamond Hill Investment Group, Inc.		17		2,092
Hudson Valley Holding Corp.		114		2,069
International. FCStone, Inc.*		119		2,061
Preferred Bank/Los Angeles CA*		91		2,049
Peoples Bancorp, Inc.		85		2,019
First Defiance Financial Corp.		74		1,999
Camden National Corp.		57		1,995
Stonegate Bank		77		1,983
FBR & Co.*		72		1,981
NewBridge Bancorp*		261		1,981
HomeStreet, Inc.		115		1,965
1st United Bancorp, Inc.		229		1,951
Moelis & Co.		57		1,947
United Insurance Holdings Corp.		129		1,935
One Liberty Properties, Inc.		95		1,922
Walker & Dunlop, Inc.*		144		1,914
Talmer Bancorp, Inc. — Class A		138		1,909
Marcus & Millichap, Inc.*		62		1,876
Pacific Premier Bancorp, Inc.*		133		1,869
Fidelity & Guaranty Life		87		1,857
United Community Financial Corp.		392		1,835
CorEnergy Infrastructure Trust, Inc.		244		1,825
Republic Bancorp, Inc. — Class A		77		1,824
Citizens & Northern Corp.		96		1,824
First Connecticut Bancorp, Inc.		125		1,813
First Community Bancshares, Inc.		126		1,801
Crawford & Co. — Class B		217		1,790
Pacific Continental Corp.		139		1,786
Baldwin & Lyons, Inc. — Class B		72		1,778
Manning & Napier, Inc. — Class A		105		1,763
CNB Financial Corp.		112		1,758
Fidelity Southern Corp.		128		1,754
Suffolk Bancorp		90		1,747
West Bancorporation, Inc.		123		1,738
Meta Financial Group, Inc.		48		1,692
Meridian Bancorp, Inc.*		158		1,668
RCS Capital Corp. — Class A		73		1,644
Seacoast Banking Corporation of Florida*		150		1,640
OceanFirst Financial Corp.		103		1,639
Horizon Bancorp		71		1,636
Peapack Gladstone Financial Corp.		93		1,628
CatchMark Timber Trust, Inc. — Class A		148		1,622
Consolidated-Tomoka Land Co.		33		1,619
Charter Financial Corp.		150		1,605
Oppenheimer Holdings, Inc. — Class A		79		1,600
Global Indemnity plc — Class A		63		1,589
Sierra Bancorp		94		1,575
SWS Group, Inc.*		227		1,564
Penns Woods Bancorp, Inc.		37		1,563
TriState Capital Holdings, Inc.*		171		1,551
Guaranty Bancorp		114		1,540
National Interstate Corp.		55		1,535
Fox Chase Bancorp, Inc.		94		1,533
PennyMac Financial Services, Inc. — Class A*		103		1,509
National Bankshares, Inc.		54		1,499
BankFinancial Corp.		144		1,495
Regional Management Corp.*		83		1,490
Calamos Asset Management, Inc. — Class A		132		1,488
Kearny Financial Corp.*		109		1,453
CU Bancorp*		77		1,448
Ames National Corp.		64		1,430
Stonegate Mortgage Corp.*		110		1,429
UMH Properties, Inc.		148		1,406
Franklin Financial Corp.*		75		1,396
American National Bankshares, Inc.		61		1,388
Territorial Bancorp, Inc.		68		1,380
Northrim BanCorp, Inc.		52		1,374
First Business Financial Services, Inc.		31		1,361
Armada Hoffler Properties, Inc.		149		1,353
Heritage Commerce Corp.		161		1,322
Kansas City Life Insurance Co.		29		1,286
MidWestOne Financial Group, Inc.		54		1,243
First Bancorp, Inc.		74		1,234
Atlas Financial Holdings, Inc.		89		1,232
Opus Bank*		40		1,225
Heritage Oaks Bancorp		174		1,218
Cascade Bancorp*		240		1,212
Owens Realty Mortgage, Inc.		84		1,197
Marlin Business Services Corp.		65		1,191
Sun Bancorp, Inc.*		65		1,177
First Financial Northwest, Inc.		114		1,164
ESB Financial Corp.		99		1,156
Gain Capital Holdings, Inc.		180		1,147
Bridge Capital Holdings*		50		1,137
Merchants Bancshares, Inc.		40		1,128
JG Wentworth Co.*		91		1,127
EMC Insurance Group, Inc.		39		1,126
Hallmark Financial Services, Inc.*		108		1,113
Enterprise Bancorp, Inc.		58		1,093
BBX Capital Corp. — Class A*		61		1,063
Consumer Portfolio Services, Inc.*		163		1,045

94  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Trade Street Residential, Inc.		144	$	1,028
Square 1 Financial, Inc. — Class A*		53		1,019
Old Line Bancshares, Inc.		65		1,006
Macatawa Bank Corp.		203		974
Donegal Group, Inc. — Class A		63		968
Century Bancorp, Inc. — Class A		27		935
Republic First Bancorp, Inc.*		239		930
Nicholas Financial, Inc.*		80		927
MidSouth Bancorp, Inc.		45		842
Pzena Investment Management, Inc. — Class A		88		840
Heritage Insurance Holdings, Inc.*		54		813
Independence Holding Co.		60		797
CommunityOne Bancorp*		90		794
Capital City Bank Group, Inc.		54		731
Higher One Holdings, Inc.*		263		650
Green Bancorp, Inc.*		36		617
Silvercrest Asset Management Group, Inc. — Class A		44		599
Trupanion, Inc.*		64		544
Palmetto Bancshares, Inc.		35		495
C1 Financial, Inc.*		25		453
ServisFirst Bancshares, Inc.		15		432
CIFC Corp.		47		425
Hampton Roads Bankshares, Inc.*		181		277
Total Financial				2,945,991
CONSUMER, NON-CYCLICAL - 12.5%
Puma Biotechnology, Inc.*		180		42,942
Isis Pharmaceuticals, Inc.*		912		35,413
WEX, Inc.*		301		33,206
Team Health Holdings, Inc.*		543		31,488
PAREXEL International Corp.*		441		27,822
Pacira Pharmaceuticals, Inc.*		277		26,847
TreeHouse Foods, Inc.*		325		26,162
HealthSouth Corp.		683		25,202
STERIS Corp.		458		24,714
West Pharmaceutical Services, Inc.		548		24,527
Cepheid*		538		23,689
United Natural Foods, Inc.*		385		23,662
DexCom, Inc.*		581		23,234
NPS Pharmaceuticals, Inc.*		825		21,450
Deluxe Corp.		388		21,401
MAXIMUS, Inc.		525		21,068
WellCare Health Plans, Inc.*		339		20,456
Euronet Worldwide, Inc.*		393		18,781
Akorn, Inc.*		482		17,482
Sotheby’s		471		16,824
Air Methods Corp.*		302		16,776
Amsurg Corp. — Class A*		328		16,417
Acadia Healthcare Company, Inc.*		332		16,102
Insulet Corp.*		430		15,846
Avanir Pharmaceuticals, Inc. — Class A*		1,327		15,817
Sanderson Farms, Inc.		179		15,743
Corporate Executive Board Co.		262		15,738
Healthcare Services Group, Inc.		543		15,535
ACADIA Pharmaceuticals, Inc.*		611		15,128
Grand Canyon Education, Inc.*		362		14,760
Boston Beer Company, Inc. — Class A*		65		14,414
Vistaprint N.V.		258		14,135
Haemonetics Corp.*		404		14,107
SUPERVALU, Inc.*		1,573		14,062
Convergys Corp.		787		14,024
Chemed Corp.		136		13,994
Andersons, Inc.		219		13,771
Heartland Payment Systems, Inc.		278		13,266
Advisory Board Co.*		284		13,232
OPKO Health, Inc.*,1		1,529		13,012
Prestige Brands Holdings, Inc.*		400		12,948
Impax Laboratories, Inc.*		541		12,827
HMS Holdings Corp.*		680		12,818
NuVasive, Inc.*		361		12,588
Rent-A-Center, Inc.		410		12,444
Exact Sciences Corp.*		642		12,442
Cardtronics, Inc.*		345		12,144
Lancaster Colony Corp.		142		12,110
Ironwood Pharmaceuticals, Inc. — Class A*		927		12,009
Nektar Therapeutics*		984		11,877
Vector Group Ltd.		534		11,847
Monro Muffler Brake, Inc.		243		11,793
Thoratec Corp.*		441		11,788
Magellan Health, Inc.*		214		11,712
Wright Medical Group, Inc.*		385		11,666
Helen of Troy Ltd.		222		11,660
Auxilium Pharmaceuticals, Inc.*		388		11,582
Fresh Market, Inc.*		331		11,562
B&G Foods, Inc.		416		11,461
Synageva BioPharma Corp.*		166		11,417
EVERTEC, Inc.		509		11,371
Post Holdings, Inc.*		341		11,314
On Assignment, Inc.*		421		11,303
Medicines Co.*		504		11,249
Neogen Corp.*		284		11,218
ABM Industries, Inc.		433		11,124
Huron Consulting Group, Inc.*		182		11,097
FTI Consulting, Inc.*		317		11,082
Acorda Therapeutics, Inc.*		323		10,943
Theravance, Inc.		639		10,921
J&J Snack Foods Corp.		116		10,852
Cal-Maine Foods, Inc.		120		10,720
Dyax Corp.*		1,053		10,656
Cyberonics, Inc.*		208		10,641
MannKind Corp.*		1,769		10,455
HeartWare International, Inc.*		132		10,247
Matthews International Corp. — Class A		231		10,139
Globus Medical, Inc. — Class A*		510		10,032
Bright Horizons Family Solutions, Inc.*		238		10,010
PHH Corp.*		445		9,950

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Molina Healthcare, Inc.*		234	$	9,898
H&E Equipment Services, Inc.		243		9,788
Snyder’s-Lance, Inc.		368		9,752
Keryx Biopharmaceuticals, Inc.*		709		9,749
Kindred Healthcare, Inc.		500		9,701
Integra LifeSciences Holdings Corp.*		194		9,630
Korn/Ferry International*		386		9,611
Dean Foods Co.		722		9,567
Catalent, Inc.*		376		9,412
PDL BioPharma, Inc.		1,246		9,308
Neurocrine Biosciences, Inc.*		589		9,230
Lannett Company, Inc.*		199		9,090
Brink’s Co.		376		9,039
Cantel Medical Corp.		261		8,973
Celldex Therapeutics, Inc.*		692		8,968
Receptos, Inc.*		144		8,944
Fresh Del Monte Produce, Inc.		280		8,931
LifeLock, Inc.*		622		8,888
ExamWorks Group, Inc.*		269		8,810
Abaxis, Inc.		173		8,773
Clovis Oncology, Inc.*		191		8,664
Spectranetics Corp.*		323		8,582
Civeo Corp.		726		8,429
Greatbatch, Inc.*		193		8,224
TrueBlue, Inc.*		320		8,083
Tumi Holdings, Inc.*		393		7,998
Universal Corp.		180		7,990
Masimo Corp.*		375		7,980
WD-40 Co.		116		7,883
CONMED Corp.		211		7,773
Novavax, Inc.*		1,847		7,702
ABIOMED, Inc.*		308		7,648
Aegerion Pharmaceuticals, Inc.*		229		7,644
PTC Therapeutics, Inc.*		172		7,569
Achillion Pharmaceuticals, Inc.*		751		7,495
Ligand Pharmaceuticals, Inc. — Class B*		159		7,471
Select Medical Holdings Corp.		611		7,350
Natus Medical, Inc.*		249		7,348
Halozyme Therapeutics, Inc.*		802		7,298
Portola Pharmaceuticals, Inc.*		286		7,230
Arena Pharmaceuticals, Inc.*		1,703		7,136
ImmunoGen, Inc.*		666		7,053
ARIAD Pharmaceuticals, Inc.*		1,279		6,907
McGrath RentCorp		201		6,874
Depomed, Inc.*		450		6,836
Merrimack Pharmaceuticals, Inc.*		761		6,681
ICU Medical, Inc.*		104		6,675
Sarepta Therapeutics, Inc.*		316		6,668
Tornier N.V.		276		6,596
Ascent Capital Group, Inc. — Class A*		108		6,502
Agios Pharmaceuticals, Inc.*		105		6,442
Boulder Brands, Inc.*		472		6,433
NxStage Medical, Inc.*		476		6,250
Anacor Pharmaceuticals, Inc.*		255		6,240
ExlService Holdings, Inc.*		253		6,176
Analogic Corp.		96		6,140
ACCO Brands Corp.*		881		6,079
Bluebird Bio, Inc.*		169		6,063
Annie’s, Inc.*		132		6,059
Team, Inc.*		159		6,028
IPC The Hospitalist Company, Inc.*		133		5,957
Quidel Corp.*		221		5,939
Arrowhead Research Corp.*		401		5,923
Weight Watchers International, Inc.		215		5,900
Chimerix, Inc.*		207		5,717
Meridian Bioscience, Inc.		322		5,696
Luminex Corp.*		291		5,675
AMN Healthcare Services, Inc.*		361		5,668
Sangamo BioSciences, Inc.*		525		5,662
SpartanNash Co.		291		5,660
PharMerica Corp.*		231		5,643
RPX Corp.*		411		5,643
Hanger, Inc.*		273		5,602
BioDelivery Sciences International, Inc.*		323		5,520
AMAG Pharmaceuticals, Inc.*		170		5,425
Bio-Reference Laboratories, Inc.*		191		5,359
Ensign Group, Inc.		154		5,359
Seaboard Corp.*		2		5,350
BioCryst Pharmaceuticals, Inc.*		544		5,320
Navigant Consulting, Inc.*		381		5,300
Endologix, Inc.*		497		5,268
Xoom Corp.*		240		5,268
Capella Education Co.		84		5,258
Sagent Pharmaceuticals, Inc.*		169		5,256
Chiquita Brands International, Inc.*		364		5,169
MiMedx Group, Inc.*		722		5,148
Intrexon Corp.*		276		5,128
Zeltiq Aesthetics, Inc.*		226		5,114
Cardiovascular Systems, Inc.*		215		5,080
Green Dot Corp. — Class A*		240		5,074
Infinity Pharmaceuticals, Inc.*		377		5,059
Strayer Education, Inc.*		84		5,030
Insmed, Inc.*		384		5,011
Repligen Corp.*		249		4,958
Emergent Biosolutions, Inc.*		227		4,837
Diamond Foods, Inc.*		169		4,835
Insperity, Inc.		175		4,785
ICF International, Inc.*		155		4,772
Capital Senior Living Corp.*		224		4,756
Calavo Growers, Inc.		104		4,695
Raptor Pharmaceutical Corp.*		486		4,661
Inovio Pharmaceuticals, Inc.*		467		4,600
Prothena Corporation plc		205		4,543
Affymetrix, Inc.*		564		4,501
Orthofix International N.V.		143		4,427
Cambrex Corp.*		237		4,427

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
KYTHERA Biopharmaceuticals, Inc.*		135	$	4,423
National Healthcare Corp.		79		4,385
Multi-Color Corp.		96		4,366
Accuray, Inc.*		595		4,320
Amedisys, Inc.*		212		4,276
K12, Inc.*		267		4,261
Providence Service Corp.*		88		4,257
Momenta Pharmaceuticals, Inc.*		373		4,230
Volcano Corp.*		395		4,203
Theravance Biopharma, Inc.		182		4,195
Resources Connection, Inc.		300		4,182
Ophthotech Corp.*		107		4,166
Kforce, Inc.		212		4,149
Spectrum Pharmaceuticals, Inc.*		509		4,143
Quad/Graphics, Inc.		214		4,120
Anika Therapeutics, Inc.*		112		4,106
Gentiva Health Services, Inc.*		243		4,078
Tootsie Roll Industries, Inc.		145		4,059
Orexigen Therapeutics, Inc.*		951		4,051
TESARO, Inc.*		150		4,038
Albany Molecular Research, Inc.*		182		4,017
LDR Holding Corp.*		129		4,016
Merit Medical Systems, Inc.*		333		3,956
Healthways, Inc.*		244		3,909
Monster Worldwide, Inc.*		706		3,883
TherapeuticsMD, Inc.*		836		3,879
Acceleron Pharma, Inc.*		128		3,871
Triple-S Management Corp. — Class B*		193		3,841
Accelerate Diagnostics, Inc.*		176		3,780
American Public Education, Inc.*		136		3,671
Atrion Corp.		12		3,660
Genomic Health, Inc.*		129		3,652
BioScrip, Inc.*		528		3,648
Karyopharm Therapeutics, Inc.*		104		3,634
Cynosure, Inc. — Class A*		173		3,633
Inter Parfums, Inc.		129		3,547
Array BioPharma, Inc.*		974		3,477
Global Cash Access Holdings, Inc.*		509		3,436
NutriSystem, Inc.		222		3,412
Tetraphase Pharmaceuticals, Inc.*		171		3,411
USANA Health Sciences, Inc.*		46		3,388
Elizabeth Arden, Inc.*		201		3,365
Medifast, Inc.*		102		3,349
TeleTech Holdings, Inc.*		136		3,343
US Physical Therapy, Inc.		94		3,327
Kelly Services, Inc. — Class A		212		3,322
Omeros Corp.*		261		3,320
Weis Markets, Inc.		85		3,318
Vascular Solutions, Inc.*		133		3,285
Viad Corp.		158		3,263
NewLink Genetics Corp.*		152		3,256
MacroGenics, Inc.*		155		3,240
Enanta Pharmaceuticals, Inc.*		80		3,166
STAAR Surgical Co.*		297		3,157
TriNet Group, Inc.*		122		3,142
OraSure Technologies, Inc.*		433		3,126
AtriCure, Inc.*		212		3,121
Forrester Research, Inc.		84		3,096
Organovo Holdings, Inc.*		483		3,077
Ultragenyx Pharmaceutical, Inc.*		54		3,056
Insys Therapeutics, Inc.*		77		2,986
Invacare Corp.		249		2,941
Symmetry Medical, Inc.*		291		2,936
Tejon Ranch Co.*		104		2,916
Dynavax Technologies Corp.*		2,039		2,916
GenMark Diagnostics, Inc.*		323		2,897
CorVel Corp.*		85		2,894
Rockwell Medical, Inc.*		316		2,888
Heidrick & Struggles International, Inc.		140		2,876
Great Lakes Dredge & Dock Corp.*		464		2,868
MoneyGram International, Inc.*		226		2,834
Progenics Pharmaceuticals, Inc.*		540		2,803
Revlon, Inc. — Class A*		88		2,789
Relypsa, Inc.*		131		2,763
SciClone Pharmaceuticals, Inc.*		399		2,749
Sunesis Pharmaceuticals, Inc.*		384		2,742
XOMA Corp.*		651		2,741
Vanda Pharmaceuticals, Inc.*		261		2,709
Senomyx, Inc.*		330		2,706
VIVUS, Inc.*		697		2,690
Coca-Cola Bottling Company Consolidated		36		2,686
Central Garden and Pet Co. — Class A*		334		2,685
Epizyme, Inc.*		99		2,684
Sequenom, Inc.*		903		2,682
Ennis, Inc.		203		2,674
Hyperion Therapeutics, Inc.*		106		2,673
Universal American Corp.*		328		2,637
Career Education Corp.*		519		2,637
AngioDynamics, Inc.*		191		2,621
Surgical Care Affiliates, Inc.*		97		2,592
ARC Document Solutions, Inc.*		317		2,568
CBIZ, Inc.*		322		2,534
Phibro Animal Health Corp. — Class A		113		2,532
CTI BioPharma Corp.*		1,041		2,519
Landauer, Inc.		74		2,443
Geron Corp.*		1,217		2,434
Ingles Markets, Inc. — Class A		102		2,416
XenoPort, Inc.*		447		2,405
Immunomedics, Inc.*		641		2,385
IGI Laboratories, Inc.*		248		2,311
Cerus Corp.*		563		2,258
SP Plus Corp.*		119		2,256
Chefs’ Warehouse, Inc.*		138		2,244
Cross Country Healthcare, Inc.*		241		2,239
LHC Group, Inc.*		96		2,227
Barrett Business Services, Inc.		56		2,211

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Pacific Biosciences of California, Inc.*		446	$	2,190
CryoLife, Inc.		218		2,152
Carriage Services, Inc. — Class A		124		2,149
RTI Surgical, Inc.*		439		2,098
ZS Pharma, Inc.*		53		2,079
John B Sanfilippo & Son, Inc.		64		2,071
Limoneira Co.		87		2,061
Foundation Medicine, Inc.*		107		2,029
Omega Protein Corp.*		162		2,025
Synergy Pharmaceuticals, Inc.*		727		2,025
Lexicon Pharmaceuticals, Inc.*		1,413		1,992
CRA International, Inc.*		78		1,984
Pernix Therapeutics Holdings, Inc.*		258		1,981
OvaScience, Inc.*		119		1,975
Supernus Pharmaceuticals, Inc.*		227		1,973
TG Therapeutics, Inc.*		182		1,942
Cempra, Inc.*		177		1,940
Aratana Therapeutics, Inc.*		190		1,908
SurModics, Inc.*		105		1,907
Galena Biopharma, Inc.*		916		1,887
Kite Pharma, Inc.*		66		1,881
Performant Financial Corp.*		231		1,866
OncoMed Pharmaceuticals, Inc.*		98		1,855
Osiris Therapeutics, Inc.*		147		1,851
Auspex Pharmaceuticals, Inc.*		72		1,848
Unilife Corp.*		797		1,829
Intra-Cellular Therapies, Inc.*		133		1,823
Avalanche Biotechnologies, Inc.*		53		1,812
Seneca Foods Corp. — Class A*		63		1,802
Tree.com, Inc.*		50		1,795
Almost Family, Inc.*		65		1,766
Repros Therapeutics, Inc.*		178		1,762
CSS Industries, Inc.		72		1,746
Endocyte, Inc.*		287		1,745
Neuralstem, Inc.*		531		1,742
National Beverage Corp.*		89		1,736
Electro Rent Corp.		126		1,735
Exelixis, Inc.*		1,132		1,732
Exactech, Inc.*		75		1,717
ServiceSource International, Inc.*		531		1,715
SFX Entertainment, Inc.*		341		1,712
Pendrell Corp.*		1,272		1,704
Aerie Pharmaceuticals, Inc.*		82		1,697
Farmer Bros Co.*		58		1,679
RadNet, Inc.*		253		1,675
Franklin Covey Co.*		85		1,665
ZIOPHARM Oncology, Inc.*		630		1,663
Antares Pharma, Inc.*		905		1,656
CDI Corp.		109		1,583
Universal Technical Institute, Inc.		167		1,561
Five Prime Therapeutics, Inc.*		133		1,560
POZEN, Inc.		212		1,556
Navidea Biopharmaceuticals, Inc.*		1,164		1,536
Durata Therapeutics, Inc.*		121		1,534
Inventure Foods, Inc.*		118		1,529
Oxford Immunotec Global plc		100		1,527
Synta Pharmaceuticals Corp.*		503		1,514
Agenus, Inc.*		483		1,502
Heron Therapeutics, Inc.*		180		1,499
Retrophin, Inc.*		165		1,488
ANI Pharmaceuticals, Inc.*		52		1,471
HealthEquity, Inc.*		80		1,465
Threshold Pharmaceuticals, Inc.*		405		1,462
Derma Sciences, Inc.*		175		1,458
Bridgepoint Education, Inc.*		128		1,428
Utah Medical Products, Inc.		29		1,414
Nutraceutical International Corp.*		67		1,401
Sage Therapeutics, Inc.*		44		1,386
Northwest Biotherapeutics, Inc.*		275		1,383
Verastem, Inc.*		162		1,380
Enzo Biochem, Inc.*		265		1,365
BioTelemetry, Inc.*		203		1,362
Potbelly Corp.*		116		1,353
Akebia Therapeutics, Inc.*		61		1,350
Alliance One International, Inc.*		684		1,347
Otonomy, Inc.*		55		1,320
Rigel Pharmaceuticals, Inc.*		679		1,317
Revance Therapeutics, Inc.*		67		1,295
Paylocity Holding Corp.*		65		1,277
Peregrine Pharmaceuticals, Inc.*		935		1,272
BioTime, Inc.*		404		1,269
PRGX Global, Inc.*		215		1,260
Five Star Quality Care, Inc.*		334		1,259
Nature’s Sunshine Products, Inc.		84		1,246
Craft Brew Alliance, Inc.*		85		1,224
Dendreon Corp.*		845		1,217
Merge Healthcare, Inc.*		548		1,206
Skilled Healthcare Group, Inc. — Class A*		182		1,201
Village Super Market, Inc. — Class A		52		1,185
Ohr Pharmaceutical, Inc.*		163		1,182
Collectors Universe, Inc.		53		1,166
Hackett Group, Inc.		195		1,162
Pain Therapeutics, Inc.*		294		1,150
Bio-Path Holdings, Inc.*		569		1,144
Radius Health, Inc.*		54		1,134
Natural Grocers by Vitamin Cottage, Inc.*		69		1,123
Stemline Therapeutics, Inc.*		90		1,121
Ampio Pharmaceuticals, Inc.*		316		1,115
Corcept Therapeutics, Inc.*		414		1,110
Actinium Pharmaceuticals, Inc.*		165		1,106
Zogenix, Inc.*		953		1,096
CytRx Corp.*		430		1,092
Adeptus Health, Inc. — Class A*		43		1,071
Idera Pharmaceuticals, Inc.*		465		1,065
Xencor, Inc.*		114		1,061
Cenveo, Inc.*		427		1,055

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
AcelRx Pharmaceuticals, Inc.*		192	$	1,054
Oncothyreon, Inc.*		549		1,054
Zafgen, Inc.*		53		1,041
Versartis, Inc.*		54		1,025
NeoStem, Inc.*		183		1,012
BioSpecifics Technologies Corp.*		28		988
K2M Group Holdings, Inc.*		68		981
Mirati Therapeutics, Inc.*		56		981
Liberty Tax, Inc.*		30		969
TransEnterix, Inc.*		221		964
Addus HomeCare Corp.*		49		960
Information Services Group, Inc.*		252		958
ChemoCentryx, Inc.*		211		950
Cytokinetics, Inc.*		267		940
NanoViricides, Inc.*		311		933
Hill International, Inc.*		232		928
Sucampo Pharmaceuticals, Inc. — Class A*		137		891
Alliance HealthCare Services, Inc.*		39		882
Esperion Therapeutics, Inc.*		36		881
Alico, Inc.		23		876
Tandem Diabetes Care, Inc.*		65		872
NanoString Technologies, Inc.*		78		853
TriVascular Technologies, Inc.*		58		840
T2 Biosystems, Inc.*		46		832
Immune Design Corp.*		47		830
Amphastar Pharmaceuticals, Inc.*		71		827
Inogen, Inc.*		40		824
Applied Genetic Technologies Corp.*		44		819
22nd Century Group, Inc.*		319		804
Alder Biopharmaceuticals, Inc.*		62		786
ITT Educational Services, Inc.*		181		776
Liberator Medical Holdings, Inc.		244		764
Kindred Biosciences, Inc.*		81		749
Regulus Therapeutics, Inc.*		106		724
Galectin Therapeutics, Inc.*		140		704
Intersect ENT, Inc.*		45		698
Ocular Therapeutix, Inc.*		44		659
National Research Corp. — Class A*		50		651
Flexion Therapeutics, Inc.*		35		639
PhotoMedex, Inc.*		101		626
Synutra International, Inc.*		134		607
Female Health Co.		169		590
Vital Therapies, Inc.*		28		571
Ardelyx, Inc.*		38		540
Fairway Group Holdings Corp.*		142		531
Cellular Dynamics International, Inc.*		75		527
Lifeway Foods, Inc.*		36		499
Veracyte, Inc.*		50		488
Achaogen, Inc.*		54		484
Care.com, Inc.*		51		416
Adamas Pharmaceuticals, Inc.*		22		410
Roka Bioscience, Inc.*		39		392
Eleven Biotherapeutics, Inc.*		35		390
Loxo Oncology, Inc.*		28		368
Dicerna Pharmaceuticals, Inc.*		28		356
Cytori Therapeutics, Inc.*		524		354
Cara Therapeutics, Inc.*		42		352
Marrone Bio Innovations, Inc.*		108		287
Genocea Biosciences, Inc.*		30		272
Alimera Sciences, Inc.*		43		233
Corporate Resource Services, Inc.*		136		204
Education Management Corp.*		165		180
Egalet Corp.*		18		103
Regado Biosciences, Inc.*		83		94
Total Consumer, Non-cyclical				2,524,047
INDUSTRIAL - 8.4%
Graphic Packaging Holding Co.*		2,536		31,522
Esterline Technologies Corp.*		247		27,485
Teledyne Technologies, Inc.*		291		27,357
Cognex Corp.*		672		27,061
FEI Co.		328		24,738
CLARCOR, Inc.		391		24,664
Curtiss-Wright Corp.		374		24,654
Woodward, Inc.		514		24,477
HEICO Corp.		516		24,097
Moog, Inc. — Class A*		345		23,598
Darling Ingredients, Inc.*		1,277		23,395
Belden, Inc.		337		21,575
Generac Holdings, Inc.*		531		21,526
EnerSys		364		21,345
EMCOR Group, Inc.		522		20,859
Bristow Group, Inc.		275		18,479
Berry Plastics Group, Inc.*		698		17,618
Actuant Corp. — Class A		551		16,816
Rexnord Corp.*		583		16,586
Greenbrier Companies, Inc.		214		15,703
MasTec, Inc.*		508		15,554
XPO Logistics, Inc.*		406		15,294
Hillenbrand, Inc.		487		15,044
Littelfuse, Inc.		175		14,906
Worthington Industries, Inc.		399		14,851
Louisiana-Pacific Corp.*		1,090		14,813
Applied Industrial Technologies, Inc.		324		14,790
Chart Industries, Inc.*		236		14,427
Swift Transportation Co. — Class A*		660		13,846
Polypore International, Inc.*		350		13,619
Harsco Corp.		626		13,403
Sanmina Corp.*		639		13,330
Orbital Sciences Corp.*		470		13,066
Watts Water Technologies, Inc. — Class A		221		12,873
Franklin Electric Company, Inc.		369		12,819
Barnes Group, Inc.		420		12,747
Knight Transportation, Inc.		463		12,682
Masonite International Corp.*		228		12,626
Tetra Tech, Inc.		504		12,590
Mueller Industries, Inc.		440		12,558

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Proto Labs, Inc.*		176	$	12,144
Itron, Inc.*		303		11,911
Coherent, Inc.*		192		11,784
Hub Group, Inc. — Class A*		285		11,551
MSA Safety, Inc.		228		11,263
Scorpio Tankers, Inc.		1,336		11,101
TAL International Group, Inc.		264		10,890
InvenSense, Inc. — Class A*		551		10,871
Forward Air Corp.		242		10,849
Methode Electronics, Inc.		294		10,840
EnPro Industries, Inc.*		175		10,593
Measurement Specialties, Inc.*		123		10,530
Universal Display Corp.*		315		10,281
Mueller Water Products, Inc. — Class A		1,234		10,218
RBC Bearings, Inc.		180		10,206
Heartland Express, Inc.		422		10,111
OSI Systems, Inc.*		155		9,839
Plexus Corp.*		262		9,676
Granite Construction, Inc.		303		9,638
Tennant Co.		142		9,527
Saia, Inc.*		191		9,466
Simpson Manufacturing Company, Inc.		321		9,358
Benchmark Electronics, Inc.*		417		9,262
CIRCOR International, Inc.		137		9,224
Boise Cascade Co.*		304		9,162
Apogee Enterprises, Inc.		225		8,955
Trex Company, Inc.*		259		8,954
Werner Enterprises, Inc.		345		8,694
TriMas Corp.*		350		8,516
Matson, Inc.		333		8,335
Brady Corp. — Class A		371		8,325
Kaman Corp.		211		8,292
AZZ, Inc.		198		8,270
Dycom Industries, Inc.*		263		8,077
Calgon Carbon Corp.*		413		8,004
US Ecology, Inc.		167		7,809
Drew Industries, Inc.		183		7,721
Ship Finance International Ltd.		456		7,716
Rogers Corp.*		140		7,666
Tutor Perini Corp.*		289		7,630
UTI Worldwide, Inc.*		710		7,547
ArcBest Corp.		202		7,535
Cubic Corp.		160		7,488
Lindsay Corp.		100		7,475
Albany International Corp. — Class A		218		7,421
GenCorp, Inc.*		464		7,410
AAR Corp.		306		7,390
DXP Enterprises, Inc.*		100		7,368
Sturm Ruger & Company, Inc.		150		7,304
Standex International Corp.		98		7,266
GasLog Ltd.		327		7,197
ESCO Technologies, Inc.		206		7,165
Exponent, Inc.		101		7,159
Headwaters, Inc.*		570		7,148
Astronics Corp.*		146		6,961
Raven Industries, Inc.		282		6,881
FARO Technologies, Inc.*		134		6,801
Universal Forest Products, Inc.		156		6,663
Aegion Corp. — Class A*		295		6,564
Briggs & Stratton Corp.		362		6,523
Sun Hydraulics Corp.		173		6,503
Atlas Air Worldwide Holdings, Inc.*		196		6,472
Federal Signal Corp.		488		6,461
Taser International, Inc.*		418		6,454
John Bean Technologies Corp.		225		6,329
Altra Industrial Motion Corp.		210		6,124
Scorpio Bulkers, Inc.		1,040		6,053
Advanced Energy Industries, Inc.*		319		5,994
Encore Wire Corp.		161		5,971
RTI International Metals, Inc.*		238		5,869
Blount International, Inc.*		384		5,810
Hyster-Yale Materials Handling, Inc.		80		5,729
General Cable Corp.		375		5,655
Badger Meter, Inc.		111		5,600
AAON, Inc.		328		5,579
Nordic American Tankers Ltd.		692		5,501
Newport Corp.*		309		5,475
American Railcar Industries, Inc.		73		5,396
LSB Industries, Inc.*		150		5,357
Fluidigm Corp.*		218		5,341
Astec Industries, Inc.		146		5,325
Nortek, Inc.*		71		5,290
Quanex Building Products Corp.		291		5,264
Koppers Holdings, Inc.		158		5,239
Textainer Group Holdings Ltd.		167		5,197
Rofin-Sinar Technologies, Inc.*		217		5,004
Roadrunner Transportation Systems, Inc.*		216		4,923
YRC Worldwide, Inc.*		242		4,917
II-VI, Inc.*		406		4,779
Aerovironment, Inc.*		148		4,450
Haynes International, Inc.		96		4,415
Gorman-Rupp Co.		146		4,386
Echo Global Logistics, Inc.*		181		4,263
NCI Building Systems, Inc.*		218		4,229
GrafTech International Ltd.*		912		4,177
CTS Corp.		261		4,147
PHI, Inc.*		98		4,033
Smith & Wesson Holding Corp.*		426		4,021
MYR Group, Inc.*		165		3,973
Fabrinet		271		3,957
Checkpoint Systems, Inc.*		323		3,950
Comfort Systems USA, Inc.		290		3,930
Park Electrochemical Corp.		162		3,815
Myers Industries, Inc.		214		3,775
Navios Maritime Holdings, Inc.		616		3,696
LB Foster Co. — Class A		80		3,675

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares			Value
NN, Inc.		137		$	3,661
Advanced Emissions Solutions, Inc.*		169			3,595
Lydall, Inc.*		132			3,565
Tredegar Corp.		193			3,553
Griffon Corp.		309			3,520
Era Group, Inc.*		157			3,415
PGT, Inc.*		366			3,411
Columbus McKinnon Corp.		154			3,386
American Science & Engineering, Inc.		61			3,378
Kadant, Inc.		86			3,358
DHT Holdings, Inc.		538			3,314
Marten Transport Ltd.		184			3,277
GP Strategies Corp.*		114			3,274
Gibraltar Industries, Inc.*		238			3,258
Park-Ohio Holdings Corp.		68			3,254
Argan, Inc.		97			3,238
Celadon Group, Inc.		162			3,151
FreightCar America, Inc.		94			3,130
Powell Industries, Inc.		72			2,942
Air Transport Services Group, Inc.*		404			2,941
Insteel Industries, Inc.		142			2,920
US Concrete, Inc.*		110	��		2,875
TTM Technologies, Inc.*		418			2,847
Capstone Turbine Corp.*		2,551			2,730
Quality Distribution, Inc.*		213			2,722
GSI Group, Inc.*		236			2,712
Patrick Industries, Inc.*		63			2,669
Mistras Group, Inc.*		126			2,570
Northwest Pipe Co.*		73			2,489
Stoneridge, Inc.*		219			2,468
Nordic American Offshore Ltd.		140			2,467
Advanced Drainage Systems, Inc.*		117			2,451
CAI International, Inc.*		126			2,438
Global Brass & Copper Holdings, Inc.		165			2,421
Power Solutions International, Inc.*		35			2,415
NVE Corp.*		37			2,388
Ducommun, Inc.*		84			2,302
Knightsbridge Tankers Ltd.		260			2,301
Kratos Defense & Security Solutions, Inc.*		347			2,276
Alamo Group, Inc.		55			2,255
National Presto Industries, Inc.		37			2,246
Graham Corp.		78			2,243
CECO Environmental Corp.		163			2,184
Orion Marine Group, Inc.*		212			2,116
Dynamic Materials Corp.		108			2,057
M/A-COM Technology Solutions Holdings, Inc.*		93			2,031
Safe Bulkers, Inc.		301			2,005
Furmanite Corp.*		292			1,974
Global Power Equipment Group, Inc.		132			1,967
Sparton Corp.*		79			1,947
Bel Fuse, Inc. — Class B		78			1,930
Builders FirstSource, Inc.*		354			1,929
Hurco Companies, Inc.		50			1,883
Applied Optoelectronics, Inc.*		114			1,835
Teekay Tankers Ltd. — Class A		483			1,802
Ply Gem Holdings, Inc.*		166			1,799
Stock Building Supply Holdings, Inc.*		113			1,775
Patriot Transportation Holding, Inc.*		51			1,730
Navios Maritime Acquisition Corp.		638			1,729
Nuverra Environmental Solutions, Inc.*		117			1,726
Twin Disc, Inc.		64			1,725
PowerSecure International, Inc.*		173			1,657
Chase Corp.		52			1,618
ExOne Co.*		77			1,609
Baltic Trading Ltd.		382			1,581
VSE Corp.		32			1,569
Ardmore Shipping Corp.		139			1,515
Layne Christensen Co.*		154			1,495
Vishay Precision Group, Inc.*		99			1,479
CHC Group Ltd.		259			1,450
KEMET Corp.*		352			1,450
Olympic Steel, Inc.		70			1,440
Trinseo S.A.*		88			1,384
Continental Building Products, Inc.*		91			1,329
Electro Scientific Industries, Inc.		189			1,283
Ampco-Pittsburgh Corp.		64			1,280
AM Castle & Co.*		146			1,247
Intevac, Inc.*		185			1,234
Universal Truckload Services, Inc.		50			1,213
Manitex International, Inc.*		106			1,197
Vicor Corp.*		127			1,194
AEP Industries, Inc.*		31			1,174
Casella Waste Systems, Inc. — Class A*		303			1,167
CUI Global, Inc.*		160			1,158
Control4 Corp.*		88			1,138
Sterling Construction Company, Inc.*		145			1,112
LMI Aerospace, Inc.*		83			1,062
Energy Recovery, Inc.*		299			1,058
Heritage-Crystal Clean, Inc.*		71			1,055
Mesa Laboratories, Inc.		18			1,040
UFP Technologies, Inc.*		47			1,033
Dorian LPG Ltd.		57			1,016
LSI Industries, Inc.		166			1,008
Handy & Harman Ltd.*		37			972
PAM Transportation Services, Inc.*		25			906
USA Truck, Inc.*		49			859
International Shipholding Corp.		44			787
General Finance Corp.*		86			763
Imprivata, Inc.*		46			714
Multi-Fineline Electronix, Inc.*		69			645
Viasystems Group, Inc.*		40			628
Erickson, Inc.*		46			598
Ultrapetrol Bahamas Ltd.		166			518
SIFCO Industries, Inc.		16			482
Frontline Ltd.		352			444
Aspen Aerogels, Inc.*		43			433

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Omega Flex, Inc.		22	$	428
Astronics Corp. — Class B*		9		428
Revolution Lighting Technologies, Inc.*		254		427
TCP International Holdings Ltd.		55		419
Turtle Beach Corp.*		54		413
NL Industries, Inc.		52		383
ARC Group Worldwide, Inc.*		24		375
Quest Resource Holding Corp.*		99		170
Total Industrial				1,699,428
CONSUMER, CYCLICAL - 8.0%
Brunswick Corp.		719		30,298
Tenneco, Inc.*		472		24,690
Vail Resorts, Inc.		279		24,206
Dana Holding Corp.		1,216		23,311
American Eagle Outfitters, Inc.		1,501		21,794
Casey’s General Stores, Inc.		299		21,438
Office Depot, Inc.*		4,148		21,321
Jack in the Box, Inc.		311		21,206
JetBlue Airways Corp.*		1,924		20,432
Wolverine World Wide, Inc.		787		19,722
Buffalo Wild Wings, Inc.*		146		19,602
Restoration Hardware Holdings, Inc.*		240		19,093
Pool Corp.		350		18,872
Cheesecake Factory, Inc.		387		17,609
Men’s Wearhouse, Inc.		372		17,565
Watsco, Inc.		200		17,236
Five Below, Inc.*		421		16,676
Skechers U.S.A., Inc. — Class A*		303		16,153
Owens & Minor, Inc.		489		16,010
Life Time Fitness, Inc.*		317		15,990
HSN, Inc.		257		15,773
Asbury Automotive Group, Inc.*		238		15,333
Cracker Barrel Old Country Store, Inc.		148		15,272
Texas Roadhouse, Inc. — Class A		541		15,061
ANN, Inc.*		363		14,929
TRI Pointe Homes, Inc.*		1,137		14,712
MWI Veterinary Supply, Inc.*		99		14,692
Steven Madden Ltd.*		452		14,568
Cooper Tire & Rubber Co.		492		14,120
Marriott Vacations Worldwide Corp.*		220		13,950
Genesco, Inc.*		186		13,904
Herman Miller, Inc.		458		13,670
Group 1 Automotive, Inc.		188		13,669
Lithia Motors, Inc. — Class A		176		13,321
Allegiant Travel Co. — Class A		107		13,232
Iconix Brand Group, Inc.*		354		13,077
Mobile Mini, Inc.		362		12,659
HNI Corp.		350		12,597
First Cash Financial Services, Inc.*		223		12,484
PriceSmart, Inc.		145		12,418
G-III Apparel Group Ltd.*		149		12,346
Lumber Liquidators Holdings, Inc.*		213		12,222
Ryland Group, Inc.		364		12,099
Pinnacle Entertainment, Inc.*		462		11,592
Gentherm, Inc.*		273		11,529
United Stationers, Inc.		304		11,421
TiVo, Inc.*		891		11,401
UniFirst Corp.		114		11,011
Bloomin’ Brands, Inc.*		596		10,931
Meritage Homes Corp.*		303		10,757
DineEquity, Inc.		129		10,525
Vitamin Shoppe, Inc.*		237		10,520
Guess?, Inc.		475		10,436
Steelcase, Inc. — Class A		641		10,378
Fiesta Restaurant Group, Inc.*		206		10,234
Express, Inc.*		654		10,209
Churchill Downs, Inc.		104		10,141
Buckle, Inc.		219		9,940
Beacon Roofing Supply, Inc.*		383		9,759
KB Home		650		9,711
Cash America International, Inc.		218		9,548
Core-Mark Holding Company, Inc.		179		9,494
Papa John’s International, Inc.		236		9,438
Sonic Corp.*		420		9,391
Finish Line, Inc. — Class A		374		9,361
Brown Shoe Company, Inc.		337		9,143
Bob Evans Farms, Inc.		192		9,089
Rush Enterprises, Inc. — Class A*		266		8,898
Burlington Stores, Inc.*		221		8,809
Select Comfort Corp.*		421		8,807
American Axle & Manufacturing Holdings, Inc.*		525		8,804
Belmond Ltd. — Class A		749		8,733
Pier 1 Imports, Inc.		733		8,715
Krispy Kreme Doughnuts, Inc.*		505		8,666
G&K Services, Inc. — Class A		155		8,584
Hibbett Sports, Inc.*		200		8,526
Crocs, Inc.*		676		8,504
Dorman Products, Inc.*		210		8,412
Standard Pacific Corp.*		1,122		8,404
Interface, Inc. — Class A		515		8,312
Multimedia Games Holding Company, Inc.*		230		8,282
Meritor, Inc.*		759		8,236
Children’s Place, Inc.		171		8,150
La-Z-Boy, Inc.		404		7,995
MDC Holdings, Inc.		303		7,672
ScanSource, Inc.*		221		7,644
Sonic Automotive, Inc. — Class A		309		7,574
Columbia Sportswear Co.		210		7,514
Popeyes Louisiana Kitchen, Inc.*		183		7,412
Cato Corp. — Class A		212		7,306
Wabash National Corp.*		532		7,086
Wesco Aircraft Holdings, Inc.*		407		7,082
iRobot Corp.*		227		6,912
Mattress Firm Holding Corp.*		115		6,907
Oxford Industries, Inc.		113		6,892
National CineMedia, Inc.		472		6,849

102  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Penn National Gaming, Inc.*		610	$	6,838
International Speedway Corp. — Class A		216		6,834
BJ’s Restaurants, Inc.*		184		6,622
Cooper-Standard Holding, Inc.*		105		6,553
Tuesday Morning Corp.*		337		6,539
Knoll, Inc.		376		6,509
Conn’s, Inc.*		215		6,508
La Quinta Holdings, Inc.*		342		6,495
Barnes & Noble, Inc.*		318		6,277
Red Robin Gourmet Burgers, Inc.*		110		6,259
Diamond Resorts International, Inc.*		274		6,237
Boyd Gaming Corp.*		602		6,116
Universal Electronics, Inc.*		123		6,073
Interval Leisure Group, Inc.		308		5,867
Carmike Cinemas, Inc.*		187		5,793
Regis Corp.		338		5,394
Standard Motor Products, Inc.		154		5,302
Caesars Entertainment Corp.*		396		4,982
Denny’s Corp.*		676		4,752
Hawaiian Holdings, Inc.*		350		4,708
Rentrak Corp.*		77		4,692
Movado Group, Inc.		141		4,661
Cavco Industries, Inc.*		68		4,624
Winnebago Industries, Inc.*		211		4,593
Francesca’s Holdings Corp.*		327		4,555
Zumiez, Inc.*		160		4,496
Ethan Allen Interiors, Inc.		196		4,469
Biglari Holdings, Inc.*		13		4,417
Modine Manufacturing Co.*		370		4,392
Libbey, Inc.*		167		4,386
Callaway Golf Co.		601		4,351
Republic Airways Holdings, Inc.*		386		4,288
Steiner Leisure Ltd.		114		4,285
Scientific Games Corp. — Class A*		393		4,233
Stage Stores, Inc.		244		4,175
Titan International, Inc.		342		4,042
Tower International, Inc.*		160		4,030
Fred’s, Inc. — Class A		286		4,004
Kimball International, Inc. — Class B		266		4,003
Chuy’s Holdings, Inc.*		127		3,987
EZCORP, Inc. — Class A*		399		3,954
M/I Homes, Inc.*		190		3,766
AMC Entertainment Holdings, Inc. — Class A		163		3,747
Pep Boys-Manny Moe & Jack*		412		3,671
Pantry, Inc.*		181		3,662
Daktronics, Inc.		291		3,576
American Woodmark Corp.*		96		3,539
Del Frisco’s Restaurant Group, Inc.*		183		3,503
Arctic Cat, Inc.		100		3,482
Vera Bradley, Inc.*		168		3,474
Beazer Homes USA, Inc.*		207		3,473
Haverty Furniture Companies, Inc.		156		3,399
Douglas Dynamics, Inc.		173		3,374
ClubCorp Holdings, Inc.		169		3,351
DTS, Inc.*		132		3,333
Hovnanian Enterprises, Inc. — Class A*		906		3,325
Federal-Mogul Holdings Corp.*		223		3,316
MarineMax, Inc.*		192		3,235
Superior Industries International, Inc.		183		3,208
Motorcar Parts of America, Inc.*		116		3,156
SkyWest, Inc.		396		3,081
Ruth’s Hospitality Group, Inc.		279		3,080
LeapFrog Enterprises, Inc. — Class A*		507		3,036
William Lyon Homes — Class A*		135		2,984
Unifi, Inc.*		114		2,953
Nautilus, Inc.*		242		2,896
Container Store Group, Inc.*		133		2,895
Ruby Tuesday, Inc.*		477		2,810
Christopher & Banks Corp.*		282		2,789
Citi Trends, Inc.*		120		2,652
Vince Holding Corp.*		86		2,602
Eros International plc		172		2,513
Stein Mart, Inc.		215		2,483
America’s Car-Mart, Inc.*		60		2,375
Remy International, Inc.		111		2,279
El Pollo Loco Holdings, Inc.*		63		2,262
Strattec Security Corp.		27		2,196
Marcus Corp.		139		2,196
PetMed Express, Inc.		156		2,122
Shoe Carnival, Inc.		117		2,084
LGI Homes, Inc.*		111		2,038
Aeropostale, Inc.*		610		2,007
Tile Shop Holdings, Inc.*		216		1,998
Carrols Restaurant Group, Inc.*		273		1,941
Bravo Brio Restaurant Group, Inc.*		149		1,933
Perry Ellis International, Inc.*		94		1,913
Jamba, Inc.*		133		1,891
NACCO Industries, Inc. — Class A		37		1,840
Kirkland’s, Inc.*		113		1,820
Morgans Hotel Group Co.*		225		1,816
Titan Machinery, Inc.*		134		1,741
Einstein Noah Restaurant Group, Inc.		86		1,734
WCI Communities, Inc.*		91		1,678
Houston Wire & Cable Co.		137		1,641
Sequential Brands Group, Inc.*		131		1,638
Destination Maternity Corp.		106		1,637
Nathan’s Famous, Inc.*		24		1,625
Noodles & Co.*		83		1,593
PC Connection, Inc.		74		1,589
Speedway Motorsports, Inc.		90		1,535
Quiksilver, Inc.*		889		1,529
Miller Industries, Inc.		88		1,487
VOXX International Corp. — Class A*		150		1,395
Sears Hometown and Outlet Stores, Inc.*		90		1,395
Zoe’s Kitchen, Inc.*		45		1,384
Fox Factory Holding Corp.*		87		1,349

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  103 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Big 5 Sporting Goods Corp.		143	$	1,340
Black Diamond, Inc.*		176		1,331
AV Homes, Inc.*		88		1,289
Weyco Group, Inc.		51		1,281
Destination XL Group, Inc.*		271		1,279
Commercial Vehicle Group, Inc.*		204		1,261
Isle of Capri Casinos, Inc.*		168		1,260
Build-A-Bear Workshop, Inc. — Class A*		96		1,256
Spartan Motors, Inc.		267		1,247
Lifetime Brands, Inc.		81		1,240
West Marine, Inc.*		136		1,224
Culp, Inc.		67		1,216
Skullcandy, Inc.*		155		1,207
Malibu Boats, Inc. — Class A*		65		1,204
Accuride Corp.*		299		1,133
Reading International, Inc. — Class A*		134		1,126
Systemax, Inc.*		87		1,085
Speed Commerce, Inc.*		376		1,034
JAKKS Pacific, Inc.*		145		1,030
Dixie Group, Inc.*		116		1,006
Intrawest Resorts Holdings, Inc.*		104		1,006
Johnson Outdoors, Inc. — Class A		38		984
Fuel Systems Solutions, Inc.*		110		980
Famous Dave’s of America, Inc.*		36		969
Winmark Corp.		13		956
Bon-Ton Stores, Inc.		113		945
Escalade, Inc.		77		929
Installed Building Products, Inc.*		66		927
Norcraft Companies, Inc.*		58		925
Roundy’s, Inc.		305		912
Monarch Casino & Resort, Inc.*		74		881
New Home Company, Inc.*		65		878
Gaiam, Inc. — Class A*		116		851
Flexsteel Industries, Inc.		24		810
Empire Resorts, Inc.*		117		785
UCP, Inc. — Class A*		61		729
Pacific Sunwear of California, Inc.*		385		693
New York & Company, Inc.*		225		682
Marine Products Corp.		82		647
Tilly’s, Inc. — Class A*		82		617
hhgregg, Inc.*		93		587
bebe stores, Inc.		243		564
Century Communities, Inc.*		31		538
Sportsman’s Warehouse Holdings, Inc.*		76		512
Papa Murphy’s Holdings, Inc.*		45		459
Ignite Restaurant Group, Inc.*		59		354
Total Consumer, Cyclical				1,614,467
TECHNOLOGY - 6.5%
Ultimate Software Group, Inc.*		220		31,132
Aspen Technology, Inc.*		714		26,932
Verint Systems, Inc.*		464		25,804
TriQuint Semiconductor, Inc.*		1,329		25,344
Guidewire Software, Inc.*		527		23,367
SS&C Technologies Holdings, Inc.*		528		23,173
Tyler Technologies, Inc.*		256		22,630
International Rectifier Corp.*		553		21,701
Cavium, Inc.*		408		20,291
Synaptics, Inc.*		277		20,276
Manhattan Associates, Inc.*		588		19,652
Qlik Technologies, Inc.*		695		18,793
Microsemi Corp.*		735		18,676
Medidata Solutions, Inc.*		418		18,513
CommVault Systems, Inc.*		366		18,447
j2 Global, Inc.		368		18,165
Compuware Corp.		1,704		18,080
Dealertrack Technologies, Inc.*		414		17,972
ACI Worldwide, Inc.*		883		16,565
Integrated Device Technology, Inc.*		1,031		16,444
Electronics for Imaging, Inc.*		361		15,945
Mentor Graphics Corp.		751		15,392
Fairchild Semiconductor International, Inc. — Class A*		965		14,986
Take-Two Interactive Software, Inc.*		644		14,858
Science Applications International Corp.		325		14,375
SYNNEX Corp.*		220		14,219
Intersil Corp. — Class A		999		14,196
Cornerstone OnDemand, Inc.*		412		14,177
Semtech Corp.*		521		14,145
Blackbaud, Inc.		357		14,027
MKS Instruments, Inc.		415		13,852
Fair Isaac Corp.		249		13,720
Silicon Laboratories, Inc.*		337		13,696
Monolithic Power Systems, Inc.		299		13,171
NetScout Systems, Inc.*		282		12,915
CACI International, Inc. — Class A*		181		12,900
Power Integrations, Inc.		235		12,669
Advent Software, Inc.		399		12,592
Synchronoss Technologies, Inc.*		273		12,498
Entegris, Inc.*		1,075		12,362
EPAM Systems, Inc.*		276		12,086
Cypress Semiconductor Corp.		1,223		12,077
Envestnet, Inc.*		264		11,880
Demandware, Inc.*		232		11,813
OmniVision Technologies, Inc.*		435		11,510
GT Advanced Technologies, Inc.*		1,058		11,458
Tessera Technologies, Inc.		415		11,031
Rambus, Inc.*		882		11,007
Veeco Instruments, Inc.*		311		10,869
Spansion, Inc. — Class A*		468		10,665
Proofpoint, Inc.*		287		10,659
Syntel, Inc.*		120		10,553
iGATE Corp.*		285		10,465
PMC-Sierra, Inc.*		1,345		10,033
Cirrus Logic, Inc.*		481		10,029
Acxiom Corp.*		597		9,880
MedAssets, Inc.*		473		9,801

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Ambarella, Inc.		223	$	9,738
Progress Software Corp.*		398		9,516
Unisys Corp.*		396		9,270
MicroStrategy, Inc. — Class A*		70		9,159
FleetMatics Group plc		290		8,845
Monotype Imaging Holdings, Inc.		306		8,666
Bottomline Technologies de, Inc.*		305		8,415
Cray, Inc.*		316		8,292
MTS Systems Corp.		117		7,986
Super Micro Computer, Inc.*		268		7,885
Omnicell, Inc.*		284		7,762
Cabot Microelectronics Corp.*		186		7,710
Insight Enterprises, Inc.*		318		7,196
Virtusa Corp.*		200		7,112
CSG Systems International, Inc.		264		6,938
Lattice Semiconductor Corp.*		913		6,847
Diodes, Inc.*		282		6,745
RealPage, Inc.*		402		6,231
QLogic Corp.*		676		6,192
Infoblox, Inc.*		418		6,166
Sykes Enterprises, Inc.*		305		6,094
Amkor Technology, Inc.*		662		5,567
Brooks Automation, Inc.		518		5,444
Interactive Intelligence Group, Inc.*		130		5,434
Quality Systems, Inc.		385		5,301
LivePerson, Inc.*		419		5,275
Pegasystems, Inc.		275		5,255
Actua Corp.*		319		5,110
Computer Programs & Systems, Inc.		87		5,002
ManTech International Corp. — Class A		185		4,986
Ultratech, Inc.*		218		4,960
Imperva, Inc.*		171		4,913
PROS Holdings, Inc.*		182		4,586
AVG Technologies N.V.		270		4,477
Kofax Ltd.		573		4,435
Callidus Software, Inc.*		357		4,291
Applied Micro Circuits Corp.*		605		4,235
Epiq Systems, Inc.		241		4,232
Engility Holdings, Inc.*		135		4,208
Micrel, Inc.		345		4,150
inContact, Inc.*		471		4,095
Tangoe, Inc.*		300		4,065
Photronics, Inc.*		478		3,848
Digital River, Inc.*		253		3,674
Xcerra Corp.*		375		3,671
Glu Mobile, Inc.*		697		3,603
Cvent, Inc.*		139		3,526
Qualys, Inc.*		132		3,511
Inphi Corp.*		243		3,494
Ebix, Inc.		236		3,346
Integrated Silicon Solution, Inc.		234		3,215
SciQuest, Inc.*		213		3,204
FormFactor, Inc.*		430		3,083
Silicon Image, Inc.*		608		3,064
Emulex Corp.*		616		3,043
Violin Memory, Inc.*		622		3,029
Eastman Kodak Co.*		136		2,988
PDF Solutions, Inc.*		236		2,976
RealD, Inc.*		312		2,923
Mercury Systems, Inc.*		258		2,841
KEYW Holding Corp.*		254		2,812
Nanometrics, Inc.*		185		2,794
Exar Corp.*		305		2,730
Peregrine Semiconductor Corp.*		215		2,660
Silver Spring Networks, Inc.*		271		2,615
Silicon Graphics International Corp.*		267		2,464
Cohu, Inc.		196		2,346
Rudolph Technologies, Inc.*		258		2,335
Rally Software Development Corp.*		192		2,306
Luxoft Holding, Inc.		61		2,269
InnerWorkings, Inc.*		272		2,200
CEVA, Inc.*		162		2,177
Ciber, Inc.*		600		2,058
Ultra Clean Holdings, Inc.*		228		2,041
Maxwell Technologies, Inc.*		232		2,023
IXYS Corp.		189		1,985
Quantum Corp.*		1,697		1,969
Jive Software, Inc.*		330		1,923
Immersion Corp.*		220		1,888
Nimble Storage, Inc.*		71		1,844
Entropic Communications, Inc.*		689		1,833
Seachange International, Inc.*		255		1,775
Dot Hill Systems Corp.*		465		1,758
Kopin Corp.*		512		1,741
Axcelis Technologies, Inc.*		863		1,717
American Software, Inc. — Class A		190		1,676
Pericom Semiconductor Corp.*		172		1,675
E2open, Inc.*		179		1,666
Datalink Corp.*		153		1,626
Barracuda Networks, Inc.*		62		1,590
Alpha & Omega Semiconductor Ltd.		167		1,570
Vitesse Semiconductor Corp.*		428		1,541
DSP Group, Inc.*		172		1,526
MaxLinear, Inc. — Class A*		216		1,486
Model N, Inc.*		150		1,479
Digi International, Inc.*		197		1,478
Vocera Communications, Inc.*		174		1,404
Carbonite, Inc.*		137		1,403
Sapiens International Corporation N.V.*		189		1,399
Actuate Corp.*		356		1,388
Agilysys, Inc.*		114		1,337
Rosetta Stone, Inc.*		165		1,328
Computer Task Group, Inc.		117		1,299
Castlight Health, Inc. — Class B*		100		1,294
QuickLogic Corp.*		426		1,274
2U, Inc.*		79		1,232

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Amber Road, Inc.*		69	$	1,196
OPOWER, Inc.*		60		1,132
Mavenir Systems, Inc.*		89		1,118
MobileIron, Inc.*		95		1,058
Benefitfocus, Inc.*		37		997
Cascade Microtech, Inc.*		98		993
Guidance Software, Inc.*		137		922
A10 Networks, Inc.*		99		902
QAD, Inc. — Class A		47		875
Varonis Systems, Inc.*		41		865
Rubicon Technology, Inc.*		202		859
Digimarc Corp.		41		849
Paycom Software, Inc.*		51		845
Everyday Health, Inc.*		58		810
Audience, Inc.*		109		807
Globant SA		52		732
Park City Group, Inc.*		74		730
Five9, Inc.*		95		621
Total Technology				1,307,538
COMMUNICATIONS - 4.1%
RF Micro Devices, Inc.*		2,220		25,619
Time, Inc.*		855		20,033
Anixter International, Inc.		211		17,900
Aruba Networks, Inc.*		828		17,868
Conversant, Inc.*		518		17,741
ViaSat, Inc.*		320		17,638
DigitalGlobe, Inc.*		584		16,643
Houghton Mifflin Harcourt Co.*		845		16,427
Plantronics, Inc.		330		15,768
Shutterfly, Inc.*		299		14,573
Trulia, Inc.*		286		13,986
Sinclair Broadcast Group, Inc. — Class A		530		13,828
Ciena Corp.*		811		13,560
Polycom, Inc.*		1,070		13,144
WebMD Health Corp. — Class A*		301		12,584
InterDigital, Inc.		314		12,503
Finisar Corp.*		751		12,489
Sapient Corp.*		889		12,446
Cogent Communications Holdings, Inc.		361		12,133
New York Times Co. — Class A		1,073		12,038
Meredith Corp.		279		11,942
NeuStar, Inc. — Class A*		435		10,801
Infinera Corp.*		946		10,094
comScore, Inc.*		268		9,758
Nexstar Broadcasting Group, Inc. — Class A		238		9,620
ADTRAN, Inc.		438		8,992
NETGEAR, Inc.*		282		8,813
West Corp.		299		8,809
NIC, Inc.		506		8,713
Ubiquiti Networks, Inc.*		231		8,669
LogMeIn, Inc.*		187		8,615
Shutterstock, Inc.*		117		8,352
Web.com Group, Inc.*		402		8,024
Consolidated Communications Holdings, Inc.		313		7,841
Globalstar, Inc.*		2,130		7,796
Gogo, Inc.*		433		7,300
Loral Space & Communications, Inc.*		101		7,253
Ruckus Wireless, Inc.*		502		6,707
Scholastic Corp.		206		6,658
SPS Commerce, Inc.*		124		6,590
Constant Contact, Inc.*		242		6,568
Sonus Networks, Inc.*		1,907		6,522
Marketo, Inc.*		198		6,395
Move, Inc.*		305		6,393
MDC Partners, Inc. — Class A		329		6,314
Bankrate, Inc.*		518		5,884
Media General, Inc. — Class A*		422		5,532
Iridium Communications, Inc.*		625		5,531
Cincinnati Bell, Inc.*		1,622		5,465
Lands’ End, Inc.*		128		5,263
FTD Companies, Inc.*		147		5,014
Blucora, Inc.*		328		4,999
CalAmp Corp.*		279		4,916
BroadSoft, Inc.*		222		4,671
Harmonic, Inc.*		735		4,661
Shenandoah Telecommunications Co.		186		4,615
8x8, Inc.*		687		4,589
Cumulus Media, Inc. — Class A*		1,121		4,518
Premiere Global Services, Inc.*		374		4,477
Vonage Holdings Corp.*		1,350		4,428
Comtech Telecommunications Corp.		119		4,421
VASCO Data Security International, Inc.*		228		4,282
Ixia*		444		4,058
Perficient, Inc.*		267		4,002
EW Scripps Co. — Class A*		242		3,947
HealthStream, Inc.*		164		3,938
Atlantic Tele-Network, Inc.		73		3,935
Comverse, Inc.*		174		3,885
New Media Investment Group, Inc.		232		3,858
RetailMeNot, Inc.*		238		3,846
Textura Corp.*		145		3,828
Endurance International Group Holdings, Inc.*		233		3,791
RigNet, Inc.*		92		3,721
Intelsat S.A.		211		3,617
Extreme Networks, Inc.*		749		3,588
Chegg, Inc.*		571		3,563
Stamps.com, Inc.*		109		3,462
Global Eagle Entertainment, Inc.*		296		3,321
ShoreTel, Inc.*		484		3,219
World Wrestling Entertainment, Inc. — Class A		231		3,181
Orbitz Worldwide, Inc.*		400		3,148
Inteliquent, Inc.		252		3,137
Calix, Inc.*		322		3,082
Gray Television, Inc.*		384		3,026
General Communication, Inc. — Class A*		277		3,022
Safeguard Scientifics, Inc.*		160		2,944

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Journal Communications, Inc. — Class A*		347	$	2,925
Internap Network Services Corp.*		420		2,898
Bazaarvoice, Inc.*		388		2,867
Black Box Corp.		121		2,822
RingCentral, Inc. — Class A*		217		2,758
EarthLink Holdings Corp.		791		2,705
Blue Nile, Inc.*		94		2,684
ChannelAdvisor Corp.*		161		2,640
Liquidity Services, Inc.*		191		2,626
Dice Holdings, Inc.*		301		2,522
Intralinks Holdings, Inc.*		305		2,471
Harte-Hanks, Inc.		382		2,433
FairPoint Communications, Inc.*		160		2,427
Oplink Communications, Inc.		142		2,388
GrubHub, Inc.*		69		2,363
Lumos Networks Corp.		145		2,356
XO Group, Inc.*		208		2,332
Lionbridge Technologies, Inc.*		499		2,246
Rocket Fuel, Inc.*		142		2,244
ePlus, Inc.*		40		2,242
Spok Holdings, Inc.		167		2,173
Angie’s List, Inc.*		338		2,153
Hawaiian Telcom Holdco, Inc.*		82		2,107
IDT Corp. — Class B		131		2,104
ORBCOMM, Inc.*		345		1,984
VirnetX Holding Corp.*		330		1,980
Gigamon, Inc.*		188		1,968
Enventis Corp.		105		1,909
Zendesk, Inc.*		88		1,900
Entravision Communications Corp. — Class A		449		1,778
Marin Software, Inc.*		204		1,754
Wix.com Ltd.		107		1,739
McClatchy Co. — Class A*		474		1,593
Zix Corp.*		459		1,570
AH Belo Corp. — Class A		145		1,547
Entercom Communications Corp. — Class A*		191		1,534
Procera Networks, Inc.*		160		1,533
Reis, Inc.		64		1,510
Overstock.com, Inc.*		89		1,501
Daily Journal Corp.*		8		1,444
ValueVision Media, Inc. — Class A*		276		1,416
Telenav, Inc.*		211		1,414
NTELOS Holdings Corp.		131		1,394
Brightcove, Inc.*		249		1,389
1-800-Flowers.com, Inc. — Class A*		193		1,388
magicJack VocalTec Ltd.		138		1,359
Sizmek, Inc.*		171		1,324
GTT Communications, Inc.*		109		1,298
Boingo Wireless, Inc.*		180		1,283
Tessco Technologies, Inc.		44		1,276
RealNetworks, Inc.*		177		1,230
Central European Media Enterprises Ltd. — Class A		545		1,226
Alliance Fiber Optic Products, Inc.		98		1,218
Numerex Corp. — Class A*		113		1,184
Lee Enterprises, Inc.*		349		1,180
Unwired Planet, Inc.*		624		1,161
KVH Industries, Inc.*		102		1,155
Coupons.com, Inc.*		94		1,124
Clearfield, Inc.*		88		1,120
QuinStreet, Inc.*		269		1,116
TechTarget, Inc.*		129		1,108
Dex Media, Inc.*		115		1,099
Limelight Networks, Inc.*		467		1,090
Millennial Media, Inc.*		585		1,088
Q2 Holdings, Inc.*		77		1,078
TrueCar, Inc.*		60		1,077
Marchex, Inc. — Class B		254		1,054
TeleCommunication Systems, Inc. — Class A*		373		1,041
Oclaro, Inc.*		726		1,038
ModusLink Global Solutions, Inc.*		287		1,025
Saga Communications, Inc. — Class A		28		940
Cinedigm Corp. — Class A*		593		919
Preformed Line Products Co.		17		897
Travelzoo, Inc.*		57		884
Crown Media Holdings, Inc. — Class A*		268		858
ParkerVision, Inc.*		749		854
Martha Stewart Living Omnimedia, Inc. — Class A*		232		835
Townsquare Media, Inc.*		69		829
Global Sources Ltd.		118		792
Rubicon Project, Inc.*		61		716
YuMe, Inc.*		140		700
Hemisphere Media Group, Inc.*		64		682
Cyan, Inc.*		213		665
Rightside Group Ltd.*		67		653
Salem Communications Corp. — Class A		85		647
Borderfree, Inc.		46		593
Demand Media, Inc.*		67		593
Aerohive Networks, Inc.*		73		585
Radio One, Inc. — Class D*		179		569
Tremor Video, Inc.*		233		545
Vringo, Inc.*		554		524
ReachLocal, Inc.*		103		372
TubeMogul, Inc.*		27		311
Covisint Corp.*		58		241
Total Communications				819,732
ENERGY - 3.4%
Kodiak Oil & Gas Corp.*		2,067		28,082
SemGroup Corp. — Class A		331		27,562
Diamondback Energy, Inc.*		325		24,304
Rosetta Resources, Inc.*		477		21,255
Exterran Holdings, Inc.		453		20,072
Carrizo Oil & Gas, Inc.*		351		18,891
Helix Energy Solutions Group, Inc.*		816		18,001
Western Refining, Inc.		410		17,216

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
Delek US Holdings, Inc.		459	$	15,202
Matador Resources Co.*		569		14,709
Bonanza Creek Energy, Inc.*		254		14,453
Forum Energy Technologies, Inc.*		462		14,142
PDC Energy, Inc.*		278		13,981
Stone Energy Corp.*		436		13,673
SunCoke Energy, Inc.*		541		12,144
SEACOR Holdings, Inc.*		160		11,968
C&J Energy Services, Inc.*		357		10,906
Flotek Industries, Inc.*		417		10,871
Green Plains, Inc.		290		10,843
McDermott International, Inc.*		1,843		10,542
Sanchez Energy Corp.*		395		10,373
Pattern Energy Group, Inc.		305		9,431
Hornbeck Offshore Services, Inc.*		280		9,164
CARBO Ceramics, Inc.		153		9,062
Parsley Energy, Inc. — Class A*		411		8,766
Magnum Hunter Resources Corp.*		1,542		8,589
Bill Barrett Corp.*		386		8,507
Energy XXI Bermuda Ltd.		727		8,251
Newpark Resources, Inc.*		658		8,186
Halcon Resources Corp.*		2,023		8,012
Primoris Services Corp.		295		7,918
Comstock Resources, Inc.		371		6,908
Pioneer Energy Services Corp.*		487		6,828
Northern Oil and Gas, Inc.*		474		6,741
TETRA Technologies, Inc.*		612		6,622
Gulfmark Offshore, Inc. — Class A		209		6,552
Triangle Petroleum Corp.*		587		6,463
Penn Virginia Corp.*		507		6,444
Synergy Resources Corp.*		516		6,290
Thermon Group Holdings, Inc.*		248		6,056
Plug Power, Inc.*		1,296		5,949
Cloud Peak Energy, Inc.*		471		5,944
Basic Energy Services, Inc.*		247		5,357
Tesco Corp.		269		5,340
TerraForm Power, Inc. — Class A*		177		5,108
Matrix Service Co.*		205		4,945
Key Energy Services, Inc.*		1,014		4,908
Rex Energy Corp.*		373		4,726
Parker Drilling Co.*		937		4,629
RSP Permian, Inc.*		180		4,601
Contango Oil & Gas Co.*		135		4,487
Clayton Williams Energy, Inc.*		46		4,437
Approach Resources, Inc.*		304		4,408
Solazyme, Inc.*		589		4,394
Westmoreland Coal Co.*		116		4,340
Alpha Natural Resources, Inc.*		1,714		4,251
Clean Energy Fuels Corp.*		544		4,243
Goodrich Petroleum Corp.*		269		3,987
EXCO Resources, Inc.		1,178		3,935
Eclipse Resources Corp.*		233		3,872
Abraxas Petroleum Corp.*		717		3,786
Resolute Energy Corp.*		602		3,775
North Atlantic Drilling Ltd.		553		3,683
FuelCell Energy, Inc.*,1		1,713		3,580
Geospace Technologies Corp.*		101		3,550
REX American Resources Corp.*		48		3,498
Arch Coal, Inc.		1,647		3,492
VAALCO Energy, Inc.*		387		3,290
Swift Energy Co.*		340		3,264
Panhandle Oil and Gas, Inc. — Class A		54		3,224
Warren Resources, Inc.*		569		3,016
W&T Offshore, Inc.		270		2,970
Alon USA Energy, Inc.		203		2,915
ION Geophysical Corp.*		1,000		2,790
Callon Petroleum Co.*		314		2,766
Hercules Offshore, Inc.*		1,243		2,735
Renewable Energy Group, Inc.*		268		2,720
Emerald Oil, Inc.*		442		2,718
Pacific Ethanol, Inc.*		185		2,583
Willbros Group, Inc.*		310		2,582
PetroQuest Energy, Inc.*		454		2,551
Gastar Exploration, Inc.*		427		2,506
Enphase Energy, Inc.*		141		2,114
Vantage Drilling Co.		1,594		2,024
FutureFuel Corp.		169		2,009
Natural Gas Services Group, Inc.*		81		1,950
Gulf Island Fabrication, Inc.		112		1,926
Trecora Resources*		152		1,882
BPZ Resources, Inc.*		919		1,755
Jones Energy, Inc. — Class A*		87		1,634
TransAtlantic Petroleum Ltd.		176		1,582
Midstates Petroleum Company, Inc.*		288		1,454
Evolution Petroleum Corp.		152		1,395
FX Energy, Inc.*		417		1,268
Harvest Natural Resources, Inc.*		326		1,196
Walter Energy, Inc.		508		1,189
Dawson Geophysical Co.		63		1,145
Mitcham Industries, Inc.*		98		1,083
Miller Energy Resources, Inc.*		233		1,025
American Eagle Energy Corp.*		236		961
Hallador Energy Co.		80		947
Independence Contract Drilling, Inc.*		79		928
Apco Oil and Gas International, Inc.		70		902
Amyris, Inc.*		210		796
Glori Energy, Inc.*		94		743
Forest Oil Corp.*		632		739
Vertex Energy, Inc.*		102		710
Quicksilver Resources, Inc.*		971		585
Adams Resources & Energy, Inc.		12		531
Isramco, Inc.*		4		489
Profire Energy, Inc.*		113		469
Total Energy				681,266

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
BASIC MATERIALS - 2.2%
US Silica Holdings, Inc.		416	$	26,004
PolyOne Corp.		730		25,974
Sensient Technologies Corp.		384		20,101
Axiall Corp.		542		19,410
KapStone Paper and Packaging Corp.*		655		18,321
Minerals Technologies, Inc.		268		16,537
Chemtura Corp.*		700		16,331
Commercial Metals Co.		913		15,584
Olin Corp.		613		15,478
HB Fuller Co.		387		15,364
Stillwater Mining Co.*		929		13,963
Balchem Corp.		236		13,351
Tronox Ltd. — Class A		477		12,426
Kaiser Aluminum Corp.		139		10,594
Century Aluminum Co.*		399		10,362
Schweitzer-Mauduit International, Inc.		236		9,750
Clearwater Paper Corp.*		158		9,497
Innophos Holdings, Inc.		170		9,365
Globe Specialty Metals, Inc.		495		9,005
AK Steel Holding Corp.*		1,061		8,499
A. Schulman, Inc.		226		8,172
Ferro Corp.*		556		8,056
Resolute Forest Products, Inc.*		506		7,914
PH Glatfelter Co.		334		7,331
Quaker Chemical Corp.		102		7,312
Neenah Paper, Inc.		128		6,845
Innospec, Inc.		189		6,785
Intrepid Potash, Inc.*		433		6,690
Stepan Co.		149		6,613
Hecla Mining Co.		2,657		6,589
Horsehead Holding Corp.*		393		6,496
OM Group, Inc.		249		6,462
Taminco Corp.*		221		5,769
Deltic Timber Corp.		86		5,360
Materion Corp.		160		4,907
Schnitzer Steel Industries, Inc. — Class A		204		4,906
Kraton Performance Polymers, Inc.*		254		4,524
Aceto Corp.		223		4,308
Coeur Mining, Inc.*		803		3,983
Rentech, Inc.*		1,766		3,020
Hawkins, Inc.		82		2,949
Allied Nevada Gold Corp.*		809		2,678
Wausau Paper Corp.		327		2,593
Landec Corp.*		208		2,548
Zep, Inc.		178		2,496
American Vanguard Corp.		222		2,486
Ring Energy, Inc.*		157		2,314
Kronos Worldwide, Inc.		162		2,232
OMNOVA Solutions, Inc.*		367		1,971
Noranda Aluminum Holding Corp.		344		1,555
Orchids Paper Products Co.		63		1,547
Gold Resource Corp.		292		1,495
Universal Stainless & Alloy Products, Inc.*		54		1,423
Molycorp, Inc.*		1,068		1,271
Xerium Technologies, Inc.*		85		1,242
KMG Chemicals, Inc.		73		1,188
Shiloh Industries, Inc.*		64		1,089
Ryerson Holding Corp.*		85		1,088
Oil-Dri Corporation of America		37		965
United States Lime & Minerals, Inc.		14		814
Total Basic Materials				453,902
UTILITIES - 2.0%
Cleco Corp.		468		22,534
Dynegy, Inc.*		778		22,453
IDACORP, Inc.		389		20,854
Piedmont Natural Gas Company, Inc.		602		20,185
Portland General Electric Co.		606		19,465
Southwest Gas Corp.		361		17,537
WGL Holdings, Inc.		403		16,974
New Jersey Resources Corp.		327		16,517
Black Hills Corp.		344		16,471
Laclede Group, Inc.		335		15,544
UIL Holdings Corp.		439		15,541
PNM Resources, Inc.		618		15,394
ALLETE, Inc.		329		14,604
Avista Corp.		467		14,258
ONE Gas, Inc.		403		13,803
NorthWestern Corp.		304		13,789
South Jersey Industries, Inc.		256		13,660
El Paso Electric Co.		313		11,440
MGE Energy, Inc.		268		9,986
American States Water Co.		301		9,157
Northwest Natural Gas Co.		211		8,915
NRG Yield, Inc. — Class A		184		8,657
California Water Service Group		370		8,303
Empire District Electric Co.		335		8,090
Abengoa Yield plc		220		7,828
Otter Tail Corp.		282		7,521
Chesapeake Utilities Corp.		112		4,666
Ormat Technologies, Inc.		137		3,599
EnerNOC, Inc.*		209		3,544
PICO Holdings, Inc.*		176		3,511
Unitil Corp.		107		3,327
SJW Corp.		122		3,278
Connecticut Water Service, Inc.		84		2,730
Pike Corp.*		213		2,533
Middlesex Water Co.		124		2,430
Atlantic Power Corp.		932		2,218
York Water Co.		100		2,000
Artesian Resources Corp. — Class A		60		1,208
Ameresco, Inc. — Class A*		154		1,055
Spark Energy, Inc. — Class A*		23		400
Total Utilities				405,979

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
RUSSELL 2000® FUND

	Shares		Value
DIVERSIFIED - 0.1%
Harbinger Group, Inc.*		644	$	8,450
Horizon Pharma plc		503		6,177
National Bank Holdings Corp. — Class A		319		6,099
FCB Financial Holdings, Inc. — Class A*		63		1,431
Resource America, Inc. — Class A		104		968
Tiptree Financial, Inc. — Class A*		43		355
Total Diversified				23,480
GOVERNMENT - 0.0%
Banco Latinoamericano de Comercio Exterior S.A. — Class E		230		7,056
Total Common Stocks
(Cost $12,248,157)				12,482,886
WARRANTS†† - 0.0%
Tejon Ranch Co.
$10.50, 08/31/16*,†		29		58
Magnum Hunter Resources Corp.
$8.50, 04/15/16*, 1		444		—
Total Warrants
(Cost $150)				58
RIGHTS† - 0.0%
Leap Wireless International
Expires 03/17/15*, †††		1,211		3,051
Furiex Pharmaceuticals, Inc.
Expires 07/03/17*, †††		88		860
Cubist Pharmaceuticals, Inc.
Expires 12/31/16*		1,197		132
Omthera Pharmaceuticals, Inc.
Expires 12/31/20*, †††		86		52
Total Rights
(Cost $4,135)				4,095

	Face Amount
REPURCHASE AGREEMENTS††,2 - 36.3%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	3,192,522		3,192,522
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		1,866,702		1,866,702
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		1,320,044		1,320,044
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		823,698		823,698
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/143		126,737		126,737
Total Repurchase Agreements
(Cost $7,329,703)				7,329,703
SECURITIES LENDING COLLATERAL††,4 - 0.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		3,056		3,056
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		501		501
Total Securities Lending Collateral
(Cost $3,557)				3,557
Total Investments - 98.1%
(Cost $19,585,702)			$	19,820,299
Other Assets & Liabilities, net - 1.9%				386,518
Total Net Assets - 100.0%			$	20,206,817

110  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
RUSSELL 2000® FUND

	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $4,932,000)		45	$	(180,520	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2014 Russell 2000 Index Swap, Terminating 10/28/145 (Notional Value $425,584)		386	$	(2,933	)
Barclays Bank plc October 2014 Russell 2000 Index Swap, Terminating 10/31/145 (Notional Value $423,364)		384		(6,735	)
Credit Suisse Capital, LLC October 2014 Russell 2000 Index Swap, Terminating 10/29/145 (Notional Value $1,945,227)		1,766		(12,615	)
(Total Notional Value $2,794,175)			$	(22,283	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs, unless otherwise noted — See Note 4.
††	Value determined based on Level 2 inputs, unless otherwise noted — See Note 4.
†††	Value determined based on Level 3 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
4	Securities lending collateral — See Note 6.
5	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company
	REIT — Real Estate Investment Trust

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  111 

RUSSELL 2000^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $2,848 of securities loaned (cost $12,252,442)	$	12,487,039
Repurchase agreements, at value (cost $7,333,260)		7,333,260
Total investments (cost $19,585,702)		19,820,299
Foreign currency, at value (cost $40)		40
Segregated cash with broker		864,932
Cash		64,908
Receivables:
Fund shares sold		21,541
Dividends		10,083
Swap settlement		1,480
Securities lending income		475
Total assets		20,783,758
Liabilities:
Unrealized depreciation on swap agreements		22,283
Payable for:
Fund shares redeemed		334,082
Variation margin		87,462
Securities purchased		66,503
Management fees		20,946
Distribution and service fees		8,571
Transfer agent and administrative fees		6,982
Portfolio accounting fees		4,189
Upon return of securities loaned		4,140
Miscellaneous		21,783
Total liabilities		576,941
Net assets	$	20,206,817
Net assets consist of:
Paid in capital	$	12,867,716
Accumulated net investment loss		(268,418	)
Accumulated net realized gain on investments		7,575,725
Net unrealized appreciation on investments		31,794
Net assets	$	20,206,817
A-Class:
Net assets	$	1,288,572
Capital shares outstanding		36,327
Net asset value per share	$	35.47
Maximum offering price per share (Net asset value divided by 95.25%)	$	37.24
C-Class:
Net assets	$	2,536,843
Capital shares outstanding		76,738
Net asset value per share	$	33.06
H-Class:
Net assets	$	16,381,402
Capital shares outstanding		462,791
Net asset value per share	$	35.40

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $152)	$	141,910
Income from securities lending, net		5,990
Interest		810
Total investment income		148,710
Expenses:
Management fees		134,227
Transfer agent and administrative fees		44,743
Distribution and service fees:
A-Class		4,409
C-Class		14,119
H-Class		36,806
Portfolio accounting fees		26,846
Registration fees		23,025
Custodian fees		2,089
Trustees’ fees*		1,986
Line of credit interest expense		14
Miscellaneous		10,589
Total expenses		298,853
Net investment loss		(150,143	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		9,229,470
Swap agreements		387,178
Futures contracts		(466,783	)
Net realized gain		9,149,865
Net change in unrealized appreciation (depreciation) on:
Investments		(10,887,223	)
Swap agreements		(79,351	)
Futures contracts		(110,100	)
Net change in unrealized appreciation (depreciation)		(11,076,674	)
Net realized and unrealized loss		(1,926,809	)
Net decrease in net assets resulting from operations	$	(2,076,952	)

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

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

RUSSELL 2000^® FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(150,143	)	$	(644,338	)
Net realized gain on investments		9,149,865			9,558,159
Net change in unrealized appreciation (depreciation) on investments		(11,076,674	)		1,984,823
Net increase (decrease) in net assets resulting from operations		(2,076,952	)		10,898,644
Distributions to shareholders from:
Net realized gains
A-Class		—			(144,615	)
C-Class		—			(188,715	)
H-Class		—			(2,108,628	)
Total distributions to shareholders		—			(2,441,958	)
Capital share transactions:
Proceeds from sale of shares
A-Class		13,291,942			48,530,276
C-Class		7,619,410			36,005,575
H-Class		158,955,889			553,111,336
Distributions reinvested
A-Class		—			140,867
C-Class		—			182,177
H-Class		—			2,078,107
Cost of shares redeemed
A-Class		(15,111,084	)		(49,593,502	)
C-Class		(8,133,825	)		(35,912,850	)
H-Class		(184,987,630	)		(619,725,426	)
Net decrease from capital share transactions		(28,365,298	)		(65,183,440	)
Net decrease in net assets		(30,442,250	)		(56,726,754	)
Net assets:
Beginning of period		50,649,067			107,375,821
End of period	$	20,206,817		$	50,649,067
Accumulated net investment loss at end of period	$	(268,418	)	$	(118,275	)
Capital share activity:
Shares sold
A-Class		358,885			1,368,170
C-Class		219,444			1,080,807
H-Class		4,344,322			15,698,082
Shares issued from reinvestment of distributions
A-Class		—			3,960
C-Class		—			5,461
H-Class		—			58,522
Shares redeemed
A-Class		(407,727	)		(1,402,362	)
C-Class		(234,465	)		(1,079,626	)
H-Class		(5,052,591	)		(17,719,218	)
Net decrease in shares		(772,132	)		(1,986,204	)

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	37.80		$	32.26		$	28.20		$	28.54		$	22.96		$	14.31
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.27	)		(.13	)		(.23	)		(.24	)		(.15	)
Net gain (loss) on investments (realized and unrealized)		(2.20	)		7.54			4.19			(.11	)		5.82			8.80
Total from investment operations		(2.33	)		7.27			4.06			(.34	)		5.58			8.65
Less distributions from:
Net realized gains		—			(1.73	)		—			—			—			—
Total distributions		—			(1.73	)		—			—			—			—
Net asset value, end of period	$	35.47		$	37.80		$	32.26		$	28.20		$	28.54		$	22.96
Total Returnc		(6.16	%)		22.87	%		14.40	%		(1.19	%)		24.30	%		60.45	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,289		$	3,219		$	3,723		$	670		$	755		$	1,313
Ratios to average net assets:
Net investment income (loss)		(0.72	%)		(0.77	%)		(0.44	%)		(0.89	%)		(1.01	%)		(0.81	%)
Total expenses		1.60	%		1.60	%		1.55	%		1.58	%		1.56	%		1.57	%
Portfolio turnover rate		304	%		267	%		160	%		121	%		284	%		370	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	35.36		$	30.54		$	26.90		$	27.46		$	22.29		$	14.00
Income (loss) from investment operations:
Net investment income (loss)b		(.27	)		(.48	)		(.31	)		(.46	)		(.47	)		(.34	)
Net gain (loss) on investments (realized and unrealized)		(2.03	)		7.03			3.95			(.10	)		5.64			8.63
Total from investment operations		(2.30	)		6.55			3.64			(.56	)		5.17			8.29
Less distributions from:
Net realized gains		—			(1.73	)		—			—			—			—
Total distributions		—			(1.73	)		—			—			—			—
Net asset value, end of period	$	33.06		$	35.36		$	30.54		$	26.90		$	27.46		$	22.29
Total Returnc		(6.50	%)		21.78	%		13.53	%		(2.04	%)		23.25	%		59.21	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,537		$	3,245		$	2,599		$	6,285		$	7,068		$	2,860
Ratios to average net assets:
Net investment income (loss)		(1.61	%)		(1.47	%)		(1.19	%)		(1.83	%)		(1.87	%)		(1.56	%)
Total expenses		2.49	%		2.37	%		2.31	%		2.34	%		2.31	%		2.30	%
Portfolio turnover rate		304	%		267	%		160	%		121	%		284	%		370	%

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

RUSSELL 2000^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	37.73		$	32.25		$	28.16		$	28.52		$	22.93		$	14.31
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.27	)		(.12	)		(.22	)		(.27	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		(2.19	)		7.48			4.21			(.14	)		5.86			8.78
Total from investment operations		(2.33	)		7.21			4.09			(.36	)		5.59			8.62
Less distributions from:
Net realized gains		—			(1.73	)		—			—			—			—
Total distributions		—			(1.73	)		—			—			—			—
Net asset value, end of period	$	35.40		$	37.73		$	32.25		$	28.16		$	28.52		$	22.93
Total Returnc		(6.18	%)		22.69	%		14.52	%		(1.26	%)		24.32	%		60.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	16,381		$	44,185		$	101,053		$	63,447		$	32,389		$	32,790
Ratios to average net assets:
Net investment income (loss)		(0.78	%)		(0.78	%)		(0.42	%)		(0.83	%)		(1.09	%)		(0.83	%)
Total expenses		1.60	%		1.59	%		1.52	%		1.58	%		1.57	%		1.56	%
Portfolio turnover rate		304	%		267	%		160	%		121	%		284	%		370	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

INVERSE RUSSELL 2000^® STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the performance of the Russell 2000^® Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	February 20, 2004
H-Class	February 20, 2004

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

116  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INVERSE RUSSELL 2000® STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 24.1%
Guggenheim Strategy Fund I1		317,906	$	7,919,043
Total Mutual Funds
(Cost $7,938,065)				7,919,043
	Face Amount
REPURCHASE AGREEMENTS††,2 - 63.1%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	8,850,549		8,850,549
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		5,175,011		5,175,011
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		3,659,526		3,659,526
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		2,283,518		2,283,518
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/143		790,571		790,571
Total Repurchase Agreements
(Cost $20,759,175)				20,759,175
Total Investments - 87.2%
(Cost $28,697,240)			$	28,678,218
Other Assets & Liabilities, net - 12.8%				4,207,071
Total Net Assets - 100.0%			$	32,885,289

	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2014 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $8,329,600)		76	$	72,820
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Credit Suisse Capital, LLC October 2014 Russell 2000 Index Swap, Terminating 10/29/144 (Notional Value $19,813,956)		17,985	$	139,468
Barclays Bank plc October 2014 Russell 2000 Index Swap, Terminating 10/31/144 (Notional Value $2,603,945)		2,364		41,443
Goldman Sachs International October 2014 Russell 2000 Index Swap, Terminating 10/28/144 (Notional Value $2,053,426)		1,864		16,283
(Total Notional Value $24,471,327)			$	197,194

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
4	Total Return based on Russell 2000 Index +/- financing at a variable rate.
	plc — Public Limited Company

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $7,938,065)	$	7,919,043
Repurchase agreements, at value (cost $20,759,175)		20,759,175
Total investments (cost $28,697,240)		28,678,218
Segregated cash with broker		3,603,189
Unrealized appreciation on swap agreements		197,194
Receivables:
Fund shares sold		390,262
Variation margin		50,311
Swap settlement		31,017
Dividends		7,953
Total assets		32,958,144
Liabilities:
Payable for:
Management fees		21,668
Fund shares redeemed		18,253
Distribution and service fees		6,916
Transfer agent and administrative fees		6,019
Portfolio accounting fees		2,407
Miscellaneous		17,592
Total liabilities		72,855
Net assets	$	32,885,289
Net assets consist of:
Paid in capital	$	96,572,776
Accumulated net investment loss		(282,009	)
Accumulated net realized loss on investments		(63,656,470	)
Net unrealized appreciation on investments		250,992
Net assets	$	32,885,289
A-Class:
Net assets	$	15,825,662
Capital shares outstanding		462,556
Net asset value per share	$	34.21
Maximum offering price per share (Net asset value divided by 95.25%)	$	35.92
C-Class:
Net assets	$	1,877,327
Capital shares outstanding		59,450
Net asset value per share	$	31.58
H-Class:
Net assets	$	15,182,300
Capital shares outstanding		442,473
Net asset value per share	$	34.31

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	50,594
Interest		1,566
Total investment income		52,160
Expenses:
Management fees		141,273
Transfer agent and administrative fees		39,243
Distribution and service fees:
A-Class		14,745
C-Class		4,619
H-Class		23,343
Portfolio accounting fees		15,697
Custodian fees		1,834
Trustees’ fees*		964
Miscellaneous		29,968
Total expenses		271,686
Net investment loss		(219,526	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,577	)
Swap agreements		75,118
Futures contracts		222,534
Net realized gain		293,075
Net change in unrealized appreciation (depreciation) on:
Investments		(19,022	)
Swap agreements		387,797
Futures contracts		72,820
Net change in unrealized appreciation (depreciation)		441,595
Net realized and unrealized gain		734,670
Net increase in net assets resulting from operations	$	515,144

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

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

INVERSE RUSSELL 2000^® STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(219,526	)	$	(299,337	)
Net realized gain (loss) on investments		293,075			(6,281,506	)
Net change in unrealized appreciation (depreciation) on investments		441,595			(167,687	)
Net increase (decrease) in net assets resulting from operations		515,144			(6,748,530	)
Capital share transactions:
Proceeds from sale of shares
A-Class		10,753,862			23,165,472
C-Class		4,906,600			3,936,557
H-Class		62,399,340			92,194,810
Cost of shares redeemed
A-Class		(2,505,662	)		(14,117,385	)
C-Class		(3,677,513	)		(3,635,185	)
H-Class		(59,067,724	)		(89,100,370	)
Net increase from capital share transactions		12,808,903			12,443,899
Net increase in net assets		13,324,047			5,695,369
Net assets:
Beginning of period		19,561,242			13,865,873
End of period	$	32,885,289		$	19,561,242
Accumulated net investment loss at end of period	$	(282,009	)	$	(62,483	)
Capital share activity:
Shares sold
A-Class		315,839			617,161	*
C-Class		160,369			116,767	*
H-Class		1,866,675			2,419,872	*
Shares redeemed
A-Class		(74,491	)		(410,651	)*
C-Class		(119,485	)		(108,355	)*
H-Class		(1,777,327	)		(2,363,113	)*
Net increase in shares		371,580			271,681	*

* Capital share activity for the period presented through February 7, 2014 has been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in Notes to Financial Statements.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  119 

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	33.01		$	43.21		$	52.38		$	59.31		$	81.01		$	144.06
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.61	)		(.81	)		(1.02	)		(1.14	)		(1.62	)
Net gain (loss) on investments (realized and unrealized)		1.43			(9.59	)		(8.36	)		(5.91	)		(20.56	)		(61.43	)
Total from investment operations		1.20			(10.20	)		(9.17	)		(6.93	)		(21.70	)		(63.05	)
Net asset value, end of period	$	34.21		$	33.01		$	43.21		$	52.38		$	59.31		$	81.01
Total Returnc		3.64	%		(23.59	%)		(17.53	%)		(11.68	%)		(26.78	%)		(43.77	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,826		$	7,302		$	635		$	612		$	1,114		$	1,765
Ratios to average net assets:
Net investment income (loss)		(1.36	%)		(1.69	%)		(1.60	%)		(1.66	%)		(1.53	%)		(1.58	%)
Total expensesd		1.71	%		1.72	%		1.72	%		1.75	%		1.71	%		1.71	%
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	30.59		$	40.30		$	49.22		$	56.14		$	77.26		$	138.44
Income (loss) from investment operations:
Net investment income (loss)b		(.33	)		(.83	)		(1.14	)		(1.41	)		(1.65	)		(2.28	)
Net gain (loss) on investments (realized and unrealized)		1.32			(8.88	)		(7.78	)		(5.51	)		(19.47	)		(58.90	)
Total from investment operations		.99			(9.71	)		(8.92	)		(6.92	)		(21.12	)		(61.18	)
Net asset value, end of period	$	31.58		$	30.59		$	40.30		$	49.22		$	56.14		$	77.26
Total Returnc		3.24	%		(24.08	%)		(18.16	%)		(12.29	%)		(27.34	%)		(44.20	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,877		$	568		$	409		$	837		$	1,158		$	2,003
Ratios to average net assets:
Net investment income (loss)		(2.13	%)		(2.45	%)		(2.35	%)		(2.43	%)		(2.28	%)		(2.34	%)
Total expensesd		2.46	%		2.47	%		2.47	%		2.51	%		2.46	%		2.46	%
Portfolio turnover rate		—			—			—			—			—			—

120  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE RUSSELL 2000^® STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	33.11		$	43.26		$	52.42		$	59.37		$	81.03		$	144.14
Income (loss) from investment operations:
Net investment income (loss)b		(.23	)		(.65	)		(.84	)		(1.05	)		(1.14	)		(1.59	)
Net gain (loss) on investments (realized and unrealized)		1.43			(9.50	)		(8.32	)		(5.90	)		(20.52	)		(61.52	)
Total from investment operations		1.20			(10.15	)		(9.16	)		(6.95	)		(21.66	)		(63.11	)
Net asset value, end of period	$	34.31		$	33.11		$	43.26		$	52.42		$	59.37		$	81.03
Total Returnc		3.62	%		(23.46	%)		(17.46	%)		(11.72	%)		(26.73	%)		(43.79	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	15,182		$	11,691		$	12,822		$	17,283		$	9,572		$	25,924
Ratios to average net assets:
Net investment income (loss)		(1.39	%)		(1.69	%)		(1.62	%)		(1.70	%)		(1.53	%)		(1.58	%)
Total expensesd		1.71	%		1.72	%		1.74	%		1.77	%		1.71	%		1.71	%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in Notes to Financial Statements.

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

FUND PROFILE (Unaudited) September 30, 2014

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correspond, before fees and expenses, to a benchmark for U.S. Government securities on a daily basis. The Fund’s current benchmark is 120% of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	January 3, 1994
Advisor Class	August 1, 2003
A-Class	March 31, 2004
C-Class	May 2, 2001
H-Class	September 18, 2014

The Fund invests principally in U.S. Government securities and in derivative investments such as futures contracts.

122  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
GOVERNMENT LONG BOND 1.2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 11.9%
Guggenheim Strategy Fund I1		884,328	$	22,028,609
Total Mutual Funds
(Cost $22,057,396)				22,028,609
	Face Amount
U.S. GOVERNMENT SECURITIES†† - 53.9%
U.S. Treasury Bond
3.13% due 08/15/44	$	101,792,000		100,169,690
Total U.S. Government Securities
(Cost $99,222,239)				100,169,690
REPURCHASE AGREEMENTS††,2 - 17.8%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		14,616,399		14,616,399
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		8,546,366		8,546,366
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		6,043,591		6,043,591
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		3,771,156		3,771,156
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		22,488		22,488
Total Repurchase Agreements
(Cost $33,000,000)				33,000,000
Total Investments - 83.6%
(Cost $154,279,635)			$	155,198,299
Other Assets & Liabilities, net - 16.4%				30,493,807
Total Net Assets - 100.0%			$	185,692,106

	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2014 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $143,895,906)		943	$	2,779,551

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
2	Repurchase Agreements — See Note 5.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $121,279,635)	$	122,198,299
Repurchase agreements, at value (cost $33,000,000)		33,000,000
Total investments (cost $154,279,635)		155,198,299
Cash		26,853,758
Segregated cash with broker		2,546,100
Receivables:
Securities sold		4,133,063
Fund shares sold		1,509,334
Interest		439,773
Dividends		12,930
Securities lending income		1,701
Total assets		190,694,958
Liabilities:
Payable for:
Fund shares redeemed		4,116,438
Variation margin		648,312
Management fees		68,986
Distribution and service fees		41,895
Transfer agent and administrative fees		27,595
Portfolio accounting fees		13,795
Miscellaneous		85,831
Total liabilities		5,002,852
Net assets	$	185,692,106
Net assets consist of:
Paid in capital	$	225,521,487
Accumulated net investment loss		(430	)
Accumulated net realized loss on investments		(43,527,166	)
Net unrealized appreciation on investments		3,698,215
Net assets	$	185,692,106
Investor Class:
Net assets	$	128,665,696
Capital shares outstanding		2,558,762
Net asset value per share	$	50.28
Advisor Class:
Net assets	$	51,660,099
Capital shares outstanding		1,033,451
Net asset value per share	$	49.99
A-Class:
Net assets	$	3,148,928
Capital shares outstanding		62,265
Net asset value per share	$	50.57
Maximum offering price per share (Net asset value divided by 95.25%)	$	53.09
C-Class:
Net assets	$	2,198,386
Capital shares outstanding		43,738
Net asset value per share	$	50.26
H-Class:
Net assets	$	18,997
Capital shares outstanding		376
Net asset value per share	$	50.56

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014**
Investment Income:
Interest	$	1,491,585
Dividends		70,366
Income from securities lending, net		1,701
Total investment income		1,563,652
Expenses:
Management fees		348,890
Transfer agent and administrative fees		139,557
Distribution and service fees:
Advisor Class		219,762
A-Class		2,929
C-Class		17,139
H-Class		78
Portfolio accounting fees		69,776
Registration fees		64,468
Custodian fees		8,152
Trustees’ fees*		6,218
Line of credit interest expense		3,939
Miscellaneous		35,750
Total expenses		916,658
Net investment income		646,994
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		4,183,575
Futures contracts		2,094,168
Net realized gain		6,277,743
Net change in unrealized appreciation (depreciation) on:
Investments		(112,247	)
Futures contracts		2,490,203
Net change in unrealized appreciation (depreciation)		2,377,956
Net realized and unrealized gain		8,655,699
Net increase in net assets resulting from operations	$	9,302,693

*	Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.
**	Since commencement of operations: September 18, 2014 — H-Class.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	646,994		$	1,710,481
Net realized gain (loss) on investments		6,277,743			(45,960,905	)
Net change in unrealized appreciation (depreciation) on investments		2,377,956			(132,943	)
Net increase (decrease) in net assets resulting from operations		9,302,693			(44,383,367	)
Distributions to shareholders from:
Net investment income
Investor Class		(311,987	)		(898,854	)
Advisor Class		(315,369	)		(703,095	)
A-Class		(13,253	)		(99,323	)
C-Class		(6,643	)		(9,209	)
H-Class**		(172	)		—
Return of capital
Investor Class		—			(7,266	)
Advisor Class		—			(5,684	)
A-Class		—			(803	)
C-Class		—			(74	)
H-Class**		—			—
Total distributions to shareholders		(647,424	)		(1,724,308	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		327,621,963			1,219,761,863
Advisor Class		2,392,824,692			6,476,276,741
A-Class		9,543,433			103,303,063
C-Class		18,075,805			26,953,816
H-Class**		3,085,822			—
Distributions reinvested
Investor Class		309,244			874,942
Advisor Class		313,981			689,127
A-Class		12,417			43,748
C-Class		5,762			7,193
H-Class**		172			—
Cost of shares redeemed
Investor Class		(245,534,357	)		(1,452,469,764	)
Advisor Class		(2,476,711,605	)		(6,413,503,973	)
A-Class		(8,385,667	)		(115,219,148	)
C-Class		(19,333,979	)		(28,044,431	)
H-Class**		(3,070,249	)		—
Net decrease from capital share transactions		(1,242,566	)		(181,326,823	)
Net increase (decrease) in net assets		7,412,703			(227,434,498	)
Net assets:
Beginning of period		178,279,403			405,713,901
End of period	$	185,692,106		$	178,279,403
Accumulated net investment loss at end of period	$	(430	)	$	—

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS (concluded)
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Capital share activity:
Shares sold
Investor Class	$	6,691,004		$	26,724,760	*
Advisor Class		49,538,592			145,113,873	*
A-Class		194,665			2,253,656	*
C-Class		373,274			593,997	*
H-Class**		61,491			—
Shares issued from reinvestment of distributions
Investor Class		6,218			18,706	*
Advisor Class		6,369			15,528	*
A-Class		249			976	*
C-Class		117			163	*
H-Class**		3			—
Shares redeemed
Investor Class		(5,089,831	)		(31,595,986	)*
Advisor Class		(51,365,182	)		(144,429,030	)*
A-Class		(170,067	)		(2,534,796	)*
C-Class		(399,501	)		(619,014	)*
H-Class**		(61,118	)		—
Net decrease in shares		(213,717	)		(4,457,167	)*

*	Capital share activity for the period presented through February 7, 2014 has been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in Notes to Financial Statements.
**	Since commencement of operations: September 18, 2014.

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

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	45.80		$	48.55		$	44.73		$	34.28		$	32.88		$	41.21
Income (loss) from investment operations:
Net investment income (loss)b		.33			.61			.57			.96			1.08			1.08
Net gain (loss) on investments (realized and unrealized)		4.48			(2.76	)		4.21			10.45			1.40			(8.33	)
Total from investment operations		4.81			(2.15	)		4.78			11.41			2.48			(7.25	)
Less distributions from:
Net investment income		(.33	)		(.60	)		(.72	)		(.96	)		(1.08	)		(1.08	)
Net realized gains		—			—			(.24	)		—			—			—
Total distributions		(.33	)		(.60	)		(.96	)		(.96	)		(1.08	)		(1.08	)
Net asset value, end of period	$	50.28		$	45.80		$	48.55		$	44.73		$	34.28		$	32.88
Total Returnc		10.52	%		(4.37	%)		10.63	%		33.38	%		7.42	%		(17.71	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	128,666		$	43,573		$	281,800		$	43,709		$	44,707		$	282,388
Ratios to average net assets:
Net investment income (loss)		1.36	%		1.22	%		1.15	%		2.24	%		3.03	%		3.16	%
Total expensesd		0.97	%		0.97	%		0.95	%		0.95	%		0.98	%		0.98	%
Portfolio turnover rate		1,273	%		2,661	%		1,759	%		2,322	%		1,930	%		1,503	%

Advisor Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	45.48		$	48.23		$	44.33		$	34.08		$	32.65		$	40.97
Income (loss) from investment operations:
Net investment income (loss)b		.17			.25			.33			.75			.93			.96
Net gain (loss) on investments (realized and unrealized)		4.55			(2.63	)		4.26			10.25			1.40			(8.38	)
Total from investment operations		4.72			(2.38	)		4.59			11.00			2.33			(7.42	)
Less distributions from:
Net investment income		(.21	)		(.37	)		(.45	)		(.75	)		(.90	)		(.90	)
Net realized gains		—			—			(.24	)		—			—			—
Total distributions		(.21	)		(.37	)		(.69	)		(.75	)		(.90	)		(.90	)
Net asset value, end of period	$	49.99		$	45.48		$	48.23		$	44.33		$	34.08		$	32.65
Total Returnc		10.38	%		(4.93	%)		10.21	%		32.56	%		7.03	%		(18.18	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	51,660		$	129,785		$	103,845		$	11,600		$	31,420		$	28,990
Ratios to average net assets:
Net investment income (loss)		0.72	%		0.64	%		0.63	%		1.77	%		2.46	%		2.76	%
Total expensesd		1.47	%		1.46	%		1.43	%		1.45	%		1.48	%		1.48	%
Portfolio turnover rate		1,273	%		2,661	%		1,759	%		2,322	%		1,930	%		1,503	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  127 

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	46.07		$	48.73		$	44.77		$	34.34		$	32.89		$	41.25
Income (loss) from investment operations:
Net investment income (loss)b		.28			.48			.48			.87			.99			.99
Net gain (loss) on investments (realized and unrealized)		4.50			(2.65	)		4.29			10.43			1.45			(8.36	)
Total from investment operations		4.78			(2.17	)		4.77			11.30			2.44			(7.37	)
Less distributions from:
Net investment income		(.28	)		(.49	)		(.57	)		(.87	)		(.99	)		(.99	)
Net realized gains		—			—			(.24	)		—			—			—
Total distributions		(.28	)		(.49	)		(.81	)		(.87	)		(.99	)		(.99	)
Net asset value, end of period	$	50.57		$	46.07		$	48.73		$	44.77		$	34.34		$	32.89
Total Returnc		10.38	%		(4.40	%)		10.62	%		33.00	%		7.35	%		(17.98	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,149		$	1,724		$	15,476		$	10,885		$	2,753		$	5,576
Ratios to average net assets:
Net investment income (loss)		1.13	%		1.04	%		0.94	%		2.02	%		2.75	%		2.84	%
Total expensesd		1.22	%		1.22	%		1.20	%		1.20	%		1.23	%		1.24	%
Portfolio turnover rate		1,273	%		2,661	%		1,759	%		2,322	%		1,930	%		1,503	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	45.79		$	48.51		$	44.63		$	34.25		$	32.82		$	41.16
Income (loss) from investment operations:
Net investment income (loss)b		.09			.12			.15			.57			.72			.75
Net gain (loss) on investments (realized and unrealized)		4.47			(2.71	)		4.21			10.35			1.43			(8.34	)
Total from investment operations		4.56			(2.59	)		4.36			10.92			2.15			(7.59	)
Less distributions from:
Net investment income		(.09	)		(.13	)		(.24	)		(.54	)		(.72	)		(.75	)
Net realized gains		—			—			(.24	)		—			—			—
Total distributions		(.09	)		(.13	)		(.48	)		(.54	)		(.72	)		(.75	)
Net asset value, end of period	$	50.26		$	45.79		$	48.51		$	44.63		$	34.25		$	32.82
Total Returnc		9.97	%		(5.33	%)		9.69	%		32.01	%		6.47	%		(18.56	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,198		$	3,198		$	4,594		$	4,451		$	6,091		$	12,695
Ratios to average net assets:
Net investment income (loss)		0.38	%		0.34	%		0.31	%		1.32	%		1.93	%		2.17	%
Total expensesd		1.97	%		1.97	%		1.94	%		1.95	%		1.97	%		2.00	%
Portfolio turnover rate		1,273	%		2,661	%		1,759	%		2,322	%		1,930	%		1,503	%

128  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

GOVERNMENT LONG BOND 1.2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014f
Per Share Data
Net asset value, beginning of period	$	48.83
Income (loss) from investment operations:
Net investment income (loss)b		.01
Net gain (loss) on investments (realized and unrealized)		1.73
Total from investment operations		1.74
Less distributions from:
Net investment income		(.01	)
Total distributions		(.01	)
Net asset value, end of period	$	50.56
Total Returnc		3.56	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	19
Ratios to average net assets:
Net investment income (loss)		0.55	%
Total expensesd		1.22	%
Portfolio turnover rate		1,273	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 14 in Notes to Financial Statements.
f	Since commencement of operations: September 18, 2014. Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.

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

FUND PROFILE (Unaudited) September 30, 2014

HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the high yield bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

130  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
HIGH YIELD STRATEGY FUND

	Shares		Value
EXCHANGE-TRADED FUNDS - 17.9%
iShares iBoxx $ High Yield Corporate Bond ETF1		50,826	$	4,673,451
Total Exchange-Traded Funds
(Cost $4,673,929)				4,673,451
MUTUAL FUNDS† - 43.9%
Guggenheim Strategy Fund II2		241,143		6,004,454
Guggenheim Strategy Fund I2		219,584		5,469,827
Total Mutual Funds
(Cost $11,479,467)				11,474,281
	Face Amount
REPURCHASE AGREEMENTS††,3 - 35.1%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	4,063,202		4,063,202
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		2,375,797		2,375,797
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		1,680,053		1,680,053
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		1,048,341		1,048,341
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		6,252		6,252
Total Repurchase Agreements
(Cost $9,173,645)				9,173,645

SECURITIES LENDING COLLATERAL††,4 - 4.6%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		1,037,412		1,037,412
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		170,068		170,068
Total Securities Lending Collateral
(Cost $1,207,480)				1,207,480
Total Investments - 101.5%
(Cost $26,534,521)			$	26,528,857
Other Assets & Liabilities, net - (1.5)%				(396,150	)
Total Net Assets - 100.0%			$	26,132,707
	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2014 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $17,978,750)		152	$	25,718

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS PROTECTION SOLD††,5
Index	Counterparty	Protection Premium Rate		Maturity Date	Notional Principal		Notional Value			Upfront Premiums Paid		Unrealized Appreciation (Depreciation)
CDX.NA.HY.22 Index	Barclays Bank plc		5.00%	06/20/19		$5,197,500		$(5,477,032	)		$278,641		$37,189
CDX.NA.HY.22 Index	Goldman Sachs International		5.00%	06/20/19		14,850,000		(15,648,663	)		984,965		(82,594	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
3	Repurchase Agreements — See Note 5.
4	Securities lending collateral — See Note 6.
5	Credit Default Swaps — See Note 7.
	plc — Public Limited Company

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

HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $1,379,250 of securities loaned (cost $16,153,396)	$	16,147,732
Repurchase agreements, at value (cost $10,381,125)		10,381,125
Total investments (cost $26,534,521)		26,528,857
Unamortized upfront premiums paid on credit default swaps		1,263,606
Segregated cash with broker		338,270
Unrealized appreciation on swap agreements		37,189
Receivables:
Fund shares sold		1,158,090
Securities sold		65,289
Dividends		63,824
Protection fees on credit default swaps		26,838
Securities lending income		15,039
Total assets		29,497,002
Liabilities:
Unrealized depreciation on swap agreements		82,594
Payable for:
Fund shares redeemed		1,591,926
Upon return of securities loaned		1,405,350
Due to broker		81,345
Management fees		76,073
Distribution and service fees		27,757
Transfer agent and administrative fees		25,358
Portfolio accounting fees		10,142
Variation margin		3,653
Miscellaneous		60,097
Total liabilities		3,364,295
Net assets	$	26,132,707
Net assets consist of:
Paid in capital	$	28,068,463
Accumulated net investment loss		(326,061	)
Accumulated net realized loss on investments		(1,584,344	)
Net unrealized depreciation on investments		(25,351	)
Net assets	$	26,132,707
A-Class:
Net assets	$	7,032,272
Capital shares outstanding		306,848
Net asset value per share	$	22.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.06
C-Class:
Net assets	$	4,836,763
Capital shares outstanding		227,848
Net asset value per share	$	21.23
H-Class:
Net assets	$	14,263,672
Capital shares outstanding		620,934
Net asset value per share	$	22.97

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	616,025
Income from securities lending, net		49,028
Interest		4,405
Total investment income		669,458
Expenses:
Management fees		484,250
Transfer agent and administrative fees		161,417
Distribution and service fees:
A-Class		13,155
C-Class		23,634
H-Class		142,353
Portfolio accounting fees		64,556
Registration fees		62,311
Custodian fees		7,541
Trustees’ fees*		5,859
Line of credit interest expense		157
Miscellaneous		30,286
Total expenses		995,519
Net investment loss		(326,061	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(451,577	)
Swap agreements		(983,494	)
Futures contracts		(626,493	)
Net realized loss		(2,061,564	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(168,996	)
Investments in affiliated issuers		18,399
Swap agreements		(337,059	)
Futures contracts		521,130
Net change in unrealized appreciation (depreciation)		33,474
Net realized and unrealized loss		(2,028,090	)
Net decrease in net assets resulting from operations	$	(2,354,151	)

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

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

HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(326,061	)	$	(1,603,218	)
Net realized gain (loss) on investments		(2,061,564	)		9,208,805
Net change in unrealized appreciation (depreciation) on investments		33,474			(2,328,385	)
Net increase (decrease) in net assets resulting from operations		(2,354,151	)		5,277,202
Distributions to shareholders from:
Net investment income
A-Class		—			(1,483,249	)
C-Class		—			(223,483	)
H-Class		—			(4,204,914	)
Net realized gains
A-Class		—			(3,838,006	)
C-Class		—			(578,277	)
H-Class		—			(10,880,499	)
Total distributions to shareholders		—			(21,208,428	)
Capital share transactions:
Proceeds from sale of shares
A-Class		13,599,350			191,756,789
C-Class		3,951,519			21,843,169
H-Class		426,277,909			546,082,437
Distributions reinvested
A-Class		—			2,855,693
C-Class		—			726,119
H-Class		—			12,967,381
Cost of shares redeemed
A-Class		(19,191,699	)		(188,407,437	)
C-Class		(4,215,796	)		(23,916,955	)
H-Class		(496,848,799	)		(894,910,014	)
Net decrease from capital share transactions		(76,427,516	)		(331,002,818	)
Net decrease in net assets		(78,781,667	)		(346,934,044	)
Net assets:
Beginning of period		104,914,374			451,848,418
End of period	$	26,132,707		$	104,914,374
Accumulated net investment loss at end of period	$	(326,061	)	$	—
Capital share activity:
Shares sold
A-Class		588,636			7,639,730
C-Class		184,941			915,383
H-Class		18,339,912			21,905,501
Shares issued from reinvestment of distributions
A-Class		—			126,079
C-Class		—			34,397
H-Class		—			571,502
Shares redeemed
A-Class		(827,755	)		(7,648,199	)
C-Class		(196,678	)		(1,002,209	)
H-Class		(21,525,865	)		(35,953,373	)
Net decrease in shares		(3,436,809	)		(13,411,189	)

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

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	22.89		$	25.16		$	22.93		$	21.98		$	20.42		$	16.64
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.30	)		(.22	)		(.27	)		(.30	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		.09			2.13			3.13			1.77			3.37			5.39
Total from investment operations		.03			1.83			2.91			1.50			3.07			5.13
Less distributions from:
Net investment income		—			(1.14	)		(.43	)		(.55	)		(1.51	)		(1.35	)
Net realized gains		—			(2.96	)		(.25	)		—			—			—
Total distributions		—			(4.10	)		(.68	)		(.55	)		(1.51	)		(1.35	)
Net asset value, end of period	$	22.92		$	22.89		$	25.16		$	22.93		$	21.98		$	20.42
Total Returnc		0.04	%		7.53	%		12.86	%		6.94	%		15.21	%		31.07	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,032		$	12,499		$	10,777		$	11,890		$	14,561		$	4,800
Ratios to average net assets:
Net investment income (loss)		(0.48	%)		(1.21	%)		(0.92	%)		(1.21	%)		(1.40	%)		(1.37	%)
Total expensesd		1.51	%		1.53	%		1.50	%		1.49	%		1.54	%		1.54	%
Portfolio turnover rate		195	%		205	%		95	%		583	%		—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	21.29		$	23.83		$	21.92		$	21.19		$	19.87		$	16.33
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.44	)		(.37	)		(.45	)		(.45	)		(.40	)
Net gain (loss) on investments (realized and unrealized)		.07			2.00			2.96			1.73			3.28			5.29
Total from investment operations		(.06	)		1.56			2.59			1.28			2.83			4.89
Less distributions from:
Net investment income		—			(1.14	)		(.43	)		(.55	)		(1.51	)		(1.35	)
Net realized gains		—			(2.96	)		(.25	)		—			—			—
Total distributions		—			(4.10	)		(.68	)		(.55	)		(1.51	)		(1.35	)
Net asset value, end of period	$	21.23		$	21.29		$	23.83		$	21.92		$	21.19		$	19.87
Total Returnc		(0.33	%)		6.74	%		11.98	%		6.16	%		14.40	%		30.17	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,837		$	5,100		$	6,958		$	7,343		$	6,129		$	3,351
Ratios to average net assets:
Net investment income (loss)		(1.19	%)		(1.89	%)		(1.62	%)		(2.10	%)		(2.13	%)		(2.13	%)
Total expensesd		2.26	%		2.28	%		2.27	%		2.25	%		2.28	%		2.29	%
Portfolio turnover rate		195	%		205	%		95	%		583	%		—			—

 

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

HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	22.94		$	25.12		$	22.90		$	21.95		$	20.38		$	16.61
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.24	)		(.24	)		(.28	)		(.30	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		.09			2.16			3.14			1.78			3.38			5.38
Total from investment operations		.03			1.92			2.90			1.50			3.08			5.12
Less distributions from:
Net investment income		—			(1.14	)		(.43	)		(.55	)		(1.51	)		(1.35	)
Net realized gains		—			(2.96	)		(.25	)		—			—			—
Total distributions		—			(4.10	)		(.68	)		(.55	)		(1.51	)		(1.35	)
Net asset value, end of period	$	22.97		$	22.94		$	25.12		$	22.90		$	21.95		$	20.38
Total Returnc		0.09	%		7.86	%		12.83	%		6.95	%		15.29	%		31.07	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	14,264		$	87,315		$	434,113		$	266,950		$	116,106		$	16,368
Ratios to average net assets:
Net investment income (loss)		(0.48	%)		(0.97	%)		(0.99	%)		(1.26	%)		(1.38	%)		(1.37	%)
Total expensesd		1.51	%		1.53	%		1.51	%		1.49	%		1.53	%		1.53	%
Portfolio turnover rate		195	%		205	%		95	%		583	%		—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2014

INVERSE HIGH YIELD STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that inversely correlate, before fees and expenses, to the performance of the high yield bond market.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	April 16, 2007
C-Class	April 16, 2007
H-Class	April 16, 2007

The Fund invests principally in derivative investments such as high yield credit default swap agreements and futures contracts.

136  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INVERSE HIGH YIELD STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 44.5%
Guggenheim Strategy Fund II1		823,473	$	20,504,475
Guggenheim Strategy Fund I2		807,126		20,105,498
Total Mutual Funds
(Cost $40,638,933)				40,609,973
	Face Amount
REPURCHASE AGREEMENTS††,3 - 54.7%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	22,067,343		22,067,343
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		12,903,012		12,903,012
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		9,124,408		9,124,408
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		5,693,564		5,693,564
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		33,952		33,952
Total Repurchase Agreements
(Cost $49,822,280)				49,822,280
Total Investments - 99.2%
(Cost $90,461,213)			$	90,432,253
Other Assets & Liabilities, net - 0.8%				699,312
Total Net Assets - 100.0%			$	91,131,565

	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
December 2014 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $77,474,219)		655	$	86,347

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION PURCHASED††

Index

Counterparty

Protection Premium Rate

Maturity Date

Notional Principal

Notional Value

Upfront Premiums Received

Unrealized Appreciation

CDX.NA.HY.22 Index

Barclays Bank plc

5.00%

06/20/19

$86,179,500

$90,814,406

$(5,981,465

)

$744,708

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 12.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
3	Repurchase Agreements — See Note 5.
	plc — Public Limited Company

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  137 

INVERSE HIGH YIELD STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments in unaffiliated issuers, at value (cost $20,116,976)	$	20,105,498
Investments in affiliated issuers, at value (cost $20,521,957)		20,504,475
Repurchase agreements, at value  (cost $49,822,280)		49,822,280
Total investments (cost $90,461,213)		90,432,253
Segregated cash with broker		8,133,917
Unrealized appreciation on swap agreements		744,708
Receivables:
Fund shares sold		4,613,279
Securities sold		249,287
Dividends		26,718
Variation margin		15,059
Total assets		104,215,221
Liabilities:
Unamortized upfront premiums received on credit default swaps		5,981,465
Payable for:
Fund shares redeemed		6,575,067
Securities purchased		330,220
Protection fees on credit default swaps		109,333
Management fees		39,054
Distribution and service fees		13,783
Transfer agent and administrative fees		13,018
Portfolio accounting fees		5,207
Miscellaneous		16,509
Total liabilities		13,083,656
Net assets	$	91,131,565
Net assets consist of:
Paid in capital	$	107,060,431
Accumulated net investment loss		(285,282	)
Accumulated net realized loss on investments		(16,445,679	)
Net unrealized appreciation on investments		802,095
Net assets	$	91,131,565
A-Class:
Net assets	$	69,726,883
Capital shares outstanding		3,349,098
Net asset value per share	$	20.82
Maximum offering price per share (Net asset value divided by 95.25%)	$	21.86
C-Class:
Net assets	$	804,470
Capital shares outstanding		40,793
Net asset value per share	$	19.72
H-Class:
Net assets	$	20,600,212
Capital shares outstanding		985,206
Net asset value per share	$	20.91

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends from securities of unaffiliated issuers	$	29,313
Dividends from securities of affiliated issuers		37,907
Interest		694
Total investment income		67,914
Expenses:
Management fees		82,199
Transfer agent and administrative fees		27,400
Distribution and service fees:
A-Class		18,398
C-Class		7,101
H-Class		7,226
Portfolio accounting fees		10,960
Custodian fees		1,285
Trustees’ fees*		509
Miscellaneous		16,853
Total expenses		171,931
Net investment loss		(104,017	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(160	)
Investments in affiliated issuers		(1,408	)
Swap agreements		(775,638	)
Futures contracts		(218,464	)
Net realized loss		(995,670	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(11,478	)
Investments in affiliated issuers		(17,482	)
Swap agreements		768,411
Futures contracts		60,686
Net change in unrealized appreciation (depreciation)		800,137
Net realized and unrealized loss		(195,533	)
Net decrease in net assets resulting  from operations	$	(299,550	)

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

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

INVERSE HIGH YIELD STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(104,017	)	$	(457,841	)
Net realized loss on investments		(995,670	)		(1,803,174	)
Net change in unrealized appreciation (depreciation) on investments		800,137			31,991
Net decrease in net assets resulting from operations		(299,550	)		(2,229,024	)
Capital share transactions:
Proceeds from sale of shares
A-Class		91,131,801			143,759,590
C-Class		1,426,569			10,211,762
H-Class		49,034,990			283,765,472
Cost of shares redeemed
A-Class		(26,557,061	)		(137,648,553	)
C-Class		(2,143,937	)		(10,474,214	)
H-Class		(30,630,304	)		(289,618,110	)
Net increase (decrease) from capital share transactions		82,262,058			(4,053	)
Net increase (decrease) in net assets		81,962,508			(2,233,077	)
Net assets:
Beginning of period		9,169,057			11,402,134
End of period	$	91,131,565		$	9,169,057
Accumulated net investment loss at end of period	$	(285,282	)	$	(181,265	)
Capital share activity:
Shares sold
A-Class		4,379,405			6,275,459
C-Class		72,061			459,566
H-Class		2,346,590			12,130,203
Shares redeemed
A-Class		(1,272,655	)		(6,039,639	)
C-Class		(108,417	)		(471,060	)
H-Class		(1,476,172	)		(12,398,442	)
Net increase (decrease) in shares		3,940,812			(43,913	)

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

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	21.27		$	23.98		$	28.15		$	31.99		$	38.51		$	55.13
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.35	)		(.37	)		(.43	)		(.47	)		(.63	)
Net gain (loss) on investments (realized and unrealized)		(.35	)		(2.36	)		(3.80	)		(3.41	)		(6.05	)		(15.60	)
Total from investment operations		(.45	)		(2.71	)		(4.17	)		(3.84	)		(6.52	)		(16.23	)
Less distributions from:
Net realized gains		—			—			—			—			—			(.39	)
Total distributions		—			—			—			—			—			(.39	)
Net asset value, end of period	$	20.82		$	21.27		$	23.98		$	28.15		$	31.99		$	38.51
Total Returnc		(2.35	%)		(11.30	%)		(14.81	%)		(11.98	%)		(16.96	%)		(29.47	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	69,727		$	5,155		$	157		$	556		$	1,512		$	2,269
Ratios to average net assets:
Net investment income (loss)		(0.94	%)		(1.52	%)		(1.38	%)		(1.39	%)		(1.39	%)		(1.43	%)
Total expensesd		1.52	%		1.54	%		1.49	%		1.51	%		1.53	%		1.54	%
Portfolio turnover rate		9	%		—			—			—			—			—

C-Class	Period EndedSeptember 30, 2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	20.23		$	22.98		$	27.21		$	31.12		$	37.77		$	54.49
Income (loss) from investment operations:
Net investment income (loss)b		(.14	)		(.50	)		(.53	)		(.55	)		(.72	)		(.95	)
Net gain (loss) on investments (realized and unrealized)		(.37	)		(2.25	)		(3.70	)		(3.36	)		(5.93	)		(15.38	)
Total from investment operations		(.51	)		(2.75	)		(4.23	)		(3.91	)		(6.65	)		(16.33	)
Less distributions from:
Net realized gains		—			—			—			—			—			(.39	)
Total distributions		—			—			—			—			—			(.39	)
Net asset value, end of period	$	19.72		$	20.23		$	22.98		$	27.21		$	31.12		$	37.77
Total Returnc		(2.76	%)		(11.97	%)		(15.51	%)		(12.60	%)		(17.61	%)		(30.00	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	804		$	1,561		$	2,037		$	693		$	2,535		$	2,055
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(2.28	%)		(2.13	%)		(1.87	%)		(2.13	%)		(2.18	%)
Total expensesd		2.27	%		2.30	%		2.25	%		2.26	%		2.28	%		2.29	%
Portfolio turnover rate		9	%		—			—			—			—			—

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

INVERSE HIGH YIELD STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	21.37		$	24.04		$	28.22		$	32.04		$	38.60		$	55.26
Income (loss) from investment operations:
Net investment income (loss)b		(.09	)		(.35	)		(.36	)		(.47	)		(.50	)		(.61	)
Net gain (loss) on investments (realized and unrealized)		(.37	)		(2.32	)		(3.82	)		(3.35	)		(6.06	)		(15.66	)
Total from investment operations		(.46	)		(2.67	)		(4.18	)		(3.82	)		(6.56	)		(16.27	)
Less distributions from:
Net realized gains		—			—			—			—			—			(.39	)
Total distributions		—			—			—			—			—			(.39	)
Net asset value, end of period	$	20.91		$	21.37		$	24.04		$	28.22		$	32.04		$	38.60
Total Returnc		(2.34	%)		(11.11	%)		(14.81	%)		(11.92	%)		(16.99	%)		(29.47	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,600		$	2,453		$	9,208		$	13,357		$	9,699		$	27,954
Ratios to average net assets:
Net investment income (loss)		(0.86	%)		(1.50	%)		(1.38	%)		(1.51	%)		(1.38	%)		(1.43	%)
Total expensesd		1.52	%		1.52	%		1.50	%		1.51	%		1.53	%		1.53	%
Portfolio turnover rate		9	%		—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2014

U.S. GOVERNMENT MONEY MARKET FUND

OBJECTIVE: Seeks to provide security of principal, high current income, and liquidity.

Holdings Diversification (Market Exposure as % of Net Assets)

FADN - Federal Agency Discount NotesFAN - Federal Agency Notes

Inception Date: December 1, 1993

The Fund invests principally in money market instruments issued or guaranteed as to principal and interest by the U.S. Government, its agencies or instrumentalities and enters into repurchase agreements fully collateralized by U.S. government securities.

142  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
FEDERAL AGENCY DISCOUNT NOTES†† - 20.6%
Farmer Mac1
0.01% due 10/02/14	$	100,000,000	$	99,999,972
0.15% due 09/01/15		15,000,000		14,980,738
0.15% due 12/10/14		10,000,000		9,997,083
0.17% due 02/04/15		10,000,000		9,994,050
0.12% due 09/01/15		10,000,000		9,987,158
0.17% due 09/23/15		10,000,000		9,983,142
Total Farmer Mac				154,942,143
Freddie Mac2
0.10% due 02/10/15		10,000,000		9,996,516
0.10% due 02/11/15		10,000,000		9,996,306
Total Freddie Mac				19,992,822
Federal Farm Credit Bank1
0.08% due 11/21/14		10,000,000		9,998,867
Total Federal Agency Discount Notes
(Cost $184,933,832)				184,933,832
FEDERAL AGENCY NOTES†† - 6.7%
Federal Home Loan Bank1
0.17% due 07/22/15		10,000,000		10,000,000
0.19% due 01/06/15		10,000,000		9,999,934
0.12% due 07/17/15		10,000,000		9,996,651
0.12% due 09/08/15		10,000,000		9,992,652
Total Federal Home Loan Bank				39,989,237
Federal Farm Credit Bank1
0.13% due 06/17/15		10,000,000		9,999,999
Farmer Mac1
0.19% due 09/09/15		10,000,000		9,996,402
Total Federal Agency Notes
(Cost $59,985,638)				59,985,638
COMMERCIAL PAPER†† - 16.7%
Abbott Laboratories
0.09% due 10/28/14		15,000,000		14,998,988
Barton Capital LLC
0.18% due 11/03/14		15,000,000		14,997,525
General Electric Capital Corp.
0.16% due 12/01/14		15,000,000		14,995,933
Coca-Cola Co.
0.20% due 02/05/153		15,000,000		14,989,417
Sheffield Receivables Corp.
0.24% due 01/23/15		15,000,000		14,988,600
ING US Funding LLC
0.30% due 02/11/15		10,000,000		9,988,917
0.30% due 10/16/14		5,000,000		4,999,375
Total ING US Funding LLC				14,988,292
Toyota Motor Credit Corp.
0.20% due 03/11/15		15,000,000		14,986,583
Societe Generale North America, Inc.
0.37% due 02/02/15		15,000,000		14,980,953
UBS Finance Delaware LLC
0.27% due 04/17/15		15,000,000		14,977,725
Prudential plc
0.20% due 10/09/143		10,000,000		9,999,556
BNP Paribas Finance, Inc.
0.20% due 11/18/14		5,000,000		4,998,667
Total Commercial Paper
(Cost $149,902,239)				149,902,239
REPURCHASE AGREEMENTS†† - 58.2%
Individual Repurchase Agreement
HSBC Group issued 09/30/14 at 0.00% due 10/01/14 to be repurchased at $159,922,691 secured by: U.S. Treasury Strips, 0.00% 02/15/16 - 08/15/18 with a par value of $164,635,000, and fair value of $163,121,195		159,922,691		159,922,691
Joint Repurchase Agreements4
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		159,844,441		159,844,441
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		93,462,760		93,462,760
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		66,092,502		66,092,502
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		41,241,237		41,241,327

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
U.S. GOVERNMENT MONEY MARKET FUND

	Face Amount		Value
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14	$	245,931	$	245,931
Total Repurchase Agreements
(Cost $520,809,563)				520,809,563
Total Investments - 102.2%
(Cost $915,631,272)			$	915,631,272
Other Assets & Liabilities, net - (2.2)%				(20,140,055	)
Total Net Assets - 100.0%			$	895,491,217

††	Value determined based on Level 2 inputs — See Note 4.
1	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
2	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
3	Security is a 144A or Section 4(a)(2) security. The total market value of 144A or Section 4(a)(2) securities is $24,988,972 (cost $24,988,972), or 2.8% of total net assets. These securities have been determined to be liquid under guidelines established by the Board of Trustees.
4	Repurchase Agreements — See Note 5.
	plc — Public Limited Company

144  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $394,821,709)	$	394,821,709
Repurchase agreements, at value (cost $520,809,563)		520,809,563
Total investments (cost $915,631,272)		915,631,272
Receivables:
Fund shares sold		7,288,270
Interest		15,862
Total assets		922,935,404
Liabilities:
Overdraft due to custodian bank		1,841
Payable for:
Fund shares redeemed		27,081,103
Miscellaneous		361,243
Total liabilities		27,444,187
Net assets	$	895,491,217
Net assets consist of:
Paid in capital	$	895,469,074
Undistributed net investment income		225
Accumulated net realized gain on investments		21,918
Net assets	$	895,491,217
Capital shares outstanding		896,045,106
Net asset value per share	$	1.00

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Interest	$	309,807
Total investment income		309,807
Expenses:
Management fees		1,961,890
Transfer agent and administrative fees		784,765
Portfolio accounting fees		285,678
Registration fees		324,032
Custodian fees		45,819
Trustees’ fees*		32,845
Line of credit interest expense		5
Miscellaneous		242,692
Total expenses		3,677,726
Less:
Expenses waived by service company		(1,070,456	)
Expenses waived by Adviser		(2,297,606	)
Total waived expenses		(3,368,062	)
Net expenses		309,664
Net investment income		143
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(25	)
Net realized loss		(25	)
Net increase in net assets resulting from operations	$	118

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  145 

U.S. GOVERNMENT MONEY MARKET FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	143		$	337
Net realized gain (loss) on investments		(25	)		21,943
Net increase in net assets resulting from operations		118			22,280
Distributions to shareholders from:
Net investment income		(143	)		(335	)
Net realized gains		—			(1,204	)
Total distributions to shareholders		(143	)		(1,539	)
Capital share transactions:
Proceeds from sale of shares		4,482,186,643			12,276,487,338
Distributions reinvested		100			1,240
Cost of shares redeemed		(4,366,830,314	)		(12,344,744,809	)
Net increase (decrease) from capital share transactions		115,356,429			(68,256,231	)
Net increase (decrease) in net assets		115,356,404			(68,235,490	)
Net assets:
Beginning of period		780,134,813			848,370,303
End of period	$	895,491,217		$	780,134,813
Undistributed net investment income at end of period	$	225		$	225
Capital share activity:
Shares sold		4,482,186,642			12,276,487,140
Shares issued from reinvestment of distributions		100			1,240
Shares redeemed		(4,366,830,313	)		(12,344,744,809	)
Net increase (decrease) in shares		115,356,429			(68,256,429	)

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

U.S. GOVERNMENT MONEY MARKET FUND

FINANCIAL HIGHLIGHTS

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

Money Market Classa	Period EndedSeptember 30,2014b			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Income (loss) from investment operations:
Net investment income (loss)		—	c		—	c		—	c		—	c		—	c		—	c
Net gain (loss) on investments (realized and unrealized)		—	c		—	c		—	c		—	c		—	c		—
Total from investment operations		—	c		—	c		—	c		—	c		—	c		—	c
Less distributions from:
Net investment income		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c
Net realized gains		—			(—	)c		—			(—	)c		(—	)c		—
Total distributions		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c		(—	)c
Net asset value, end of period	$	1.00		$	1.00		$	1.00		$	1.00		$	1.00		$	1.00
Total Returnd		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	895,491		$	780,135		$	848,370		$	607,565		$	833,899		$	872,765
Ratios to average net assets:
Net investment income (loss)		0.00	%f		0.00	%f		0.00	%f		0.00	%f		0.01	%		0.01	%
Total expenses		0.94	%		0.93	%		0.95	%		0.91	%		0.94	%		0.93	%
Net expensese		0.08	%		0.09	%		0.17	%		0.11	%		0.22	%		0.37	%
Portfolio turnover rate		64	%		—			—			—			—			—

a	Effective June 15, 2012, the Fund’s Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares and Investor2 Class shares were converted into the newly created Money Market Class. The financial highlights for periods prior to that date reflect the performance of the former Investor Class.
b	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after expense waivers.
f	Less than 0.01%.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

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

The Trust offers a combination of eight separate classes of shares: Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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 CDSC. At September 30, 2014, the Trust consisted of fifty-one Funds.

This report covers the Nova Fund, S&P 500^® Fund, Inverse S&P 500^® Strategy Fund, Inverse NASDAQ-100^® Strategy Fund, Mid-Cap 1.5x Strategy Fund, Inverse Mid-Cap Strategy Fund, Russell 2000^® 1.5x Strategy Fund, Russell 2000^® Fund, Inverse Russell 2000^® Strategy Fund, Government Long Bond 1.2x Strategy Fund, High Yield Strategy Fund, Inverse High Yield Strategy Fund, and U.S. Government Money Market Fund (the “Funds”). Only Investor Class, Advisor Class, A-Class, C-Class, H-Class and Money Market Class shares had been issued by the Funds.

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI, RFS and GFD are affiliated entities.

Significant Accounting Policies

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

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

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Russell 2000^® Fund and the S&P 500^® Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the September 30, 2014, afternoon NAV.

A. The Board of Trustees of the Funds (the “Board”) has adopted policies and procedures for the valuation of the Funds’ investments (the “Valuation Procedures”). Pursuant to the Valuation Procedures, the Board has delegated to a valuation committee, consisting of representatives from Guggenheim’s investment management, fund administration, legal and compliance departments (the “Valuation Committee”), the day-to-day responsibility for implementing the Valuation

148  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Procedures, including, under most circumstances, the responsibility for determining the fair value of the Fund’s securities or other assets.

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

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

Equity securities listed on an exchange NYSE or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies ("Mutual Funds") are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds ("ETFs") are valued at the last quoted sales price.

The U.S. Government Money Market Fund values debt securities at amortized cost pursuant to Rule 2a-7 of the 1940 Act, which approximates market value.

With the exception of the U.S. Government Money Market Fund, U.S. government securities are valued by either independent pricing services, the last traded fill price, or at the reported bid price at the close of business. Other debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker/dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, which approximates market value.

Repurchase agreements are valued at amortized cost, which approximates market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date for the afternoon pricing cycle. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of OTC swap agreements and credit default swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements. For the afternoon pricing cycle, the agreements are marked at the close of the NYSE to the relevant index or, if there is an afternoon trade, to the “fill”. The swap's value is then adjusted to include dividends accrued, and financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair valued as determined in good faith by GI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) obtaining general information as to how these securities and assets trade; and (ii) obtaining other information and considerations, including current values in related markets.

In connection with futures contracts and other derivative investments, obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedules of Investments reflect the effective rates paid at the time of purchase by the Funds. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  149 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

C. Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

Credit default swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Upfront payments received or made by a Fund on credit default swap agreements are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. Payments received or made as a result of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

E. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments.

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

F. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

G. Dividends from net investment income are declared daily in the Government Long Bond 1.2x Strategy Fund and the U.S. Government Money Market Fund. Dividends are reinvested in additional shares unless shareholders request payment in cash. Distributions of net investment income in the remaining Funds and distributions of net realized gains, if any, in all Funds are declared at least annually and recorded on the ex-dividend date and are determined in accordance with income tax regulations which may differ from U.S. GAAP.

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

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

J. Under the Funds’ organizational documents, its Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made

150  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

against the Funds and/or their affiliates that have not yet occurred. However, based on experience, the Funds expect the risk of loss to be remote.

2. Financial Instruments

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as restricted cash on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

A credit default swap enables a Fund to buy or sell protection against a defined credit event of an issuer or a basket of securities. Generally, the seller of credit protection against an issuer or basket of securities receives a periodic payment from the buyer to compensate against potential default events. If a default event occurs, the seller must pay the buyer the full notional value of the reference obligation in exchange for the reference obligation. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the Fund selling the credit protection. A Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which the Fund is selling credit protection, the default of a third party issuer.

The Nova Fund, Mid-Cap 1.5x Strategy Fund, Russell 2000^® 1.5x Strategy Fund and Government Long Bond 1.2x Strategy Fund use derivative instruments to achieve leveraged exposure to their respective underlying indices. Since these Funds’ investment strategy involves consistently applied leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index. In addition, as investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, this creates an opportunity for increased net income but, at the same time, additional leverage risk. The Funds’ use of leverage, through borrowings or instruments such as derivatives, may cause the Funds to be more volatile and riskier than if they had not been leveraged.

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to each Fund.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  151 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

3. Fees and Other Transactions with Affiliates

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

Fund	Management Fees(as a % of Net Assets)
Nova Fund	0.75%
S&P 500® Fund	0.75%
Inverse S&P 500® Strategy Fund	0.90%
Inverse NASDAQ-100® Strategy Fund	0.90%
Mid-Cap 1.5x Strategy Fund	0.90%
Inverse Mid-Cap Strategy Fund	0.90%
Russell 2000® 1.5x Strategy Fund	0.90%
Russell 2000® Fund	0.75%
Inverse Russell 2000® Strategy Fund	0.90%
Government Long Bond 1.2x Strategy Fund	0.50%
High Yield Strategy Fund	0.75%
Inverse High Yield Strategy Fund	0.75%
U.S. Government Money Market Fund	0.50%

RFS provides transfer agent and administrative services to the Funds for fees calculated at the annualized rates below, based on the average daily net assets of the Funds. For these services, RFS receives the following:

Fund	Transfer Agent andAdministrative Fees(as a % of Net Assets)
Government Long Bond 1.2x Strategy Fund	0.20%
U.S. Government Money Market Fund	0.20%
Remaining Funds	0.25%

RFS also provides accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund.

Fund Accounting Fees	(as a % of Net Assets)
S&P 500® Fund	0.15%
Russell 2000® Fund	0.15%
Remaining Funds
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

RFS engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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

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

GI and its affiliates have voluntarily agreed to waive their fees, including but not limited to accounting, shareholder investor services and investment advisory fees, in an attempt to maintain a positive net yield for the U.S. Government Money Market Fund. GI or its affiliates may terminate this voluntary waiver at any time upon notice to the Fund. When shareholder investor services fees are waived, dealer compensation will be reduced to the extent of such waiver.

For the period ended September 30, 2014, GFD retained sales charges of $161,615 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI, RFS and GFD.

152  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

4. Fair Value Measurement

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

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

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

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

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

The following table summarizes the inputs used to value the Funds’ net assets at September 30, 2014:

	Level 1 Investments In Securities		Level 1 Other Financial Instruments*		Level 2 Investments In Securities		Level 2Other Financial Instruments*		Level 3 Investments In Securities		Total
Assets
Nova Fund	$	112,678,800	$	—	$	8,773,212	$	7,581	$	—	$	121,459,593
S&P 500® Fund		225,306,518		—		32,302,452		7,147		—		257,616,117
Inverse S&P 500® Strategy Fund		21,639,562		3,463		54,856,294		5,887		—		76,505,206
Inverse NASDAQ-100® Strategy Fund		3,706,990		64,317		11,077,632		1,712		—		14,850,651
Mid-Cap 1.5x Strategy Fund		19,358,617		—		323,741		—		—		19,682,358
Inverse Mid-Cap Strategy Fund		1,001,960		3,045		3,744,318		41,151		—		4,790,474
Russell 2000® 1.5x Strategy Fund		7,488,907		—		4,183,415		—		1,777		11,674,099
Russell 2000® Fund		12,483,076		—		7,333,260		—		3,963		19,820,299
Inverse Russell 2000® Strategy Fund		7,919,043		72,820		20,759,175		197,194		—		28,948,232
Government Long Bond 1.2x Strategy Fund		22,028,609		2,779,551		133,169,690		—		—		157,977,850
High Yield Strategy Fund		16,147,732		25,718		10,381,125		37,189		—		26,591,764
Inverse High Yield Strategy Fund		40,609,973		86,347		49,822,280		744,708		—		91,263,308
U.S. Government Money Market Fund		—		—		915,631,272		—		—		915,631,272
Liabilities
Nova Fund	$	—	$	686,745	$	—	$	278,588	$	—	$	965,333
S&P 500® Fund		—		42,745		—		95,862		—		138,607
Inverse S&P 500® Strategy Fund		—		—		—		288,388		—		288,388
Inverse NASDAQ-100® Strategy Fund		—		—		—		65,966		—		65,966
Mid-Cap 1.5x Strategy Fund		—		924		—		101,809		—		102,733
Russell 2000® 1.5x Strategy Fund		—		75,363		—		150,932		—		226,295
Russell 2000® Fund		—		180,520		—		22,283		—		202,803
High Yield Strategy Fund		—		—		—		82,594		—		82,594

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

Transfers between investment levels may occur as the markets fluctuate and/or the availability of data used in the investment’s valuation changes. The Funds recognize transfers between the levels as of the beginning of the period. As of September 30, 2014, Russell 2000^® 1.5x Strategy Fund and Russell 2000^® Fund had securities with a total value of $1,328 and $3,103 transfer from Level 2 to Level 3, respectively, due to stale trade prices. There were no other securities that transferred between levels.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  153 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2014, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
RBC Capital Markets			U.S. TIP Notes
(0.05)%			0.13% - 2.50%
Due 10/01/14	$339,522,378	$339,521,906	01/15/16 - 01/15/23	$285,293,500	$346,312,829
UMB Financial Corp.			U.S. Treasury Notes
0.00%			1.00% - 3.25%
Due 10/01/14	140,385,761	140,385,761	09/30/16 - 12/31/16	137,466,300	143,193,502
Mizuho Financial Group, Inc.			U.S. Treasury Note
0.01%			2.13%
Due 10/01/14	198,522,378	198,522,406	09/30/21	136,520,000	135,760,728
			U.S. TIP Notes
			0.13% - 1.63%
			01/15/15 - 04/15/16	57,126,400	66,732,140
HSBC Group			U.S. Treasury Strips
0.00%			0.00%
Due 10/01/14	87,599,687	87,599,687	08/15/18	94,804,900	89,351,722
Credit Suisse Group			U.S. Treasury Note
(0.05)%			0.25%
Due 10/01/14	7,283,778	7,283,768	05/15/16	7,435,100	7,429,556

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

6. Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, Credit Suisse acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with Credit Suisse, cash collateral is invested in one or more joint repurchase agreements collateralized by obligations of the U.S. Treasury or Government Agencies and cash. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next

154  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

At September 30, 2014, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
Nova Fund	$	6,854	$	7,200
S&P 500® Fund		127,162		131,550
Mid-Cap 1.5x Strategy Fund		102,320		108,184
Russell 2000® 1.5x Strategy Fund		8,838		9,280
Russell 2000® Fund		2,848		4,140
High Yield Strategy Fund		1,379,250		1,405,350

Cash collateral received was invested in the following joint repurchase agreements at September 30, 2014:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.00%			0.00%
Due 10/01/14	$1,229,603	$1,229,603	11/15/19 - 11/15/30	$1,491,829	$1,028,110
			U.S. Treasury Note
			1.38%
			11/30/18	226,986	226,183
BNP Paribas Securities Corp.			U.S. TIP Bond
0.00%			2.13%
Due 10/01/14	201,574	201,574	02/15/41	150,817	205,618

There is also $234,528 in segregated cash held as collateral.

7. Disclosures about Credit Derivatives

In accordance with its principal investment strategy, the High Yield Strategy Fund enters into credit default swaps as a seller of protection primarily to gain exposure similar to the high yield bond market. Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. If a credit event occurs, as defined under the terms of the swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Notional Principal refl ects the maximum potential amount the Fund could be required to make as a seller of credit protection if a credit event occurs. As the seller of protection, the Fund receives periodic premium payments from the counterparty and may also receive or pay an upfront premium adjustment to the stated periodic premium. In the event a credit event occurs, an adjustment will be made to any upfront premiums that were received by a reduction of 1.00% per credit event.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  155 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The table on page 131 included in the Schedule of Investments summarizes the information with regard to sold protection on credit default swap contracts as of September 30, 2014.

8. Derivative Investment Holdings Categorized by Risk Exposure

U.S. GAAP requires 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.

The following Funds utilized derivatives for the following purposes:

Fund	Index Exposure	Liquidity	Leverage
Nova Fund	x	x	x
S&P 500 Fund	x	x	—
Inverse S&P 500 Strategy Fund	x	x	—
Inverse NASDAQ-100® Strategy Fund	x	x	—
Mid-Cap 1.5x Strategy Fund	x	x	x
Inverse Mid-Cap Strategy Fund	x	x	—
Russell 2000® 1.5x Strategy Fund	x	x	x
Russell 2000® Fund	x	x	—
Inverse Russell 2000® Strategy Fund	x	x	—
Government Long Bond 1.2x Strategy Fund	x	x	x
High Yield Strategy Fund	x	x	—
Inverse High Yield Strategy Fund	x	x	—

The following table represents the notional amount of derivative instruments outstanding as an approximate percentage of the Funds’ net assets on a daily basis.

	Approximate percentage of Fund's Net Assets on a daily basis
Fund	Long	Short
Nova Fund	90%	—
S&P 500® Fund	20%	—
Inverse S&P 500® Strategy Fund	—	100%
Inverse NASDAQ-100® Strategy Fund	—	100%
Mid-Cap 1.5x Strategy Fund	75%	—
Inverse Mid-Cap Strategy Fund	—	100%
Russell 2000® 1.5x Strategy Fund	120%	—
Russell 2000® Fund	40%	—
Inverse Russell 2000® Strategy Fund	—	100%
Government Long Bond 1.2x Strategy Fund	75%	—
High Yield Strategy Fund*	80%	—
Inverse High Yield Strategy Fund*	—	100%

* These Funds utilize a combination of currency and/or financial-linked derivatives to obtain exposure to their benchmarks. The gross derivative instrument exposure is 150% and 185% for the High Yield Strategy Fund and Inverse High Yield Strategy Fund, respectively.

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2014:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Variation margin	Variation margin
Equity/Credit contracts	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

156  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2014:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2014
Nova Fund	$	—	$	7,581	$	—	$	—	$	7,581
S&P 500® Fund		—		7,147		—		—		7,147
Inverse S&P 500® Strategy Fund		3,463		5,887		—		—		9,350
Inverse NASDAQ-100® Strategy Fund		64,317		1,712		—		—		66,029
Inverse Mid-Cap Strategy Fund		3,045		41,151		—		—		44,196
Inverse Russell 2000® Strategy Fund		72,820		197,194		—		—		270,014
Government Long Bond 1.2x Strategy Fund		—		—		2,779,551		—		2,779,551
High Yield Strategy Fund		—		—		25,718		37,189		62,907
Inverse High Yield Strategy Fund		—		—		86,347		744,708		831,055

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Futures Interest Rate Contracts*		Swaps Credit Default Contracts		Total Value at September 30, 2014
Nova Fund	$	686,745	$	278,588	$	—	$	—	$	965,333
S&P 500® Fund		42,745		95,862		—		—		138,607
Inverse S&P 500® Strategy Fund		—		288,388		—		—		288,388
Inverse NASDAQ-100® Strategy Fund		—		65,966		—		—		65,966
Mid-Cap 1.5x Strategy Fund		924		101,809		—		—		102,733
Russell 2000® 1.5x Strategy Fund		75,363		150,932		—		—		226,295
Russell 2000® Fund		180,520		22,283		—		—		202,803
High Yield Strategy Fund		—		—		—		82,594		82,594

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds' Statements of Operations for the period ended September 30, 2014:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Equity/Credit contracts	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  157 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 2014:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts			Futures Interest Rate Contracts			Swaps Credit Default Contracts			Total
Nova Fund	$	3,737,986		$	3,500,877		$	—		$	—		$	7,238,863
S&P 500® Fund		262,484			2,597,009			—			—			2,859,493
Inverse S&P 500® Strategy Fund		(129,732	)		(7,424,255	)		—			—			(7,553,987	)
Inverse NASDAQ-100® Strategy Fund		9,892			(1,661,582	)		—			—			(1,651,690	)
Mid-Cap 1.5x Strategy Fund		291,085			(286,562	)		—			—			4,523
Inverse Mid-Cap Strategy Fund		(28,607	)		(30,255	)		—			—			(58,862	)
Russell 2000® 1.5x Strategy Fund		(138,592	)		(904,881	)		—			—			(1,043,473	)
Russell 2000® Fund		(466,783	)		387,178			—			—			(79,605	)
Inverse Russell 2000® Strategy Fund		222,534			75,118			—			—			297,652
Government Long Bond 1.2x Strategy Fund		—			—			2,094,168			—			2,094,168
High Yield Strategy Fund		—			—			(626,493	)		(983,494	)		(1,609,987	)
Inverse High Yield Strategy Fund		—			—			(218,464	)		(775,638	)		(994,102	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps EquityContracts			Futures Interest Rate Contracts		Swaps Credit Default Contracts			Total
Nova Fund	$	(959,002	)	$	(607,610	)	$	—	$	—		$	(1,566,612	)
S&P 500® Fund		(517,616	)		(699,081	)		—		—			(1,216,697	)
Inverse S&P 500® Strategy Fund		66,454			306,618			—		—			373,072
Inverse NASDAQ-100® Strategy Fund		64,317			(84,579	)		—		—			(20,262	)
Mid-Cap 1.5x Strategy Fund		(55,802	)		(250,106	)		—		—			(305,908	)
Inverse Mid-Cap Strategy Fund		3,045			94,418			—		—			97,463
Russell 2000® 1.5x Strategy Fund		27,250			(244,208	)		—		—			(216,958	)
Russell 2000® Fund		(110,100	)		(79,351	)		—		—			(189,451	)
Inverse Russell 2000® Strategy Fund		72,820			387,797			—		—			460,617
Government Long Bond 1.2x Strategy Fund		—			—			2,490,203		—			2,490,203
High Yield Strategy Fund		—			—			521,130		(337,059	)		184,071
Inverse High Yield Strategy Fund		—			—			60,686		768,411			829,097

9. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

158  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP.

								Gross Amounts Not Offset In the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received2		Net Amount
Nova Fund	Swap equity contracts	$	7,581	$	—	$	7,581	$	—	$	—	$	7,581
S&P 500® Fund	Swap equity contracts		7,147		—		7,147		—		—		7,147
Inverse S&P 500® Strategy Fund	Swap equity contracts		5,887		—		5,887		—		—		5,887
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		1,712		—		1,712		—		—		1,712
Inverse Mid-Cap Strategy Fund	Swap equity contracts		41,151		—		41,151		—		—		41,151
Inverse Russell 2000® Strategy Fund	Swap equity contracts		197,194		—		197,194		—		—		197,194

								Gross Amounts Not Offset In the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged2		Net Amount
Nova Fund	Swap equity contracts	$	278,588	$	—	$	278,588	$	—	$	—	$	278,588
S&P 500® Fund	Swap equity contracts		95,862		—		95,862		—		—		95,862
Inverse S&P 500® Strategy Fund	Swap equity contracts		288,388		—		288,388		—		—		288,388
Inverse NASDAQ-100® Strategy Fund	Swap equity contracts		65,966		—		65,966		—		—		65,966
Mid-Cap 1.5x Strategy Fund	Swap equity contracts		101,809		—		101,809		—		—		101,809
Russell 2000® 1.5x Strategy Fund	Swap equity contracts		150,932		—		150,932		—		—		150,932
Russell 2000® Fund	Swap equity contracts		22,283		—		22,283		—		—		22,283

1	Exchange–traded futures and centrally cleared swaps are excluded from these reported amounts.
2	Excludes maintenance margin deposits held at the broker related to derivatives. These amounts are reflected as segregated cash with broker on the Statements of Assets and Liabilities.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  159 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

10. Federal Income Tax Information

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

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

The RIC Modernization Act of 2010 was signed into law on December 22, 2010, and simplified some of the tax provisions applicable to regulated investment companies, the tax reporting to their shareholders and improved the tax efficiency of certain fund structures. The greatest impact to the disclosure in the financial reports for the Funds was on the treatment of net capital losses, effective for tax years beginning after December 22, 2010.

One of the more prominent changes addresses capital loss carryforwards. The Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. As a result of this ordering rule, pre-enactment capital carryforwards may potentially expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

At September 30, 2014, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
Nova Fund	$	97,497,611	$	24,237,285	$	(282,884	)	$	23,954,401
S&P 500® Fund		195,267,416		63,753,968		(1,412,414	)		62,341,554
Inverse S&P 500® Strategy Fund		76,561,074		2,502		(67,720	)		(65,218	)
NASDAQ-100® Fund		414,818,886		356,385,639		(899,483	)		355,486,156
Inverse NASDAQ-100® Strategy Fund		14,792,328		—		(7,706	)		(7,706	)
Mid-Cap 1.5x Strategy Fund		15,715,522		4,260,462		(293,625	)		3,966,837
Inverse Mid-Cap Strategy Fund		4,748,686		—		(2,408	)		(2,408	)
Russell 2000® 1.5x Strategy Fund		10,781,016		927,002		(33,919	)		893,083
Russell 2000® Fund		20,916,415		—		(1,096,116	)		(1,096,116	)
Inverse Russell 2000® Strategy Fund		28,697,240		—		(19,022	)		(19,022	)
Government Long Bond 1.2x Strategy Fund		158,022,531		—		(2,824,232	)		(2,824,232	)
High Yield Strategy Fund		26,541,504		68,272		(80,919	)		(12,647	)
Inverse High Yield Strategy Fund		90,461,213		1		(28,961	)		(28,960	)
U.S. Government Money Market Fund		915,631,272		1,675		(1,675	)		—

160  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

11. Securities Transactions

For the period ended September 30, 2014, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Nova Fund	$	153,815,120	$	173,054,020
S&P 500® Fund		339,737,484		291,467,208
Inverse S&P 500® Strategy Fund		—		—
Inverse NASDAQ-100® Strategy Fund		—		—
Mid-Cap 1.5x Strategy Fund		26,827,831		30,300,181
Inverse Mid-Cap Strategy Fund		—		—
Russell 2000® 1.5x Strategy Fund		25,138,069		36,113,724
Russell 2000® Fund		71,336,856		94,357,609
Inverse Russell 2000® Strategy Fund		—		—
High Yield Strategy Fund		73,620,948		91,147,767
Inverse High Yield Strategy Fund		21,023,364		500,000
U.S. Government Money Market Fund		9,995,888		20,000,000

For the period ended September 30, 2014, the cost of purchases and proceeds from sales of government securities were:

Fund	Purchases		Sales
Government Long Bond 1.2x Strategy Fund	$	1,131,185,880	$	1,119,337,776

12. Affiliated and/or Related Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Funds may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, and Guggenheim Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2014 will be available publicly or upon request.

Transactions during the period ended September 30, 2014, in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/14		Additions		Reductions		Value 09/30/14		Shares 09/30/14		Investment Income		Realized Loss
Inverse High Yield Strategy Fund
Guggenheim Strategy Fund II	$	—	$	21,023,364	$	500,000	$	20,504,475		823,473	$	37,907	$	(1,408	)

13. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted, $75,000,000 line of credit from U.S. Bank, N.A., which expires June 13, 2015. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2014. On September 30, 2014, the Mid-Cap 1.5x Strategy Fund borrowed $1,249,000 under this agreement. The Funds did not have any borrowings under this agreement at September 30, 2014.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  161 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The average daily balances borrowed for the period ended September 30, 2014, were as follows:

Fund	Average Daily Balance
Nova Fund	$	7,601
S&P 500® Fund		26,446
Inverse S&P 500® Strategy Fund		112,371
Mid-Cap 1.5x Strategy Fund		7,081
Inverse Mid-Cap Strategy Fund		11,810
Russell 2000® 1.5x Strategy Fund		58,369
Russell 2000® Fund		61,846
Inverse Russell 2000® Strategy Fund		14,788
Government Long Bond 1.2x Strategy Fund		415,537
High Yield Strategy Fund		16,527
U.S. Government Money Market Fund		110,428

14. Reverse Share Splits

A reverse share split occurred for the following funds:

Fund	Effective Date	Split Type
Inverse NASDAQ-100® Strategy Fund	February 21, 2014	One-for-Five Reverse Split
Inverse Mid-Cap Strategy Fund	February 7, 2014	One-for-Three Reverse Split
Inverse Russell 2000® Strategy Fund	February 7, 2014	One-for-Three Reverse Split
Government Long Bond 1.2x Strategy Fund	February 7, 2014	One-for-Three Reverse Split

15. Legal Proceedings

Tribune Company

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2696 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. The appeals have been fully briefed, and oral argument in front of the U.S. Court of Appeals for the Second Circuit occurred on November 5, 2014.

162  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

On May 23, 2014, the Shareholder Liaison Counsel filed a “global” motion to dismiss Count I of the FitzSimons action on behalf of all Shareholder Defendants. Count I is the claim for intentional fraudulent conveyance brought under federal law, and the global motion, if granted, would result in the dismissal of all Shareholder Defendants from the lawsuit. The District Court has not yet issued a decision on the motion.

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

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust action”).

Similar to the claims made in the Tribune matter, the Weisfelner complaint seeks to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008.

On April 7, 2014, the plaintiff filed a Third Amended Complaint. In the related action entitled Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adversary Proceeding No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust action”), the plaintiff also filed a Second Amended Complaint that alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On May 8, 2014, the plaintiff in the Litigation Trust action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction. If the Court agrees to certify a defendant class, a judgment could bind all members of the group (whether or not individually named in the litigation). The defendants plan to oppose the motion.

On July 30, 2014, the defendants filed a motion to dismiss all three lawsuits. The Court will hold an oral argument on the motions to dismiss and on the motion for class certification on January 14, and, if necessary, January 15, 2015. The Court further ordered that, with certain exceptions, all discovery in the actions shall be stayed until the briefing of the class certification motion has concluded. Discovery shall begin promptly after the completion of all briefing on the class certification motion in late December 2014.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  163 

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Office Locations

The offices of Guggenheim Investments can be found in the following locations:

330 Madison Avenue10th FloorNew York, NY 10017(Headquarters)

Four Irvington Centre805 King Farm BoulevardSuite 600Rockville, MD 20850

9401 Indian Creek Parkway40 Corporate WoodsSuite 850Overland Park, KS 66210

Distributor Change

Effective March 3, 2014, Guggenheim Distributors, LLC (“GD”), the distributor for shares of the Funds was consolidated into and with Guggenheim Funds Distributors, LLC (“GFD”). Following the consolidation, GFD serves as the Funds’ distributor.

GD and GFD are both indirect, wholly-owned subsidiaries of Guggenheim Capital, LLC and, therefore, the consolidation will not result in a change of actual control of the Funds’ distributor. The primary goal of the consolidation is to achieve greater operational efficiencies and allow all of the Guggenheim funds, including funds that are not series of the Trusts, to be distributed by a single distributor.

The consolidation is not expected to affect the day-to-day management of the Funds or result in any material changes to the distribution of the Funds, including any changes to the distribution fees paid by the Funds.

164  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

Board Considerations in Approving the Investment Advisory Agreement

At in-person meetings of the Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”) held on May 15 and June 4, 2014 (each, a “Meeting” and, together, the “Meetings”), called for the purpose of, among other things, consideration of, and voting on, the approval and continuation of the investment advisory agreement applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”), the Board, including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (the “Independent Trustees”), unanimously approved the continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and Security Investors, LLC (the “Advisor”) with respect to each of the Funds for an additional one-year period, based on the Board’s review of qualitative and quantitative information provided by the Advisor.

In reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. The Advisor provided the Board with a wide variety of information, including comparisons of Fund performance and fees relative to comparable peer funds in advance of the May 15, 2014 Meeting. The Independent Trustees carefully evaluated the information provided as well as information they received throughout the year as part of their regular oversight of the Funds. At the Meetings, independent legal counsel advised the Independent Trustees with respect to their deliberations and their fiduciary responsibilities associated with the Board’s consideration of the continuation of the Investment Advisory Agreement. The Board also received a memorandum from Fund counsel regarding the Board’s responsibilities when considering the approval of an investment advisory agreement.

During the Meetings, the Board, including the Independent Trustees, evaluated a number of considerations, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and investment strategies; (e) a comparison of the Funds’ advisory fees to the fees charged to comparable funds or accounts, paying special attention to the absence of breakpoints in these fees and the Advisor’s rationale for not including breakpoints; (f) each Fund’s overall fees and operating expenses compared with those of peer funds; (g) the Advisor’s profitability with respect to its Fund-related operations; (h) the Advisor’s compliance systems; (i) the Advisor’s policies and compliance procedures applicable to personal securities transactions; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of peer funds and/or appropriate benchmarks. In its deliberations, the Board did not identify any particular factor as controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees were reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

• Nature, Extent and Quality of Services Provided by the Advisor. At the Meetings, the Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially 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 Funds’ operations, the competitive landscape of the investment company business and investor needs.

• Fund Expenses and Performance of the Funds and the Advisor. At the Meetings, the Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare advisory contract renewal reports to help the Board fulfill its advisory contract renewal responsibilities. The reports compared the Funds’ fees, expenses and total return performance to those of comparable funds in the Funds’ peer group and the broader peer universe, as determined by FUSE. Statistical information in the FUSE reports related to the expense ratio components was based on a comparison of the Funds’ and peer funds’ actual advisory fees, waivers/reimbursements, and gross and net total expenses. The Board also considered the Advisor’s representation

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  165 

OTHER INFORMATION (Unaudited)(concluded)

that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one, three, and five year performance for the Fund compared to its peers and its appropriate benchmark.

• Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. At the Meetings, the Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. At the Meetings, the Board also analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed reports comparing the expense ratios of the Funds to those of other comparable funds. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin as reflected in the Advisor’s profitability analysis.

• Economies of Scale. In connection with its review of the Funds’ profitability analysis at the Meetings, the Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex increases and decreases significantly from time to time due to unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that economies of scale were not likely to be directly realized as a result of increases in the asset levels of the individual Funds, and accordingly, fee breakpoints were not currently appropriate for the Funds.

• Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the services provided by the Advisor, the Board considered the nature and amount of other benefits received by the Advisor and its affiliates as a result of their relationship with the Funds. In particular, the Board considered the nature, extent and quality of the administrative, distribution, and shareholder services performed by the Advisor’s affiliates and the fees paid to the Advisor’s affiliates for those services under separate agreements. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the ancillary benefits the Advisor and its affiliates received were considered reasonable. The Board also noted that the Advisor reports portfolio transactions on behalf of the Funds, including the cost of such transactions, placed through an affiliate of the Funds or the Advisor at each quarterly Board meeting.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the approval of the Investment Advisory Agreement would enable Fund shareholders to continue receiving high quality services at a cost that was appropriate, reasonable, and in the best interests of the Funds and their shareholders. The Board, including the Independent Trustees, unanimously approved the continuation of the existing Investment Advisory Agreement.

166  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	220	Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	131	None.
J. Kenneth Dalton (1941)	Trustee, Member and Chairman of the Audit Committee, and Member of the Governance and Nominating Committees from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	Trustee of Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board of Trustees from 2014 to present; Trustee from 1998 to present and Chairman of the Board from 2006 to 2014; Member and Chairman of the Audit Committee from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present; Vice Chairman of the Board of Trustees from 2010 to 2014; Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present; and Chairman and Member of the Risk Oversight Committee from 2010 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	131	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  167 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	131	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee, Member of the Audit Committee, and Chairman and Member of the Governance and Nominating Committees from 1998 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	131	None.

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Nikolaos Bonos (1963)	Vice President and Treasurer (2003-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); Chief Executive Officer, Guggenheim Specialized Products, LLC (2009-present); Chief Executive Officer & President, Rydex Fund Services, LLC (2009-present); Vice President, Rydex Holdings, LLC (2008-present). Former: Senior Vice President, Security Global Investors, LLC (2010-2011); and Senior Vice President, Rydex Advisors, LLC and Rydex Advisors II, LLC (2006-2011).

168  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Vice President, Guggenheim Funds Distributors, LLC (March 2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-March 2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Joseph M. Arruda (1966)	Assistant Treasurer (2006-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2006-present); Vice President, Security Investors, LLC (2010-present); CFO and Manager, Guggenheim Specialized Products, LLC (2009-present). Former: Vice President, Security Global Investors, LLC (2010-2011); Vice President, Rydex Advisors, LLC (2010); Vice President, Rydex Advisors II, LLC (2010).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  169 

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Rydex Funds, Guggenheim Funds, Rydex Investments, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Security Distributors, Inc., Guggenheim Partners Investment Managers, LLC, and Rydex Advisory Services (Collectively “Guggenheim Investments”).

Our Commitment to You

When you become a Guggenheim Investments 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 Guggenheim Investments 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 Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Investments funds or one of the Guggenheim Investments 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 Guggenheim Investments. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. To alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new Rydex and Guggenheim Investments funds or the services offered through another Guggenheim Investments 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.

170  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

How We Protect Privacy Online

Our concern for the privacy of our shareholders also extends to those who use our web site, guggenheiminvestments.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 Guggenheim Investments 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 Guggenheim Investments 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.

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 guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us at 800.820.0888 or 301.296.5100.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  171 

This page intentionally left blank.

This page intentionally left blank.

9.30.2014

Rydex Funds Semi-Annual Report

Domestic Equity Funds

S&P 500^® Pure Growth Fund

S&P 500^® Pure Value Fund

S&P MidCap 400^® Pure Growth Fund

S&P MidCap 400^® Pure Value Fund

S&P SmallCap 600^® Pure Growth Fund

S&P SmallCap 600^® Pure Value Fund

International Equity Funds

Europe 1.25x Strategy Fund

Japan 2x Strategy Fund

Specialty Funds

Strengthening Dollar 2x Strategy Fund

Weakening Dollar 2x Strategy Fund

RBENF2-SEMI-0914x0315 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	5
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
S&P 500® PURE GROWTH FUND	9
S&P 500® PURE VALUE FUND	16
S&P MIDCAP 400® PURE GROWTH FUND	23
S&P MIDCAP 400® PURE VALUE FUND	30
S&P SMALLCAP 600® PURE GROWTH FUND	37
S&P SMALLCAP 600® PURE VALUE FUND	45
EUROPE 1.25x STRATEGY FUND	53
JAPAN 2x STRATEGY FUND	60
STRENGTHENING DOLLAR 2x STRATEGY FUND	66
WEAKENING DOLLAR 2x STRATEGY FUND	72
NOTES TO FINANCIAL STATEMENTS	78
OTHER INFORMATION	91
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	94
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	97

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  1 

September 30, 2014

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for one or more of our Funds (the “Funds”) for the six-month period ended September 30, 2014.

The Investment Adviser is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC, a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

Donald C. CacciapagliaPresidentOctober 31, 2014

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

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2014

Despite market volatility rising in October, for the period ended September 30, data on everything from hiring to housing conveys that the U.S. economy is firing on all cylinders. Overcoming a first-quarter weather-related soft patch, second-quarter GDP was revised upward to 4.6%, led by business investment. Durable goods orders surged over the summer and consumer confidence was at multi-year highs, despite a lower reading for the last part of the period. With tailwinds for economic growth gathering, we could see a strong third quarter GDP reading.

September’s addition of 248,000 non-farm payroll jobs was, on the surface, at least a strong figure and certainly not something to be discounted. However, investor optimism about the report, which also showed the unemployment rate falling to 5.9%—its lowest level since 2008—masked the fact that average hourly earnings were unchanged. Economic data late in the period included disappointing factory orders, poor construction spending, and weaker-than-expected ISM manufacturing data. The most recent decline in the U.S. Conference Board Consumer Confidence Index was worrisome.

The U.S. economy is certainly doing well enough to suggest higher interest rates ahead. With quantitative easing ending in the U.S. in October 2014 and the Fed preparing investors for a higher federal funds rate, the stage is set for U.S. interest rates to move higher. However, our view is that, despite a strengthening U.S. economy, the greater risk is that interest rates head lower in the near term.

Following the "taper tantrum" last year, before rates were able to reach historical norms, the average rate on a 30-year mortgage spiked almost a full percentage point in two months—the sharpest rise since the late 1990s—resulting in an abrupt housing slowdown, which slowed the U.S. economy materially.

In addition, U.S. Treasury yields are still materially higher than those in any other developed market. The spread between 10-year U.S. Treasuries and comparable German bunds reached 157 basis points in September, its widest level since 1999, and the spread between 10-year Treasuries and 10-year Japanese government bonds was recently 189 basis points. With developments in the Middle East increasingly troubling and turbulence continuing elsewhere from Ukraine to Hong Kong, the relative price value of U.S. government bonds versus other safe haven investments should continue to be a factor keeping U.S. interest rates low.

International economic data remain weak. Euro zone economic confidence is falling as the entire region continues to battle below-target inflation. At the start of September, the European Central Bank cut interest rates and signaled their intent to launch a program to purchase asset-backed securities and covered bonds to stimulate the dismal economy. In Japan, retail sales fell month-over-month in August, while industrial production falters.

Economic data around the world confirms our view that central banks are likely to renew efforts to force liquidity into the global financial system, which in turn further supports our positive outlook for risk assets. However, positive returns are unlikely without volatility. While markets continue to rally, gains are becoming more grudging. The upward momentum in U.S. stocks has deteriorated meaningfully while credit spreads, specifically high-yield spreads, have widened significantly over the past number of weeks. While the bull market trend remains intact, as the appreciation in risk assets continues it becomes more likely that this ageing advance will, at some point, experience a correction.

For the six-month period ended September 30, 2014, the return of the Standard & Poor’s 500^® Index* (“S&P 500”) was 6.42%. The Barclays U.S. Aggregate Bond Index* returned 2.21% for the period, while the Barclays U.S. Corporate High Yield Index* returned 0.49%. The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index* returned 0.02%. The MSCI World Index* returned 2.59%, while the MSCI Emerging Markets Index* returned 2.87%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  3 

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2014

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

*Index Definitions:

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

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

Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Barclays U.S. Corporate High Yield Index covers the universe of dollar denominated, fixed rate, non-investment grade debt, taxable corporate debt.

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

MSCI World Index (Net) is calculated with net dividends reinvested. It is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

S&P 500^® Index is a market-weighted stock market index comprised of the stocks of 500 U.S. corporations; the index is owned and maintained by Standard & Poor’s.

4  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Many of the Funds described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value per share (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index Level	Index Performance	Fund Expectation	Fund NAV	Fund Performance	Assessment
Start	100			$10.00
Day 1	106	6.0%	9.0%	$10.90	9.0%	In line
Day 2	99	-6.6%	-9.9%	$9.82	-9.9%	In line
Cumulative		-1.0%	-1.5%		-1.8%	-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  5 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2014 and ending September 30, 2014.

The following tables illustrate a Fund’s costs in two ways:

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

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

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

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

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

6  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 1. Based on actual Fund return3
S&P 500® Pure Growth Fund
A-Class	1.52%	5.39%	$1,000.00	$1,053.90	$7.83
C-Class	2.27%	4.99%	1,000.00	1,049.90	11.67
H-Class	1.52%	5.39%	1,000.00	1,053.90	7.83
S&P 500® Pure Value Fund
A-Class	1.52%	3.20%	1,000.00	1,032.00	7.74
C-Class	2.27%	2.82%	1,000.00	1,028.20	11.54
H-Class	1.52%	3.20%	1,000.00	1,032.00	7.74
S&P MidCap 400® Pure Growth Fund
A-Class	1.52%	(1.11%)	1,000.00	988.90	7.58
C-Class	2.27%	(1.48%)	1,000.00	985.20	11.30
H-Class	1.52%	(1.11%)	1,000.00	988.90	7.58
S&P MidCap 400® Pure Value Fund
A-Class	1.52%	(0.67%)	1,000.00	993.30	7.60
C-Class	2.27%	(1.04%)	1,000.00	989.60	11.32
H-Class	1.52%	(0.67%)	1,000.00	993.30	7.60
S&P SmallCap 600® Pure Growth Fund
A-Class	1.52%	(4.36%)	1,000.00	956.40	7.45
C-Class	2.27%	(4.73%)	1,000.00	952.70	11.11
H-Class	1.52%	(4.38%)	1,000.00	956.20	7.45
S&P SmallCap 600® Pure Value Fund
A-Class	1.52%	(7.56%)	1,000.00	924.40	7.33
C-Class	2.27%	(7.89%)	1,000.00	921.10	10.93
H-Class	1.52%	(7.55%)	1,000.00	924.50	7.33
Europe 1.25x Strategy Fund
A-Class	1.74%	(4.02%)	1,000.00	959.80	8.55
C-Class	2.49%	(4.38%)	1,000.00	956.20	12.21
H-Class	1.73%	(4.06%)	1,000.00	959.40	8.50
Japan 2x Strategy Fund
A-Class	1.57%	3.99%	1,000.00	1,039.90	8.03
C-Class	2.32%	3.95%	1,000.00	1,039.50	11.86
H-Class	1.57%	3.97%	1,000.00	1,039.70	8.03
Strengthening Dollar 2x Strategy Fund
A-Class	1.71%	13.19%	1,000.00	1,131.90	9.14
C-Class	2.46%	12.76%	1,000.00	1,127.60	13.12
H-Class	1.72%	13.19%	1,000.00	1,131.90	9.19
Weakening Dollar 2x Strategy Fund
A-Class	1.71%	(13.16%)	1,000.00	868.40	8.01
C-Class	2.46%	(13.45%)	1,000.00	865.50	11.50
H-Class	1.71%	(13.12%)	1,000.00	868.80	8.01

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  7 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
S&P 500® Pure Growth Fund
A-Class	1.52%	5.00%	$1,000.00	$1,017.45	$7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P 500® Pure Value Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P MidCap 400® Pure Growth Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P MidCap 400® Pure Value Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P SmallCap 600® Pure Growth Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
S&P SmallCap 600® Pure Value Fund
A-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
C-Class	2.27%	5.00%	1,000.00	1,013.69	11.46
H-Class	1.52%	5.00%	1,000.00	1,017.45	7.69
Europe 1.25x Strategy Fund
A-Class	1.74%	5.00%	1,000.00	1,016.34	8.80
C-Class	2.49%	5.00%	1,000.00	1,012.58	12.56
H-Class	1.73%	5.00%	1,000.00	1,016.39	8.74
Japan 2x Strategy Fund
A-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
C-Class	2.32%	5.00%	1,000.00	1,013.44	11.71
H-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
Strengthening Dollar 2x Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.72%	5.00%	1,000.00	1,016.44	8.69
Weakening Dollar 2x Strategy Fund
A-Class	1.71%	5.00%	1,000.00	1,016.50	8.64
C-Class	2.46%	5.00%	1,000.00	1,012.73	12.41
H-Class	1.71%	5.00%	1,000.00	1,016.50	8.64

1	Annualized and excludes expenses of the underlying funds in which the Funds invest.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2014 to September 30, 2014.

8  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 2014

S&P 500^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P 500^® Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Southwest Airlines Co.	2.2%
Vertex Pharmaceuticals, Inc.	2.2%
Facebook, Inc. — Class A	2.2%
Keurig Green Mountain, Inc.	2.1%
Actavis plc	2.0%
Netflix, Inc.	1.9%
Huntington Bancshares, Inc.	1.9%
Chipotle Mexican Grill, Inc. — Class A	1.8%
Safeway, Inc.	1.8%
Celgene Corp.	1.8%
Top Ten Total	19.9%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  9 

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
S&P 500® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.5%
CONSUMER, NON-CYCLICAL - 27.0%
Vertex Pharmaceuticals, Inc.*		31,283	$	3,513,393
Keurig Green Mountain, Inc.		25,550		3,324,822
Actavis plc*		13,010		3,139,053
Safeway, Inc.		84,030		2,882,229
Celgene Corp.*		30,362		2,877,710
Gilead Sciences, Inc.*		26,288		2,798,358
Regeneron Pharmaceuticals, Inc.*		7,175		2,586,731
Constellation Brands, Inc. — Class A*		25,688		2,238,966
Biogen Idec, Inc.*		6,299		2,083,772
United Rentals, Inc.*		16,200		1,799,820
Allergan, Inc.		9,860		1,756,953
Universal Health Services, Inc. — Class B		16,100		1,682,450
Alliance Data Systems Corp.*		6,620		1,643,547
Alexion Pharmaceuticals, Inc.*		8,820		1,462,532
Moody’s Corp.		15,123		1,429,124
Boston Scientific Corp.*		116,720		1,378,463
Cigna Corp.		13,660		1,238,825
Robert Half International, Inc.		24,200		1,185,800
MasterCard, Inc. — Class A		14,190		1,048,925
Monster Beverage Corp.*		10,646		975,919
Perrigo Company plc		5,490		824,543
St. Jude Medical, Inc.		11,160		671,051
Coca-Cola Enterprises, Inc.		13,140		582,890
Total Consumer, Non-cyclical				43,125,876
CONSUMER, CYCLICAL - 19.4%
Southwest Airlines Co.		105,724		3,570,298
Chipotle Mexican Grill, Inc. — Class A*		4,410		2,939,662
Under Armour, Inc. — Class A*		38,190		2,638,929
Delta Air Lines, Inc.		61,870		2,236,601
Michael Kors Holdings Ltd.*		28,300		2,020,337
Wynn Resorts Ltd.		9,901		1,852,279
Harman International Industries, Inc.		18,640		1,827,466
Goodyear Tire & Rubber Co.		72,250		1,631,766
Wyndham Worldwide Corp.		15,940		1,295,284
PACCAR, Inc.		20,750		1,180,156
Fossil Group, Inc.*		12,220		1,147,458
Tractor Supply Co.		17,260		1,061,663
NIKE, Inc. — Class B		11,250		1,003,500
BorgWarner, Inc.		15,298		804,828
Johnson Controls, Inc.		18,180		799,920
VF Corp.		12,070		796,982
Dollar Tree, Inc.*		12,440		697,511
O’Reilly Automotive, Inc.*		4,330		651,059
Starbucks Corp.		8,070		608,962
Bed Bath & Beyond, Inc.*		8,630		568,113
Mohawk Industries, Inc.*		4,040		544,673
TJX Companies, Inc.		8,848		523,536
Harley-Davidson, Inc.		8,820		513,324
Total Consumer, Cyclical				30,914,307
COMMUNICATIONS - 16.4%
Facebook, Inc. — Class A*		43,790		3,461,162
Netflix, Inc.*		6,835		3,083,814
TripAdvisor, Inc.*		30,867		2,821,861
Priceline Group, Inc.*		1,831		2,121,360
News Corp. — Class A*		125,170		2,046,530
VeriSign, Inc.*		32,180		1,773,762
DIRECTV*		19,809		1,713,875
Amazon.com, Inc.*		4,184		1,349,089
Comcast Corp. — Class A		24,190		1,300,938
Interpublic Group of Companies, Inc.		52,630		964,182
Google, Inc. — Class A*		1,499		882,026
Google, Inc. — Class C*		1,499		865,463
Yahoo!, Inc.*		18,249		743,647
CBS Corp. — Class B		13,280		710,480
Viacom, Inc. — Class B		8,950		688,613
Time Warner Cable, Inc.		4,530		650,010
Discovery Communications, Inc. — Class A*		11,883		449,177
Discovery Communications, Inc. — Class C*		11,883		442,998
Total Communications				26,068,987
FINANCIAL - 13.2%
Huntington Bancshares, Inc.		313,207		3,047,503
KeyCorp		163,480		2,179,188
Comerica, Inc.		40,510		2,019,829
Fifth Third Bancorp		92,060		1,843,041
Prudential Financial, Inc.		20,860		1,834,429
Discover Financial Services		25,210		1,623,272
Ameriprise Financial, Inc.		12,550		1,548,420
Charles Schwab Corp.		41,750		1,227,033
Affiliated Managers Group, Inc.*		5,500		1,101,980
Torchmark Corp.		14,890		779,789
BlackRock, Inc. — Class A		2,170		712,454
Invesco Ltd.		17,740		700,375
Macerich Co.		10,470		668,300
Visa, Inc. — Class A		3,079		656,966
American Express Co.		7,370		645,170
Intercontinental Exchange, Inc.		2,470		481,774
Total Financial				21,069,523
TECHNOLOGY - 9.2%
Seagate Technology plc		41,187		2,358,779
Western Digital Corp.		21,140		2,057,345
First Solar, Inc.*		25,150		1,655,122
Cognizant Technology Solutions Corp. — Class A*		28,402		1,271,558
Electronic Arts, Inc.*		31,890		1,135,603
SanDisk Corp.		10,550		1,033,373
salesforce.com, Inc.*		16,506		949,590
QUALCOMM, Inc.		11,868		887,370
Micron Technology, Inc.*		25,640		878,426
Cerner Corp.*		14,544		866,386
Pitney Bowes, Inc.		30,420		760,196

10  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
S&P 500® PURE GROWTH FUND

	Shares		Value
Fidelity National Information Services, Inc.		13,160	$	740,908
Total Technology				14,594,656
ENERGY - 7.6%
Halliburton Co.		28,860		1,861,759
Helmerich & Payne, Inc.		17,660		1,728,384
EOG Resources, Inc.		17,060		1,689,280
Pioneer Natural Resources Co.		8,548		1,683,700
Cabot Oil & Gas Corp. — Class A		44,920		1,468,435
Noble Energy, Inc.		11,960		817,586
Range Resources Corp.		11,990		813,042
Schlumberger Ltd.		7,310		743,354
Kinder Morgan, Inc.1		17,280		662,515
Equities Corp.		7,090		649,019
Total Energy				12,117,074
INDUSTRIAL - 3.7%
Textron, Inc.		43,850		1,578,161
Sealed Air Corp.		36,320		1,266,842
Boeing Co.		7,050		898,029
Thermo Fisher Scientific, Inc.		7,120		866,504
Flowserve Corp.		9,490		669,235
Precision Castparts Corp.		2,780		658,526
Total Industrial				5,937,297
BASIC MATERIALS - 3.0%
LyondellBasell Industries N.V. — Class A		20,820		2,262,301
Ecolab, Inc.		10,104		1,160,242
Eastman Chemical Co.		10,122		818,769
PPG Industries, Inc.		3,113		612,452
Total Basic Materials				4,853,764
Total Common Stocks
(Cost $125,326,809)				158,681,484

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	486,002		486,002
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		284,170		284,170
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		200,952		200,952
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		125,393		125,393
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		748		748
Total Repurchase Agreements
(Cost $1,097,265)				1,097,265
SECURITIES LENDING COLLATERAL††,3 - 0.3%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		373,228		373,228
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		61,185		61,185
Total Securities Lending Collateral
(Cost $434,413)				434,413
Total Investments - 100.5%
(Cost $126,858,487)			$	160,213,162
Other Assets & Liabilities, net - (0.5)%				(824,046	)
Total Net Assets - 100.0%			$	159,389,116

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	plc — Public Limited Company

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  11 

S&P 500^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $490,752 of securities loaned (cost $125,326,809)	$	158,681,484
Repurchase agreements, at value (cost $1,531,678)		1,531,678
Total investments (cost $126,858,487)		160,213,162
Segregated cash with broker		71,187
Receivables:
Fund shares sold		96,343
Dividends		93,684
Securities lending income		34
Total assets		160,474,410
Liabilities:
Payable for:
Upon return of securities loaned		505,600
Fund shares redeemed		288,637
Management fees		102,661
Distribution and service fees		46,504
Transfer agent and administrative fees		34,220
Portfolio accounting fees		13,688
Miscellaneous		93,984
Total liabilities		1,085,294
Net assets	$	159,389,116
Net assets consist of:
Paid in capital	$	132,938,644
Accumulated net investment loss		(634,532	)
Accumulated net realized loss on investments		(6,269,671	)
Net unrealized appreciation on investments		33,354,675
Net assets	$	159,389,116
A-Class:
Net assets	$	22,188,438
Capital shares outstanding		414,360
Net asset value per share	$	53.55
Maximum offering price per share (Net asset value divided by 95.25%)	$	56.22
C-Class:
Net assets	$	20,019,735
Capital shares outstanding		405,071
Net asset value per share	$	49.42
H-Class:
Net assets	$	117,180,943
Capital shares outstanding		2,188,656
Net asset value per share	$	53.54

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	668,404
Interest		93
Income from securities lending, net		33
Total investment income		668,530
Expenses:
Management fees		609,214
Transfer agent and administrative fees		203,071
Distribution and service fees:
A-Class		33,538
C-Class		90,530
H-Class		146,901
Portfolio accounting fees		81,228
Custodian fees		9,481
Trustees’ fees*		6,123
Line of credit interest expense		144
Miscellaneous		122,832
Total expenses		1,303,062
Net investment loss		(634,532	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,669,855	)
Net realized loss		(2,669,855	)
Net change in unrealized appreciation (depreciation) on:
Investments		7,421,216
Net change in unrealized appreciation (depreciation)		7,421,216
Net realized and unrealized gain		4,751,361
Net increase in net assets resulting from operations	$	4,116,829

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

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

S&P 500^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(634,532	)	$	(647,036	)
Net realized gain (loss) on investments		(2,669,855	)		9,974,053
Net change in unrealized appreciation (depreciation) on investments		7,421,216			8,963,993
Net increase in net assets resulting from operations		4,116,829			18,291,010
Capital share transactions:
Proceeds from sale of shares
A-Class		25,268,854			37,301,868
C-Class		7,963,491			12,501,975
H-Class		216,599,490			636,709,145
Cost of shares redeemed
A-Class		(24,375,481	)		(35,975,939	)
C-Class		(5,780,998	)		(7,186,094	)
H-Class		(204,925,689	)		(597,296,078	)
Net increase from capital share transactions		14,749,667			46,054,877
Net increase in net assets		18,866,496			64,345,887
Net assets:
Beginning of period		140,522,620			76,176,733
End of period	$	159,389,116		$	140,522,620
Accumulated net investment loss/Undistributed net investment income at end of period	$	(634,532	)	$	—
Capital share activity:
Shares sold
A-Class		482,562			826,973
C-Class		162,881			292,518
H-Class		4,097,369			14,083,714
Shares redeemed
A-Class		(461,419	)		(819,808	)
C-Class		(119,883	)		(170,107	)
H-Class		(3,946,264	)		(13,397,258	)
Net increase in shares		215,246			816,032

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	50.81		$	38.86		$	34.54		$	33.15		$	26.51		$	15.82
Income (loss) from investment operations:
Net investment income (loss)b		(.17	)		(.23	)		(.13	)		(.20	)		(.18	)		(.18	)
Net gain (loss) on investments (realized and unrealized)		2.91			12.18			4.45			1.82			6.82			10.87
Total from investment operations		2.74			11.95			4.32			1.62			6.64			10.69
Less distributions from:
Net realized gains		—			—			—			(.23	)		—			—
Total distributions		—			—			—			(.23	)		—			—
Net asset value, end of period	$	53.55		$	50.81		$	38.86		$	34.54		$	33.15		$	26.51
Total Returnc		5.39	%		30.75	%		12.51	%		4.96	%		25.05	%		67.57	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	22,188		$	19,978		$	15,001		$	2,846		$	2,704		$	1,774
Ratios to average net assets:
Net investment income (loss)		(0.65	%)		(0.51	%)		(0.38	%)		(0.62	%)		(0.65	%)		(0.81	%)
Total expenses		1.52	%		1.52	%		1.51	%		1.52	%		1.53	%		1.52	%
Portfolio turnover rate		112	%		594	%		421	%		586	%		808	%		699	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	47.07		$	36.27		$	32.48		$	31.42		$	25.32		$	15.23
Income (loss) from investment operations:
Net investment income (loss)b		(.34	)		(.52	)		(.38	)		(.41	)		(.41	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		2.69			11.32			4.17			1.70			6.51			10.39
Total from investment operations		2.35			10.80			3.79			1.29			6.10			10.09
Less distributions from:
Net realized gains		—			—			—			(.23	)		—			—
Total distributions		—			—			—			(.23	)		—			—
Net asset value, end of period	$	49.42		$	47.07		$	36.27		$	32.48		$	31.42		$	25.32
Total Returnc		4.99	%		29.78	%		11.70	%		4.15	%		24.09	%		66.25	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	20,020		$	17,042		$	8,692		$	11,623		$	8,384		$	6,494
Ratios to average net assets:
Net investment income (loss)		(1.40	%)		(1.24	%)		(1.19	%)		(1.35	%)		(1.53	%)		(1.40	%)
Total expenses		2.27	%		2.27	%		2.25	%		2.26	%		2.29	%		2.28	%
Portfolio turnover rate		112	%		594	%		421	%		586	%		808	%		699	%

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

S&P 500^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	50.80		$	38.84		$	34.52		$	33.13		$	26.50		$	15.81
Income (loss) from investment operations:
Net investment income (loss)b		(.19	)		(.23	)		(.15	)		(.19	)		(.26	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		2.93			12.19			4.47			1.81			6.89			10.83
Total from investment operations		2.74			11.96			4.32			1.62			6.63			10.69
Less distributions from:
Net realized gains		—			—			—			(.23	)		—			—
Total distributions		—			—			—			(.23	)		—			—
Net asset value, end of period	$	53.54		$	50.80		$	38.84		$	34.52		$	33.13		$	26.50
Total Returnc		5.39	%		30.79	%		12.51	%		4.96	%		25.02	%		67.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	117,181		$	103,502		$	52,483		$	36,627		$	38,831		$	15,874
Ratios to average net assets:
Net investment income (loss)		(0.71	%)		(0.50	%)		(0.43	%)		(0.59	%)		(0.89	%)		(0.60	%)
Total expenses		1.52	%		1.52	%		1.50	%		1.51	%		1.55	%		1.53	%
Portfolio turnover rate		112	%		594	%		421	%		586	%		808	%		699	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

S&P 500^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for large-cap value securities on a daily basis. The Fund’s current benchmark is the S&P 500^® Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Alcoa, Inc.	2.9%
Berkshire Hathaway, Inc. — Class B	2.4%
WellPoint, Inc.	2.4%
Archer-Daniels-Midland Co.	1.8%
Humana, Inc.	1.8%
Nabors Industries Ltd.	1.7%
Valero Energy Corp.	1.6%
Tyson Foods, Inc. — Class A	1.6%
Assurant, Inc.	1.6%
Xerox Corp.	1.5%
Top Ten Total	19.3%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

16  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
S&P 500® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.6%
FINANCIAL - 25.4%
Berkshire Hathaway, Inc. — Class B*		27,180	$	3,754,645
Assurant, Inc.		37,983		2,442,306
Hartford Financial Services Group, Inc.		54,463		2,028,747
American International Group, Inc.		36,986		1,997,984
XL Group plc — Class A		58,394		1,936,929
Unum Group		56,307		1,935,835
Allstate Corp.		31,500		1,933,155
Genworth Financial, Inc. — Class A*		144,690		1,895,439
MetLife, Inc.		34,584		1,857,852
Capital One Financial Corp.		18,455		1,506,297
Morgan Stanley		41,856		1,446,961
SunTrust Banks, Inc.		35,237		1,340,063
Bank of America Corp.		77,755		1,325,723
Loews Corp.		31,206		1,300,042
Goldman Sachs Group, Inc.		6,703		1,230,470
PNC Financial Services Group, Inc.		14,245		1,219,087
JPMorgan Chase & Co.		19,999		1,204,740
Travelers Companies, Inc.		12,610		1,184,583
Bank of New York Mellon Corp.		27,734		1,074,138
ACE Ltd.		10,240		1,073,869
NASDAQ OMX Group, Inc.		25,085		1,064,106
Hudson City Bancorp, Inc.		84,320		819,590
BB&T Corp.		20,650		768,387
Wells Fargo & Co.		12,980		673,273
Chubb Corp.		7,090		645,757
Cincinnati Financial Corp.		12,810		602,711
M&T Bank Corp.		4,570		563,435
Progressive Corp.		21,870		552,874
Aflac, Inc.		8,840		514,930
Total Financial				39,893,928
UTILITIES - 16.3%
NRG Energy, Inc.		71,745		2,186,788
Exelon Corp.		60,585		2,065,344
Pepco Holdings, Inc.		72,697		1,945,372
Entergy Corp.		24,795		1,917,397
Integrys Energy Group, Inc.		25,940		1,681,431
FirstEnergy Corp.		35,820		1,202,477
Edison International		21,352		1,194,004
AES Corp.		76,969		1,091,420
PG&E Corp.		23,704		1,067,628
Consolidated Edison, Inc.		18,182		1,030,192
Xcel Energy, Inc.		32,445		986,328
DTE Energy Co.		12,602		958,760
SCANA Corp.		19,280		956,481
Public Service Enterprise Group, Inc.		25,600		953,344
PPL Corp.		27,306		896,729
AGL Resources, Inc.		17,420		894,343
Pinnacle West Capital Corp.		15,845		865,771
Duke Energy Corp.		11,433		854,845
Northeast Utilities		18,338		812,373
American Electric Power Company, Inc.		14,783		771,820
TECO Energy, Inc.		41,090		714,144
CMS Energy Corp.		21,857		648,279
Total Utilities				25,695,270
CONSUMER, NON-CYCLICAL - 14.8%
WellPoint, Inc.		31,278		3,741,474
Archer-Daniels-Midland Co.		54,950		2,807,945
Humana, Inc.		21,451		2,794,851
Tyson Foods, Inc. — Class A		62,213		2,449,326
Aetna, Inc.		23,618		1,913,058
Kroger Co.		35,170		1,828,840
UnitedHealth Group, Inc.		15,887		1,370,254
Cardinal Health, Inc.		17,089		1,280,308
Sysco Corp.		33,732		1,280,129
Express Scripts Holding Co.*		17,368		1,226,702
Molson Coors Brewing Co. — Class B		15,118		1,125,384
ConAgra Foods, Inc.		16,450		543,508
Quest Diagnostics, Inc.		8,660		525,489
Avery Dennison Corp.		10,420		465,253
Total Consumer, Non-cyclical				23,352,521
ENERGY - 14.3%
Nabors Industries Ltd.		118,448		2,695,876
Valero Energy Corp.		53,739		2,486,503
Phillips 66		28,741		2,336,931
Hess Corp.		23,491		2,215,671
Murphy Oil Corp.		38,050		2,165,426
Tesoro Corp.		34,510		2,104,420
Apache Corp.		12,470		1,170,559
Baker Hughes, Inc.		15,735		1,023,719
Chevron Corp.		7,920		945,014
Marathon Oil Corp.		24,981		939,036
Denbury Resources, Inc.		58,700		882,261
Transocean Ltd.1		24,294		776,679
Ensco plc — Class A		18,347		757,915
ConocoPhillips		9,702		742,397
Noble Corporation plc		28,978		643,891
Exxon Mobil Corp.		6,500		611,325
Total Energy				22,497,623
CONSUMER, CYCLICAL - 10.1%
General Motors Co.		49,239		1,572,693
AutoNation, Inc.*		30,538		1,536,367
Staples, Inc.		126,579		1,531,606
Kohl’s Corp.		23,381		1,426,943
Ford Motor Co.		89,769		1,327,683
CVS Health Corp.		15,218		1,211,201
Target Corp.		18,612		1,166,600
DR Horton, Inc.		52,670		1,080,788
Carnival Corp.		23,851		958,095
Whirlpool Corp.		6,368		927,499
Wal-Mart Stores, Inc.		12,000		917,640
PulteGroup, Inc.		48,130		849,976

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
S&P 500® PURE VALUE FUND

	Shares		Value
Costco Wholesale Corp.		6,031	$	755,805
Macy’s, Inc.		11,884		691,411
Total Consumer, Cyclical				15,954,307
INDUSTRIAL - 6.5%
Jabil Circuit, Inc.		110,361		2,225,981
Ryder System, Inc.		19,193		1,726,794
L-3 Communications Holdings, Inc.		13,864		1,648,707
Fluor Corp.		15,600		1,041,924
Jacobs Engineering Group, Inc.*		20,165		984,455
Joy Global, Inc.		13,800		752,652
Bemis Company, Inc.		16,780		637,976
Stanley Black & Decker, Inc.		6,580		584,238
Deere & Co.		7,110		582,949
Total Industrial				10,185,676
BASIC MATERIALS - 5.7%
Alcoa, Inc.		283,751		4,565,553
Allegheny Technologies, Inc.		26,770		993,167
Dow Chemical Co.		17,379		911,355
International Paper Co.		15,120		721,829
Mosaic Co.		15,410		684,358
Freeport-McMoRan, Inc.		16,624		542,774
Nucor Corp.		9,680		525,430
Total Basic Materials				8,944,466
TECHNOLOGY - 4.1%
Xerox Corp.		182,417		2,413,377
Hewlett-Packard Co.		68,037		2,413,272
Computer Sciences Corp.		25,592		1,564,951
Total Technology				6,391,600
COMMUNICATIONS - 2.4%
Frontier Communications Corp.1		226,586		1,475,075
CenturyLink, Inc.		30,183		1,234,183
Corning, Inc.		53,594		1,036,508
Total Communications				3,745,766
Total Common Stocks
(Cost $133,440,170)				156,661,157

	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	270,686		270,686
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		158,274		158,274
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		111,923		111,923
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		69,839		69,839
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		416		416
Total Repurchase Agreements
(Cost $611,138)				611,138
SECURITIES LENDING COLLATERAL††,3 - 1.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		1,289,153		1,289,153
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		211,337		211,337
Total Securities Lending Collateral
(Cost $1,500,490)				1,500,490
Total Investments - 101.0%
(Cost $135,551,798)			$	158,772,785
Other Assets & Liabilities, net - (1.0)%				(1,639,045	)
Total Net Assets - 100.0%			$	157,133,740

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	plc — Public Limited Company

18  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P 500^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $1,682,463 of securities loaned (cost $133,440,170)	$	156,661,157
Repurchase agreements, at value (cost $2,111,628)		2,111,628
Total investments (cost $135,551,798)		158,772,785
Segregated cash with broker		245,885
Cash		18,854
Receivables:
Dividends		187,148
Fund shares sold		80,757
Securities lending income		741
Total assets		159,306,170
Liabilities:
Payable for:
Upon return of securities loaned		1,746,375
Fund shares redeemed		121,092
Management fees		108,772
Distribution and service fees		40,786
Transfer agent and administrative fees		36,257
Portfolio accounting fees		14,503
Miscellaneous		104,645
Total liabilities		2,172,430
Net assets	$	157,133,740
Net assets consist of:
Paid in capital	$	135,088,661
Undistributed net investment income		701,901
Accumulated net realized loss on investments		(1,877,809	)
Net unrealized appreciation on investments		23,220,987
Net assets	$	157,133,740
A-Class:
Net assets	$	21,636,550
Capital shares outstanding		148,276
Net asset value per share	$	145.92
Maximum offering price per share (Net asset value divided by 95.25%)	$	153.20
C-Class:
Net assets	$	7,532,491
Capital shares outstanding		57,148
Net asset value per share	$	131.81
H-Class:
Net assets	$	127,964,699
Capital shares outstanding		873,870
Net asset value per share	$	146.43

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	2,159,536
Income from securities lending, net		4,249
Interest		109
Total investment income		2,163,894
Expenses:
Management fees		772,647
Transfer agent and administrative fees		257,549
Distribution and service fees:
A-Class		30,411
C-Class		36,176
H-Class		218,094
Portfolio accounting fees		102,833
Custodian fees		12,034
Trustees’ fees*		6,083
Line of credit interest expense		140
Miscellaneous		156,870
Total expenses		1,592,837
Net investment income		571,057
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,239,845	)
Net realized loss		(2,239,845	)
Net change in unrealized appreciation (depreciation) on:
Investments		7,278,299
Net change in unrealized appreciation (depreciation)		7,278,299
Net realized and unrealized gain		5,038,454
Net increase in net assets resulting from operations	$	5,609,511

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  19 

S&P 500^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	571,057		$	298,766
Net realized gain (loss) on investments		(2,239,845	)		17,670,652
Net change in unrealized appreciation (depreciation) on investments		7,278,299			1,013,121
Net increase in net assets resulting from operations		5,609,511			18,982,539
Distributions to shareholders from:
Net investment income
A-Class		—			(4,543	)
C-Class		—			(9,295	)
H-Class		—			(154,084	)
Net realized gains
A-Class		—			(112,508	)
C-Class		—			(230,200	)
H-Class		—			(3,815,942	)
Total distributions to shareholders		—			(4,326,572	)
Capital share transactions:
Proceeds from sale of shares
A-Class		42,240,163			5,628,794
C-Class		7,378,025			5,902,053
H-Class		317,205,775			369,062,897
Distributions reinvested
A-Class		—			106,616
C-Class		—			225,859
H-Class		—			3,914,756
Cost of shares redeemed
A-Class		(25,769,042	)		(3,047,246	)
C-Class		(5,061,540	)		(5,327,015	)
H-Class		(308,978,550	)		(349,827,346	)
Net increase from capital share transactions		27,014,831			26,639,368
Net increase in net assets		32,624,342			41,295,335
Net assets:
Beginning of period		124,509,398			83,214,063
End of period	$	157,133,740		$	124,509,398
Undistributed net investment income at end of period	$	701,901		$	130,844
Capital share activity:
Shares sold
A-Class		292,203			42,301
C-Class		56,136			50,818
H-Class		2,175,702			2,933,227
Shares issued from reinvestment of distributions
A-Class		—			798
C-Class		—			1,860
H-Class		—			29,199
Shares redeemed
A-Class		(175,294	)		(23,402	)
C-Class		(38,696	)		(46,452	)
H-Class		(2,112,228	)		(2,852,369	)
Net increase in shares		197,823			135,980

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010d
Per Share Data
Net asset value, beginning of period	$	141.39		$	111.68		$	93.49		$	90.21		$	79.66		$	35.58
Income (loss) from investment operations:
Net investment income (loss)b		.53			.61			.58			.30			.01			.26
Net gain (loss) on investments (realized and unrealized)		4.00			35.01			17.75			2.98			11.87			44.60
Total from investment operations		4.53			35.62			18.33			3.28			11.88			44.86
Less distributions from:
Net investment income		—			(.23	)		(.14	)		—			(1.33	)		(.78	)
Net realized gains		—			(5.68	)		—			—			—			—
Total distributions		—			(5.91	)		(.14	)		—			(1.33	)		(.78	)
Net asset value, end of period	$	145.92		$	141.39		$	111.68		$	93.49		$	90.21		$	79.66
Total Returnc		3.20	%		32.21	%		19.63	%		3.64	%		15.14	%		126.37	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,637		$	4,435		$	1,303		$	1,846		$	2,329		$	8,156
Ratios to average net assets:
Net investment income (loss)		0.72	%		0.47	%		0.61	%		0.34	%		0.01	%		0.39	%
Total expenses		1.52	%		1.52	%		1.51	%		1.51	%		1.54	%		1.52	%
Portfolio turnover rate		120	%		410	%		669	%		762	%		820	%		673	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010d
Per Share Data
Net asset value, beginning of period	$	128.19		$	102.46		$	86.42		$	83.99		$	74.81		$	33.66
Income (loss) from investment operations:
Net investment income (loss)b		(.06	)		(.30	)		(.19	)		(.36	)		(.51	)		(.02	)
Net gain (loss) on investments (realized and unrealized)		3.68			31.94			16.37			2.79			11.02			41.95
Total from investment operations		3.62			31.64			16.18			2.43			10.51			41.93
Less distributions from:
Net investment income		—			(.23	)		(.14	)		—			(1.33	)		(.78	)
Net realized gains		—			(5.68	)		—			—			—			—
Total distributions		—			(5.91	)		(.14	)		—			(1.33	)		(.78	)
Net asset value, end of period	$	131.81		$	128.19		$	102.46		$	86.42		$	83.99		$	74.81
Total Returnc		2.82	%		31.21	%		18.76	%		2.88	%		14.28	%		124.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,532		$	5,090		$	3,430		$	2,128		$	5,690		$	4,876
Ratios to average net assets:
Net investment income (loss)		(0.09	%)		(0.26	%)		(0.22	%)		(0.45	%)		(0.68	%)		(0.03	%)
Total expenses		2.27	%		2.27	%		2.26	%		2.27	%		2.29	%		2.27	%
Portfolio turnover rate		120	%		410	%		669	%		762	%		820	%		673	%

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

S&P 500^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010d
Per Share Data
Net asset value, beginning of period	$	141.89		$	112.06		$	93.80		$	90.50		$	79.91		$	35.67
Income (loss) from investment operations:
Net investment income (loss)b		.41			.51			.57			.33			(.02	)		.32
Net gain (loss) on investments (realized and unrealized)		4.13			35.23			17.83			2.97			11.94			44.70
Total from investment operations		4.54			35.74			18.40			3.30			11.92			45.02
Less distributions from:
Net investment income		—			(.23	)		(.14	)		—			(1.33	)		(.78	)
Net realized gains		—			(5.68	)		—			—			—			—
Total distributions		—			(5.91	)		(.14	)		—			(1.33	)		(.78	)
Net asset value, end of period	$	146.43		$	141.89		$	112.06		$	93.80		$	90.50		$	79.91
Total Returnc		3.20	%		32.21	%		19.64	%		3.65	%		15.14	%		126.50	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	127,965		$	114,984		$	78,480		$	68,886		$	26,852		$	148,578
Ratios to average net assets:
Net investment income (loss)		0.56	%		0.40	%		0.58	%		0.38	%		(0.03	%)		0.47	%
Total expenses		1.52	%		1.52	%		1.52	%		1.51	%		1.54	%		1.54	%
Portfolio turnover rate		120	%		410	%		669	%		762	%		820	%		673	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split — Per share amounts for the period presented through April 20, 2009 have been restated to reflect a 1:5 reverse share split effective April 20, 2009.

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

FUND PROFILE (Unaudited) September 30, 2014

S&P MIDCAP 400^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Salix Pharmaceuticals Ltd.	3.9%
Trinity Industries, Inc.	3.2%
United Therapeutics Corp.	2.4%
Patterson-UTI Energy, Inc.	2.3%
Synovus Financial Corp.	2.3%
Deckers Outdoor Corp.	2.0%
Tempur Sealy International, Inc.	2.0%
Endo International plc	1.9%
Kirby Corp.	1.9%
SVB Financial Group	1.9%
Top Ten Total	23.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  23 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.4%
INDUSTRIAL - 21.9%
Trinity Industries, Inc.		161,100	$	7,526,592
Kirby Corp.*		37,300		4,395,805
AO Smith Corp.		85,800		4,056,624
B/E Aerospace, Inc.*		41,700		3,500,298
Wabtec Corp.		41,660		3,376,126
Old Dominion Freight Line, Inc.*		46,400		3,277,696
Eagle Materials, Inc.		24,940		2,539,640
Worthington Industries, Inc.		58,149		2,164,306
Terex Corp.		67,700		2,150,829
Packaging Corporation of America		31,600		2,016,712
Graco, Inc.		26,900		1,963,162
Belden, Inc.		30,200		1,933,404
Genesee & Wyoming, Inc. — Class A*		18,600		1,772,766
Gentex Corp.		64,466		1,725,755
Fortune Brands Home & Security, Inc.		41,000		1,685,510
Lincoln Electric Holdings, Inc.		22,600		1,562,451
Cognex Corp.*		38,000		1,530,260
FEI Co.		16,600		1,251,972
IDEX Corp.		16,900		1,223,053
Trimble Navigation Ltd.*		36,694		1,119,167
J.B. Hunt Transport Services, Inc.		14,200		1,051,510
Total Industrial				51,823,638
FINANCIAL - 20.1%
Synovus Financial Corp.		226,075		5,344,413
SVB Financial Group*		39,200		4,393,929
Umpqua Holdings Corp.		261,600		4,308,552
Cathay General Bancorp		156,507		3,886,069
BancorpSouth, Inc.		183,900		3,703,746
Associated Banc-Corp.		195,300		3,402,126
Old Republic International Corp.		235,408		3,361,626
PacWest Bancorp		76,500		3,154,095
SLM Corp.		269,620		2,307,947
Signature Bank*		20,501		2,297,342
CBOE Holdings, Inc.		40,600		2,173,115
Waddell & Reed Financial, Inc. — Class A		41,300		2,134,797
Washington Federal, Inc.		97,297		1,980,967
City National Corp.		21,308		1,612,376
East West Bancorp, Inc.		40,300		1,370,200
Omega Healthcare Investors, Inc.		33,200		1,135,108
Alexander & Baldwin, Inc.		29,300		1,053,921
Total Financial				47,620,329
CONSUMER, NON-CYCLICAL - 19.3%
Salix Pharmaceuticals Ltd.*		58,900		9,202,536
United Therapeutics Corp.*		44,352		5,705,885
Endo International plc*		64,600		4,414,764
Corporate Executive Board Co.		50,000		3,003,500
WEX, Inc.*		25,169		2,776,644
Align Technology, Inc.*		48,100		2,485,808
Jarden Corp.*		39,700		2,386,367
SUPERVALU, Inc.*		250,300		2,237,682
Hain Celestial Group, Inc.*		21,200		2,169,820
Towers Watson & Co. — Class A		20,100		1,999,950
Cubist Pharmaceuticals, Inc.*		26,800		1,777,912
Charles River Laboratories International, Inc.*		26,700		1,595,058
CoreLogic, Inc.*		51,100		1,383,277
Global Payments, Inc.		19,400		1,355,672
Covance, Inc.*		15,600		1,227,720
Deluxe Corp.		21,900		1,208,004
Sotheby’s		24,700		882,284
Total Consumer, Non-cyclical				45,812,883
CONSUMER, CYCLICAL - 17.3%
Deckers Outdoor Corp.*		49,000		4,761,820
Tempur Sealy International, Inc.*		84,600		4,751,982
Wendy’s Co.1		454,600		3,754,996
Bally Technologies, Inc.*		44,500		3,591,150
Polaris Industries, Inc.		23,233		3,480,071
Toll Brothers, Inc.*		102,800		3,203,248
Hanesbrands, Inc.		24,800		2,664,512
Alaska Air Group, Inc.		61,030		2,657,246
LKQ Corp.*		91,970		2,445,482
Brinker International, Inc.		41,200		2,092,548
HNI Corp.		46,300		1,666,337
Brunswick Corp.		37,600		1,584,464
Copart, Inc.*		40,374		1,264,312
Domino’s Pizza, Inc.		16,100		1,239,056
Carter’s, Inc.		14,000		1,085,280
DreamWorks Animation SKG, Inc. — Class A*		30,600		834,462
Total Consumer, Cyclical				41,076,966
TECHNOLOGY - 10.2%
Ultimate Software Group, Inc.*		21,386		3,026,333
PTC, Inc.*		77,600		2,863,440
3D Systems Corp.*,1		61,700		2,861,029
Concur Technologies, Inc.*		19,270		2,443,821
Mentor Graphics Corp.		112,000		2,295,440
ACI Worldwide, Inc.*		117,937		2,212,498
MSCI, Inc. — Class A*		37,600		1,767,952
Advent Software, Inc.		44,100		1,391,796
Fair Isaac Corp.		24,000		1,322,400
Cree, Inc.*		30,900		1,265,355
Broadridge Financial Solutions, Inc.		28,800		1,198,944
CommVault Systems, Inc.*		17,300		871,920
Acxiom Corp.*		38,400		635,520
Total Technology				24,156,448
ENERGY - 8.1%
Patterson-UTI Energy, Inc.		168,512		5,481,695
SM Energy Co.		46,300		3,611,400
Oil States International, Inc.*		42,800		2,649,320
Rosetta Resources, Inc.*		52,200		2,326,032
Oceaneering International, Inc.		28,877		1,881,914
Dril-Quip, Inc.*		13,400		1,197,960

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
S&P MIDCAP 400® PURE GROWTH FUND

	Shares		Value
Gulfport Energy Corp.*		22,100	$	1,180,140
CARBO Ceramics, Inc.1		15,000		888,450
Total Energy				19,216,911
COMMUNICATIONS - 2.5%
Conversant, Inc.*		71,100		2,435,175
Graham Holdings Co. — Class B		1,900		1,329,221
Ciena Corp.*		70,151		1,172,925
NeuStar, Inc. — Class A*,1		38,176		947,910
Total Communications				5,885,231
Total Common Stocks
(Cost $197,011,146)				235,592,406
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.7%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	787,126		787,126
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		460,240		460,240
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		325,460		325,460
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		203,085		203,085
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		1,211		1,211
Total Repurchase Agreements
(Cost $1,777,122)				1,777,122

SECURITIES LENDING COLLATERAL††,3 - 2.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	4,015,319		4,015,319
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14	658,249		658,249
Total Securities Lending Collateral
(Cost $4,673,568)			4,673,568
Total Investments - 102.1%
(Cost $203,461,836)		$	242,043,096
Other Assets & Liabilities, net - (2.1)%			(5,062,074	)
Total Net Assets - 100.0%		$	236,981,022

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	plc — Public Limited Company

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

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $5,210,838 of securities loaned (cost $197,011,146)	$	235,592,406
Repurchase agreements, at value (cost $6,450,690)		6,450,690
Total investments (cost $203,461,836)		242,043,096
Segregated cash with broker		765,857
Receivables:
Dividends		105,557
Fund shares sold		55,162
Securities lending income		36,893
Total assets		243,006,565
Liabilities:
Payable for:
Upon return of securities loaned		5,439,425
Management fees		149,931
Fund shares redeemed		148,781
Distribution and service fees		66,589
Transfer agent and administrative fees		49,977
Portfolio accounting fees		19,908
Miscellaneous		150,932
Total liabilities		6,025,543
Net assets	$	236,981,022
Net assets consist of:
Paid in capital	$	161,207,697
Accumulated net investment loss		(847,902	)
Accumulated net realized gain on investments		38,039,967
Net unrealized appreciation on investments		38,581,260
Net assets	$	236,981,022
A-Class:
Net assets	$	44,287,532
Capital shares outstanding		763,412
Net asset value per share	$	58.01
Maximum offering price per share (Net asset value divided by 95.25%)	$	60.90
C-Class:
Net assets	$	27,216,966
Capital shares outstanding		510,326
Net asset value per share	$	53.33
H-Class:
Net assets	$	165,476,524
Capital shares outstanding		2,849,935
Net asset value per share	$	58.06

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	980,107
Income from securities lending, net		144,122
Interest		93
Total investment income		1,124,322
Expenses:
Management fees		921,333
Transfer agent and administrative fees		307,111
Distribution and service fees:
A-Class		66,635
C-Class		138,093
H-Class		205,953
Portfolio accounting fees		122,611
Registration fees		104,251
Custodian fees		14,341
Trustees’ fees*		10,782
Tax expense		2,114
Line of credit interest expense		72
Miscellaneous		78,928
Total expenses		1,972,224
Net investment loss		(847,902	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		8,251,831
Net realized gain		8,251,831
Net change in unrealized appreciation (depreciation) on:
Investments		(11,522,451	)
Net change in unrealized appreciation (depreciation)		(11,522,451	)
Net realized and unrealized loss		(3,270,620	)
Net decrease in net assets resulting from operations	$	(4,118,522	)

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

26  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P MIDCAP 400^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(847,902	)	$	(1,185,523	)
Net realized gain on investments		8,251,831			55,085,731
Net change in unrealized appreciation (depreciation) on investments		(11,522,451	)		(4,970,041	)
Net increase (decrease) in net assets resulting from operations		(4,118,522	)		48,930,167
Distributions to shareholders from:
Net realized gains
A-Class		—			(1,952,757	)
C-Class		—			(948,399	)
H-Class		—			(6,562,447	)
Total distributions to shareholders		—			(9,463,603	)
Capital share transactions:
Proceeds from sale of shares
A-Class		13,736,051			36,744,483
C-Class		2,840,727			12,268,993
H-Class		74,813,613			228,779,489
Distributions reinvested
A-Class		—			1,901,016
C-Class		—			922,659
H-Class		—			6,298,116
Cost of shares redeemed
A-Class		(28,365,626	)		(33,701,785	)
C-Class		(3,752,179	)		(6,985,331	)
H-Class		(92,896,711	)		(317,602,501	)
Net decrease from capital share transactions		(33,624,125	)		(71,374,861	)
Net decrease in net assets		(37,742,647	)		(31,908,297	)
Net assets:
Beginning of period		274,723,669			306,631,966
End of period	$	236,981,022		$	274,723,669
Accumulated net investment loss/Undistributed net investment income at end of period	$	(847,902	)	$	—
Capital share activity:
Shares sold
A-Class		239,825			700,297
C-Class		53,395			242,805
H-Class		1,281,310			4,249,934
Shares issued from reinvestment of distributions
A-Class		—			33,658
C-Class		—			17,659
H-Class		—			111,412
Shares redeemed
A-Class		(487,168	)		(640,363	)
C-Class		(70,789	)		(138,844	)
H-Class		(1,613,953	)		(6,041,405	)
Net decrease in shares		(597,380	)		(1,464,847	)

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  27 

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	58.66		$	49.76		$	44.11		$	42.76		$	32.21		$	18.19
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.22	)		(.19	)		(.45	)		(.38	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(.47	)		11.05			5.84			1.80			10.93			14.30
Total from investment operations		(.65	)		10.83			5.65			1.35			10.55			14.02
Less distributions from:
Net realized gains		—			(1.93	)		—			—			—			—
Total distributions		—			(1.93	)		—			—			—			—
Net asset value, end of period	$	58.01		$	58.66		$	49.76		$	44.11		$	42.76		$	32.21
Total Returnc		(1.11	%)		21.90	%		12.81	%		3.16	%		32.75	%		77.08	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	44,288		$	59,293		$	45,638		$	36,052		$	25,237		$	2,242
Ratios to average net assets:
Net investment income (loss)		(0.60	%)		(0.40	%)		(0.43	%)		(1.09	%)		(1.04	%)		(1.03	%)
Total expenses		1.52	%		1.52	%		1.50	%		1.50	%		1.54	%		1.53	%
Portfolio turnover rate		33	%		131	%		188	%		226	%		448	%		626	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	54.13		$	46.39		$	41.43		$	40.47		$	30.71		$	17.48
Income (loss) from investment operations:
Net investment income (loss)b		(.36	)		(.58	)		(.49	)		(.71	)		(.63	)		(.44	)
Net gain (loss) on investments (realized and unrealized)		(.44	)		10.25			5.45			1.67			10.39			13.67
Total from investment operations		(.80	)		9.67			4.96			.96			9.76			13.23
Less distributions from:
Net realized gains		—			(1.93	)		—			—			—			—
Total distributions		—			(1.93	)		—			—			—			—
Net asset value, end of period	$	53.33		$	54.13		$	46.39		$	41.43		$	40.47		$	30.71
Total Returnc		(1.48	%)		20.98	%		12.00	%		2.35	%		31.78	%		75.69	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	27,217		$	28,567		$	18,837		$	16,228		$	10,102		$	3,780
Ratios to average net assets:
Net investment income (loss)		(1.36	%)		(1.15	%)		(1.19	%)		(1.83	%)		(1.83	%)		(1.77	%)
Total expenses		2.27	%		2.27	%		2.25	%		2.25	%		2.29	%		2.28	%
Portfolio turnover rate		33	%		131	%		188	%		226	%		448	%		626	%

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

S&P MIDCAP 400^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	58.71		$	49.80		$	44.14		$	42.81		$	32.25		$	18.21
Income (loss) from investment operations:
Net investment income (loss)b		(.18	)		(.18	)		(.20	)		(.44	)		(.38	)		(.26	)
Net gain (loss) on investments (realized and unrealized)		(.47	)		11.02			5.86			1.77			10.94			14.30
Total from investment operations		(.65	)		10.84			5.66			1.33			10.56			14.04
Less distributions from:
Net realized gains		—			(1.93	)		—			—			—			—
Total distributions		—			(1.93	)		—			—			—			—
Net asset value, end of period	$	58.06		$	58.71		$	49.80		$	44.14		$	42.81		$	32.25
Total Returnc		(1.11	%)		21.91	%		12.82	%		3.11	%		32.74	%		77.10	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	165,477		$	186,863		$	242,157		$	312,510		$	212,654		$	64,449
Ratios to average net assets:
Net investment income (loss)		(0.61	%)		(0.33	%)		(0.45	%)		(1.08	%)		(1.02	%)		(0.99	%)
Total expenses		1.52	%		1.52	%		1.50	%		1.50	%		1.55	%		1.54	%
Portfolio turnover rate		33	%		131	%		188	%		226	%		448	%		626	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

S&P MIDCAP 400^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for mid-cap value securities on a daily basis. The Fund’s current benchmark is the S&P MidCap 400^® Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Tech Data Corp.	2.6%
URS Corp.	2.6%
Health Net, Inc.	2.6%
Ingram Micro, Inc. — Class A	2.5%
Community Health Systems, Inc.	2.3%
AECOM Technology Corp.	2.2%
Reinsurance Group of America, Inc. — Class A	2.1%
Arrow Electronics, Inc.	2.0%
JetBlue Airways Corp.	2.0%
Avnet, Inc.	1.9%
Top Ten Total	22.8%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

30  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.5%
FINANCIAL - 19.7%
Reinsurance Group of America, Inc. — Class A		4,063	$	325,568
Protective Life Corp.		3,979		276,183
Hanover Insurance Group, Inc.		4,090		251,208
First American Financial Corp.		8,940		242,453
Aspen Insurance Holdings Ltd.		4,756		203,414
Kemper Corp.		4,931		168,394
American Financial Group, Inc.		2,867		165,971
WR Berkley Corp.		3,438		164,336
Alleghany Corp.*		380		158,897
Everest Re Group Ltd.		957		155,044
StanCorp Financial Group, Inc.		2,112		133,436
HCC Insurance Holdings, Inc.		2,380		114,930
First Niagara Financial Group, Inc.		12,366		103,008
Mercury General Corp.		1,950		95,180
Astoria Financial Corp.		6,672		82,666
Janus Capital Group, Inc.		5,471		79,548
Hancock Holding Co.		2,000		64,100
International Bancshares Corp.		2,597		64,055
Fulton Financial Corp.		5,170		57,284
Valley National Bancorp		5,670		54,942
New York Community Bancorp, Inc.		3,411		54,133
Total Financial				3,014,750
INDUSTRIAL - 18.7%
Tech Data Corp.*		6,771		398,548
URS Corp.		6,827		393,303
AECOM Technology Corp.*		9,864		332,910
Avnet, Inc.		7,174		297,721
Vishay Intertechnology, Inc.		15,616		223,153
AGCO Corp.		3,615		164,338
Granite Construction, Inc.		4,580		145,690
TimkenSteel Corp.		2,960		137,610
Greif, Inc. — Class A		2,717		119,032
Exelis, Inc.		6,891		113,977
Esterline Technologies Corp.*		890		99,030
Triumph Group, Inc.		1,330		86,517
Regal-Beloit Corp.		1,250		80,313
Tidewater, Inc.		1,982		77,357
KBR, Inc.		3,668		69,068
Itron, Inc.*		1,750		68,793
Werner Enterprises, Inc.		2,530		63,756
Total Industrial				2,871,116
CONSUMER, NON-CYCLICAL - 18.6%
Health Net, Inc.*		8,499		391,888
Community Health Systems, Inc.*		6,458		353,834
LifePoint Hospitals, Inc.*		4,110		284,371
Universal Corp.		5,538		245,832
Centene Corp.*		2,200		181,962
Rent-A-Center, Inc.		5,980		181,493
Leidos Holdings, Inc.		5,100		175,083
WellCare Health Plans, Inc.*		2,790		168,349
Dean Foods Co.		11,670		154,628
Manpowergroup, Inc.		2,155		151,066
Ingredion, Inc.		1,410		106,864
United Natural Foods, Inc.*		1,350		82,971
Apollo Education Group, Inc. — Class A*		3,270		82,240
DeVry Education Group, Inc.		1,850		79,199
Convergys Corp.		4,370		77,873
Aaron’s, Inc.		3,120		75,878
Post Holdings, Inc.*		1,610		53,420
Total Consumer, Non-cyclical				2,846,951
CONSUMER, CYCLICAL - 16.9%
Ingram Micro, Inc. — Class A*		15,016		387,563
Arrow Electronics, Inc.*		5,535		306,362
JetBlue Airways Corp.*		28,652		304,284
Big Lots, Inc.		6,030		259,592
World Fuel Services Corp.		5,657		225,827
Abercrombie & Fitch Co. — Class A		4,700		170,797
CST Brands, Inc.		4,510		162,135
Owens & Minor, Inc.		4,765		156,006
MDC Holdings, Inc.		5,730		145,084
Oshkosh Corp.		3,279		144,768
Foot Locker, Inc.		1,830		101,840
JC Penney Company, Inc.*		8,150		81,826
ANN, Inc.*		1,930		79,381
Ascena Retail Group, Inc.*		4,710		62,643
Total Consumer, Cyclical				2,588,108
BASIC MATERIALS - 7.0%
Steel Dynamics, Inc.		8,880		200,777
Domtar Corp.		5,080		178,460
Commercial Metals Co.		10,063		171,775
Reliance Steel & Aluminum Co.		2,289		156,568
Ashland, Inc.		1,400		145,740
Olin Corp.		4,590		115,898
Cabot Corp.		2,011		102,098
Total Basic Materials				1,071,316
UTILITIES - 6.8%
UGI Corp.		5,140		175,223
Great Plains Energy, Inc.		5,984		144,633
PNM Resources, Inc.		5,630		140,243
Hawaiian Electric Industries, Inc.1		5,210		138,326
Westar Energy, Inc.		3,120		106,454
WGL Holdings, Inc.		2,500		105,300
Atmos Energy Corp.		2,147		102,412
IDACORP, Inc.		1,330		71,301
ONE Gas, Inc.		1,700		58,225
Total Utilities				1,042,117
ENERGY - 6.8%
Superior Energy Services, Inc.		8,742		287,350
HollyFrontier Corp.		5,040		220,147

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
S&P MIDCAP 400® PURE VALUE FUND

	Shares		Value
Murphy USA, Inc.*		3,830	$	203,220
Rowan Companies plc — Class A		5,420		137,180
Unit Corp.*		1,844		108,150
WPX Energy, Inc.*		3,430		82,526
Total Energy				1,038,573
TECHNOLOGY - 3.5%
Science Applications International Corp.		5,270		233,092
Lexmark International, Inc. — Class A		4,780		203,150
Fairchild Semiconductor International, Inc. — Class A*		6,090		94,578
Total Technology				530,820
COMMUNICATIONS - 1.5%
Telephone & Data Systems, Inc.		9,819		235,263
Total Common Stocks
(Cost $12,069,039)				15,239,014
	Face Amount
REPURCHASE AGREEMENTS††,2 - 1.6%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	105,130		105,130
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		61,471		61,471
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		43,469		43,469
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		27,124		27,124
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		162		162
Total Repurchase Agreements
(Cost $237,356)				237,356

SECURITIES LENDING COLLATERAL††,3 - 0.3%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	42,243		42,243
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14	6,925		6,925
Total Securities Lending Collateral
(Cost $49,168)			49,168
Total Investments - 101.4%
(Cost $12,355,563)		$	15,525,538
Other Assets & Liabilities, net - (1.4)%			(217,792	)
Total Net Assets - 100.0%		$	15,307,746

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	plc — Public Limited Company

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $55,755  of securities loaned (cost $12,069,039)	$	15,239,014
Repurchase agreements, at value  (cost $286,524)		286,524
Total investments (cost $12,355,563)		15,525,538
Segregated cash with broker		8,057
Receivables:
Securities sold		853,609
Dividends		17,803
Fund shares sold		8,784
Securities lending income		348
Total assets		16,414,139
Liabilities:
Payable for:
Fund shares redeemed		1,012,600
Upon return of securities loaned		57,225
Management fees		11,865
Distribution and service fees		6,049
Transfer agent and administrative fees		3,955
Portfolio accounting fees		1,582
Miscellaneous		13,117
Total liabilities		1,106,393
Net assets	$	15,307,746
Net assets consist of:
Paid in capital	$	17,156,812
Undistributed net investment income		20,214
Accumulated net realized loss on investments		(5,039,255	)
Net unrealized appreciation on investments		3,169,975
Net assets	$	15,307,746
A-Class:
Net assets	$	1,359,651
Capital shares outstanding		31,811
Net asset value per share	$	42.75
Maximum offering price per share (Net asset value divided by 95.25%)	$	44.88
C-Class:
Net assets	$	3,564,763
Capital shares outstanding		91,245
Net asset value per share	$	39.07
H-Class:
Net assets	$	10,383,332
Capital shares outstanding		243,238
Net asset value per share	$	42.69

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	179,863
Income from securities lending, net		1,826
Interest		13
Total investment income		181,702
Expenses:
Management fees		82,897
Transfer agent and administrative fees		27,633
Distribution and service fees:
A-Class		3,074
C-Class		16,449
H-Class		20,446
Portfolio accounting fees		11,053
Registration fees		9,703
Custodian fees		1,291
Trustees’ fees*		960
Line of credit interest expense		124
Miscellaneous		6,803
Total expenses		180,433
Net investment income		1,269
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(449,868	)
Net realized loss		(449,868	)
Net change in unrealized appreciation (depreciation) on:
Investments		(11,697	)
Net change in unrealized appreciation (depreciation)		(11,697	)
Net realized and unrealized loss		(461,565	)
Net decrease in net assets resulting from operations	$	(460,296	)

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

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

S&P MIDCAP 400^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	1,269		$	18,945
Net realized gain (loss) on investments		(449,868	)		3,292,740
Net change in unrealized appreciation (depreciation) on investments		(11,697	)		(2,272,142	)
Net increase (decrease) in net assets resulting from operations		(460,296	)		1,039,543
Distributions to shareholders from:
Net investment income
A-Class		—			(6,418	)
C-Class		—			(10,279	)
H-Class		—			(35,413	)
Total distributions to shareholders		—			(52,110	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,411,029			10,210,160
C-Class		2,776,010			2,956,353
H-Class		47,989,021			180,329,694
Distributions reinvested
A-Class		—			5,904
C-Class		—			10,187
H-Class		—			33,473
Cost of shares redeemed
A-Class		(2,366,135	)		(9,772,932	)
C-Class		(1,353,792	)		(4,562,781	)
H-Class		(47,814,980	)		(248,292,026	)
Net increase (decrease) from capital share transactions		641,153			(69,081,968	)
Net increase (decrease) in net assets		180,857			(68,094,535	)
Net assets:
Beginning of period		15,126,889			83,221,424
End of period	$	15,307,746		$	15,126,889
Undistributed net investment income at end of period	$	20,214		$	18,945
Capital share activity:
Shares sold
A-Class		31,921			259,238
C-Class		69,275			81,786
H-Class		1,092,329			4,580,797
Shares issued from reinvestment of distributions
A-Class		—			142
C-Class		—			266
H-Class		—			805
Shares redeemed
A-Class		(54,873	)		(248,039	)
C-Class		(33,925	)		(128,153	)
H-Class		(1,094,877	)		(6,499,596	)
Net increase (decrease) in shares		9,850			(1,952,754	)

34  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	43.04		$	36.18		$	30.88		$	31.43		$	30.45		$	13.68
Income (loss) from investment operations:
Net investment income (loss)b		.03			(.03	)		.07			.06			.02			.12
Net gain (loss) on investments (realized and unrealized)		(.32	)		7.08			5.23			(.61	)		3.64			16.75
Total from investment operations		(.29	)		7.05			5.30			(.55	)		3.66			16.87
Less distributions from:
Net investment income		—			(.19	)		—			—			(.17	)		(.10	)
Net realized gains		—			—			—			—			(2.51	)		—
Total distributions		—			(.19	)		—			—			(2.68	)		(.10	)
Net asset value, end of period	$	42.75		$	43.04		$	36.18		$	30.88		$	31.43		$	30.45
Total Returnc		(0.67	%)		19.49	%		17.16	%		(1.75	%)		12.81	%		123.41	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,360		$	2,357		$	1,571		$	6,817		$	785		$	10,888
Ratios to average net assets:
Net investment income (loss)		0.14	%		(0.06	%)		0.23	%		0.22	%		0.08	%		0.43	%
Total expenses		1.52	%		1.52	%		1.51	%		1.49	%		1.53	%		1.52	%
Portfolio turnover rate		214	%		506	%		757	%		619	%		407	%		443	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	39.48		$	33.46		$	28.78		$	29.53		$	28.96		$	13.12
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.25	)		(.13	)		(.16	)		(.23	)		(.06	)
Net gain (loss) on investments (realized and unrealized)		(.30	)		6.46			4.81			(.59	)		3.48			16.00
Total from investment operations		(.41	)		6.21			4.68			(.75	)		3.25			15.94
Less distributions from:
Net investment income		—			(.19	)		—			—			(.17	)		(.10	)
Net realized gains		—			—			—			—			(2.51	)		—
Total distributions		—			(.19	)		—			—			(2.68	)		(.10	)
Net asset value, end of period	$	39.07		$	39.48		$	33.46		$	28.78		$	29.53		$	28.96
Total Returnc		(1.04	%)		18.57	%		16.26	%		(2.54	%)		12.03	%		121.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,565		$	2,207		$	3,413		$	2,194		$	2,311		$	2,478
Ratios to average net assets:
Net investment income (loss)		(0.56	%)		(0.71	%)		(0.45	%)		(0.60	%)		(0.83	%)		(0.24	%)
Total expenses		2.27	%		2.28	%		2.26	%		2.26	%		2.30	%		2.29	%
Portfolio turnover rate		214	%		506	%		757	%		619	%		407	%		443	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  35 

S&P MIDCAP 400^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	42.98		$	36.16		$	30.86		$	31.42		$	30.43		$	13.67
Income (loss) from investment operations:
Net investment income (loss)b		.02			.06			.08			.01			(.06	)		.10
Net gain (loss) on investments (realized and unrealized)		(.31	)		6.95			5.22			(.57	)		3.73			16.76
Total from investment operations		(.29	)		7.01			5.30			(.56	)		3.67			16.86
Less distributions from:
Net investment income		—			(.19	)		—			—			(.17	)		(.10	)
Net realized gains		—			—			—			—			(2.51	)		—
Total distributions		—			(.19	)		—			—			(2.68	)		(.10	)
Net asset value, end of period	$	42.69		$	42.98		$	36.16		$	30.86		$	31.42		$	30.43
Total Returnc		(0.67	%)		19.39	%		17.17	%		(1.78	%)		12.85	%		123.43	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10,383		$	10,563		$	78,237		$	18,838		$	54,206		$	199,458
Ratios to average net assets:
Net investment income (loss)		0.11	%		0.15	%		0.24	%		0.02	%		(0.19	%)		0.37	%
Total expenses		1.52	%		1.52	%		1.52	%		1.51	%		1.54	%		1.53	%
Portfolio turnover rate		214	%		506	%		757	%		619	%		407	%		443	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

S&P SMALLCAP 600^® PURE GROWTH FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap growth securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Growth Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
US Silica Holdings, Inc.	3.3%
Akorn, Inc.	2.2%
Repligen Corp.	2.0%
Saia, Inc.	1.6%
Multimedia Games Holding Company, Inc.	1.5%
Matrix Service Co.	1.5%
Carrizo Oil & Gas, Inc.	1.4%
Electronics for Imaging, Inc.	1.4%
Lithia Motors, Inc. — Class A	1.4%
Synergy Resources Corp.	1.3%
Top Ten Total	17.6%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  37 

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
COMMON STOCKS† - 99.9%
FINANCIAL - 20.2%
MB Financial, Inc.		5,158	$	142,773
United Community Banks, Inc.		7,827		128,833
PrivateBancorp, Inc. — Class A		4,181		125,054
HCI Group, Inc.		3,359		120,890
Forestar Group, Inc.*		6,456		114,400
Pinnacle Financial Partners, Inc.		3,154		113,859
HFF, Inc. — Class A		3,757		108,765
BBCN Bancorp, Inc.		7,420		108,258
Virtus Investment Partners, Inc.		615		106,825
CoreSite Realty Corp.		3,220		105,841
Portfolio Recovery Associates, Inc.*		1,972		102,997
First Midwest Bancorp, Inc.		5,809		93,467
Encore Capital Group, Inc.*		2,105		93,273
Retail Opportunity Investments Corp.		6,303		92,654
Home BancShares, Inc.		3,044		89,524
Bank of the Ozarks, Inc.		2,800		88,256
MarketAxess Holdings, Inc.		1,390		85,985
BofI Holding, Inc.*		1,168		84,925
Oritani Financial Corp.		5,852		82,455
Sabra Health Care REIT, Inc.		3,360		81,715
Boston Private Financial Holdings, Inc.		5,971		73,981
Wilshire Bancorp, Inc.		7,679		70,877
Employers Holdings, Inc.		3,630		69,878
Evercore Partners, Inc. — Class A		1,325		62,275
Glacier Bancorp, Inc.		2,250		58,185
Texas Capital Bancshares, Inc.*		916		52,835
First Financial Bankshares, Inc.		1,082		30,069
Financial Engines, Inc.		780		26,688
eHealth, Inc.*		1,031		24,878
Total Financial				2,540,415
CONSUMER, NON-CYCLICAL - 18.3%
Akorn, Inc.*		7,511		272,424
Repligen Corp.*		12,639		251,642
Natus Medical, Inc.*		4,504		132,913
On Assignment, Inc.*		4,631		124,342
ABIOMED, Inc.*		4,535		112,604
Cambrex Corp.*		6,023		112,510
Anika Therapeutics, Inc.*		2,943		107,890
Acorda Therapeutics, Inc.*		3,140		106,383
Boston Beer Company, Inc. — Class A*		422		93,583
Cantel Medical Corp.		2,557		87,910
Prestige Brands Holdings, Inc.*		2,586		83,709
CryoLife, Inc.		7,410		73,137
Ligand Pharmaceuticals, Inc. — Class B*		1,498		70,391
Inter Parfums, Inc.		2,455		67,513
Capella Education Co.		1,076		67,357
CorVel Corp.*		1,728		58,838
Lannett Company, Inc.*		1,277		58,333
NuVasive, Inc.*		1,645		57,361
Cardtronics, Inc.*		1,448		50,970
Air Methods Corp.*		887		49,273
IPC The Hospitalist Company, Inc.*		1,066		47,746
Medicines Co.*		1,895		42,296
MAXIMUS, Inc.		974		39,087
SurModics, Inc.*		2,063		37,464
West Pharmaceutical Services, Inc.		755		33,794
American Public Education, Inc.*		1,145		30,904
Neogen Corp.*		623		24,609
Total Consumer, Non-cyclical				2,294,983
CONSUMER, CYCLICAL - 15.1%
Multimedia Games Holding Company, Inc.*		5,186		186,748
Lithia Motors, Inc. — Class A		2,301		174,163
MarineMax, Inc.*		7,884		132,845
Buffalo Wild Wings, Inc.*		833		111,846
Universal Electronics, Inc.*		2,187		107,972
Iconix Brand Group, Inc.*		2,340		86,440
Winnebago Industries, Inc.*		3,555		77,392
MWI Veterinary Supply, Inc.*		475		70,490
Arctic Cat, Inc.		1,980		68,944
Daktronics, Inc.		5,601		68,836
Pinnacle Entertainment, Inc.*		2,581		64,757
Red Robin Gourmet Burgers, Inc.*		1,073		61,054
Ruth’s Hospitality Group, Inc.		5,440		60,058
Sonic Corp.*		2,460		55,006
Wolverine World Wide, Inc.		2,171		54,405
Monarch Casino & Resort, Inc.*		4,364		51,975
Lumber Liquidators Holdings, Inc.*		889		51,011
Allegiant Travel Co. — Class A		396		48,969
Steven Madden Ltd.*		1,501		48,377
Scientific Games Corp. — Class A*		4,380		47,173
Movado Group, Inc.		1,414		46,747
Texas Roadhouse, Inc. — Class A		1,678		46,716
Papa John’s International, Inc.		1,125		44,989
La-Z-Boy, Inc.		2,003		39,639
Kirkland’s, Inc.*		2,393		38,551
First Cash Financial Services, Inc.*		559		31,293
Mobile Mini, Inc.		800		27,976
Total Consumer, Cyclical				1,904,372
INDUSTRIAL - 13.8%
Saia, Inc.*		3,948		195,663
Taser International, Inc.*		10,188		157,303
GenCorp, Inc.*		8,472		135,298
Dycom Industries, Inc.*		4,323		132,759
Methode Electronics, Inc.		3,175		117,062
PGT, Inc.*		12,152		113,257
Measurement Specialties, Inc.*		1,166		99,821
Federal Signal Corp.		7,491		99,181
DXP Enterprises, Inc.*		1,203		88,637
Era Group, Inc.*		3,556		77,343
AAON, Inc.		4,312		73,347
CIRCOR International, Inc.		963		64,839
EnerSys		976		57,233

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
S&P SMALLCAP 600® PURE GROWTH FUND

	Shares		Value
Drew Industries, Inc.		1,285	$	54,214
Hillenbrand, Inc.		1,661		51,308
Advanced Energy Industries, Inc.*		2,652		49,831
FARO Technologies, Inc.*		921		46,741
Sturm Ruger & Company, Inc.1		819		39,877
Apogee Enterprises, Inc.		998		39,720
AZZ, Inc.		851		35,546
Total Industrial				1,728,980
TECHNOLOGY - 11.4%
Electronics for Imaging, Inc.*		3,945		174,251
iGATE Corp.*		3,440		126,316
Synchronoss Technologies, Inc.*		2,653		121,454
Virtusa Corp.*		3,310		117,704
Omnicell, Inc.*		3,940		107,680
Dealertrack Technologies, Inc.*		2,429		105,443
Manhattan Associates, Inc.*		3,140		104,939
Synaptics, Inc.*		1,429		104,603
j2 Global, Inc.		1,781		87,910
Monotype Imaging Holdings, Inc.		2,974		84,224
Tyler Technologies, Inc.*		843		74,521
Interactive Intelligence Group, Inc.*		1,636		68,385
Medidata Solutions, Inc.*		1,462		64,752
Blackbaud, Inc.		1,131		44,437
MTS Systems Corp.		650		44,369
Total Technology				1,430,988
ENERGY - 9.3%
Matrix Service Co.*		7,585		182,949
Carrizo Oil & Gas, Inc.*		3,273		176,153
Synergy Resources Corp.*		12,912		157,397
C&J Energy Services, Inc.*		4,580		139,919
Tesco Corp.		6,440		127,834
Stone Energy Corp.*		3,342		104,805
Newpark Resources, Inc.*		8,127		101,100
Flotek Industries, Inc.*		3,498		91,193
Northern Oil and Gas, Inc.*		5,116		72,750
Geospace Technologies Corp.*		490		17,224
Total Energy				1,171,324
COMMUNICATIONS - 6.7%
XO Group, Inc.*		11,836		132,683
CalAmp Corp.*		6,270		110,477
Harmonic, Inc.*		13,535		85,812
Blucora, Inc.*		5,108		77,846
Perficient, Inc.*		5,000		74,950
LogMeIn, Inc.*		1,488		68,552
EW Scripps Co. — Class A*		4,151		67,703
Stamps.com, Inc.*		1,812		57,549
NIC, Inc.		2,629		45,271
comScore, Inc.*		1,103		40,160
8x8, Inc.*		5,708		38,129
Lumos Networks Corp.		1,680		27,300
HealthStream, Inc.*		897		21,537
Total Communications				847,969
BASIC MATERIALS - 5.1%
US Silica Holdings, Inc.		6,650		415,692
KapStone Paper and Packaging Corp.*		4,576		127,991
HB Fuller Co.		933		37,040
Balchem Corp.		523		29,586
American Vanguard Corp.		2,596		29,075
Total Basic Materials				639,384
Total Common Stocks
(Cost $10,022,415)				12,558,415
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.2%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	10,779		10,779
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		6,301		6,301
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		4,456		4,456
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		2,781		2,781
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		17		17
Total Repurchase Agreements
(Cost $24,334)				24,334

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
S&P SMALLCAP 600® PURE GROWTH FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 0.2%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	22,589	$	22,589
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		3,703		3,703
Total Securities Lending Collateral
(Cost $26,292)				26,292
Total Investments - 100.3%
(Cost $10,073,041)			$	12,609,041
Other Assets & Liabilities, net - (0.3)%				(32,298	)
Total Net Assets - 100.0%			$	12,576,743

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.
	REIT — Real Estate Investment Trust

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $29,214  of securities loaned (cost $10,022,415)	$	12,558,415
Repurchase agreements, at value  (cost $50,626)		50,626
Total investments  (cost $10,073,041)		12,609,041
Segregated cash with broker		4,308
Receivables:
Securities sold		19,654
Dividends		5,070
Fund shares sold		4,480
Securities lending income		10
Total assets		12,642,563
Liabilities:
Payable for:
Upon return of securities loaned		30,600
Management fees		9,159
Fund shares redeemed		5,088
Distribution and service fees		4,728
Transfer agent and administrative fees		3,053
Portfolio accounting fees		1,222
Miscellaneous		11,970
Total liabilities		65,820
Net assets	$	12,576,743
Net assets consist of:
Paid in capital	$	13,586,421
Accumulated net investment loss		(190,340	)
Accumulated net realized loss on investments		(3,355,338	)
Net unrealized appreciation on investments		2,536,000
Net assets	$	12,576,743
A-Class:
Net assets	$	2,085,216
Capital shares outstanding		41,144
Net asset value per share	$	50.68
Maximum offering price per share (Net asset value divided by 95.25%)	$	53.21
C-Class:
Net assets	$	2,702,530
Capital shares outstanding		57,651
Net asset value per share	$	46.88
H-Class:
Net assets	$	7,788,997
Capital shares outstanding		153,708
Net asset value per share	$	50.67

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $211)	$	45,344
Income from securities lending, net		729
Interest		9
Total investment income		46,082
Expenses:
Management fees		64,133
Transfer agent and administrative fees		21,378
Distribution and service fees:
A-Class		6,170
C-Class		13,780
H-Class		11,763
Portfolio accounting fees		8,551
Registration fees		14,749
Trustees’ fees*		1,239
Custodian fees		997
Line of credit interest expense		235
Miscellaneous		(2,543	)
Total expenses		140,452
Net investment loss		(94,370	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,681,666
Net realized gain		1,681,666
Net change in unrealized appreciation (depreciation) on:
Investments		(2,624,342	)
Net change in unrealized appreciation (depreciation)		(2,624,342	)
Net realized and unrealized loss		(942,676	)
Net decrease in net assets resulting  from operations	$	(1,037,046	)

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

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

S&P SMALLCAP 600^® PURE GROWTH FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(94,370	)	$	(399,977	)
Net realized gain on investments		1,681,666			5,014,825
Net change in unrealized appreciation (depreciation) on investments		(2,624,342	)		3,155,012
Net increase (decrease) in net assets resulting from operations		(1,037,046	)		7,769,860
Capital share transactions:
Proceeds from sale of shares
A-Class		376,145			10,306,511
C-Class		870,447			6,653,049
H-Class		29,001,636			342,094,749
Cost of shares redeemed
A-Class		(5,399,095	)		(4,376,811	)
C-Class		(2,249,651	)		(6,385,674	)
H-Class		(37,514,329	)		(337,494,514	)
Net increase (decrease) from capital share transactions		(14,914,847	)		10,797,310
Net increase (decrease) in net assets		(15,951,893	)		18,567,170
Net assets:
Beginning of period		28,528,636			9,961,466
End of period	$	12,576,743		$	28,528,636
Accumulated net investment loss at end of period	$	(190,340	)	$	(95,970	)
Capital share activity:
Shares sold
A-Class		7,205			199,801
C-Class		17,830			143,830
H-Class		552,668			7,053,262
Shares redeemed
A-Class		(103,159	)		(86,422	)
C-Class		(46,912	)		(136,657	)
H-Class		(719,706	)		(6,871,867	)
Net increase (decrease) in shares		(292,074	)		301,947

42  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	52.99		$	41.94		$	37.97		$	36.06		$	28.49		$	16.93
Income (loss) from investment operations:
Net investment income (loss)b		(.26	)		(.31	)		(.12	)		(.35	)		(.34	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(2.05	)		11.36			4.09			2.26			7.91			11.84
Total from investment operations		(2.31	)		11.05			3.97			1.91			7.57			11.56
Net asset value, end of period	$	50.68		$	52.99		$	41.94		$	37.97		$	36.06		$	28.49
Total Returnc		(4.36	%)		26.35	%		10.46	%		5.30	%		26.57	%		68.28	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,085		$	7,265		$	995		$	1,018		$	2,115		$	750
Ratios to average net assets:
Net investment income (loss)		(0.98	%)		(0.60	%)		(0.31	%)		(1.00	%)		(1.15	%)		(1.15	%)
Total expenses		1.52	%		1.53	%		1.51	%		1.52	%		1.54	%		1.54	%
Portfolio turnover rate		138	%		677	%		645	%		500	%		732	%		1,476	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	49.21		$	39.24		$	35.79		$	34.25		$	27.25		$	16.32
Income (loss) from investment operations:
Net investment income (loss)b		(.42	)		(.66	)		(.42	)		(.57	)		(.54	)		(.42	)
Net gain (loss) on investments (realized and unrealized)		(1.91	)		10.63			3.87			2.11			7.54			11.35
Total from investment operations		(2.33	)		9.97			3.45			1.54			7.00			10.93
Net asset value, end of period	$	46.88		$	49.21		$	39.24		$	35.79		$	34.25		$	27.25
Total Returnc		(4.73	%)		25.41	%		9.64	%		4.50	%		25.69	%		66.97	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,703		$	4,268		$	3,122		$	2,568		$	3,072		$	1,658
Ratios to average net assets:
Net investment income (loss)		(1.74	%)		(1.46	%)		(1.17	%)		(1.71	%)		(1.80	%)		(1.82	%)
Total expenses		2.27	%		2.28	%		2.26	%		2.26	%		2.29	%		2.28	%
Portfolio turnover rate		138	%		677	%		645	%		500	%		732	%		1,476	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  43 

S&P SMALLCAP 600^® PURE GROWTH FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	52.99		$	41.94		$	37.97		$	36.07		$	28.48		$	16.94
Income (loss) from investment operations:
Net investment income (loss)b		(.26	)		(.38	)		(.31	)		(.39	)		(.34	)		(.25	)
Net gain (loss) on investments (realized and unrealized)		(2.06	)		11.43			4.28			2.29			7.93			11.79
Total from investment operations		(2.32	)		11.05			3.97			1.90			7.59			11.54
Net asset value, end of period	$	50.67		$	52.99		$	41.94		$	37.97		$	36.07		$	28.48
Total Returnc		(4.38	%)		26.35	%		10.46	%		5.27	%		26.65	%		68.12	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	7,789		$	16,996		$	5,844		$	29,214		$	92,084		$	10,072
Ratios to average net assets:
Net investment income (loss)		(0.98	%)		(0.77	%)		(0.81	%)		(1.10	%)		(1.07	%)		(1.05	%)
Total expenses		1.52	%		1.52	%		1.50	%		1.52	%		1.55	%		1.53	%
Portfolio turnover rate		138	%		677	%		645	%		500	%		732	%		1,476	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

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

FUND PROFILE (Unaudited) September 30, 2014

S&P SMALLCAP 600^® PURE VALUE FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a benchmark for small-cap value securities on a daily basis. The Fund’s current benchmark is the S&P SmallCap 600^® Pure Value Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

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

Ten Largest Holdings (% of Total Net Assets)
Green Plains, Inc.	2.9%
Century Aluminum Co.	2.2%
Perry Ellis International, Inc.	1.9%
Pioneer Energy Services Corp.	1.7%
Sanmina Corp.	1.7%
Central Garden and Pet Co. — Class A	1.6%
ManTech International Corp. — Class A	1.5%
Cash America International, Inc.	1.4%
Seneca Foods Corp. — Class A	1.4%
Stewart Information Services Corp.	1.3%
Top Ten Total	17.6%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  45 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
COMMON STOCKS† - 99.9%
CONSUMER, CYCLICAL - 21.3%
Perry Ellis International, Inc.*		8,985	$	182,845
Cash America International, Inc.		3,015		132,057
EZCORP, Inc. — Class A*		10,970		108,713
Group 1 Automotive, Inc.		1,429		103,903
Regis Corp.		5,572		88,929
M/I Homes, Inc.*		4,369		86,594
Sonic Automotive, Inc. — Class A		3,410		83,579
Fred’s, Inc. — Class A		5,720		80,080
Brown Shoe Company, Inc.		2,700		73,250
SkyWest, Inc.		9,269		72,113
Stage Stores, Inc.		4,190		71,691
Titan International, Inc.		6,059		71,618
United Stationers, Inc.		1,864		70,030
ScanSource, Inc.*		2,010		69,526
Superior Industries International, Inc.		3,944		69,138
VOXX International Corp. — Class A*		7,411		68,922
Ruby Tuesday, Inc.*		10,803		63,630
Marcus Corp.		3,920		61,936
Pep Boys-Manny Moe & Jack*		6,654		59,287
Christopher & Banks Corp.*		5,800		57,361
Biglari Holdings, Inc.*		138		46,887
Stein Mart, Inc.		3,998		46,177
Genesco, Inc.*		605		45,224
Big 5 Sporting Goods Corp.		4,567		42,793
Standard Pacific Corp.*		4,970		37,225
Children’s Place, Inc.		706		33,648
Crocs, Inc.*		2,393		30,104
Meritage Homes Corp.*		820		29,110
Finish Line, Inc. — Class A		923		23,103
Aeropostale, Inc.*		2,683		8,827
Total Consumer, Cyclical				2,018,300
CONSUMER, NON-CYCLICAL - 19.5%
Central Garden and Pet Co. — Class A*		18,461		148,426
Seneca Foods Corp. — Class A*		4,591		131,303
Molina Healthcare, Inc.*		2,668		112,856
CDI Corp.		7,576		110,004
PharMerica Corp.*		4,371		106,784
Cross Country Healthcare, Inc.*		9,979		92,705
Kindred Healthcare, Inc.		4,558		88,425
Magellan Health, Inc.*		1,553		84,996
Kelly Services, Inc. — Class A		5,334		83,584
ABM Industries, Inc.		3,218		82,670
SpartanNash Co.		4,242		82,507
Monster Worldwide, Inc.*		14,622		80,421
LHC Group, Inc.*		2,964		68,765
Almost Family, Inc.*		2,248		61,078
Sanderson Farms, Inc.		680		59,806
Brink’s Co.		2,440		58,658
Heidrick & Struggles International, Inc.		2,787		57,245
Viad Corp.		2,431		50,200
Career Education Corp.*		9,878		50,180
Insperity, Inc.		1,645		44,974
AMN Healthcare Services, Inc.*		2,260		35,482
Invacare Corp.		2,957		34,922
Healthways, Inc.*		2,173		34,811
Alliance One International, Inc.*		14,932		29,416
Resources Connection, Inc.		1,991		27,755
Korn/Ferry International*		990		24,651
Total Consumer, Non-cyclical				1,842,624
INDUSTRIAL - 17.0%
Sanmina Corp.*		7,500		156,451
Benchmark Electronics, Inc.*		4,563		101,344
Atlas Air Worldwide Holdings, Inc.*		3,058		100,975
Griffon Corp.		8,269		94,184
Boise Cascade Co.*		2,784		83,910
EMCOR Group, Inc.		2,028		81,039
Olympic Steel, Inc.		3,888		79,976
Hub Group, Inc. — Class A*		1,878		76,116
Aegion Corp. — Class A*		3,401		75,672
Universal Forest Products, Inc.		1,697		72,479
Bel Fuse, Inc. — Class B		2,834		70,113
AAR Corp.		2,651		64,021
TTM Technologies, Inc.*		8,890		60,541
AM Castle & Co.*		5,687		48,567
Plexus Corp.*		1,292		47,714
Astec Industries, Inc.		1,170		42,670
Kaman Corp.		1,050		41,265
Briggs & Stratton Corp.		2,261		40,743
Gibraltar Industries, Inc.*		2,890		39,564
Curtiss-Wright Corp.		553		36,454
Matson, Inc.		1,370		34,291
Rofin-Sinar Technologies, Inc.*		1,380		31,823
Mueller Industries, Inc.		1,110		31,679
Quanex Building Products Corp.		1,568		28,365
UTI Worldwide, Inc.*		2,623		27,882
National Presto Industries, Inc.		395		23,980
Orion Marine Group, Inc.*		2,200		21,956
Total Industrial				1,613,774
FINANCIAL - 10.6%
Stewart Information Services Corp.		4,230		124,150
Piper Jaffray Cos.*		1,895		98,995
United Fire Group, Inc.		2,834		78,700
Calamos Asset Management, Inc. — Class A		6,755		76,129
Navigators Group, Inc.*		1,210		74,414
Infinity Property & Casualty Corp.		1,095		70,091
Horace Mann Educators Corp.		2,057		58,645
Safety Insurance Group, Inc.		950		51,215
Wintrust Financial Corp.		1,086		48,512
Meadowbrook Insurance Group, Inc.		7,663		44,829
Susquehanna Bancshares, Inc.		4,458		44,580
Capstead Mortgage Corp.		3,634		44,480
Selective Insurance Group, Inc.		1,945		43,062

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
S&P SMALLCAP 600® PURE VALUE FUND

	Shares		Value
Brookline Bancorp, Inc.		4,338	$	37,090
SWS Group, Inc.*		4,048		27,891
ProAssurance Corp.		616		27,147
Provident Financial Services, Inc.		1,658		27,141
FNB Corp.		2,140		25,659
Total Financial				1,002,730
TECHNOLOGY - 10.0%
ManTech International Corp. — Class A		5,200		140,140
Engility Holdings, Inc.*		3,608		112,461
CACI International, Inc. — Class A*		1,465		104,411
Super Micro Computer, Inc.*		3,499		102,941
Insight Enterprises, Inc.*		4,336		98,124
Ciber, Inc.*		25,843		88,641
SYNNEX Corp.*		1,363		88,091
Kulicke & Soffa Industries, Inc.*		2,556		36,372
Ebix, Inc.1		2,330		33,039
Diodes, Inc.*		1,340		32,053
Brooks Automation, Inc.		2,920		30,689
Rudolph Technologies, Inc.*		3,186		28,833
Mercury Systems, Inc.*		2,426		26,710
Digi International, Inc.*		3,231		24,233
Total Technology				946,738
ENERGY - 7.8%
Green Plains, Inc.		7,467		279,192
Pioneer Energy Services Corp.*		11,338		158,959
Exterran Holdings, Inc.		1,940		85,961
Swift Energy Co.*,1		6,579		63,158
Cloud Peak Energy, Inc.*		4,982		62,872
Gulf Island Fabrication, Inc.		2,364		40,661
Arch Coal, Inc.		11,646		24,690
SEACOR Holdings, Inc.*		285		21,318
Total Energy				736,811
BASIC MATERIALS - 6.8%
Century Aluminum Co.*		7,910		205,422
Materion Corp.		3,174		97,347
Kaiser Aluminum Corp.		960		73,171
A. Schulman, Inc.		1,923		69,536
Clearwater Paper Corp.*		680		40,876
Neenah Paper, Inc.		605		32,355
PH Glatfelter Co.		1,413		31,015
Zep, Inc.		2,044		28,658
Kraton Performance Polymers, Inc.*		1,430		25,468
OM Group, Inc.		753		19,540
Stepan Co.		380		16,864
Total Basic Materials				640,252
COMMUNICATIONS - 4.8%
Black Box Corp.		4,983		116,203
Scholastic Corp.		3,024		97,736
Anixter International, Inc.		689		58,455
Spok Holdings, Inc.		3,498		45,509
Oplink Communications, Inc.		2,456		41,310
NETGEAR, Inc.*		1,273		39,781
Atlantic Tele-Network, Inc.		701		37,784
Sizmek, Inc.*		2,418		18,715
Total Communications				455,493
UTILITIES - 2.1%
New Jersey Resources Corp.		1,154		58,288
Avista Corp.		1,887		57,610
Laclede Group, Inc.		722		33,501
NorthWestern Corp.		625		28,350
UIL Holdings Corp.		687		24,320
Total Utilities				202,069
Total Common Stocks
(Cost $7,061,380)				9,458,791
	Face Amount
REPURCHASE AGREEMENTS††,2 - 0.4%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	17,519		17,519
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		10,244		10,244
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		7,244		7,244
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		4,520		4,520
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		27		27
Total Repurchase Agreements
(Cost $39,554)				39,554

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
S&P SMALLCAP 600® PURE VALUE FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,3 - 0.7%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	55,696	$	55,696
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		9,131		9,131
Total Securities Lending Collateral
(Cost $64,827)				64,827
Total Investments - 101.0%
(Cost $7,165,761)			$	9,563,172
Other Assets & Liabilities, net - (1.0)%				(98,626	)
Total Net Assets - 100.0%			$	9,464,546

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Repurchase Agreements — See Note 5.
3	Securities lending collateral — See Note 6.

 

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $69,728 of securities loaned (cost $7,061,380)	$	9,458,791
Repurchase agreements, at value (cost $104,381)		104,381
Total investments  (cost $7,165,761)		9,563,172
Segregated cash with broker		10,623
Receivables:
Fund shares sold		9,894
Dividends		6,363
Securities lending income		306
Total assets		9,590,358
Liabilities:
Payable for:
Upon return of securities loaned		75,450
Fund shares redeemed		25,098
Management fees		7,439
Distribution and service fees		4,062
Transfer agent and administrative fees		2,480
Portfolio accounting fees		992
Miscellaneous		10,291
Total liabilities		125,812
Net assets	$	9,464,546
Net assets consist of:
Paid in capital	$	36,340,428
Accumulated net investment loss		(99,477	)
Accumulated net realized loss on investments		(29,173,816	)
Net unrealized appreciation on investments		2,397,411
Net assets	$	9,464,546
A-Class:
Net assets	$	865,997
Capital shares outstanding		36,516
Net asset value per share	$	23.72
Maximum offering price per share (Net asset value divided by 95.25%)	$	24.90
C-Class:
Net assets	$	2,470,750
Capital shares outstanding		117,600
Net asset value per share	$	21.01
H-Class:
Net assets	$	6,127,799
Capital shares outstanding		259,395
Net asset value per share	$	23.62

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	83,109
Income from securities lending, net		2,033
Interest		8
Total investment income		85,150
Expenses:
Management fees		64,725
Transfer agent and administrative fees		21,575
Distribution and service fees:
A-Class		1,362
C-Class		17,376
H-Class		15,869
Portfolio accounting fees		8,630
Registration fees		10,125
Custodian fees		1,006
Trustees’ fees*		959
Line of credit interest expense		234
Miscellaneous		2,422
Total expenses		144,283
Net investment loss		(59,133	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		1,265,202
Net realized gain		1,265,202
Net change in unrealized appreciation (depreciation) on:
Investments		(2,425,029	)
Net change in unrealized appreciation (depreciation)		(2,425,029	)
Net realized and unrealized loss		(1,159,827	)
Net decrease in net assets resulting from operations	$	(1,218,960	)

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

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

S&P SMALLCAP 600^® PURE VALUE FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(59,133	)	$	(127,130	)
Net realized gain on investments		1,265,202			4,060,418
Net change in unrealized appreciation (depreciation) on investments		(2,425,029	)		346,408
Net increase (decrease) in net assets resulting from operations		(1,218,960	)		4,279,696
Capital share transactions:
Proceeds from sale of shares
A-Class		583,398			1,058,772
C-Class		1,081,587			4,733,420
H-Class		48,945,692			217,271,980
Cost of shares redeemed
A-Class		(651,407	)		(1,936,024	)
C-Class		(2,832,866	)		(5,294,994	)
H-Class		(64,353,565	)		(228,428,263	)
Net decrease from capital share transactions		(17,227,161	)		(12,595,109	)
Net decrease in net assets		(18,446,121	)		(8,315,413	)
Net assets:
Beginning of period		27,910,667			36,226,080
End of period	$	9,464,546		$	27,910,667
Accumulated net investment loss at end of period	$	(99,477	)	$	(40,344	)
Capital share activity:
Shares sold
A-Class		23,167			47,370
C-Class		48,562			232,036
H-Class		1,960,728			9,393,903
Shares redeemed
A-Class		(26,268	)		(87,067	)
C-Class		(128,843	)		(258,641	)
H-Class		(2,577,187	)		(10,096,699	)
Net decrease in shares		(699,841	)		(769,098	)

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

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	25.66		$	19.55		$	17.07		$	17.42		$	19.60		$	11.08
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.09	)		(.01	)		(.12	)		(.13	)		(.13	)
Net gain (loss) on investments (realized and unrealized)		(1.87	)		6.20			2.49			(.23	)		1.20			15.44
Total from investment operations		(1.94	)		6.11			2.48			(.35	)		1.07			15.31
Less distributions from:
Net investment income		—			—			—			—			—			(.03	)
Net realized gains		—			—			—			—			(3.25	)		(6.76	)
Total distributions		—			—			—			—			(3.25	)		(6.79	)
Net asset value, end of period	$	23.72		$	25.66		$	19.55		$	17.07		$	17.42		$	19.60
Total Returnc		(7.56	%)		31.25	%		14.53	%		(2.01	%)		6.98	%		150.09	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	866		$	1,016		$	1,551		$	961		$	8,845		$	5,529
Ratios to average net assets:
Net investment income (loss)		(0.52	%)		(0.39	%)		(0.08	%)		(0.71	%)		(0.73	%)		(0.62	%)
Total expenses		1.52	%		1.52	%		1.51	%		1.53	%		1.53	%		1.53	%
Portfolio turnover rate		237	%		658	%		655	%		744	%		692	%		443	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	22.81		$	17.51		$	15.40		$	15.85		$	18.27		$	10.62
Income (loss) from investment operations:
Net investment income (loss)b		(.15	)		(.22	)		(.13	)		(.20	)		(.23	)		(.27	)
Net gain (loss) on investments (realized and unrealized)		(1.65	)		5.52			2.24			(.25	)		1.06			14.71
Total from investment operations		(1.80	)		5.30			2.11			(.45	)		.83			14.44
Less distributions from:
Net investment income		—			—			—			—			—			(.03	)
Net realized gains		—			—			—			—			(3.25	)		(6.76	)
Total distributions		—			—			—			—			(3.25	)		(6.79	)
Net asset value, end of period	$	21.01		$	22.81		$	17.51		$	15.40		$	15.85		$	18.27
Total Returnc		(7.89	%)		30.27	%		13.70	%		(2.84	%)		6.12	%		148.23	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,471		$	4,514		$	3,932		$	1,955		$	2,243		$	8,999
Ratios to average net assets:
Net investment income (loss)		(1.31	%)		(1.10	%)		(0.84	%)		(1.39	%)		(1.37	%)		(1.39	%)
Total expenses		2.27	%		2.27	%		2.26	%		2.26	%		2.28	%		2.28	%
Portfolio turnover rate		237	%		658	%		655	%		744	%		692	%		443	%

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  51 

S&P SMALLCAP 600^® PURE VALUE FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	25.55		$	19.47		$	17.00		$	17.38		$	19.57		$	11.07
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.06	)		(.06	)		(.11	)		(.11	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		(1.86	)		6.14			2.53			(.27	)		1.17			15.41
Total from investment operations		(1.93	)		6.08			2.47			(.38	)		1.06			15.29
Less distributions from:
Net investment income		—			—			—			—			—			(.03	)
Net realized gains		—			—			—			—			(3.25	)		(6.76	)
Total distributions		—			—			—			—			(3.25	)		(6.79	)
Net asset value, end of period	$	23.62		$	25.55		$	19.47		$	17.00		$	17.38		$	19.57
Total Returnc		(7.55	%)		31.23	%		14.53	%		(2.19	%)		6.94	%		150.07	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,128		$	22,380		$	30,743		$	24,298		$	15,980		$	216,500
Ratios to average net assets:
Net investment income (loss)		(0.53	%)		(0.25	%)		(0.32	%)		(0.69	%)		(0.56	%)		(0.62	%)
Total expenses		1.52	%		1.53	%		1.51	%		1.49	%		1.54	%		1.54	%
Portfolio turnover rate		237	%		658	%		655	%		744	%		692	%		443	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.

52  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FUND PROFILE (Unaudited) September 30, 2014

EUROPE 1.25x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 125% of the fair value of the STOXX Europe 50^® Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	May 10, 2001
H-Class	May 8, 2000

Ten Largest Holdings (% of Total Net Assets)
Nestle S.A. ADR	2.3%
Novartis AG ADR	2.3%
Roche Holding AG ADR	1.9%
HSBC Holdings plc ADR	1.8%
Total S.A. ADR	1.5%
Royal Dutch Shell plc — Class A ADR	1.4%
Sanofi ADR	1.3%
BP plc ADR	1.3%
Bayer AG ADR	1.1%
Banco Santander S.A, ADR	1.1%
Top Ten Total	16.0%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

COUNTRY DIVERSIFICATION

At September 30, 2014, the investment diversification of the Fund by country was as follows:

Country	% of Common Stocks	Value
United Kingdom	35.4%	$1,178,311
Switzerland	22.7%	757,979
Germany	15.2%	505,225
France	11.2%	373,783
Spain	6.2%	205,492
Netherlands	2.9%	98,024
Belgium	2.1%	70,168
Other	4.3%	143,167
Total Common Stocks	100.0%	$3,332,149

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  53 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
EUROPE 1.25x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 38.9%
CONSUMER, NON-CYCLICAL - 15.1%
Nestle S.A. ADR		2,647	$	194,898
Novartis AG ADR		2,061		194,001
Roche Holding AG ADR		4,484		165,863
Sanofi ADR		1,981		111,788
Bayer AG ADR		690		96,676
GlaxoSmithKline plc ADR		2,016		92,676
British American Tobacco plc ADR		779		88,089
AstraZeneca plc ADR		1,064		76,012
Anheuser-Busch InBev N.V. ADR		633		70,168
Diageo plc ADR		522		60,239
Unilever N.V. — Class Y		1,326		52,616
Reckitt Benckiser Group plc ADR		2,726		47,405
Unilever plc ADR		1,123		47,054
Total Consumer, Non-cyclical				1,297,485
FINANCIAL - 9.3%
HSBC Holdings plc ADR		3,101		157,778
Banco Santander S.A. ADR1		10,014		95,133
BNP Paribas S.A. ADR		1,893		62,318
Allianz SE ADR		3,776		60,869
Banco Bilbao Vizcaya Argentaria S.A. ADR		4,998		59,976
Lloyds Banking Group plc ADR*,1		10,972		55,299
UBS AG		2,990		51,936
Barclays plc ADR		3,350		49,614
Prudential plc ADR		1,081		48,115
ING Groep N.V. ADR*		3,200		45,408
Credit Suisse Group AG ADR		1,376		38,033
Deutsche Bank AG		1,024		35,697
Zurich Insurance Group AG ADR		1,183		35,264
Total Financial				795,440
ENERGY - 5.4%
Total S.A. ADR		1,951		125,741
Royal Dutch Shell plc — Class A ADR		1,610		122,569
BP plc ADR		2,508		110,227
BG Group plc ADR		2,831		52,487
Eni SpA ADR		1,107		52,306
Total Energy				463,330
BASIC MATERIALS - 2.4%
BASF SE ADR		775		70,967
Rio Tinto plc ADR		1,013		49,819
BHP Billiton Ltd. ADR		830		48,870
Air Liquide S.A. ADR		1,562		37,988
Total Basic Materials				207,644
COMMUNICATIONS - 2.4%
Vodafone Group plc ADR		2,254		74,134
Telefonica S.A. ADR		3,278		50,383
BT Group plc ADR		683		41,991
Deutsche Telekom AG ADR		2,460		37,195
Total Communications				203,703
INDUSTRIAL - 1.9%
Siemens AG ADR		681		81,087
ABB Ltd. ADR		1,925		43,139
Schneider Electric SE ADR		2,358		35,948
Total Industrial				160,174
CONSUMER, CYCLICAL - 1.2%
Daimler AG ADR		836		63,779
Cie Financiere Richemont S.A. ADR		4,286		34,845
Total Consumer, Cyclical				98,624
TECHNOLOGY - 0.7%
SAP SE ADR		817		58,955
UTILITIES - 0.5%
National Grid plc ADR		651		46,794
Total Common Stocks
(Cost $2,750,188)				3,332,149
MUTUAL FUNDS†,2 - 21.6%
Guggenheim Strategy Fund I		74,544		1,856,879
Total Mutual Funds
(Cost $1,857,483)				1,856,879
	Face Amount
REPURCHASE AGREEMENTS††,3 - 23.7%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	901,287		901,287
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		526,991		526,991
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		372,664		372,664
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		232,540		232,540
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		1,387		1,387
Total Repurchase Agreements
(Cost $2,034,869)				2,034,869

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
EUROPE 1.25x STRATEGY FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,4 - 0.9%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	67,622	$	67,622
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		11,086		11,086
Total Securities Lending Collateral
(Cost $78,708)				78,708
Total Investments - 85.1%
(Cost $6,721,248)			$	7,302,605
Other Assets & Liabilities, net - 14.9%				1,279,338
Total Net Assets - 100.0%			$	8,581,943

	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS PURCHASED††
December 2014 STOXX 50 Index Futures Contracts (Aggregate Value of Contracts $7,401,124)		192	$	(5,522	)
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2014 Euro FX Futures Contracts (Aggregate Value of Contracts $7,424,238)		47	$	(133,894	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 11.
3	Repurchase Agreements — See Note 5.
4	Securities lending collateral — See Note 6.
	ADR — American Depositary Receipt
	plc — Public Limited Company

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

EUROPE 1.25x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $88,986  of securities loaned (cost $4,607,671)	$	5,189,028
Repurchase agreements, at value (cost $2,113,577)		2,113,577
Total investments  (cost $6,721,248)		7,302,605
Segregated cash with broker		604,586
Cash		118,198
Receivables:
Fund shares sold		774,431
Foreign taxes reclaim		14,941
Dividends		12,965
Swap settlement		7,771
Securities lending income		50
Total assets		8,835,547
Liabilities:
Foreign currency, at value (cost $118,161)		117,674
Payable for:
Upon return of securities loaned		91,606
Fund shares redeemed		19,213
Management fees		7,387
Variation margin		7,373
Distribution and service fees		2,427
Transfer agent and administrative fees		2,052
Portfolio accounting fees		821
Miscellaneous		5,051
Total liabilities		253,604
Net assets	$	8,581,943
Net assets consist of:
Paid in capital	$	19,327,209
Undistributed net investment income		83,764
Accumulated net realized loss on investments and foreign currency		(11,271,458	)
Net unrealized appreciation on investments and foreign currency		442,428
Net assets	$	8,581,943
A-Class:
Net assets	$	1,044,109
Capital shares outstanding		62,532
Net asset value per share	$	16.70
Maximum offering price per share (Net asset value divided by 95.25%)	$	17.53
C-Class:
Net assets	$	1,440,930
Capital shares outstanding		97,117
Net asset value per share	$	14.84
H-Class:
Net assets	$	6,096,904
Capital shares outstanding		368,173
Net asset value per share	$	16.56

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $7,946)	$	180,785
Income from securities lending, net		498
Interest		241
Total investment income		181,524
Expenses:
Management fees		62,256
Transfer agent and administrative fees		17,293
Distribution and service fees:
A-Class		1,783
C-Class		5,615
H-Class		14,107
Portfolio accounting fees		6,917
Registration fees		8,083
Custodian fees		809
Trustees’ fees*		759
Line of credit interest expense		120
Tax expense		85
Miscellaneous		6,368
Total expenses		124,195
Net investment income		57,329
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		565,384
Swap agreements		5,462
Futures contracts		167,637
Foreign currency		(5,828	)
Net realized gain		732,655
Net change in unrealized appreciation (depreciation) on:
Investments		(746,511	)
Futures contracts		(303,694	)
Foreign currency		392
Net change in unrealized appreciation (depreciation)		(1,049,813	)
Net realized and unrealized loss		(317,158	)
Net decrease in net assets resulting from operations	$	(259,829	)

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

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

EUROPE 1.25x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income	$	57,329		$	62,852
Net realized gain on investments and foreign currency		732,655			1,358,485
Net change in unrealized appreciation (depreciation) on investments and foreign currency		(1,049,813	)		1,364,932
Net increase (decrease) in net assets resulting from operations		(259,829	)		2,786,269
Capital share transactions:
Proceeds from sale of shares
A-Class		857,582			52,743,507
C-Class		10,779,961			7,218,044
H-Class		94,356,124			207,864,838
Cost of shares redeemed
A-Class		(2,312,770	)		(54,374,701	)
C-Class		(9,798,649	)		(7,224,756	)
H-Class		(99,679,790	)		(209,443,547	)
Net decrease from capital share transactions		(5,797,542	)		(3,216,615	)
Net decrease in net assets		(6,057,371	)		(430,346	)
Net assets:
Beginning of period		14,639,314			15,069,660
End of period	$	8,581,943		$	14,639,314
Undistributed net investment income at end of period	$	83,764		$	26,435
Capital share activity:
Shares sold
A-Class		48,255			3,372,060
C-Class		679,375			497,359
H-Class		5,364,768			13,214,764
Shares redeemed
A-Class		(132,362	)		(3,501,903	)
C-Class		(616,728	)		(494,056	)
H-Class		(5,665,920	)		(13,302,797	)
Net decrease in shares		(322,612	)		(214,573	)

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	17.40		$	14.16		$	12.57		$	14.06		$	14.18		$	8.36
Income (loss) from investment operations:
Net investment income (loss)b		.07			.16			(.03	)		.10			.08			.04
Net gain (loss) on investments (realized and unrealized)		(.77	)		3.08			1.65			(1.59	)		(.20	)		5.78
Total from investment operations		(.70	)		3.24			1.62			(1.49	)		(.12	)		5.82
Less distributions from:
Net investment income		—			—			(.03	)		—			—			—
Total distributions		—			—			(.03	)		—			—			—
Net asset value, end of period	$	16.70		$	17.40		$	14.16		$	12.57		$	14.06		$	14.18
Total Returnc		(4.02	%)		22.88	%		12.92	%		(10.60	%)		(0.85	%)		69.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,044		$	2,551		$	3,916		$	694		$	455		$	463
Ratios to average net assets:
Net investment income (loss)		0.83	%		1.00	%		(0.23	%)		0.77	%		0.66	%		0.33	%
Total expensesd		1.74	%		1.72	%		1.67	%		1.67	%		1.69	%		1.66	%
Portfolio turnover rate		208	%		654	%		903	%		318	%		515	%		1,353	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	15.52		$	12.89		$	11.53		$	12.97		$	13.17		$	7.83
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.07	)		(.10	)		—	e		.03			(.04	)
Net gain (loss) on investments (realized and unrealized)		(.65	)		2.70			1.49			(1.44	)		(.23	)		5.38
Total from investment operations		(.68	)		2.63			1.39			(1.44	)		(.20	)		5.34
Less distributions from:
Net investment income		—			—			(.03	)		—			—			—
Total distributions		—			—			(.03	)		—			—			—
Net asset value, end of period	$	14.84		$	15.52		$	12.89		$	11.53		$	12.97		$	13.17
Total Returnc		(4.38	%)		20.40	%		12.09	%		(11.10	%)		(1.52	%)		68.20	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,441		$	535		$	402		$	439		$	638		$	2,111
Ratios to average net assets:
Net investment income (loss)		(0.34	%)		(0.48	%)		(0.83	%)		0.03	%		0.22	%		(0.36	%)
Total expensesd		2.49	%		2.47	%		2.42	%		2.43	%		2.43	%		2.42	%
Portfolio turnover rate		208	%		654	%		903	%		318	%		515	%		1,353	%

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

EUROPE 1.25x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	17.26		$	14.20		$	12.59		$	14.06		$	14.20		$	8.36
Income (loss) from investment operations:
Net investment income (loss)b		.08			.03			(.02	)		.16			.09			.03
Net gain (loss) on investments (realized and unrealized)		(.78	)		3.03			1.66			(1.63	)		(.23	)		5.81
Total from investment operations		(.70	)		3.06			1.64			(1.47	)		(.14	)		5.84
Less distributions from:
Net investment income		—			—			(.03	)		—			—			—
Total distributions		—			—			(.03	)		—			—			—
Net asset value, end of period	$	16.56		$	17.26		$	14.20		$	12.59		$	14.06		$	14.20
Total Returnc		(4.06	%)		21.55	%		13.06	%		(10.46	%)		(0.99	%)		69.86	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	6,097		$	11,553		$	10,752		$	7,759		$	23,238		$	6,989
Ratios to average net assets:
Net investment income (loss)		0.95	%		0.19	%		(0.18	%)		1.22	%		0.70	%		0.21	%
Total expensesd		1.73	%		1.71	%		1.67	%		1.68	%		1.69	%		1.70	%
Portfolio turnover rate		208	%		654	%		903	%		318	%		515	%		1,353	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Net investment income is less than $0.01 per share.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  59 

FUND PROFILE (Unaudited) September 30, 2014

JAPAN 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark. The Fund’s current benchmark is 200% of the fair value of the Nikkei-225 Stock Average Index (the “underlying index”).

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	February 22, 2008
C-Class	February 22, 2008
H-Class	February 22, 2008

The Fund invests principally in derivative investments such as futures contracts.

60  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
JAPAN 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS†,1 - 26.4%
Guggenheim Strategy Fund I		52,256	$	1,301,707
Total Mutual Funds
(Cost $1,302,590)				1,301,707
	Face Amount
REPURCHASE AGREEMENTS††,2 - 79.7%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	1,737,356		1,737,356
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		1,015,850		1,015,850
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		718,362		718,362
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		448,253		448,253
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		2,673		2,673
Total Repurchase Agreements
(Cost $3,922,494)				3,922,494
Total Investments - 106.1%
(Cost $5,225,084)			$	5,224,201
Other Assets & Liabilities, net - (6.1)%				(301,554	)
Total Net Assets - 100.0%			$	4,922,647

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 Nikkei-225 (CME) Index Futures Contracts (Aggregate Value of Contracts $9,813,100)		121	$	301,784
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2014 Japanese Yen Futures Contracts (Aggregate Value of Contracts $9,808,300)		86		(209,694	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 11.
2	Repurchase Agreements — See Note 5.

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

JAPAN 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value  (cost $1,302,590)	$	1,301,707
Repurchase agreements, at value  (cost $3,922,494)		3,922,494
Total investments  (cost $5,225,084)		5,224,201
Segregated cash with broker		232,869
Receivables:
Fund shares sold		77,754
Swap settlement		9,434
Dividends		1,222
Total assets		5,545,480
Liabilities:
Payable for:
Fund shares redeemed		541,536
Variation margin		72,637
Management fees		2,821
Distribution and service fees		1,008
Transfer agent and administrative fees		940
Portfolio accounting fees		376
Miscellaneous		3,515
Total liabilities		622,833
Net assets	$	4,922,647
Net assets consist of:
Paid in capital	$	6,218,814
Accumulated net investment loss		(49,362	)
Accumulated net realized loss on investments		(1,338,012	)
Net unrealized appreciation on investments		91,207
Net assets	$	4,922,647
A-Class:
Net assets	$	1,996,100
Capital shares outstanding		99,396
Net asset value per share	$	20.08
Maximum offering price per share (Net asset value divided by 95.25%)	$	21.08
C-Class:
Net assets	$	325,133
Capital shares outstanding		16,919
Net asset value per share	$	19.22
H-Class:
Net assets	$	2,601,414
Capital shares outstanding		129,066
Net asset value per share	$	20.15

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	5,417
Interest		227
Total investment income		5,644
Expenses:
Management fees		15,699
Transfer agent and administrative fees		5,233
Distribution and service fees:
A-Class		731
C-Class		841
H-Class		4,292
Portfolio accounting fees		2,093
Registration fees		2,497
Custodian fees		245
Trustees’ fees*		221
Miscellaneous		1,664
Total expenses		33,516
Net investment loss		(27,872	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(1,605	)
Swap agreements		6,633
Futures contracts		332,577
Net realized gain		337,605
Net change in unrealized appreciation (depreciation) on:
Investments		(883	)
Futures contracts		(173,712	)
Net change in unrealized appreciation (depreciation)		(174,595	)
Net realized and unrealized gain		163,010
Net increase in net assets resulting from operations	$	135,138

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

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

JAPAN 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(27,872	)	$	(137,800	)
Net realized gain on investments		337,605			1,292,015
Net change in unrealized appreciation (depreciation) on investments		(174,595	)		(1,252,929	)
Net increase (decrease) in net assets resulting from operations		135,138			(98,714	)
Capital share transactions:
Proceeds from sale of shares
A-Class		3,476,337			8,428,575
C-Class		5,255,437			9,557,083
H-Class		28,762,135			130,777,601
Cost of shares redeemed
A-Class		(2,102,240	)		(10,200,315	)
C-Class		(5,038,363	)		(9,548,823	)
H-Class		(29,398,155	)		(136,373,860	)
Net increase (decrease) from capital share transactions		955,151			(7,359,739	)
Net increase (decrease) in net assets		1,090,289			(7,458,453	)
Net assets:
Beginning of period		3,832,358			11,290,811
End of period	$	4,922,647		$	3,832,358
Accumulated net investment loss at end of period	$	(49,362	)	$	(21,490	)
Capital share activity:
Shares sold
A-Class		170,936			414,164
C-Class		277,072			492,346
H-Class		1,454,366			6,516,305
Shares redeemed
A-Class		(103,881	)		(498,277	)
C-Class		(265,752	)		(501,406	)
H-Class		(1,485,488	)		(6,873,237	)
Net increase (decrease) in shares		47,253			(450,105	)

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	19.31		$	17.39		$	15.45		$	14.95		$	16.49		$	9.01
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.31	)		(.20	)		(.22	)		(.24	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		.90			2.23			2.14			.72			(1.30	)		7.67
Total from investment operations		.77			1.92			1.94			.50			(1.54	)		7.48
Net asset value, end of period	$	20.08		$	19.31		$	17.39		$	15.45		$	14.95		$	16.49
Total Returnc		3.99	%		11.04	%		12.56	%		3.34	%		(9.34	%)		83.02	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,996		$	624		$	2,025		$	1,428		$	5,931		$	2,234
Ratios to average net assets:
Net investment income (loss)		(1.29	%)		(1.50	%)		(1.40	%)		(1.49	%)		(1.45	%)		(1.42	%)
Total expensesd		1.57	%		1.52	%		1.51	%		1.51	%		1.55	%		1.53	%
Portfolio turnover rate		—			—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	18.49		$	16.76		$	14.99		$	14.60		$	16.23		$	8.94
Income (loss) from investment operations:
Net investment income (loss)b		(.20	)		(.43	)		(.29	)		(.31	)		(.31	)		(.31	)
Net gain (loss) on investments (realized and unrealized)		.93			2.16			2.06			.70			(1.32	)		7.60
Total from investment operations		.73			1.73			1.77			.39			(1.63	)		7.29
Net asset value, end of period	$	19.22		$	18.49		$	16.76		$	14.99		$	14.60		$	16.23
Total Returnc		3.95	%		10.32	%		11.81	%		2.67	%		(10.04	%)		81.54	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	325		$	104		$	246		$	140		$	189		$	432
Ratios to average net assets:
Net investment income (loss)		(2.07	%)		(2.25	%)		(2.15	%)		(2.23	%)		(2.18	%)		(2.20	%)
Total expensesd		2.32	%		2.27	%		2.25	%		2.26	%		2.29	%		2.28	%
Portfolio turnover rate		—			—			—			—			—			—

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

JAPAN 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	19.38		$	17.44		$	15.49		$	14.98		$	16.48		$	9.01
Income (loss) from investment operations:
Net investment income (loss)b		(.13	)		(.30	)		(.20	)		(.22	)		(.23	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		.90			2.24			2.15			.73			(1.27	)		7.68
Total from investment operations		.77			1.94			1.95			.51			(1.50	)		7.47
Net asset value, end of period	$	20.15		$	19.38		$	17.44		$	15.49		$	14.98		$	16.48
Total Returnc		3.97	%		11.12	%		12.59	%		3.40	%		(9.10	%)		82.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,601		$	3,104		$	9,020		$	4,574		$	5,356		$	5,414
Ratios to average net assets:
Net investment income (loss)		(1.30	%)		(1.50	%)		(1.40	%)		(1.48	%)		(1.44	%)		(1.44	%)
Total expensesd		1.57	%		1.52	%		1.50	%		1.51	%		1.54	%		1.53	%
Portfolio turnover rate		—			—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

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

FUND PROFILE (Unaudited) September 30, 2014

STRENGTHENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match the performance of a specific benchmark, before fees and expenses, on a daily basis. The Fund’s current benchmark is 200% of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

66  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
STRENGTHENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 49.3%
Guggenheim Strategy Fund II1		621,837	$	15,483,749
Guggenheim Strategy Fund I2		620,132		15,447,484
Total Mutual Funds
(Cost $30,947,633)				30,931,233
	Face Amount
REPURCHASE AGREEMENTS††,3 - 23.5%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	6,347,091		6,347,091
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		3,711,213		3,711,213
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		2,624,396		2,624,396
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		1,637,604		1,637,604
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/144		409,765		409,765
Total Repurchase Agreements
(Cost $14,730,069)				14,730,069
Total Investments - 72.8%
(Cost $45,677,702)			$	45,661,302
Other Assets & Liabilities, net - 27.2%				17,047,755
Total Net Assets - 100.0%			$	62,709,057

	Contracts		Unrealized Gain
CURRENCY FUTURES CONTRACTS PURCHASED†
December 2014 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $93,869,640)		1,091	$	1,757,945
	Units
OTC CURRENCY INDEX SWAP AGREEMENTS††
Goldman Sachs International November 2014 U.S. Dollar Index Swap, Terminating 11/28/145 (Notional Value $31,829,725)		370,235	$	1,295,161

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer — See Note 11.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 11.
3	Repurchase Agreements — See Note 5.
4	All or a portion of this security is pledged as currency index swap collateral at September 30, 2014.
5	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  67 

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments in unaffiliated issuers, at value (cost $15,453,696)	$	15,447,484
Investments in affiliated issuers, at value (cost $15,493,937)		15,483,749
Repurchase agreements, at value  (cost $14,730,069)		14,730,069
Total investments  (cost $45,677,702)		45,661,302
Cash		12,335,217
Segregated cash with broker		2,981,878
Unrealized appreciation on swap agreements		1,295,161
Receivables:
Fund shares sold		426,415
Variation margin		350,831
Swap settlement		142,739
Dividends		24,101
Total assets		63,217,644
Liabilities:
Payable for:
Fund shares redeemed		372,127
Management fees		49,027
Distribution and service fees		14,846
Transfer agent and administrative fees		13,619
Portfolio accounting fees		5,447
Miscellaneous		53,521
Total liabilities		508,587
Net assets	$	62,709,057
Net assets consist of:
Paid in capital	$	79,302,247
Accumulated net investment loss		(365,227	)
Accumulated net realized loss on investments		(19,264,669	)
Net unrealized appreciation on investments		3,036,706
Net assets	$	62,709,057
A-Class:
Net assets	$	8,492,117
Capital shares outstanding		195,595
Net asset value per share	$	43.42
Maximum offering price per share (Net asset value divided by 95.25%)	$	45.59
C-Class:
Net assets	$	2,702,976
Capital shares outstanding		67,077
Net asset value per share	$	40.30
H-Class:
Net assets	$	51,513,964
Capital shares outstanding		1,191,087
Net asset value per share	$	43.25

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends from securities of unaffiliated issuers	$	62,740
Dividends from securities of affiliated issuers		8,269
Interest		2,026
Total investment income		73,035
Expenses:
Management fees		173,556
Transfer agent and administrative fees		48,210
Distribution and service fees:
A-Class		5,623
C-Class		9,967
H-Class		40,095
Portfolio accounting fees		19,284
Custodian fees		2,256
Trustees’ fees*		908
Miscellaneous		38,786
Total expenses		338,685
Net investment loss		(265,650	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		(18,212	)
Investments in affiliated issuers		(6,063	)
Swap agreements		558,684
Futures contracts		3,686,123
Net realized gain		4,220,532
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(6,212	)
Investments in affiliated issuers		(10,188	)
Swap agreements		1,312,710
Futures contracts		1,584,620
Net change in unrealized appreciation (depreciation)		2,880,930
Net realized and unrealized gain		7,101,462
Net increase in net assets resulting from operations	$	6,835,812

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

68  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

STRENGTHENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(265,650	)	$	(387,321	)
Net realized gain (loss) on investments		4,220,532			(3,258,413	)
Net change in unrealized appreciation (depreciation) on investments		2,880,930			(133,507	)
Net increase (decrease) in net assets resulting from operations		6,835,812			(3,779,241	)
Capital share transactions:
Proceeds from sale of shares
A-Class		20,403,664			32,997,383
C-Class		4,383,938			13,018,069
H-Class		233,148,425			97,506,138
Cost of shares redeemed
A-Class		(16,183,902	)		(38,741,873	)
C-Class		(4,012,341	)		(14,153,109	)
H-Class		(197,275,997	)		(97,374,129	)
Net increase (decrease) from capital share transactions		40,463,787			(6,747,521	)
Net increase (decrease) in net assets		47,299,599			(10,526,762	)
Net assets:
Beginning of period		15,409,458			25,936,220
End of period	$	62,709,057		$	15,409,458
Accumulated net investment loss at end of period	$	(365,227	)	$	(99,577	)
Capital share activity:
Shares sold
A-Class		514,957			815,939	*
C-Class		118,945			341,309	*
H-Class		5,886,547			2,436,518	*
Shares redeemed
A-Class		(411,829	)		(967,356	)*
C-Class		(110,589	)		(370,508	)*
H-Class		(4,951,012	)		(2,462,181	)*
Net increase (decrease) in shares		1,047,019			(206,279	)*

* Reverse share split — Capital share activity for the period presented through February 7, 2014 has been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 13 in Notes to Financial Statements.

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	38.36		$	42.75		$	40.35		$	40.39		$	49.15		$	58.93
Income (loss) from investment operations:
Net investment income (loss)b		(.27	)		(.69	)		(.63	)		(.66	)		(.75	)		(.75	)
Net gain (loss) on investments (realized and unrealized)		5.33			(3.70	)		3.03			.62			(8.01	)		(9.03	)
Total from investment operations		5.06			(4.39	)		2.40			(.04	)		(8.76	)		(9.78	)
Net asset value, end of period	$	43.42		$	38.36		$	42.75		$	40.35		$	40.39		$	49.15
Total Returnc		13.19	%		(10.27	%)		5.95	%		(0.07	%)		(17.83	%)		(16.60	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	8,492		$	3,547		$	10,427		$	6,875		$	6,115		$	16,833
Ratios to average net assets:
Net investment income (loss)		(1.36	%)		(1.72	%)		(1.53	%)		(1.62	%)		(1.55	%)		(1.57	%)
Total expensesd		1.71	%		1.74	%		1.66	%		1.68	%		1.71	%		1.67	%
Portfolio turnover rate		552	%		—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	35.74		$	40.15		$	38.14		$	38.48		$	47.21		$	57.02
Income (loss) from investment operations:
Net investment income (loss)b		(.38	)		(.94	)		(.90	)		(.90	)		(1.05	)		(1.08	)
Net gain (loss) on investments (realized and unrealized)		4.94			(3.47	)		2.91			.56			(7.68	)		(8.73	)
Total from investment operations		4.56			(4.41	)		2.01			(.34	)		(8.73	)		(9.81	)
Net asset value, end of period	$	40.30		$	35.74		$	40.15		$	38.14		$	38.48		$	47.21
Total Returnc		12.76	%		(10.96	%)		5.27	%		(0.94	%)		(18.49	%)		(17.20	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,703		$	2,099		$	3,530		$	4,091		$	4,028		$	10,594
Ratios to average net assets:
Net investment income (loss)		(2.11	%)		(2.48	%)		(2.29	%)		(2.36	%)		(2.29	%)		(2.31	%)
Total expensesd		2.46	%		2.50	%		2.42	%		2.44	%		2.46	%		2.42	%
Portfolio turnover rate		552	%		—			—			—			—			—

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

STRENGTHENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014e			Year EndedMarch 28,2013e			Year EndedMarch 31,2012e			Year EndedMarch 31,2011e			Year EndedMarch 31,2010e
Per Share Data
Net asset value, beginning of period	$	38.21		$	42.60		$	40.17		$	40.20		$	48.92		$	58.67
Income (loss) from investment operations:
Net investment income (loss)b		(.26	)		(.69	)		(.63	)		(.66	)		(.75	)		(.75	)
Net gain (loss) on investments (realized and unrealized)		5.30			(3.70	)		3.06			.63			(7.97	)		(9.00	)
Total from investment operations		5.04			(4.39	)		2.43			(.03	)		(8.72	)		(9.75	)
Net asset value, end of period	$	43.25		$	38.21		$	42.60		$	40.17		$	40.20		$	48.92
Total Returnc		13.19	%		(10.31	%)		6.05	%		(0.07	%)		(17.84	%)		(16.62	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	51,514		$	9,764		$	11,979		$	21,982		$	20,733		$	60,944
Ratios to average net assets:
Net investment income (loss)		(1.33	%)		(1.72	%)		(1.53	%)		(1.62	%)		(1.55	%)		(1.57	%)
Total expensesd		1.72	%		1.74	%		1.66	%		1.69	%		1.72	%		1.67	%
Portfolio turnover rate		552	%		—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Reverse share split — Per share amounts for the periods presented through February 7, 2014 have been restated to reflect a 1:3 reverse share split effective February 7, 2014. See Note 13 in Notes to Financial Statements.

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

FUND PROFILE (Unaudited) September 30, 2014

WEAKENING DOLLAR 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that match, before fees and expenses, the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the U.S. Dollar Index^® (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	May 25, 2005
C-Class	May 25, 2005
H-Class	May 25, 2005

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

72  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
WEAKENING DOLLAR 2x STRATEGY FUND

	Shares		Value
MUTUAL FUNDS†,1 - 49.8%
Guggenheim Strategy Fund I		56,489	$	1,407,147
Guggenheim Strategy Fund II		56,185		1,398,997
Total Mutual Funds
(Cost $2,810,297)				2,806,144
	Face Amount
REPURCHASE AGREEMENTS††,2 - 49.3%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	1,225,884		1,225,884
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		716,787		716,787
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		506,879		506,879
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		316,289		316,289
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/143		10,778		10,778
Total Repurchase Agreements
(Cost $2,776,617)				2,776,617
Total Investments - 99.1%
(Cost $5,586,914)			$	5,582,761
Other Assets & Liabilities, net - 0.9%				51,236
Total Net Assets - 100.0%			$	5,633,997

	Contracts		Unrealized Loss
CURRENCY FUTURES CONTRACTS SOLD SHORT†
December 2014 U.S. Dollar Index Futures Contracts (Aggregate Value of Contracts $10,582,920)		123	$	(142,208	)
	Units
OTC CURRENCY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International November 2014 U.S. Dollar Index Swap, Terminating 11/28/144 (Notional Value $734,261)		8,541	$	(5,759	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 11.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as currency index swap collateral at September 30, 2014.
4	Total Return based on U.S. Dollar Index +/- financing at a variable rate.

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $2,810,297)	$	2,806,144
Repurchase agreements, at value (cost $2,776,617)		2,776,617
Total investments (cost $5,586,914)		5,582,761
Segregated cash with broker		169,058
Receivables:
Fund shares sold		33,986
Dividends		2,459
Total assets		5,788,264
Liabilities:
Unrealized depreciation on swap agreements		5,759
Payable for:
Fund shares redeemed		43,580
Variation margin		40,515
Swap settlement		40,147
Management fees		4,264
Distribution and service fees		1,583
Transfer agent and administrative fees		1,185
Portfolio accounting fees		474
Miscellaneous		16,760
Total liabilities		154,267
Net assets	$	5,633,997
Net assets consist of:
Paid in capital	$	22,039,423
Accumulated net investment loss		(102,971	)
Accumulated net realized loss on investments		(16,150,335	)
Net unrealized depreciation on investments		(152,120	)
Net assets	$	5,633,997
A-Class:
Net assets	$	746,464
Capital shares outstanding		48,123
Net asset value per share	$	15.51
Maximum offering price per share (Net asset value divided by 95.25%)	$	16.28
C-Class:
Net assets	$	652,284
Capital shares outstanding		45,657
Net asset value per share	$	14.29
H-Class:
Net assets	$	4,235,249
Capital shares outstanding		273,404
Net asset value per share	$	15.49

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	17,672
Interest		410
Total investment income		18,082
Expenses:
Management fees		38,534
Transfer agent and administrative fees		10,704
Distribution and service fees:
A-Class		1,993
C-Class		3,708
H-Class		7,784
Portfolio accounting fees		4,281
Registration fees		4,112
Custodian fees		500
Trustees’ fees*		409
Miscellaneous		4,100
Total expenses		76,125
Net investment loss		(58,043	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(4,916	)
Swap agreements		(182,164	)
Futures contracts		(786,173	)
Net realized loss		(973,253	)
Net change in unrealized appreciation (depreciation) on:
Investments		(4,153	)
Swap agreements		(21,588	)
Futures contracts		(75,895	)
Net change in unrealized appreciation (depreciation)		(101,636	)
Net realized and unrealized loss		(1,074,889	)
Net decrease in net assets resulting from operations	$	(1,132,932	)

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

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

WEAKENING DOLLAR 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(58,043	)	$	(188,856	)
Net realized gain (loss) on investments		(973,253	)		175,390
Net change in unrealized appreciation (depreciation) on investments		(101,636	)		64,739
Net increase (decrease) in net assets resulting from operations		(1,132,932	)		51,273
Capital share transactions:
Proceeds from sale of shares
A-Class		9,673,808			24,041,632
C-Class		107,779			6,428,661
H-Class		20,979,028			31,158,919
Cost of shares redeemed
A-Class		(9,972,574	)		(24,071,521	)
C-Class		(175,341	)		(7,316,759	)
H-Class		(21,244,659	)		(35,984,350	)
Net decrease from capital share transactions		(631,959	)		(5,743,418	)
Net decrease in net assets		(1,764,891	)		(5,692,145	)
Net assets:
Beginning of period		7,398,888			13,091,033
End of period	$	5,633,997		$	7,398,888
Accumulated net investment loss at end of period	$	(102,971	)	$	(44,928	)
Capital share activity:
Shares sold
A-Class		547,804			1,367,080
C-Class		6,823			398,681
H-Class		1,182,954			1,777,634
Shares redeemed
A-Class		(562,913	)		(1,383,231	)
C-Class		(10,870	)		(455,811	)
H-Class		(1,215,120	)		(2,066,133	)
Net decrease in shares		(51,322	)		(361,780	)

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

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	17.86		$	16.95		$	18.95		$	20.34		$	17.98		$	16.38
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.30	)		(.28	)		(.33	)		(.28	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		(2.24	)		1.21			(1.72	)		(1.06	)		2.64			1.90
Total from investment operations		(2.35	)		.91			(2.00	)		(1.39	)		2.36			1.60
Net asset value, end of period	$	15.51		$	17.86		$	16.95		$	18.95		$	20.34		$	17.98
Total Returnc		(13.16	%)		5.37	%		(10.55	%)		(6.83	%)		13.13	%		9.77	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	746		$	1,129		$	1,346		$	2,881		$	5,576		$	6,753
Ratios to average net assets:
Net investment income (loss)		(1.28	%)		(1.73	%)		(1.53	%)		(1.62	%)		(1.54	%)		(1.57	%)
Total expensesd		1.71	%		1.75	%		1.65	%		1.70	%		1.71	%		1.68	%
Portfolio turnover rate		225	%		—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	16.51		$	15.79		$	17.79		$	19.23		$	17.12		$	15.73
Income (loss) from investment operations:
Net investment income (loss)b		(.16	)		(.40	)		(.38	)		(.44	)		(.39	)		(.43	)
Net gain (loss) on investments (realized and unrealized)		(2.06	)		1.12			(1.62	)		(1.00	)		2.50			1.82
Total from investment operations		(2.22	)		.72			(2.00	)		(1.44	)		2.11			1.39
Net asset value, end of period	$	14.29		$	16.51		$	15.79		$	17.79		$	19.23		$	17.12
Total Returnc		(13.45	%)		4.56	%		(11.24	%)		(7.49	%)		12.32	%		8.84	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	652		$	821		$	1,687		$	2,826		$	3,963		$	5,314
Ratios to average net assets:
Net investment income (loss)		(2.01	%)		(2.49	%)		(2.27	%)		(2.36	%)		(2.29	%)		(2.32	%)
Total expensesd		2.46	%		2.52	%		2.39	%		2.44	%		2.46	%		2.43	%
Portfolio turnover rate		225	%		—			—			—			—			—

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

WEAKENING DOLLAR 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of period	$	17.83		$	16.93		$	18.93		$	20.32		$	17.96		$	16.37
Income (loss) from investment operations:
Net investment income (loss)b		(.11	)		(.30	)		(.27	)		(.32	)		(.28	)		(.30	)
Net gain (loss) on investments (realized and unrealized)		(2.23	)		1.20			(1.73	)		(1.07	)		2.64			1.89
Total from investment operations		(2.34	)		.90			(2.00	)		(1.39	)		2.36			1.59
Net asset value, end of period	$	15.49		$	17.83		$	16.93		$	18.93		$	20.32		$	17.96
Total Returnc		(13.12	%)		5.32	%		(10.57	%)		(6.84	%)		13.14	%		9.71	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	4,235		$	5,449		$	10,058		$	13,551		$	23,432		$	30,036
Ratios to average net assets:
Net investment income (loss)		(1.30	%)		(1.74	%)		(1.52	%)		(1.61	%)		(1.54	%)		(1.57	%)
Total expensesd		1.71	%		1.76	%		1.64	%		1.69	%		1.71	%		1.68	%
Portfolio turnover rate		225	%		—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  77 

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

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

The Trust offers a combination of eight separate classes of shares: Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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 CDSC. At September 30, 2014, the Trust consisted of fifty-one Funds.

This report covers the S&P 500^® Pure Growth Fund, S&P 500^® Pure Value Fund, S&P MidCap 400^® Pure Growth Fund, S&P MidCap 400^® Pure Value Fund, S&P SmallCap 600^® Pure Growth Fund, S&P SmallCap 600^® Pure Value Fund, Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strenghtening Dollar 2x Strategy Fund and the Weakening Dollar 2x Strategy Fund (the “Funds”). Only A-Class, C-Class and H-Class shares had been issued by the Funds.

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI, RFS and GFD are affiliated entities.

Significant Accounting Policies

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

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

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

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

78  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies ("Mutual Funds") are valued at their NAV as of the close of business, on the valuation date.

Repurchase agreements are valued at amortized cost, which approximates market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of currency index swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the broker quote.

Investments for which market quotations are not readily available are fair valued as determined in good faith by GI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) obtaining general information as to how these securities and assets trade; and (ii) obtaining other information and considerations, including current values in related markets.

In connection with futures contracts and other derivative investments, obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

C. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

D. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments.

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

E. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  79 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

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

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

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

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

2. Financial Instruments

As part of their investment strategy, the Funds utilize a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as restricted cash on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

The Europe 1.25x Strategy Fund, Japan 2x Strategy Fund, Strengthening Dollar 2x Strategy Fund and Weakening Dollar 2x Strategy Fund use derivative instruments to achieve leveraged exposure to their respective underlying indices. Since these Funds’ investment strategies involve consistently applied leverage, the value of the Funds' shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index. In addition, as investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, this creates an opportunity for

80  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

increased net income but, at the same time, additional leverage risk. The Funds’ use of leverage, through borrowings or instruments such as derivatives, may cause the Funds to be more volatile and riskier than if they had not been leveraged.

In conjunction with the use of derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to each Fund.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Fees and Other Transactions with Affiliates

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

Fund	Management Fees(as a % of Net Assets)
S&P 500® Pure Growth Fund	0.75%
S&P 500® Pure Value Fund	0.75%
S&P MidCap 400® Pure Growth Fund	0.75%
S&P MidCap 400® Pure Value Fund	0.75%
S&P SmallCap 600® Pure Growth Fund	0.75%
S&P SmallCap 600® Pure Value Fund	0.75%
Europe 1.25x Strategy Fund	0.90%
Japan 2x Strategy Fund	0.75%
Strengthening Dollar 2x Strategy Fund	0.90%
Weakening Dollar 2x Strategy Fund	0.90%

RFS provides transfer agent and administrative services to the Funds for fees calculated at the annualized rate of 0.25% based on the average daily net assets of each Fund.

RFS also provides accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund.

Fund Accounting Fees	(as a % of Net Assets)
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

RFS engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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

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

For the period ended September 30, 2014, GFD retained sales charges of $161,615 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI, RFS and GFD.

4. Fair Value Measurement

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  81 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

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

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

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

The following table summarizes the inputs used to value the Funds’ net assets at September 30, 2014:

	Level 1 Investments In Securities		Level 1 Other Financial Instruments*		Level 2 Investments In Securities		Level 2 Other Financial Instruments*		Level 3 Investments In Securities		Total
Assets
S&P 500® Pure Growth Fund	$	158,681,484	$	—	$	1,531,678	$	—	$	—	$	160,213,162
S&P 500® Pure Value Fund		156,661,157		—		2,111,628		—		—		158,772,785
S&P MidCap 400® Pure Growth Fund		235,592,406		—		6,450,690		—		—		242,043,096
S&P MidCap 400® Pure Value Fund		15,239,014		—		286,524		—		—		15,525,538
S&P SmallCap 600® Pure Growth Fund		12,558,415		—		50,626		—		—		12,609,041
S&P SmallCap 600® Pure Value Fund		9,458,791		—		104,381		—		—		9,563,172
Europe 1.25x Strategy Fund		5,189,028		—		2,113,577		—		—		7,302,605
Japan 2x Strategy Fund		1,301,707		301,784		3,922,494		—		—		5,525,985
Strengthening Dollar 2x Strategy Fund		30,931,233		1,757,945		14,730,069		1,295,161		—		48,714,408
Weakening Dollar 2x Strategy Fund		2,806,144		—		2,776,617		—		—		5,582,761
Liabilities
Europe 1.25x Strategy Fund	$	—	$	133,894	$	—	$	5,522	$	—	$	139,416
Japan 2x Strategy Fund		—		209,694		—		—		—		209,694
Weakening Dollar 2x Strategy Fund		—		142,208		—		5,759		—		147,967

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

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

For the period ended September 30, 2014, there were no transfers between levels.

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

82  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2014, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
RBC Capital Markets			U.S. TIP Notes
(0.05)%			0.13% - 2.50%
Due 10/01/14	$339,522,378	$339,521,906	01/15/16 - 01/15/23	$285,293,500	$346,312,829
UMB Financial Corp.			U.S. Treasury Notes
0.00%			1.00% - 3.25%
Due 10/01/14	140,385,761	140,385,761	09/30/16 - 12/31/16	137,466,300	143,193,502
Mizuho Financial Group, Inc.			U.S. Treasury Note
0.01%			2.13%
Due 10/01/14	198,522,378	198,522,406	09/30/21	136,520,000	135,760,728
			U.S. TIP Notes
			0.13% - 1.63%
			01/15/15 - 04/15/16	57,126,400	66,732,140
HSBC Group			U.S. Treasury Strips
0.00%			0.00%
Due 10/01/14	87,599,687	87,599,687	08/15/18	94,804,900	89,351,722
Credit Suisse Group			U.S. Treasury Note
(0.05)%			0.25%
Due 10/01/14	7,283,778	7,283,768	05/15/16	7,435,100	7,429,556

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

6. Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, Credit Suisse acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with Credit Suisse, cash collateral is invested in one or more joint repurchase agreements collateralized by obligations of the U.S. Treasury or Government Agencies and cash. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  83 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2014, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
S&P 500® Pure Growth Fund	$	490,752	$	505,600
S&P 500® Pure Value Fund		1,682,463		1,746,375
S&P MidCap 400® Pure Growth Fund		5,210,838		5,439,425
S&P MidCap 400® Pure Value Fund		55,755		57,225
S&P SmallCap 600® Pure Growth Fund		29,214		30,600
S&P SmallCap 600® Pure Value Fund		69,728		75,450
Europe 1.25x Strategy Fund		88,986		91,606

Cash collateral received was invested in the following joint repurchase agreements at September 30, 2014:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.00%			0.00%
Due 10/01/14	$5,865,850	$5,865,850	11/15/19 - 11/15/30	$7,116,809	$4,904,625
			U.S. Treasury Note
			1.38%
			11/30/18	1,082,843	1,079,014
BNP Paribas Securities Corp.			U.S. TIP Bond
0.00%			2.13%
Due 10/01/14	961,615	961,615	02/15/41	719,475	980,907

There is also $1,118,815 in segregated cash held as collateral.

7. Derivative Investment Holdings Categorized by Risk Exposure

U.S. GAAP requires 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.

The following Funds utilized derivatives for the following purposes:

Fund	Index Exposure	Liquidity	Leverage
Europe 1.25x Strategy Fund	x	x	x
Japan 2x Strategy Fund	x	x	x
Strengthening Dollar 2x Strategy Fund	x	x	x
Weakening Dollar 2x Strategy Fund	x	x	x

84  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the notional amount of derivative instruments outstanding as an approximate percentage of the Funds’ net assets on a daily basis.

	Approximate percentage of Fund's net assets on a daily basis
Fund	Long	Short
Europe 1.25x Strategy Fund*	85%	—
Japan 2x Strategy Fund*	200%	—
Strengthening Dollar 2x Strategy Fund	200%	—
Weakening Dollar 2x Strategy Fund	—	200%

* These funds utilize a combination of currency and/or financial-linked derivatives to obtain exposure to their benchmark. The gross derivative instrument exposure is 170% and 400% for the Europe 1.25x Strategy Fund and the Japan 2x Strategy Fund, respectively.

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2014:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Currency contracts	Variation margin	Variation margin
	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2014:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2014
Japan 2x Strategy Fund	$	301,784	$	—	$	—	$	301,784
Strengthening Dollar 2x Strategy Fund		—		1,757,945		1,295,161		3,053,106

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Futures Currency Contracts*		Swaps Currency Contracts		Total Value at September 30, 2014
Europe 1.25x Strategy Fund	$	5,522	$	133,894	$	—	$	139,416
Japan 2x Strategy Fund		—		209,694		—		209,694
Weakening Dollar 2x Strategy Fund		—		142,208		5,759		147,967

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds' Statements of Operations for the period ended September 30, 2014:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Currency contracts	Net realized gain (loss) on futures contracts
	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net change in unrealized appreciation (depreciation) on swap agreements

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  85 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 2014:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts		Futures Currency Contracts			Swaps Currency Contracts			Total
Europe 1.25x Strategy Fund	$	845,928	$	5,462	$	(678,291	)	$	—		$	173,099
Japan 2x Strategy Fund		704,064		6,633		(371,487	)		—			339,210
Strengthening Dollar 2x Strategy Fund		—		—		3,686,123			558,684			4,244,807
Weakening Dollar 2x Strategy Fund		—		—		(786,173	)		(182,164	)		(968,337	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts		Futures Currency Contracts			Swaps Currency Contracts			Total
Europe 1.25x Strategy Fund	$	(216,773	)	$	—	$	(86,921	)	$	—		$	(303,694	)
Japan 2x Strategy Fund		(7,810	)		—		(165,902	)		—			(173,712	)
Strengthening Dollar 2x Strategy Fund		—			—		1,584,620			1,312,710			2,897,330
Weakening Dollar 2x Strategy Fund		—			—		(75,895	)		(21,588	)		(97,483	)

8. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

86  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP.

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Assets Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Received2		Net Amount
Strengthening Dollar 2x Strategy Fund	Swap currency contracts	$	1,295,161	$	—	$	1,295,161	$	—	$	—	$	1,295,161

								Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset In the Statements of Assets and Liabilities		Net Amount of Liabilities Presented on the Statements of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged2		Net Amount
Weakening Dollar 2x Strategy Fund	Swap currency contracts	$	5,759	$	—	$	5,759	$	—	$	—	$	5,759

1	Exchange-traded futures are excluded from these reported amounts.
2	Excludes maintenance margin deposits held at the broker related to derivatives. These amounts are reflected as segregated cash with broker on the Statements of Assets and Liabilities.

9. Federal Income Tax Information

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

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

The RIC Modernization Act of 2010 was signed into law on December 22, 2010, and simplified some of the tax provisions applicable to regulated investment companies, the tax reporting to their shareholders and improved the tax efficiency of certain fund structures. The greatest impact to the disclosure in the financial reports for the Funds was on the treatment of net capital losses, effective for tax years beginning after December 22, 2010.

One of the more prominent changes addresses capital loss carryforwards. The Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. As a result of this ordering rule, pre-enactment capital

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  87 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

carryforwards may potentially expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

At September 30, 2014, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
S&P 500® Pure Growth Fund	$	135,060,674	$	27,161,243	$	(2,008,755	)	$	25,152,488
S&P 500® Pure Value Fund		142,979,451		17,885,626	��	(2,092,292	)		15,793,334
S&P MidCap 400® Pure Growth Fund		208,937,150		43,157,009		(10,051,063	)		33,105,946
S&P MidCap 400® Pure Value Fund		14,521,996		1,310,091		(306,549	)		1,003,542
S&P SmallCap 600® Pure Growth Fund		11,828,865		1,059,807		(279,631	)		780,176
S&P SmallCap 600® Pure Value Fund		8,945,956		787,953		(170,737	)		617,216
Europe 1.25x Strategy Fund		7,189,097		129,169		(15,661	)		113,508
Japan 2x Strategy Fund		5,226,689		—		(2,488	)		(2,488	)
Strengthening Dollar 2x Strategy Fund		45,677,702		—		(16,400	)		(16,400	)
Weakening Dollar 2x Strategy Fund		5,586,914		—		(4,153	)		(4,153	)

10. Securities Transactions

For the period ended September 30, 2014, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
S&P 500® Pure Growth Fund	$	195,268,598	$	181,069,840
S&P 500® Pure Value Fund		262,348,679		234,380,319
S&P MidCap 400® Pure Growth Fund		80,807,923		115,366,726
S&P MidCap 400® Pure Value Fund		44,985,143		44,334,937
S&P SmallCap 600® Pure Growth Fund		25,036,320		39,987,040
S&P SmallCap 600® Pure Value Fund		42,821,928		60,057,722
Europe 1.25x Strategy Fund		14,523,197		20,580,153
Japan 2x Strategy Fund		—		—
Strengthening Dollar 2x Strategy Fund		27,700,000		12,200,000
Weakening Dollar 2x Strategy Fund		1,850,000		450,000

11. Affiliated and/or Related Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Funds may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, and Guggenheim Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2014 will be available publicly or upon request.

88  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Transactions during the period ended September 30, 2014, in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 3/31/2014		Additions		Reductions		Value 9/30/2014		Shares 9/30/2014		Investment Income		Realized Gain (Loss)			Capital Gain Distributions		��
Strengthening Dollar 2x Strategy Fund
Guggenheim Strategy Fund II	$	—	$	27,700,000	$	12,206,063	$	15,483,749		621,837	$	8,269	$	(6,063	)	$	—

12. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted, $75,000,000 line of credit from U.S. Bank, N.A., which expires June 13, 2015. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2014. The Funds did not have any borrowings under this agreement at September 30, 2014.

The average daily balances borrowed for the period ended September 30, 2014, were as follows:

Fund	Amount
S&P 500® Pure Growth Fund	$	31,365
S&P 500® Pure Value Fund		2,388
S&P MidCap 400® Pure Growth Fund		38,427
S&P MidCap 400® Pure Value Fund		2,912
S&P SmallCap 600® Pure Growth Fund		63,110
S&P SmallCap 600® Pure Value Fund		15,233
Europe 1.25x Strategy Fund		12,649

13. Reverse Share Splits

Effective February 7, 2014, the Strengthening Dollar 2x Strategy Fund underwent a one-for-three reverse share split.

The effect of this transaction was to divide the number of outstanding shares of the Fund by the split ratio, resulting in a corresponding increase in net asset value per share. The share transactions presented in the statement of changes in net assets and the per share data in the financial highlights for each of the periods presented prior to the effective date have been restated to reflect this reverse share split. There were no changes in net assets, results of operations or total return as a result of this transaction.

14. Legal Proceedings

Tribune Company

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  89 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2696 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. The appeals have been fully briefed, and oral argument in front of the U.S. Court of Appeals for the Second Circuit occurred on November 5, 2014.

On May 23, 2014, the Shareholder Liaison Counsel filed a “global” motion to dismiss Count I of the FitzSimons action on behalf of all Shareholder Defendants. Count I is the claim for intentional fraudulent conveyance brought under federal law, and the global motion, if granted, would result in the dismissal of all Shareholder Defendants from the lawsuit. The District Court has not yet issued a decision on the motion.

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

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust action”).

Similar to the claims made in the Tribune matter, the Weisfelner complaint seeks to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008.

On April 7, 2014, the plaintiff filed a Third Amended Complaint. In the related action entitled Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adversary Proceeding No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust action”), the plaintiff also filed a Second Amended Complaint that alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On May 8, 2014, the plaintiff in the Litigation Trust action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction. If the Court agrees to certify a defendant class, a judgment could bind all members of the group (whether or not individually named in the litigation). The defendants plan to oppose the motion.

On July 30, 2014, the defendants filed a motion to dismiss all three lawsuits. The Court will hold an oral argument on the motions to dismiss and on the motion for class certification on January 14, and, if necessary, January 15, 2015. The Court further ordered that, with certain exceptions, all discovery in the actions shall be stayed until the briefing of the class certification motion has concluded. Discovery shall begin promptly after the completion of all briefing on the class certification motion in late December 2014.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

90  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Office Locations

The offices of Guggenheim Investments can be found in the following locations:

330 Madison Avenue10th FloorNew York, NY 10017(Headquarters)

Four Irvington Centre805 King Farm BoulevardSuite 600Rockville, MD 20850

9401 Indian Creek Parkway40 Corporate WoodsSuite 850Overland Park, KS 66210

Distributor Change

Effective March 3, 2014, Guggenheim Distributors, LLC (“GD”), the distributor for shares of the Funds was consolidated into and with Guggenheim Funds Distributors, LLC (“GFD”). Following the consolidation, GFD serves as the Funds’ distributor.

GD and GFD are both indirect, wholly-owned subsidiaries of Guggenheim Capital, LLC and, therefore, the consolidation will not result in a change of actual control of the Funds’ distributor. The primary goal of the consolidation is to achieve greater operational efficiencies and allow all of the Guggenheim funds, including funds that are not series of the Trusts, to be distributed by a single distributor.

The consolidation is not expected to affect the day-to-day management of the Funds or result in any material changes to the distribution of the Funds, including any changes to the distribution fees paid by the Funds.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  91 

OTHER INFORMATION (Unaudited)(continued)

Board Considerations in Approving the Investment Advisory Agreement

At in-person meetings of the Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”) held on May 15 and June 4, 2014 (each, a “Meeting” and, together, the “Meetings”), called for the purpose of, among other things, consideration of, and voting on, the approval and continuation of the investment advisory agreement applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”), the Board, including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (the “Independent Trustees”), unanimously approved the continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and Security Investors, LLC (the “Advisor”) with respect to each of the Funds for an additional one-year period, based on the Board’s review of qualitative and quantitative information provided by the Advisor.

In reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. The Advisor provided the Board with a wide variety of information, including comparisons of Fund performance and fees relative to comparable peer funds in advance of the May 15, 2014 Meeting. The Independent Trustees carefully evaluated the information provided as well as information they received throughout the year as part of their regular oversight of the Funds. At the Meetings, independent legal counsel advised the Independent Trustees with respect to their deliberations and their fiduciary responsibilities associated with the Board’s consideration of the continuation of the Investment Advisory Agreement. The Board also received a memorandum from Fund counsel regarding the Board’s responsibilities when considering the approval of an investment advisory agreement.

During the Meetings, the Board, including the Independent Trustees, evaluated a number of considerations, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and investment strategies; (e) a comparison of the Funds’ advisory fees to the fees charged to comparable funds or accounts, paying special attention to the absence of breakpoints in these fees and the Advisor’s rationale for not including breakpoints; (f) each Fund’s overall fees and operating expenses compared with those of peer funds; (g) the Advisor’s profitability with respect to its Fund-related operations; (h) the Advisor’s compliance systems; (i) the Advisor’s policies and compliance procedures applicable to personal securities transactions; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of peer funds and/or appropriate benchmarks. In its deliberations, the Board did not identify any particular factor as controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees were reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

• Nature, Extent and Quality of Services Provided by the Advisor. At the Meetings, the Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially 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 Funds’ operations, the competitive landscape of the investment company business and investor needs.

• Fund Expenses and Performance of the Funds and the Advisor. At the Meetings, the Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare advisory contract renewal reports to help the Board fulfill its advisory contract renewal responsibilities. The reports compared the Funds’ fees, expenses and total return performance to those of comparable funds in the Funds’ peer group and the broader peer universe, as determined by FUSE. Statistical information in the FUSE reports related to the expense ratio components was based on a comparison of the Funds’ and peer funds’ actual advisory fees, waivers/reimbursements, and gross and net total expenses. The Board also considered the Advisor’s representation

92  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(concluded)

that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one, three, and five year performance for the Fund compared to its peers and its appropriate benchmark.

• Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. At the Meetings, the Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. At the Meetings, the Board also analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed reports comparing the expense ratios of the Funds to those of other comparable funds. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin as reflected in the Advisor’s profitability analysis.

• Economies of Scale. In connection with its review of the Funds’ profitability analysis at the Meetings, the Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex increases and decreases significantly from time to time due to unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that economies of scale were not likely to be directly realized as a result of increases in the asset levels of the individual Funds, and accordingly, fee breakpoints were not currently appropriate for the Funds.

• Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the services provided by the Advisor, the Board considered the nature and amount of other benefits received by the Advisor and its affiliates as a result of their relationship with the Funds. In particular, the Board considered the nature, extent and quality of the administrative, distribution, and shareholder services performed by the Advisor’s affiliates and the fees paid to the Advisor’s affiliates for those services under separate agreements. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the ancillary benefits the Advisor and its affiliates received were considered reasonable. The Board also noted that the Advisor reports portfolio transactions on behalf of the Funds, including the cost of such transactions, placed through an affiliate of the Funds or the Advisor at each quarterly Board meeting.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the approval of the Investment Advisory Agreement would enable Fund shareholders to continue receiving high quality services at a cost that was appropriate, reasonable, and in the best interests of the Funds and their shareholders. The Board, including the Independent Trustees, unanimously approved the continuation of the existing Investment Advisory Agreement.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  93 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	220	Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	131	None.
J. Kenneth Dalton (1941)	Trustee, Member and Chairman of the Audit Committee, and Member of the Governance and Nominating Committees from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	Trustee of Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board of Trustees from 2014 to present; Trustee from 1998 to present and Chairman of the Board from 2006 to 2014; Member and Chairman of the Audit Committee from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present; Vice Chairman of the Board of Trustees from 2010 to 2014; Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present; and Chairman and Member of the Risk Oversight Committee from 2010 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	131	None.

94  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	131	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee, Member of the Audit Committee, and Chairman and Member of the Governance and Nominating Committees from 1998 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	131	None.

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Nikolaos Bonos (1963)	Vice President and Treasurer (2003-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); Chief Executive Officer, Guggenheim Specialized Products, LLC (2009-present); Chief Executive Officer & President, Rydex Fund Services, LLC (2009-present); Vice President, Rydex Holdings, LLC (2008-present). Former: Senior Vice President, Security Global Investors, LLC (2010-2011); and Senior Vice President, Rydex Advisors, LLC and Rydex Advisors II, LLC (2006-2011).

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  95 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Vice President, Guggenheim Funds Distributors, LLC (March 2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-March 2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Joseph M. Arruda (1966)	Assistant Treasurer (2006-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2006-present); Vice President, Security Investors, LLC (2010-present); CFO and Manager, Guggenheim Specialized Products, LLC (2009-present). Former: Vice President, Security Global Investors, LLC (2010-2011); Vice President, Rydex Advisors, LLC (2010); Vice President, Rydex Advisors II, LLC (2010).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.

96  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Rydex Funds, Guggenheim Funds, Rydex Investments, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Security Distributors, Inc., Guggenheim Partners Investment Managers, LLC, and Rydex Advisory Services (Collectively “Guggenheim Investments”).

Our Commitment to You

When you become a Guggenheim Investments 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 Guggenheim Investments 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 Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Investments funds or one of the Guggenheim Investments 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 Guggenheim Investments. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. To alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new Rydex and Guggenheim Investments funds or the services offered through another Guggenheim Investments 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.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  97 

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

How We Protect Privacy Online

Our concern for the privacy of our shareholders also extends to those who use our web site, guggenheiminvestments.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 Guggenheim Investments 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 Guggenheim Investments 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.

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 guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us at 800.820.0888 or 301.296.5100.

98  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

9.30.2014

Rydex Funds Semi-Annual Report

Domestic Equity Fund

NASDAQ-100^® Fund

ROTCF-SEMI-0914x0315 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
ABOUT SHAREHOLDERS’ FUND EXPENSES	5
NASDAQ-100® FUND	7
NOTES TO FINANCIAL STATEMENTS	16
OTHER INFORMATION	28
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	31
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	34

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  1 

September 30, 2014

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for one of our Funds (the “Funds”) for the six-month period ended September 30, 2014.

The Investment Adviser is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC, a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Fund Profile for the Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

Donald C. CacciapagliaPresidentOctober 31, 2014

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

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2014

Despite market volatility rising in October, for the period ended September 30, data on everything from hiring to housing conveys that the U.S. economy is firing on all cylinders. Overcoming a first-quarter weather-related soft patch, second-quarter GDP was revised upward to 4.6%, led by business investment. Durable goods orders surged over the summer and consumer confidence was at multi-year highs, despite a lower reading for the last part of the period. With tailwinds for economic growth gathering, we could see a strong third quarter GDP reading.

September’s addition of 248,000 non-farm payroll jobs was, on the surface, at least a strong figure and certainly not something to be discounted. However, investor optimism about the report, which also showed the unemployment rate falling to 5.9%—its lowest level since 2008—masked the fact that average hourly earnings were unchanged. Economic data late in the period included disappointing factory orders, poor construction spending, and weaker-than-expected ISM manufacturing data. The most recent decline in the U.S. Conference Board Consumer Confidence Index was worrisome.

The U.S. economy is certainly doing well enough to suggest higher interest rates ahead. With quantitative easing ending in the U.S. in October 2014 and the Fed preparing investors for a higher federal funds rate, the stage is set for U.S. interest rates to move higher. However, our view is that, despite a strengthening U.S. economy, the greater risk is that interest rates head lower in the near term.

Following the "taper tantrum" last year, before rates were able to reach historical norms, the average rate on a 30-year mortgage spiked almost a full percentage point in two months—the sharpest rise since the late 1990s—resulting in an abrupt housing slowdown, which slowed the U.S. economy materially.

In addition, U.S. Treasury yields are still materially higher than those in any other developed market. The spread between 10-year U.S. Treasuries and comparable German bunds reached 157 basis points in September, its widest level since 1999, and the spread between 10-year Treasuries and 10-year Japanese government bonds was recently 189 basis points. With developments in the Middle East increasingly troubling and turbulence continuing elsewhere from Ukraine to Hong Kong, the relative price value of U.S. government bonds versus other safe haven investments should continue to be a factor keeping U.S. interest rates low.

International economic data remain weak. Euro zone economic confidence is falling as the entire region continues to battle below-target inflation. At the start of September, the European Central Bank cut interest rates and signaled their intent to launch a program to purchase asset-backed securities and covered bonds to stimulate the dismal economy. In Japan, retail sales fell month-over-month in August, while industrial production falters.

Economic data around the world confirms our view that central banks are likely to renew efforts to force liquidity into the global financial system, which in turn further supports our positive outlook for risk assets. However, positive returns are unlikely without volatility. While markets continue to rally, gains are becoming more grudging. The upward momentum in U.S. stocks has deteriorated meaningfully while credit spreads, specifically high-yield spreads, have widened significantly over the past number of weeks. While the bull market trend remains intact, as the appreciation in risk assets continues it becomes more likely that this ageing advance will, at some point, experience a correction.

For the six-month period ended September 30, 2014, the return of the Standard & Poor’s 500^® Index* (“S&P 500”) was 6.42%. The Barclays U.S. Aggregate Bond Index* returned 2.21% for the period, while the Barclays U.S. Corporate High Yield Index* returned 0.49%. The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index* returned 0.02%. The MSCI World Index* returned 2.59%, while the MSCI Emerging Markets Index* returned 2.87%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  3 

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2014

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

*Index Definitions:

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

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

Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Barclays U.S. Corporate High Yield Index covers the universe of dollar denominated, fixed rate, non-investment grade debt, taxable corporate debt.

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

MSCI World Index (Net) is calculated with net dividends reinvested. It is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

S&P 500^® Index is a market-weighted stock market index comprised of the stocks of 500 U.S. corporations; the index is owned and maintained by Standard & Poor’s.

4  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2014 and ending September 30, 2014.

The following tables illustrate a Fund’s costs in two ways:

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  5 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 1. Based on actual Fund return3
NASDAQ-100® Fund
Investor Class	1.28%	12.63%	$1,000.00	$1,126.30	$6.82
Advisor Class	1.77%	12.33%	1,000.00	1,123.30	9.42
A-Class	1.53%	12.49%	1,000.00	1,124.90	8.15
C-Class	2.28%	12.11%	1,000.00	1,121.10	12.12
H-Class4	1.54%	(1.27%)	1,000.00	987.30	0.50
Table 2. Based on hypothetical 5% return (before expenses)
NASDAQ-100® Fund
Investor Class	1.28%	5.00%	$1,000.00	$1,018.65	$6.48
Advisor Class	1.77%	5.00%	1,000.00	1,016.19	8.95
A-Class	1.53%	5.00%	1,000.00	1,017.40	7.74
C-Class	2.28%	5.00%	1,000.00	1,013.64	11.51
H-Class4	1.54%	5.00%	1,000.00	1,017.35	7.79

1	Annualized and excludes expenses of the underlying funds in which the Fund invests.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2014 to September 30, 2014.
4	Since commencement of operations: September 18, 2014. Expenses paid based on actual fund return are calculated using 12 days from the commencement of operations. Expenses paid based on the hypothetical 5% return are calculated using 183 days.

6  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 2014

NASDAQ-100^® FUND

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

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	February 14, 1994
Advisor Class	September 22, 1998
A-Class	March 31, 2004
C-Class	March 26, 2001
H-Class	September 18, 2014

Ten Largest Holdings (% of Total Net Assets)
Apple, Inc.	9.2%
Microsoft Corp.	5.8%
Google, Inc. — Class C	3.0%
Guggenheim Strategy Fund II	2.7%
Intel Corp.	2.6%
Google, Inc. — Class A	2.5%
Gilead Sciences, Inc.	2.4%
Facebook, Inc. — Class A	2.4%
Amazon.com, Inc.	2.3%
Cisco Systems, Inc.	2.0%
Top Ten Total	34.9%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  7 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
NASDAQ-100® FUND

	Shares		Value
COMMON STOCKS† - 68.6%
TECHNOLOGY - 27.9%
Apple, Inc.		724,894	$	73,033,070
Microsoft Corp.		997,520		46,245,028
Intel Corp.		599,370		20,870,063
QUALCOMM, Inc.		202,901		15,170,908
Texas Instruments, Inc.		129,239		6,163,408
Micron Technology, Inc.*		129,635		4,441,295
Adobe Systems, Inc.*		60,213		4,166,137
Cognizant Technology Solutions Corp. — Class A*		73,596		3,294,893
Applied Materials, Inc.		147,500		3,187,475
Intuit, Inc.		34,368		3,012,355
Western Digital Corp.		28,330		2,757,076
SanDisk Corp.		27,145		2,658,853
Avago Technologies Ltd.		30,473		2,651,151
Broadcom Corp. — Class A		65,497		2,647,389
Cerner Corp.*		41,288		2,459,526
Seagate Technology plc		39,564		2,265,830
NXP Semiconductor N.V.		28,893		1,977,148
Fiserv, Inc.*		30,170		1,950,038
Paychex, Inc.		43,957		1,942,899
Analog Devices, Inc.		38,039		1,882,550
Activision Blizzard, Inc.		86,859		1,805,799
NetApp, Inc.		38,649		1,660,361
Check Point Software Technologies Ltd.		23,097		1,599,236
KLA-Tencor Corp.		20,019		1,577,097
Autodesk, Inc.*		27,585		1,519,934
CA, Inc.		53,879		1,505,379
Citrix Systems, Inc.*		19,911		1,420,451
Xilinx, Inc.		32,502		1,376,460
Altera Corp.		37,405		1,338,351
Akamai Technologies, Inc.*		21,569		1,289,826
Linear Technology Corp.		28,874		1,281,717
NVIDIA Corp.		65,605		1,210,412
Maxim Integrated Products, Inc.		34,374		1,039,470
Automatic Data Processing, Inc.*		8,098		590,749
Total Technology				221,992,334
COMMUNICATIONS - 22.7%
Google, Inc. — Class C*		40,943		23,638,850
Google, Inc. — Class A*		34,303		20,184,228
Facebook, Inc. — Class A*		243,943		19,281,255
Amazon.com, Inc.*		55,935		18,035,682
Cisco Systems, Inc.		620,155		15,609,301
Comcast Corp. — Class A		260,229		13,995,116
eBay, Inc.*		150,262		8,509,337
Priceline Group, Inc.*		6,349		7,355,824
Baidu, Inc. ADR*		33,511		7,313,106
Twenty-First Century Fox, Inc. — Class A		168,461		5,776,528
DIRECTV*		60,800		5,260,416
Yahoo!, Inc.*		120,407		4,906,585
Viacom, Inc. — Class B		45,043		3,465,608
Netflix, Inc.*		7,275		3,282,335
Sirius XM Holdings, Inc.*,1		686,639		2,396,370
Vodafone Group plc ADR		60,675		1,995,601
Charter Communications, Inc. — Class A*		13,153		1,990,970
Symantec Corp.		83,588		1,965,154
DISH Network Corp. — Class A*		26,902		1,737,331
SBA Communications Corp. — Class A*		15,618		1,732,036
Liberty Interactive Corp. — Class A*		54,800		1,562,896
VimpelCom Ltd. ADR		200,004		1,444,029
TripAdvisor, Inc.*		15,736		1,438,585
Equinix, Inc.*		6,440		1,368,371
Liberty Media Corp. — Class C*		27,683		1,300,825
Expedia, Inc.		13,847		1,213,274
Liberty Global plc — Class A		26,017		1,106,763
F5 Networks, Inc.*		8,969		1,064,979
Discovery Communications, Inc. — Class C*		18,248		680,285
Discovery Communications, Inc. — Class A*		17,960		678,888
Liberty Media Corp. — Class A*		12,646		596,638
Total Communications				180,887,166
CONSUMER, NON-CYCLICAL - 12.7%
Gilead Sciences, Inc.*		183,005		19,480,883
Amgen, Inc.		91,959		12,916,561
Biogen Idec, Inc.*		28,588		9,457,196
Celgene Corp.*		96,789		9,173,661
Mondelez International, Inc. — Class A		204,095		6,993,315
Express Scripts Holding Co.*		90,245		6,374,004
Automatic Data Processing, Inc.		58,220		4,836,918
Regeneron Pharmaceuticals, Inc.*		11,995		4,324,437
Kraft Foods Group, Inc.		71,907		4,055,555
Alexion Pharmaceuticals, Inc.*		23,948		3,971,057
Vertex Pharmaceuticals, Inc.*		28,822		3,236,999
Illumina, Inc.*		16,876		2,766,314
Keurig Green Mountain, Inc.		19,663		2,558,746
Mylan, Inc.*		45,283		2,059,924
Intuitive Surgical, Inc.*		4,352		2,009,841
Monster Beverage Corp.*		20,239		1,855,309
Whole Foods Market, Inc.		43,733		1,666,665
Verisk Analytics, Inc. — Class A*		20,154		1,227,177
Henry Schein, Inc.*		10,270		1,196,147
Catamaran Corp.*		25,109		1,058,344
Total Consumer, Non-cyclical				101,219,053

8  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
NASDAQ-100® FUND

	Shares		Value
CONSUMER, CYCLICAL - 4.5%
Starbucks Corp.		90,940	$	6,862,333
Costco Wholesale Corp.		53,060		6,649,479
Tesla Motors, Inc.*,1		15,088		3,661,556
Marriott International, Inc. — Class A		35,177		2,458,872
PACCAR, Inc.		42,949		2,442,724
Wynn Resorts Ltd.		12,269		2,295,285
Ross Stores, Inc.		25,616		1,936,057
O’Reilly Automotive, Inc.*		12,562		1,888,822
Fastenal Co.		35,927		1,613,122
Bed Bath & Beyond, Inc.*		24,449		1,609,478
Dollar Tree, Inc.*		24,893		1,395,751
Mattel, Inc.		40,900		1,253,585
Tractor Supply Co.		16,667		1,025,187
Staples, Inc.		77,987		943,643
Total Consumer, Cyclical				36,035,894
INDUSTRIAL - 0.6%
Garmin Ltd.1		23,318		1,212,303
Stericycle, Inc.*		10,267		1,196,722
CH Robinson Worldwide, Inc.		17,815		1,181,490
Expeditors International of Washington, Inc.		23,620		958,500
Total Industrial				4,549,015
BASIC MATERIALS - 0.2%
Sigma-Aldrich Corp.		14,403		1,958,952
Total Common Stocks
(Cost $173,313,952)				546,642,414
MUTUAL FUNDS† - 26.9%
Guggenheim Strategy Fund I2,3		7,734,722		192,671,915
Guggenheim Strategy Fund II3		867,115		21,591,171
Total Mutual Funds
(Cost $214,549,120)				214,263,086

	Face Amount
REPURCHASE AGREEMENTS††,4 - 0.8%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	2,214,605		2,214,605
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		1,294,905		1,294,905
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/145		1,003,407		1,003,407
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		915,696		915,696
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		571,387		571,387
Total Repurchase Agreements
(Cost $6,000,000)				6,000,000
SECURITIES LENDING COLLATERAL††,6 - 0.4%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		2,920,733		2,920,733
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		478,809		478,809
Total Securities Lending Collateral
(Cost $3,399,542)				3,399,542
Total Investments - 96.7%
(Cost $397,262,614)			$	770,305,042
	Shares
COMMON STOCKS SOLD SHORT† - (0.1)%
TECHNOLOGY - (0.1)%
CDK Global, Inc.*		19,406		(593,630	)
Total Common Stocks Sold Short
(Proceeds $593,671)				(593,630	)
Other Assets & Liabilities, net - 3.4%				27,491,570
Total Net Assets - 100.0%			$	797,202,982

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  9 

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
NASDAQ-100® FUND

	Contracts		Unrealized Gain (Loss)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 NASDAQ-100 Index Mini Futures Contracts (Aggregate Value of Contracts $134,907,840)		1,668	$	(1,255,124	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2014 NASDAQ-100 Index Swap,    Terminating 10/28/147 (Notional Value $47,631,701)		11,763	$	328,191
Credit Suisse Capital, LLC October 2014 NASDAQ-100 Index Swap,    Terminating 10/29/147 (Notional Value $20,158,187)		4,978		213,786
Barclays Bank plc October 2014 NASDAQ-100 Index Swap,    Terminating 10/31/147 (Notional Value $54,303,306)		13,410		(40,977	)
(Total Notional Value $122,093,194)			$	501,000

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 6.
2	Affiliated issuer — See Note 12.
3	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 12.
4	Repurchase Agreements — See Note 5.
5	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
6	Securities lending collateral — See Note 6.
7	Total Return based on NASDAQ-100 Index +/- financing at a variable rate.
	ADR — American Depositary Receipt
	plc — Public Limited Company

10  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

NASDAQ-100^® FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments in unaffiliated issuers, at value - including $3,773,301 of securities loaned (cost $194,911,142)	$	568,233,585
Investments in affiliated issuers, at value (cost $192,951,930)		192,671,915
Repurchase agreements, at value (cost $9,399,542)		9,399,542
Total investments (cost $397,262,614)		770,305,042
Segregated cash with broker		19,484,460
Cash		11,027,451
Unrealized appreciation on swap agreements		541,977
Receivables:
Fund shares sold		1,076,509
Securities sold		593,671
Dividends		429,276
Variation margin		283,560
Swap settlement		39,145
Foreign taxes reclaim		7,907
Securities lending income		593
Total assets		803,789,591
Liabilities:
Securities sold short, at value (proceeds $593,671)		593,630
Unrealized depreciation on swap agreements		40,977
Payable for:
Upon return of securities loaned		3,956,625
Securities purchased		590,725
Management fees		462,965
Fund shares redeemed		259,774
Transfer agent and administrative fees		154,322
Portfolio accounting fees		45,334
Distribution and service fees		44,208
Miscellaneous		438,049
Total liabilities		6,586,609
Net assets	$	797,202,982
Net assets consist of:
Paid in capital	$	360,229,899
Accumulated net investment loss		(502,927	)
Accumulated net realized gain on investments		65,187,665
Net unrealized appreciation on investments		372,288,345
Net assets	$	797,202,982
Investor Class:
Net assets	$	657,355,977
Capital shares outstanding		27,298,273
Net asset value per share	$	24.08
Advisor Class:
Net assets	$	75,499,975
Capital shares outstanding		3,437,496
Net asset value per share	$	21.96
A-Class:
Net assets	$	42,354,203
Capital shares outstanding		1,873,010
Net asset value per share	$	22.61
Maximum offering price per share (Net asset value divided by 95.25%)	$	23.74
C-Class:
Net assets	$	21,982,952
Capital shares outstanding		1,064,533
Net asset value per share	$	20.65
H-Class:
Net assets	$	9,875
Capital shares outstanding		436
Net asset value per share	$	22.62

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014**
Investment Income:
Dividends from securities of unaffiliated issuers	$	4,238,491
Dividends from securities of affiliated issuers		694,593
Income from securities lending, net		7,008
Interest		1,618
Total investment income		4,941,710
Expenses:
Management fees		2,979,772
Transfer agent and administrative fees		993,257
Distribution and service fees:
Advisor Class		229,482
A-Class		44,110
C-Class		100,553
H-Class		4
Portfolio accounting fees		287,341
Custodian fees		46,395
Trustees’ fees*		30,432
Line of credit interest expense		452
Miscellaneous		732,839
Total expenses		5,444,637
Net investment loss		(502,927	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in unaffiliated issuers		51,689,526
Investments in affiliated issuers		(63,669	)
Swap agreements		7,380,491
Futures contracts		12,183,680
Net realized gain		71,190,028
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		27,465,528
Investments in affiliated issuers		(280,015	)
Securities sold short		41
Swap agreements		434,036
Futures contracts		(1,203,289	)
Net change in unrealized appreciation (depreciation)		26,416,301
Net realized and unrealized gain		97,606,329
Net increase in net assets resulting from operations	$	97,103,402

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

** Since commencement of operations: September 18, 2014 — H-Class.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  11 

NASDAQ-100^® FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	(502,927	)	$	358,208
Net realized gain on investments		71,190,028			94,903,636
Net change in unrealized appreciation (depreciation) on investments		26,416,301			67,794,671
Net increase in net assets resulting from operations		97,103,402			163,056,515
Distributions to shareholders from:
Net realized gains
Investor Class		—			(52,374,827	)
Advisor Class		—			(3,185,736	)
A-Class		—			(2,215,102	)
C-Class		—			(1,712,829	)
Total distributions to shareholders		—			(59,488,494	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		422,214,865			797,805,960
Advisor Class		454,912,584			747,398,780
A-Class		38,933,240			65,905,567
C-Class		12,619,239			26,628,147
H-Class*		88,789			—
Distributions reinvested
Investor Class		—			46,546,535
Advisor Class		—			3,164,981
A-Class		—			2,113,562
C-Class		—			1,686,286
Cost of shares redeemed
Investor Class		(472,563,328	)		(743,050,821	)
Advisor Class		(431,989,159	)		(761,022,258	)
A-Class		(22,327,453	)		(71,718,486	)
C-Class		(11,986,575	)		(23,621,291	)
H-Class*		(77,933	)		—
Net increase (decrease) from capital share transactions		(10,175,731	)		91,836,962
Net increase in net assets		86,927,671			195,404,983
Net assets:
Beginning of period		710,275,311			514,870,328
End of period	$	797,202,982		$	710,275,311
Accumulated net investment loss at end of period	$	(502,927	)	$	—
Capital share activity:
Shares sold
Investor Class		18,550,074			38,652,000
Advisor Class		22,754,294			40,432,732
A-Class		1,797,847			3,476,725
C-Class		641,896			1,472,390
H-Class*		3,876			—
Shares issued from reinvestment of distributions
Investor Class		—			2,248,625
Advisor Class		—			166,841
A-Class		—			108,499
C-Class		—			94,206
Shares redeemed
Investor Class		(20,842,459	)		(36,409,149	)
Advisor Class		(21,196,533	)		(39,713,114	)
A-Class		(1,007,006	)		(3,861,027	)
C-Class		(618,085	)		(1,328,165	)
H-Class*		(3,440	)		—
Net increase in shares		80,464			5,340,563

* Since commencement of operations: September 18, 2014.

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

NASDAQ-100^® FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31,2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	21.38		$	18.38		$	17.92		$	15.23		$	12.83		$	8.15
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)		.02			.02			(.05	)		(.07	)		(.07	)
Net gain (loss) on investments (realized and unrealized)		2.71			5.01			.44			2.74			2.47			4.75
Total from investment operations		2.70			5.03			.46			2.69			2.40			4.68
Less distributions from:
Net realized gains		—			(2.03	)		—			—			—			—
Total distributions		—			(2.03	)		—			—			—			—
Net asset value, end of period	$	24.08		$	21.38		$	18.38		$	17.92		$	15.23		$	12.83
Total Returnc		12.63	%		27.74	%		2.57	%		17.66	%		18.71	%		57.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	657,356		$	632,598		$	461,269		$	770,626		$	579,925		$	571,761
Ratios to average net assets:
Net investment income (loss)		(0.06	%)		0.10	%		0.13	%		(0.34	%)		(0.50	%)		(0.63	%)
Total expensesd		1.28	%		1.29	%		1.26	%		1.27	%		1.31	%		1.30	%
Portfolio turnover rate		58	%		141	%		94	%		94	%		39	%		34	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31,2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	19.55		$	17.04		$	16.70		$	14.27		$	12.09		$	7.72
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.01	)		(.08	)		(.13	)		(.12	)		(.12	)
Net gain (loss) on investments (realized and unrealized)		2.44			4.55			.42			2.56			2.30			4.49
Total from investment operations		2.41			4.54			.34			2.43			2.18			4.37
Less distributions from:
Net realized gains		—			(2.03	)		—			—			—			—
Total distributions		—			(2.03	)		—			—			—			—
Net asset value, end of period	$	21.96		$	19.55		$	17.04		$	16.70		$	14.27		$	12.09
Total Returnc		12.33	%		27.02	%		2.04	%		17.03	%		18.03	%		56.61	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	75,500		$	36,751		$	16,930		$	65,970		$	120,277		$	17,859
Ratios to average net assets:
Net investment income (loss)		(0.32	%)		(0.05	%)		(0.51	%)		(0.87	%)		(1.00	%)		(1.13	%)
Total expensesd		1.77	%		1.79	%		1.75	%		1.76	%		1.80	%		1.80	%
Portfolio turnover rate		58	%		141	%		94	%		94	%		39	%		34	%

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

NASDAQ-100^® FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31,2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	20.10		$	17.42		$	17.03		$	14.52		$	12.27		$	7.82
Income (loss) from investment operations:
Net investment income (loss)b		(.03	)		(.03	)		(.02	)		(.09	)		(.11	)		(.09	)
Net gain (loss) on investments (realized and unrealized)		2.54			4.74			.41			2.60			2.36			4.54
Total from investment operations		2.51			4.71			.39			2.51			2.25			4.45
Less distributions from:
Net realized gains		—			(2.03	)		—			—			—			—
Total distributions		—			(2.03	)		—			—			—			—
Net asset value, end of period	$	22.61		$	20.10		$	17.42		$	17.03		$	14.52		$	12.27
Total Returnc		12.49	%		27.42	%		2.29	%		17.29	%		18.34	%		56.91	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	42,354		$	21,751		$	23,656		$	14,553		$	19,806		$	15,128
Ratios to average net assets:
Net investment income (loss)		(0.32	%)		(0.14	%)		(0.09	%)		(0.61	%)		(0.81	%)		(0.86	%)
Total expensesd		1.53	%		1.54	%		1.52	%		1.53	%		1.56	%		1.55	%
Portfolio turnover rate		58	%		141	%		94	%		94	%		39	%		34	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31,2014			Year Ended March 28, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011			Year Ended March 31, 2010
Per Share Data
Net asset value, beginning of period	$	18.42		$	16.22		$	15.97		$	13.72		$	11.67		$	7.49
Income (loss) from investment operations:
Net investment income (loss)b		(.10	)		(.16	)		(.13	)		(.19	)		(.19	)		(.16	)
Net gain (loss) on investments (realized and unrealized)		2.33			4.39			.38			2.44			2.24			4.34
Total from investment operations		2.23			4.23			.25			2.25			2.05			4.18
Less distributions from:
Net realized gains		—			(2.03	)		—			—			—			—
Total distributions		—			(2.03	)		—			—			—			—
Net asset value, end of period	$	20.65		$	18.42		$	16.22		$	15.97		$	13.72		$	11.67
Total Returnc		12.11	%		26.46	%		1.57	%		16.40	%		17.57	%		55.81	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	21,983		$	19,175		$	13,015		$	15,177		$	11,864		$	12,216
Ratios to average net assets:
Net investment income (loss)		(1.06	%)		(0.89	%)		(0.84	%)		(1.35	%)		(1.52	%)		(1.63	%)
Total expensesd		2.28	%		2.29	%		2.26	%		2.27	%		2.31	%		2.30	%
Portfolio turnover rate		58	%		141	%		94	%		94	%		39	%		34	%

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

NASDAQ-100^® FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2014e
Per Share Data
Net asset value, beginning of period	$	22.91
Income (loss) from investment operations:
Net investment income (loss)b		(.01	)
Net gain (loss) on investments (realized and unrealized)		(.28	)
Total from investment operations		(.29	)
Net asset value, end of period	$	22.62
Total Returnc		(1.27	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	10
Ratios to average net assets:
Net investment income (loss)		(1.08	%)
Total expensesd		1.54	%
Portfolio turnover rate		58	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Does not include expenses of the underlying funds in which the Fund invests.
e	Since commencement of operations: September 18, 2014. Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the class.

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

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

The Trust offers a combination of eight separate classes of shares: Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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 CDSC. At September 30, 2014, the Trust consisted of fifty-one Funds.

This report covers the NASDAQ-100^® Fund (the “Fund”). Only Investor Class, Advisor Class, A-Class, C-Class and H-Class shares had been issued by the Fund.

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI, RFS and GFD are affiliated entities.

Significant Accounting Policies

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

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

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

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

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

Equity securities listed on an exchange (New York Stock Exchange (“NYSE”) or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official

16  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies ("Mutual Funds") are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds ("ETFs") and closed-end investment companies ("CEFs") are valued at the last quoted sales price.

Repurchase agreements are valued at amortized cost, which approximates market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of OTC swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements that is determined by marking the agreements to the last quoted value of the index that the swap pertains to at the close of the NYSE. The swap's value is then adjusted to include dividends accrued, and financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair valued as determined in good faith by GI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees.

These methods include, but are not limited to: (i) obtaining general information as to how these securities and assets trade; and (ii) obtaining other information and considerations, including current values in related markets.

In connection with futures contracts and other derivative investments, obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. When the Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

C. Upon entering into a futures contract, the Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

D. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

E. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  17 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

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

H. The Fund may leave cash overnight in its cash account with the custodian. Periodically, the Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.

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

2. Financial Instruments

As part of its investment strategy, the Fund utilizes a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statement of Assets and Liabilities.

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as restricted cash on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

The Fund uses derivative instruments to achieve leveraged exposure to its underlying index. Since the Fund's investment strategy involves consistently applied leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index. In addition, as investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, this creates an opportunity for increased net income but, at the same time, additional leverage risk. The Fund's use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

In conjunction with the use of derivative instruments, the Fund is required to maintain collateral in various forms. The Fund uses, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to the Fund.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

18  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

3. Fees and Other Transactions with Affiliates

Under the terms of an investment advisory contract, the Fund pays GI investment advisory fees calculated at an annualized rate of 0.75% of the average daily net assets of the Fund.

RFS provides transfer agent and administrative services to the Fund calculated at an annualized rate of 0.25% of the average daily net assets of the Fund.

RFS also provides accounting services to the Fund for fees calculated at annualized rates below, based on the average daily net assets of the Fund.

Fund Accounting Fees	(as a % of Net Assets)
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

RFS engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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

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

For the period ended September 30, 2014, GFD retained sales charges of $161,615 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI, RFS and GFD.

4. Fair Value Measurement

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

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

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

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

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

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  19 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table summarizes the inputs used to value the Fund's net assets at September 30, 2014:

	Level 1 Investments In Securities		Level 1 Other Financial Instruments*		Level 2 Investments In Securities		Level 2 Other Financial Instruments*		Level 3 Investments In Securities		Total
Assets
NASDAQ-100® Fund	$	760,905,500	$	—	$	9,399,542	$	541,977	$	—	$	770,847,019
Liabilities
NASDAQ-100® Fund	$	593,630	$	1,255,124	$	—	$	40,977	$	—	$	1,889,731

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the period ended September 30, 2014, there were no transfers between levels.

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

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2014, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
RBC Capital Markets			U.S. TIP Notes
(0.05)%			0.13% - 2.50%
Due 10/01/14	$339,522,378	$339,521,906	01/15/16 - 01/15/23	$285,293,500	$346,312,829
UMB Financial Corp.			U.S. Treasury Notes
0.00%			1.00% - 3.25%
Due 10/01/14	140,385,761	140,385,761	09/30/16 - 12/31/16	137,466,300	143,193,502
Mizuho Financial Group, Inc.			U.S. Treasury Note
0.01%			2.13%
Due 10/01/14	198,522,378	198,522,406	09/30/21	136,520,000	135,760,728
			U.S. TIP Notes
			0.13% - 1.63%
			01/15/15 - 04/15/16	57,126,400	66,732,140
HSBC Group			U.S. Treasury Strips
0.00%			0.00%
Due 10/01/14	87,599,687	87,599,687	08/15/18	94,804,900	89,351,722
Credit Suisse Group			U.S. Treasury Note
(0.05)%			0.25%
Due 10/01/14	7,283,778	7,283,768	05/15/16	7,435,100	7,429,556

20  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

6. Portfolio Securities Loaned

The Fund may lend its securities to approved brokers to earn additional income. Security lending income shown on the Statement of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Fund acts as the lender, Credit Suisse acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Fund receives cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Fund's securities lending agreement with Credit Suisse, cash collateral is invested in one or more joint repurchase agreements collateralized by obligations of the U.S. Treasury or Government Agencies and cash. The Fund bears the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Fund the next business day. Although the collateral mitigates the risk, the Fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. The Fund has the right under the securities lending agreement to recover the securities from the borrower on demand.

At September 30, 2014, the Fund participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
NASDAQ-100® Fund	$	3,773,301	$	3,956,625

Cash collateral received was invested in the following joint repurchase agreements at September 30, 2014:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.00%			0.00%
Due 10/01/14	$2,920,733	$2,920,733	11/15/19 - 11/15/30	$3,543,613	$2,442,119
			U.S. Treasury Note
			1.38%
			11/30/18	539,171	537,264
BNP Paribas Securities Corp.			U.S. TIP Bond
0.00%			2.13%
Due 10/01/14	478,809	478,809	02/15/41	358,242	488,415

There is also $557,083 in segregated cash held as collateral.

7. Derivative Investment Holdings Categorized by Risk Exposure

U.S. GAAP requires disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  21 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The Fund utilized derivatives for the following purposes:

Fund	Index Exposure	Liquidity
NASDAQ-100® Fund	x	x

The following table represents the notional amount of derivative instruments outstanding as an approximate percentage of the Fund’s net assets on a daily basis.

	Approximate percentage of Fund's Net Assets on a daily basis
Fund	Long	Short
NASDAQ-100® Fund	30%	—

The following is a summary of the location of derivative investments on the Fund's Statement of Assets and Liabilities as of September 30, 2014:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity contracts	Variation margin
	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

The following table sets forth the fair value of the Fund's derivative investments categorized by primary risk exposure at September 30, 2014:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at September 30, 2014
NASDAQ-100® Fund	$	—	$	541,977	$	541,977

Liability Derivative Investments Value
Fund	Futures Equity Contracts*		Swaps Equity Contracts		Total Value at September 30, 2014
NASDAQ-100® Fund	$	1,255,124	$	40,977	$	1,296,101

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund's Statement of Operations for the period ended September 30, 2014:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity contracts	Net realized gain (loss) on futures contracts
	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on futures contracts
	Net change in unrealized appreciation (depreciation) on swap agreements

22  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following is a summary of the Fund's realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statement of Operations categorized by primary risk exposure for the period ended September 30, 2014:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Equity Contracts		Swaps Equity Contracts		Total
NASDAQ-100® Fund	$	12,183,680	$	7,380,491	$	19,564,171

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Equity Contracts*			Swaps Equity Contracts		Total
NASDAQ-100® Fund	$	(1,203,289	)	$	434,036	$	(769,253	)

8. Offsetting

In the normal course of business, the Fund enters into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Fund to counteract the exposure to a specific counterparty with collateral received or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

In order to better define their contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  23 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statement of Assets and Liabilities in conformity with U.S. GAAP.

								Gross Amounts Not Offset In the Statement of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1		Gross Amounts Offset In the Statement of Assets and Liabilities		Net Amount of Assets Presented on the Statement of Assets and Liabilities		Financial Instruments		Cash Collateral Received2		Net Amount
NASDAQ-100® Fund	Swap equity contracts	$	541,977	$	—	$	541,977	$	—	$	—	$	541,977

								Gross Amounts Not Offset In the Statement of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1		Gross Amounts Offset In the Statement of Assets and Liabilities		Net Amount of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments		Cash Collateral Pledged2		Net Amount
NASDAQ-100® Fund	Swap equity contracts	$	40,977	$	—	$	40,977	$	—	$	—	$	40,977

1	Exchange-traded futures are excluded from these reported amounts.
2	Excludes maintenance margin deposits held at the broker related to derivatives. These amounts are reflected as segregated cash with broker on the Statement of Assets and Liabilities.

9. Federal Income Tax Information

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

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

The RIC Modernization Act of 2010 was signed into law on December 22, 2010, and simplified some of the tax provisions applicable to regulated investment companies, the tax reporting to their shareholders and improved the tax efficiency of certain fund structures. The greatest impact to the disclosure in the financial reports for the Fund was on the treatment of net capital losses, effective for tax years beginning after December 22, 2010.

24  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

One of the more prominent changes addresses capital loss carryforwards. The Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. As a result of this ordering rule, pre-enactment capital carryforwards may potentially expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

At September 30, 2014, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain
NASDAQ-100® Fund	$	414,818,886	$	356,385,639	$	(899,483	)	$	355,486,156

10. Securities Transactions

For the period ended September 30, 2014, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
NASDAQ-100® Fund	$	359,422,277	$	518,963,785

11. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted, $75,000,000 line of credit from U.S. Bank, N.A., which expires June 13, 2015. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2014. The Fund did not have any borrowings under this agreement at September 30, 2014.

The average daily balances borrowed for the period ended September 30, 2014, were as follows:

Fund	Amount
NASDAQ-100® Fund	$	47,649

12. Affiliated and/or Related Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Fund may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, and Guggenheim Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2014 will be available publicly or upon request.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  25 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Transactions during the period ended September 30, 2014, in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/2014			Additions			Reductions				Value 09/30/2014			Shares 09/30/2014		Investment Income			Realized Loss
NASDAQ-100® Fund
Guggenheim Strategy Fund I		$	—		$	253,665,599		$	(60,713,669	)		$	192,671,915		7,734,722		$	694,593		$	(63,669	)

13. Legal Proceedings

Tribune Company

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2696 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. The appeals have been fully briefed, and oral argument in front of the U.S. Court of Appeals for the Second Circuit occurred on November 5, 2014.

On May 23, 2014, the Shareholder Liaison Counsel filed a “global” motion to dismiss Count I of the FitzSimons action on behalf of all Shareholder Defendants. Count I is the claim for intentional fraudulent conveyance brought under federal law, and the global motion, if granted, would result in the dismissal of all Shareholder Defendants from the lawsuit. The District Court has not yet issued a decision on the motion.

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

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust action”).

26  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

Similar to the claims made in the Tribune matter, the Weisfelner complaint seeks to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008.

On April 7, 2014, the plaintiff filed a Third Amended Complaint. In the related action entitled Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adversary Proceeding No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust action”), the plaintiff also filed a Second Amended Complaint that alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On May 8, 2014, the plaintiff in the Litigation Trust action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction. If the Court agrees to certify a defendant class, a judgment could bind all members of the group (whether or not individually named in the litigation). The defendants plan to oppose the motion.

On July 30, 2014, the defendants filed a motion to dismiss all three lawsuits. The Court will hold an oral argument on the motions to dismiss and on the motion for class certification on January 14, and, if necessary, January 15, 2015. The Court further ordered that, with certain exceptions, all discovery in the actions shall be stayed until the briefing of the class certification motion has concluded. Discovery shall begin promptly after the completion of all briefing on the class certification motion in late December 2014.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  27 

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Office Locations

The offices of Guggenheim Investments can be found in the following locations:

330 Madison Avenue10th FloorNew York, NY 10017(Headquarters)

Four Irvington Centre805 King Farm BoulevardSuite 600Rockville, MD 20850

9401 Indian Creek Parkway40 Corporate WoodsSuite 850Overland Park, KS 66210

Distributor Change

Effective March 3, 2014, Guggenheim Distributors, LLC (“GD”), the distributor for shares of the Funds was consolidated into and with Guggenheim Funds Distributors, LLC (“GFD”). Following the consolidation, GFD serves as the Funds’ distributor.

GD and GFD are both indirect, wholly-owned subsidiaries of Guggenheim Capital, LLC and, therefore, the consolidation will not result in a change of actual control of the Funds’ distributor. The primary goal of the consolidation is to achieve greater operational efficiencies and allow all of the Guggenheim funds, including funds that are not series of the Trusts, to be distributed by a single distributor.

The consolidation is not expected to affect the day-to-day management of the Funds or result in any material changes to the distribution of the Funds, including any changes to the distribution fees paid by the Funds.

28  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

Board Considerations in Approving the Investment Advisory Agreement

At in-person meetings of the Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”) held on May 15 and June 4, 2014 (each, a “Meeting” and, together, the “Meetings”), called for the purpose of, among other things, consideration of, and voting on, the approval and continuation of the investment advisory agreement applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”), the Board, including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (the “Independent Trustees”), unanimously approved the continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and Security Investors, LLC (the “Advisor”) with respect to each of the Funds for an additional one-year period, based on the Board’s review of qualitative and quantitative information provided by the Advisor.

In reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. The Advisor provided the Board with a wide variety of information, including comparisons of Fund performance and fees relative to comparable peer funds in advance of the May 15, 2014 Meeting. The Independent Trustees carefully evaluated the information provided as well as information they received throughout the year as part of their regular oversight of the Funds. At the Meetings, independent legal counsel advised the Independent Trustees with respect to their deliberations and their fiduciary responsibilities associated with the Board’s consideration of the continuation of the Investment Advisory Agreement. The Board also received a memorandum from Fund counsel regarding the Board’s responsibilities when considering the approval of an investment advisory agreement.

During the Meetings, the Board, including the Independent Trustees, evaluated a number of considerations, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and investment strategies; (e) a comparison of the Funds’ advisory fees to the fees charged to comparable funds or accounts, paying special attention to the absence of breakpoints in these fees and the Advisor’s rationale for not including breakpoints; (f) each Fund’s overall fees and operating expenses compared with those of peer funds; (g) the Advisor’s profitability with respect to its Fund-related operations; (h) the Advisor’s compliance systems; (i) the Advisor’s policies and compliance procedures applicable to personal securities transactions; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of peer funds and/or appropriate benchmarks. In its deliberations, the Board did not identify any particular factor as controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees were reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

• Nature, Extent and Quality of Services Provided by the Advisor. At the Meetings, the Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially 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 Funds’ operations, the competitive landscape of the investment company business and investor needs.

• Fund Expenses and Performance of the Funds and the Advisor. At the Meetings, the Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare advisory contract renewal reports to help the Board fulfill its advisory contract renewal responsibilities. The reports compared the Funds’ fees, expenses and total return performance to those of comparable funds in the Funds’ peer group and the broader peer universe, as determined by FUSE. Statistical information in the FUSE reports related to the expense ratio components was based on a comparison of the Funds’ and peer funds’ actual advisory fees, waivers/reimbursements, and gross and net total expenses. The Board also considered the Advisor’s representation

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  29 

OTHER INFORMATION (Unaudited)(concluded)

that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one, three, and five year performance for the Fund compared to its peers and its appropriate benchmark.

• Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. At the Meetings, the Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. At the Meetings, the Board also analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed reports comparing the expense ratios of the Funds to those of other comparable funds. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin as reflected in the Advisor’s profitability analysis.

• Economies of Scale. In connection with its review of the Funds’ profitability analysis at the Meetings, the Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex increases and decreases significantly from time to time due to unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that economies of scale were not likely to be directly realized as a result of increases in the asset levels of the individual Funds, and accordingly, fee breakpoints were not currently appropriate for the Funds.

• Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the services provided by the Advisor, the Board considered the nature and amount of other benefits received by the Advisor and its affiliates as a result of their relationship with the Funds. In particular, the Board considered the nature, extent and quality of the administrative, distribution, and shareholder services performed by the Advisor’s affiliates and the fees paid to the Advisor’s affiliates for those services under separate agreements. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the ancillary benefits the Advisor and its affiliates received were considered reasonable. The Board also noted that the Advisor reports portfolio transactions on behalf of the Funds, including the cost of such transactions, placed through an affiliate of the Funds or the Advisor at each quarterly Board meeting.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the approval of the Investment Advisory Agreement would enable Fund shareholders to continue receiving high quality services at a cost that was appropriate, reasonable, and in the best interests of the Funds and their shareholders. The Board, including the Independent Trustees, unanimously approved the continuation of the existing Investment Advisory Agreement.

30  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	220	Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	131	None.
J. Kenneth Dalton (1941)	Trustee, Member and Chairman of the Audit Committee, and Member of the Governance and Nominating Committees from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	Trustee of Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board of Trustees from 2014 to present; Trustee from 1998 to present and Chairman of the Board from 2006 to 2014; Member and Chairman of the Audit Committee from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present; Vice Chairman of the Board of Trustees from 2010 to 2014; Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present; and Chairman and Member of the Risk Oversight Committee from 2010 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	131	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  31 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	131	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee, Member of the Audit Committee, and Chairman and Member of the Governance and Nominating Committees from 1998 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	131	None.

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Nikolaos Bonos (1963)	Vice President and Treasurer (2003-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); Chief Executive Officer, Guggenheim Specialized Products, LLC (2009-present); Chief Executive Officer & President, Rydex Fund Services, LLC (2009-present); Vice President, Rydex Holdings, LLC (2008-present). Former: Senior Vice President, Security Global Investors, LLC (2010-2011); and Senior Vice President, Rydex Advisors, LLC and Rydex Advisors II, LLC (2006-2011).

32  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Vice President, Guggenheim Funds Distributors, LLC (March 2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-March 2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Joseph M. Arruda (1966)	Assistant Treasurer (2006-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2006-present); Vice President, Security Investors, LLC (2010-present); CFO and Manager, Guggenheim Specialized Products, LLC (2009-present). Former: Vice President, Security Global Investors, LLC (2010-2011); Vice President, Rydex Advisors, LLC (2010); Vice President, Rydex Advisors II, LLC (2010).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  33 

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Rydex Funds, Guggenheim Funds, Rydex Investments, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Security Distributors, Inc., Guggenheim Partners Investment Managers, LLC, and Rydex Advisory Services (Collectively “Guggenheim Investments”).

Our Commitment to You

When you become a Guggenheim Investments 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 Guggenheim Investments 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 Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Investments funds or one of the Guggenheim Investments 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 Guggenheim Investments. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. To alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new Rydex and Guggenheim Investments funds or the services offered through another Guggenheim Investments 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.

34  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

How We Protect Privacy Online

Our concern for the privacy of our shareholders also extends to those who use our web site, guggenheiminvestments.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 Guggenheim Investments 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 Guggenheim Investments 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.

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 guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us at 800.820.0888 or 301.296.5100.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  35 

This page intentionally left blank.

This page intentionally left blank.

9.30.2014

Rydex Funds Semi-Annual Report

Fixed Income Fund

Inverse Government Long Bond Strategy Fund

RJUNF-SEMI-0914x0315 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	5
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
INVERSE GOVERNMENT LONG BOND STRATEGY FUND	8
NOTES TO FINANCIAL STATEMENTS	15
OTHER INFORMATION	24
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	27
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	30

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  1 

September 30, 2014

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for one or more of our Funds (the “Funds”) for the six-month period ended September 30, 2014.

The Investment Adviser is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC, a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

Donald C. CacciapagliaPresidentOctober 31, 2014

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

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2014

Despite market volatility rising in October, for the period ending September 30, data on everything from hiring to housing conveys that the U.S. economy is firing on all cylinders. Overcoming a first-quarter weather-related soft patch, second-quarter GDP was revised upward to 4.6%, led by business investment. Durable goods orders surged over the summer and consumer confidence was at multi-year highs, despite a lower reading for the last part of the period. With tailwinds for economic growth gathering, we could see a strong third quarter GDP reading.

September’s addition of 248,000 non-farm payroll jobs was, on the surface, at least a strong figure and certainly not something to be discounted. However, investor optimism about the report, which also showed the unemployment rate falling to 5.9%—its lowest level since 2008—masked the fact that average hourly earnings were unchanged. Economic data late in the period included disappointing factory orders, poor construction spending, and weaker-than-expected ISM manufacturing data. The most recent decline in the U.S. Conference Board Consumer Confidence Index was worrisome.

The U.S. economy is certainly doing well enough to suggest higher interest rates ahead. With quantitative easing ending in the U.S. in October 2014 and the Fed preparing investors for a higher federal funds rate, the stage is set for U.S. interest rates to move higher. However, our view is that, despite a strengthening U.S. economy, the greater risk is that interest rates head lower in the near term.

Following the "taper tantrum" last year, before rates were able to reach historical norms, the average rate on a 30-year mortgage spiked almost a full percentage point in two months—the sharpest rise since the late 1990s—resulting in an abrupt housing slowdown, which slowed the U.S. economy materially.

In addition, U.S. Treasury yields are still materially higher than those in any other developed market. The spread between 10-year U.S. Treasuries and comparable German bunds reached 157 basis points in September, its widest level since 1999, and the spread between 10-year Treasuries and 10-year Japanese government bonds was recently 189 basis points. With developments in the Middle East increasingly troubling and turbulence continuing elsewhere from Ukraine to Hong Kong, the relative price value of U.S. government bonds versus other safe haven investments should continue to be a factor keeping U.S. interest rates low.

International economic data remain weak. Euro zone economic confidence is falling as the entire region continues to battle below-target inflation. At the start of September, the European Central Bank cut interest rates and signaled their intent to launch a program to purchase asset-backed securities and covered bonds to stimulate the dismal economy. In Japan, retail sales fell month-over-month in August, while industrial production falters.

Economic data around the world confirms our view that central banks are likely to renew efforts to force liquidity into the global financial system, which in turn further supports our positive outlook for risk assets. However, positive returns are unlikely without volatility. While markets continue to rally, gains are becoming more grudging. The upward momentum in U.S. stocks has deteriorated meaningfully while credit spreads, specifically high-yield spreads, have widened significantly over the past number of weeks. While the bull market trend remains intact, as the appreciation in risk assets continues it becomes more likely that this ageing advance will, at some point, experience a correction.

For the six-month period ended September 30, 2014, the return of the Standard & Poor’s 500^® Index* (“S&P 500”) was 6.42%. The Barclays U.S. Aggregate Bond Index* returned 2.21% for the period, while the Barclays U.S. Corporate High Yield Index* returned 0.49%. The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index* returned 0.02%. The MSCI World Index* returned 2.59%, while the MSCI Emerging Markets Index* returned 2.87%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  3 

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2014

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

*Index Definitions:

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

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

Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Barclays U.S. Corporate High Yield Index covers the universe of dollar denominated, fixed rate, non-investment grade debt, taxable corporate debt.

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

MSCI World Index (Net) is calculated with net dividends reinvested. It is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

S&P 500^® Index is a market-weighted stock market index comprised of the stocks of 500 U.S. corporations; the index is owned and maintained by Standard & Poor’s.

4  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

The Inverse Government Long Bond Strategy Fund described in this report is benchmarked daily to an inverse leveraged version of a published index. To properly evaluate the performance of this fund, it is essential to understand the effect of mathematical compounding on its respective return.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value per share (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index Level	Index Performance	Fund Expectation	Fund NAV	Fund Performance	Assessment
Start	100			$10.00
Day 1	106	6.0%	9.0%	$10.90	9.0%	In line
Day 2	99	-6.6%	-9.9%	$9.82	-9.9%	In line
Cumulative		-1.0%	-1.5%		-1.8%	-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  5 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2014 and ending September 30, 2014.

The following tables illustrate a Fund’s costs in two ways:

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

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

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

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

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

6  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Inverse Government Long Bond Strategy Fund
Investor Class	3.20%	(9.02%)	$1,000.00	$909.80	$15.32
Advisor Class	3.65%	(9.33%)	1,000.00	906.70	17.45
A-Class	3.43%	(9.15%)	1,000.00	908.50	16.41
C-Class	4.19%	(9.47%)	1,000.00	905.30	20.01
H-Class4	3.26%	(3.03%)	1,000.00	969.70	1.06
Table 2. Based on hypothetical 5% return (before expenses)
Inverse Government Long Bond Strategy Fund
Investor Class	3.20%	5.00%	$1,000.00	$1,009.02	$16.12
Advisor Class	3.65%	5.00%	1,000.00	1,006.77	18.36
A-Class	3.43%	5.00%	1,000.00	1,007.87	17.26
C-Class	4.19%	5.00%	1,000.00	1,004.06	21.05
H-Class4	3.26%	5.00%	1,000.00	1,008.72	16.42

1	This ratio represents annualized Net Expenses, which include interest expense related to securities sold short. Excluding short interest expense, the operating expense ratio of the Inverse Government Long Bond Strategy Fund would be 1.41%, 1.91%, 1.66%, 2.41% and 1.67% for the Investor Class, Advisor Class, A-Class, C-Class and H-Class, respectively.
2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2014 to September 30, 2014.
4	Since commencement of operations: September 18, 2014. Expenses paid based on actual fund return are calculated using 12 days from the commencement of operations. Expenses paid based on the hypothetical 5% return are calculated using 183 days.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  7 

FUND PROFILE (Unaudited) September 30, 2014

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

OBJECTIVE: Seeks to provide total returns that inversely correlate, before fees and expenses, to the price movements of a benchmark for U.S. Treasury debt instruments or futures contracts on a specified debt instrument on a daily basis. The Fund’s current benchmark is the inverse (opposite) of the daily price movement of the Long Treasury Bond. The Long Treasury Bond is the U.S. Treasury bond with the longest maturity, which is currently 30 years. The price movement of the Long Treasury Bond is based on the daily price change of the most recently issued Long Treasury Bond. The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
Investor Class	March 3, 1995
Advisor Class	August 1, 2003
A-Class	March 31, 2004
C-Class	March 28, 2001
H-Class	September 18, 2014

The Fund invests principally in short sales and derivative investments such as futures contracts.

8  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INVERSE GOVERNMENT LONG BOND STRATEGY FUND

	Shares		Value
MUTUAL FUNDS† - 28.0%
Guggenheim Strategy Fund I1		4,065,104	$	101,261,742
Total Mutual Funds
(Cost $101,489,024)				101,261,742
	Face Amount
FEDERAL AGENCY DISCOUNT NOTES†† - 29.3%
Farmer Mac2
0.08% due 12/10/14	$	25,000,000		24,999,275
0.10% due 10/27/14		15,000,000		14,999,865
0.07% due 10/01/14		11,000,000		11,000,000
Total Farmer Mac				50,999,140
Freddie Mac3
0.09% due 10/29/14		15,000,000		14,999,865
0.10% due 10/29/14		15,000,000		14,999,865
0.09% due 01/16/15		15,000,000		14,999,190
Total Freddie Mac				44,998,920
Federal Farm Credit Bank2
0.12% due 04/10/15		10,000,000		9,997,880
Total Federal Agency Discount Notes
(Cost $105,982,247)				105,995,940
REPURCHASE AGREEMENTS†† - 85.8%
Individual Repurchase Agreement4
Barclays Capital issued 09/30/14 at 0.60% due 10/01/14 (secured by U.S. Treasury Bond, at a rate of 3.13% and maturing 08/15/44 as collateral, with a value of $165,700,364) to be repurchased at $161,820,724		161,818,027		161,818,027

Joint Repurchase Agreements5
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14		66,060,063		66,060,063
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		38,626,028		38,626,028
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		27,314,524		27,314,524
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		17,044,063		17,044,063
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		101,638		101,638
Total Repurchase Agreements
(Cost $310,964,343)				310,964,343
Total Investments - 143.1%
(Cost $518,435,614)			$	518,222,025
U.S. GOVERNMENT SECURITIES SOLD SHORT†† - (47.8)%
U.S. Treasury Bonds
3.12% due 08/15/44		175,506,000		(172,708,874	)
Total U.S. Government Securities Sold Short
(Proceeds $174,482,328)				(172,708,874	)
Other Assets & Liabilities, net - 4.6%				16,554,915
Total Net Assets - 100.0%			$	362,068,066
	Contracts		Unrealized Gain
INTEREST RATE FUTURES CONTRACTS SOLD SHORT†
December 2014 U.S. Treasury Ultra Long Bond Futures Contracts (Aggregate Value of Contracts $223,702,438)		1,466	$	1,495,549

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Affiliated issuer.
2	The issuer operates under a Congressional charter; its securities are neither issued nor guaranteed by the U.S. Government.
3	On September 7, 2008, the issuer was placed in conservatorship by the Federal Housing Finance Agency (FHFA). As conservator, the FHFA has full powers to control the assets and operations of the firm.
4	All or portion of this security is pledged as short collateral at September 30, 2014.
5	Repurchase Agreements — See Note 5.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  9 

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments in unaffiliated issuers, at value(cost $105,982,247)	$	105,995,940
Investments in affiliated issuers, at value(cost $101,489,024)		101,261,742
Repurchase agreements, at value (cost $310,964,343)		310,964,343
Total investments (cost $518,435,614)		518,222,025
Segregated cash with broker		3,958,200
Receivables:
Securities sold		8,462,937
Fund shares sold		4,923,707
Variation margin		1,007,875
Dividends		82,378
Interest		31,541
Total assets		536,688,663
Liabilities:
Securities sold short, at value (proceeds $174,482,328)		172,708,874
Payable for:
Fund shares redeemed		653,802
Management fees		226,360
Distribution and service fees		80,243
Transfer agent and administrative fees		62,878
Portfolio accounting fees		23,821
Miscellaneous		864,619
Total liabilities		174,620,597
Net assets	$	362,068,066
Net assets consist of:
Paid in capital	$	766,760,187
Accumulated net investment loss		(9,844,488	)
Accumulated net realized loss on investments		(397,903,047	)
Net unrealized appreciation on investments		3,055,414
Net assets	$	362,068,066
Investor Class:
Net assets	$	147,099,479
Capital shares outstanding		3,514,213
Net asset value per share	$	41.86
Advisor Class:
Net assets	$	128,473,560
Capital shares outstanding		3,240,550
Net asset value per share	$	39.65
A-Class:
Net assets	$	33,793,113
Capital shares outstanding		832,451
Net asset value per share	$	40.59
Maximum offering price per share (Net asset value divided by 95.25%)	$	42.61
C-Class:
Net assets	$	50,660,261
Capital shares outstanding		1,386,896
Net asset value per share	$	36.53
H-Class:
Net assets	$	2,041,653
Capital shares outstanding		50,310
Net asset value per share	$	40.58

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014**
Investment Income:
Dividends from securities of affiliated issuers	$	471,522
Interest		54,360
Total investment income		525,882
Expenses:
Management fees		1,578,394
Transfer agent and administrative fees		438,443
Distribution and service fees:
Advisor Class		223,506
A-Class		48,656
C-Class		266,889
H-Class		35
Portfolio accounting fees		162,860
Short interest expense		3,114,204
Custodian fees		20,470
Trustees’ fees*		15,319
Miscellaneous		252,773
Total expenses		6,121,549
Net investment loss		(5,595,667	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments in affiliated issuers		(120	)
Futures contracts		(17,251,599	)
Securities sold short		(19,998,144	)
Net realized loss		(37,249,863	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers		(19,543	)
Investments in affiliated issuers		(227,282	)
Securities sold short		4,214,843
Futures contracts		1,965,424
Net change in unrealized appreciation (depreciation)		5,933,442
Net realized and unrealized loss		(31,316,421	)
Net decrease in net assets resulting from operations	$	(36,912,088	)

*	Relates to Trustees not deemed "interested persons" within the meaning of Section 2(a)(19) of the 1940 Act.
**	Since commencement of operations: September 18, 2014 — H-Class.

10  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(5,595,667	)	$	(15,338,405	)
Net realized gain (loss) on investments		(37,249,863	)		11,531,426
Net change in unrealized appreciation (depreciation) on investments		5,933,442			(1,471,301	)
Net decrease in net assets resulting from operations		(36,912,088	)		(5,278,280	)
Capital share transactions:
Proceeds from sale of shares
Investor Class		167,541,767			1,212,780,870
Advisor Class		2,432,577,983			5,382,740,545
A-Class		3,109,672			105,073,218
C-Class		20,773,110			28,159,469
H-Class**		4,077,459			—
Cost of shares redeemed
Investor Class		(181,634,485	)		(1,181,336,410	)
Advisor Class		(2,309,702,491	)		(5,368,048,897	)
A-Class		(15,251,215	)		(88,137,870	)
C-Class		(22,089,637	)		(28,117,046	)
H-Class**		(2,018,379	)		—
Net increase from capital share transactions		97,383,784			63,113,879
Net increase in net assets		60,471,696			57,835,599
Net assets:
Beginning of period		301,596,370			243,760,771
End of period	$	362,068,066		$	301,596,370
Accumulated net investment loss at end of period	$	(9,844,488	)	$	(4,248,821	)
Capital share activity:*
Shares sold
Investor Class		3,844,888			25,688,339
Advisor Class		59,187,690			119,675,656
A-Class		74,164			2,241,652
C-Class		549,790			674,822
H-Class**		99,650			—
Shares redeemed
Investor Class		(4,193,643	)		(25,096,700	)
Advisor Class		(56,328,600	)		(119,576,482	)
A-Class		(357,669	)		(1,893,603	)
C-Class		(583,427	)		(677,648	)
H-Class**		(49,340	)		—
Net increase in shares		2,243,503			1,036,036

*	Capital share activity for the periods presented through February 21, 2014 has been restated to reflect a 1:5 reverse share split effective February 21, 2014. See Note 11 in Notes to Financial Statements.
**	Since commencement of operations: September 18, 2014.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  11 

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

Investor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	46.01		$	43.94		$	48.33		$	65.42		$	73.23		$	66.61
Income (loss) from investment operations:
Net investment income (loss)b		(.62	)		(1.65	)		(1.20	)		(2.15	)		(3.10	)		(1.65	)
Net gain (loss) on investments (realized and unrealized)		(3.53	)		3.72			(3.19	)		(14.94	)		(4.71	)		8.27
Total from investment operations		(4.15	)		2.07			(4.39	)		(17.09	)		(7.81	)		6.62
Net asset value, end of period	$	41.86		$	46.01		$	43.94		$	48.33		$	65.42		$	73.23
Total Returnc		(9.02	%)		4.69	%		(9.10	%)		(26.07	%)		(10.72	%)		9.98	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	147,099		$	177,735		$	143,739		$	247,454		$	406,031		$	376,574
Ratios to average net assets:
Net investment income (loss)		(2.84	%)		(3.46	%)		(2.82	%)		(3.99	%)		(4.78	%)		(2.23	%)
Total expensesf		3.20	%		3.50	%		2.99	%		4.13	%		5.06	%		2.53	%
Portfolio turnover rate		603	%		1,097	%		1,309	%		1,107	%		771	%		985	%

Advisor Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	43.73		$	41.72		$	46.17		$	62.98		$	70.84		$	64.76
Income (loss) from investment operations:
Net investment income (loss)b		(.73	)		(1.67	)		(1.35	)		(2.05	)		(3.30	)		(1.95	)
Net gain (loss) on investments (realized and unrealized)		(3.35	)		3.68			(3.10	)		(14.76	)		(4.56	)		8.03
Total from investment operations		(4.08	)		2.01			(4.45	)		(16.81	)		(7.86	)		6.08
Net asset value, end of period	$	39.65		$	43.73		$	41.72		$	46.17		$	62.98		$	70.84
Total Returnc		(9.33	%)		4.87	%		(9.64	%)		(26.75	%)		(11.08	%)		9.42	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	128,474		$	16,679		$	11,776		$	199,137		$	44,798		$	66,668
Ratios to average net assets:
Net investment income (loss)		(3.54	%)		(3.69	%)		(3.29	%)		(4.22	%)		(5.28	%)		(2.79	%)
Total expensesf		3.65	%		3.72	%		3.45	%		4.38	%		5.56	%		3.09	%
Portfolio turnover rate		603	%		1,097	%		1,309	%		1,107	%		771	%		985	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (continued)

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

A-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	44.68		$	42.77		$	47.18		$	64.00		$	71.82		$	65.49
Income (loss) from investment operations:
Net investment income (loss)b		(.65	)		(1.73	)		(1.35	)		(2.25	)		(3.20	)		(1.75	)
Net gain (loss) on investments (realized and unrealized)		(3.44	)		3.64			(3.06	)		(14.57	)		(4.62	)		8.08
Total from investment operations		(4.09	)		1.91			(4.41	)		(16.82	)		(7.82	)		6.33
Net asset value, end of period	$	40.59		$	44.68		$	42.77		$	47.18		$	64.00		$	71.82
Total Returnc		(9.15	%)		4.51	%		(9.43	%)		(26.25	%)		(10.86	%)		9.62	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	33,793		$	49,859		$	32,842		$	37,607		$	73,475		$	80,151
Ratios to average net assets:
Net investment income (loss)		(3.07	%)		(3.73	%)		(3.20	%)		(4.24	%)		(5.03	%)		(2.47	%)
Total expensesf		3.43	%		3.78	%		3.37	%		4.38	%		5.31	%		2.77	%
Portfolio turnover rate		603	%		1,097	%		1,309	%		1,107	%		771	%		985	%

C-Class	Period Ended September 30, 2014a			Year Ended March 31, 2014d			Year Ended March 28, 2013d			Year Ended March 31, 2012d			Year Ended March 31, 2011d			Year Ended March 31, 2010d
Per Share Data
Net asset value, beginning of period	$	40.35		$	38.92		$	43.25		$	59.09		$	66.81		$	61.39
Income (loss) from investment operations:
Net investment income (loss)b		(.73	)		(1.86	)		(1.50	)		(2.40	)		(3.40	)		(2.15	)
Net gain (loss) on investments (realized and unrealized)		(3.09	)		3.29			(2.83	)		(13.44	)		(4.32	)		7.57
Total from investment operations		(3.82	)		1.43			(4.33	)		(15.84	)		(7.72	)		5.42
Net asset value, end of period	$	36.53		$	40.35		$	38.92		$	43.25		$	59.09		$	66.81
Total Returnc		(9.47	%)		3.73	%		(10.06	%)		(26.82	%)		(11.53	%)		8.79	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	50,660		$	57,323		$	55,404		$	69,472		$	114,470		$	140,451
Ratios to average net assets:
Net investment income (loss)		(3.82	%)		(4.45	%)		(3.96	%)		(4.98	%)		(5.78	%)		(3.17	%)
Total expensesf		4.19	%		4.49	%		4.13	%		5.12	%		6.06	%		3.47	%
Portfolio turnover rate		603	%		1,097	%		1,309	%		1,107	%		771	%		985	%

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

INVERSE GOVERNMENT LONG BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period Ended September 30, 2014e
Per Share Data
Net asset value, beginning of period	$	41.85
Income (loss) from investment operations:
Net investment income (loss)b		(.04	)
Net gain (loss) on investments (realized and unrealized)		(1.23	)
Total from investment operations		(1.27	)
Net asset value, end of period	$	40.58
Total Returnc		(3.03	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,042
Ratios to average net assets:
Net investment income (loss)		(3.04	%)
Total expensesf		3.26	%
Portfolio turnover rate		603	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
d	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014. See Note 11 in Notes to Financial Statements.
e	Since commencement of operations: September 18, 2014. Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized. The portfolio turnover rate stated is for the entire period of the Fund, not since commencement of operations of the Class.
f	Total expenses may include interest expense related to short sales. Excluding interest expense, the operating expense ratio for the period and years ended would be:

	09/30/14	03/31/14	03/28/13	03/31/12	03/31/11	03/31/10
Investor Class	1.41%	1.41%	1.39%	1.39%	1.42%	1.41%
Advisor Class	1.91%	1.91%	1.88%	1.87%	1.91%	1.91%
A-Class	1.66%	1.66%	1.64%	1.65%	1.67%	1.66%
C-Class	2.41%	2.41%	2.39%	2.40%	2.42%	2.41%
H-Class	1.67%	—	—	—	—	—

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

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

The Trust offers a combination of eight separate classes of shares: Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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 CDSC. At September 30, 2014, the Trust consisted of fifty-one Funds.

This report covers the Inverse Government Long Bond Strategy Fund (the “Fund”).

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

Guggenheim Investments (“GI”) provides advisory services, and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI, RFS and GFD are affiliated entities.

Significant Accounting Policies

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

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

A. Valuations of the Fund's securities are supplied primarily by pricing services approved by the Board of Trustees. A Valuation Committee is responsible for the oversight of the valuation process of the Fund and convenes monthly, or more frequently as needed. The Valuation Committee will review the valuation of all assets which have been fair valued for reasonableness. The Trust’s officers, through the Valuation Committee under the general supervision of the Board of Trustees, regularly review procedures used by, and valuations provided by, the pricing services.

Open-end investment companies ("Mutual Funds") are valued at their NAV as of the close of business, on the valuation date.

Debt securities with a maturity of greater than 60 days at acquisition are valued at prices that reflect broker/dealer supplied valuations or are obtained from independent pricing services, which may consider the trade activity, treasury spreads, yields or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Short-term debt securities with a maturity of 60 days or less at acquisition are valued at amortized cost, which approximates market value.

Repurchase agreements are valued at amortized cost, which approximates market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date. In the event that the exchange for a specific futures

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  15 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

Investments for which market quotations are not readily available are fair valued as determined in good faith by GI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) obtaining general information as to how these securities and assets trade; and (ii) obtaining other information and considerations, including current values in related markets.

In connection with futures contracts and other derivative investments, obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. Certain U.S. Government and Agency Obligations are traded on a discount basis; the interest rates shown on the Schedule of Investments reflect the effective rates paid at the time of purchase by the Fund. Other securities bear interest at the rates shown, payable at fixed dates through maturity.

C. When the Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Fund may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

D. Upon entering into a futures contract, the Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

E. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis.

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

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

H. The Fund may leave cash overnight in its cash account with the custodian. Periodically, the Fund may have cash due to the custodian bank as an overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.

I. Under the Fund's organizational documents, its Trustees and Officers are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, throughout the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties which provide general indemnifications. The Fund's maximum

16  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

2. Financial Instruments

As part of its investment strategy, the Fund utilizes short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statement of Assets and Liabilities.

A short sale is a transaction in which a Fund sells a security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, that Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, that Fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as restricted cash on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

The Fund uses derivative instruments to achieve leveraged exposure to its underlying index. Since the Fund’s investment strategy involves consistently applied leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index. In addition, as investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, this creates an opportunity for increased net income but, at the same time, additional leverage risk. The Fund’s use of leverage, through borrowings or instruments such as derivatives, may cause the Fund to be more volatile and riskier than if they had not been leveraged.

In conjunction with the use short sales and of derivative instruments, the Fund is required to maintain collateral in various forms. The Fund uses, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to the Fund.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Fees and Other Transactions with Affiliates

Under the terms of an investment advisory contract, the Fund pays GI investment advisory fees calculated at an annualized rate of 0.90% of the average daily net assets of the Fund.

RFS provides transfer agent and administrative services to the Fund calculated at the annualized rate of 0.25% of the average daily net assets of the Fund.

RFS also provides accounting services to the Fund for fees calculated at annualized rates below, based on the average daily net assets of the Fund.

Fund Accounting Fees	(as a % of Net Assets)
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

RFS engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

The Trust has adopted a Distribution and Shareholder Services Plan applicable to its Advisor Class shares and a Distribution Plan applicable to A-Class shares for which GFD and other firms that provide distribution and/or shareholder services (“Service Providers”) may receive compensation. The Fund pays distribution fees to GFD at an annual rate not to exceed 0.25% of average

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  17 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

daily net assets, pursuant to Rule 12b-1 of the 1940 Act. If a Service Provider provides distribution services, GFD, in turn, will pay the Service Provider out of its fees. GFD may, at its discretion, retain a portion of such payments to compensate itself for distribution services. With regard to Advisor Class shares only, GFD receives shareholder servicing fees from the Funds at an annual rate not to exceed 0.25% of average daily net assets. If a Service Provider provides shareholder services, GFD, in turn, will compensate Service Providers for providing such services, while retaining a portion of such payments to compensate itself for shareholder services it performs.

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

For the period ended September 30, 2014, GFD retained sales charges of $161,615 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI, RFS and GFD.

4. Fair Value Measurement

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

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

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

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

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

The following table summarizes the inputs used to value the Fund's net assets at September 30, 2014:

	Level 1 Investments In Securities		Level 1 Other Financial Instruments*		Level 2 Investments In Securities		Level 3 Investments In Securities		Total
Assets
Inverse Government Long Bond Strategy Fund	$	101,261,742	$	1,495,549	$	416,960,283	$	—	$	519,717,574
Liabilities
Inverse Government Long Bond Strategy Fund	$	—	$	—	$	172,708,874	$	—	$	172,708,874

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the period ended September 30, 2014, there were no transfers between levels.

18  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

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

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

At September 30, 2014, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
RBC Capital Markets			U.S. TIP Notes
(0.05)%			0.13% - 2.50%
Due 10/01/14	$339,522,378	$339,521,906	01/15/16 - 01/15/23	$285,293,500	$346,312,829
UMB Financial Corp.			U.S. Treasury Notes
0.00%			1.00% - 3.25%
Due 10/01/14	140,385,761	140,385,761	09/30/16 - 12/31/16	137,466,300	143,193,502
Mizuho Financial Group, Inc.			U.S. Treasury Note
0.01%			2.13%
Due 10/01/14	198,522,378	198,522,406	09/30/21	136,520,000	135,760,728
			U.S. TIP Notes
			0.13% - 1.63%
			01/15/15 - 04/15/16	57,126,400	66,732,140
HSBC Group			U.S. Treasury Strips
0.00%			0.00%
Due 10/01/14	87,599,687	87,599,687	08/15/18	94,804,900	89,351,722
Credit Suisse Group			U.S. Treasury Note
(0.05)%			0.25%
Due 10/01/14	7,283,778	7,283,768	05/15/16	7,435,100	7,429,556

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

6. Derivative Investment Holdings Categorized by Risk Exposure

U.S. GAAP requires disclosures to enable investors to better understand how and why the Fund uses derivative instruments, how these derivative instruments are accounted for and their effects on the Fund's financial position and results of operations.

The Fund utilized derivatives for the following purposes:

Fund	Index Exposure	Liquidity
Inverse Government Long Bond Strategy Fund	x	x

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  19 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table represents the notional amount of derivative instruments outstanding as an approximate percentage of the Fund’s net assets on a daily basis.

	Approximate percentage of Fund's Net Assets on a daily basis
Fund	Long	Short
Inverse Government Long Bond Strategy Fund	—	60%

The following is a summary of the location of derivative investments on the Fund's Statement of Assets and Liabilities as of September 30, 2014:

Derivative Investment Type	Asset Derivatives
Interest Rate contracts	Variation margin

The following table sets forth the fair value of the Fund's derivative investments categorized by primary risk exposure at September 30, 2014:

Asset Derivative Investments Value
Fund	FuturesInterest Rate Contracts*
Inverse Government Long Bond Strategy Fund	$	1,495,549

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Fund's Statement of Operations for the period ended September 30, 2014:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts

The following is a summary of the Fund's realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statement of Operations categorized by primary risk exposure for the period ended September 30, 2014:

Realized Gain (Loss) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Interest RateContracts
Inverse Government Long Bond Strategy Fund	$	(17,251,599	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statement of Operations
Fund	Futures Interest RateContracts
Inverse Government Long Bond Strategy Fund	$	1,965,424

20  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

7. Federal Income Tax Information

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

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

The RIC Modernization Act of 2010 was signed into law on December 22, 2010, and simplified some of the tax provisions applicable to regulated investment companies, the tax reporting to their shareholders and improved the tax efficiency of certain fund structures. The greatest impact to the disclosure in the financial reports for the Fund was on the treatment of net capital losses, effective for tax years beginning after December 22, 2010.

One of the more prominent changes addresses capital loss carryforwards. The Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. As a result of this ordering rule, pre-enactment capital carryforwards may potentially expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

At September 30, 2014, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Loss
Inverse Government Long Bond Strategy Fund	$	518,435,734	$	13,686	$	(227,395	)	$	(213,709	)

8. Securities Transactions

For the period ended September 30, 2014, the cost of purchases and proceeds from sales of government securities were:

Fund	Purchases			Sales
Inverse Government Long Bond Strategy Fund	$	(1,137,387,359	)	$	(1,132,437,316	)

9. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted, $75,000,000 line of credit from U.S. Bank, N.A., which expires June 13, 2015. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2014. The Fund did not have any borrowings under this agreement at September 30, 2014.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  21 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

10. Affiliated and/or Related Transactions

Investments representing 5% or more of the outstanding voting shares of a portfolio company of a fund, or control of or by, or common control under GI, result in that portfolio company being considered an affiliated company of such fund, as defined in the 1940 Act.

The Funds may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, and Guggenheim Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2014 will be available publicly or upon request.

Transactions during the period ended September 30, 2014 in which the portfolio company is an “affiliated person” are as follows:

Affiliated issuers by Fund	Value 03/31/2014		Additions		Reductions			Value 09/30/2014		Shares 09/30/2014		Investment Income		Realized Gain (Loss)			Capital Gain Distributions
Inverse Government Long Bond Strategy Fund
Guggenheim Strategy Fund I	$	—	$	101,589,144	$	(100,120	)	$	101,261,742		4,065,104	$	471,522	$	(120	)	$	—
	$	—	$	101,589,144	$	(100,120	)	$	101,261,742		4,065,104	$	471,522	$	(120	)	$	—

11. Reverse Share Split

The Inverse Government Long Bond Strategy Fund underwent a one-for-five reverse share split effective February 21, 2014. The effect of the transaction was to divide the number of outstanding shares of the Fund by five, resulting in a corresponding increase in the net asset value per share. The share transactions presented in the statement of changes in net assets and the per share data in the financial highlights for each of the periods presented prior to February 21, 2014 have been restated to reflect this reverse share split. There were no changes in net assets, results of operations or total return as a result of this transaction.

12. Legal Proceedings

Tribune Company

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2696 (S.D.N.Y.) (the “MDL Proceeding”).

22  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. The appeals have been fully briefed, and oral argument in front of the U.S. Court of Appeals for the Second Circuit occurred on November 5, 2014.

On May 23, 2014, the Shareholder Liaison Counsel filed a “global” motion to dismiss Count I of the FitzSimons action on behalf of all Shareholder Defendants. Count I is the claim for intentional fraudulent conveyance brought under federal law, and the global motion, if granted, would result in the dismissal of all Shareholder Defendants from the lawsuit. The District Court has not yet issued a decision on the motion.

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

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust action”).

Similar to the claims made in the Tribune matter, the Weisfelner complaint seeks to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008.

On April 7, 2014, the plaintiff filed a Third Amended Complaint. In the related action entitled Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adversary Proceeding No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust action”), the plaintiff also filed a Second Amended Complaint that alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On May 8, 2014, the plaintiff in the Litigation Trust action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction. If the Court agrees to certify a defendant class, a judgment could bind all members of the group (whether or not individually named in the litigation). The defendants plan to oppose the motion.

On July 30, 2014, the defendants filed a motion to dismiss all three lawsuits. The Court will hold an oral argument on the motions to dismiss and on the motion for class certification on January 14, and, if necessary, January 15, 2015. The Court further ordered that, with certain exceptions, all discovery in the actions shall be stayed until the briefing of the class certification motion has concluded. Discovery shall begin promptly after the completion of all briefing on the class certification motion in late December 2014.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  23 

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Office Locations

The offices of Guggenheim Investments can be found in the following locations:

330 Madison Avenue10th FloorNew York, NY 10017(Headquarters)

Four Irvington Centre805 King Farm BoulevardSuite 600Rockville, MD 20850

9401 Indian Creek Parkway40 Corporate WoodsSuite 850Overland Park, KS 66210

Distributor Change

Effective March 3, 2014, Guggenheim Distributors, LLC (“GD”), the distributor for shares of the Funds was consolidated into and with Guggenheim Funds Distributors, LLC (“GFD”). Following the consolidation, GFD serves as the Funds’ distributor.

GD and GFD are both indirect, wholly-owned subsidiaries of Guggenheim Capital, LLC and, therefore, the consolidation will not result in a change of actual control of the Funds’ distributor. The primary goal of the consolidation is to achieve greater operational efficiencies and allow all of the Guggenheim funds, including funds that are not series of the Trusts, to be distributed by a single distributor.

The consolidation is not expected to affect the day-to-day management of the Funds or result in any material changes to the distribution of the Funds, including any changes to the distribution fees paid by the Funds.

24  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

Board Considerations in Approving the Investment Advisory Agreement

At in-person meetings of the Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”) held on May 15 and June 4, 2014 (each, a “Meeting” and, together, the “Meetings”), called for the purpose of, among other things, consideration of, and voting on, the approval and continuation of the investment advisory agreement applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”), the Board, including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (the “Independent Trustees”), unanimously approved the continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and Security Investors, LLC (the “Advisor”) with respect to each of the Funds for an additional one-year period, based on the Board’s review of qualitative and quantitative information provided by the Advisor.

In reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. The Advisor provided the Board with a wide variety of information, including comparisons of Fund performance and fees relative to comparable peer funds in advance of the May 15, 2014 Meeting. The Independent Trustees carefully evaluated the information provided as well as information they received throughout the year as part of their regular oversight of the Funds. At the Meetings, independent legal counsel advised the Independent Trustees with respect to their deliberations and their fiduciary responsibilities associated with the Board’s consideration of the continuation of the Investment Advisory Agreement. The Board also received a memorandum from Fund counsel regarding the Board’s responsibilities when considering the approval of an investment advisory agreement.

During the Meetings, the Board, including the Independent Trustees, evaluated a number of considerations, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and investment strategies; (e) a comparison of the Funds’ advisory fees to the fees charged to comparable funds or accounts, paying special attention to the absence of breakpoints in these fees and the Advisor’s rationale for not including breakpoints; (f) each Fund’s overall fees and operating expenses compared with those of peer funds; (g) the Advisor’s profitability with respect to its Fund-related operations; (h) the Advisor’s compliance systems; (i) the Advisor’s policies and compliance procedures applicable to personal securities transactions; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of peer funds and/or appropriate benchmarks. In its deliberations, the Board did not identify any particular factor as controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees were reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

• Nature, Extent and Quality of Services Provided by the Advisor. At the Meetings, the Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially 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 Funds’ operations, the competitive landscape of the investment company business and investor needs.

• Fund Expenses and Performance of the Funds and the Advisor. At the Meetings, the Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare advisory contract renewal reports to help the Board fulfill its advisory contract renewal responsibilities. The reports compared the Funds’ fees, expenses and total return performance to those of comparable funds in the Funds’ peer group and the broader peer universe, as determined by FUSE. Statistical information in the FUSE reports related to the expense ratio components was based on a comparison of the Funds’ and peer funds’ actual advisory fees, waivers/reimbursements, and gross and net total expenses. The Board also considered the Advisor’s representation

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  25 

OTHER INFORMATION (Unaudited)(concluded)

that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one, three, and five year performance for the Fund compared to its peers and its appropriate benchmark.

• Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. At the Meetings, the Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. At the Meetings, the Board also analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed reports comparing the expense ratios of the Funds to those of other comparable funds. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin as reflected in the Advisor’s profitability analysis.

• Economies of Scale. In connection with its review of the Funds’ profitability analysis at the Meetings, the Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex increases and decreases significantly from time to time due to unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that economies of scale were not likely to be directly realized as a result of increases in the asset levels of the individual Funds, and accordingly, fee breakpoints were not currently appropriate for the Funds.

• Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the services provided by the Advisor, the Board considered the nature and amount of other benefits received by the Advisor and its affiliates as a result of their relationship with the Funds. In particular, the Board considered the nature, extent and quality of the administrative, distribution, and shareholder services performed by the Advisor’s affiliates and the fees paid to the Advisor’s affiliates for those services under separate agreements. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the ancillary benefits the Advisor and its affiliates received were considered reasonable. The Board also noted that the Advisor reports portfolio transactions on behalf of the Funds, including the cost of such transactions, placed through an affiliate of the Funds or the Advisor at each quarterly Board meeting.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the approval of the Investment Advisory Agreement would enable Fund shareholders to continue receiving high quality services at a cost that was appropriate, reasonable, and in the best interests of the Funds and their shareholders. The Board, including the Independent Trustees, unanimously approved the continuation of the existing Investment Advisory Agreement.

26  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	220	Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	131	None.
J. Kenneth Dalton (1941)	Trustee, Member and Chairman of the Audit Committee, and Member of the Governance and Nominating Committees from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	Trustee of Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board of Trustees from 2014 to present; Trustee from 1998 to present and Chairman of the Board from 2006 to 2014; Member and Chairman of the Audit Committee from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present; Vice Chairman of the Board of Trustees from 2010 to 2014; Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present; and Chairman and Member of the Risk Oversight Committee from 2010 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	131	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  27 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	131	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee, Member of the Audit Committee, and Chairman and Member of the Governance and Nominating Committees from 1998 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	131	None.

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Nikolaos Bonos (1963)	Vice President and Treasurer (2003-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); Chief Executive Officer, Guggenheim Specialized Products, LLC (2009-present); Chief Executive Officer & President, Rydex Fund Services, LLC (2009-present); Vice President, Rydex Holdings, LLC (2008-present). Former: Senior Vice President, Security Global Investors, LLC (2010-2011); and Senior Vice President, Rydex Advisors, LLC and Rydex Advisors II, LLC (2006-2011).

28  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Vice President, Guggenheim Funds Distributors, LLC (March 2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-March 2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Joseph M. Arruda (1966)	Assistant Treasurer (2006-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2006-present); Vice President, Security Investors, LLC (2010-present); CFO and Manager, Guggenheim Specialized Products, LLC (2009-present). Former: Vice President, Security Global Investors, LLC (2010-2011); Vice President, Rydex Advisors, LLC (2010); Vice President, Rydex Advisors II, LLC (2010).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  29 

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Rydex Funds, Guggenheim Funds, Rydex Investments, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Security Distributors, Inc., Guggenheim Partners Investment Managers, LLC, and Rydex Advisory Services (Collectively “Guggenheim Investments”).

Our Commitment to You

When you become a Guggenheim Investments 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 Guggenheim Investments 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 Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Investments funds or one of the Guggenheim Investments 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 Guggenheim Investments. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. To alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new Rydex and Guggenheim Investments funds or the services offered through another Guggenheim Investments 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.

30  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

How We Protect Privacy Online

Our concern for the privacy of our shareholders also extends to those who use our web site, guggenheiminvestments.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 Guggenheim Investments 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 Guggenheim Investments 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.

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 guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us at 800.820.0888 or 301.296.5100.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  31 

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

This page intentionally left blank.

9.30.2014

Rydex Funds Semi-Annual Report

Guggenheim Alternatives Funds

Guggenheim Long Short Equity Fund

Guggenheim Event Driven and Distressed Strategies Fund

Rydex International Equity Funds

Rydex Emerging Markets 2x Strategy Fund

Rydex Inverse Emerging Markets 2x Strategy Fund

Rydex Fixed Income Fund

Rydex Emerging Markets Bond Strategy Fund

RSTF-SEMI-0914x0315 guggenheiminvestments.com

TABLE OF CONTENTS

DEAR SHAREHOLDER	2
ECONOMIC AND MARKET OVERVIEW	3
A BRIEF NOTE ON THE COMPOUNDING OF RETURNS	5
ABOUT SHAREHOLDERS’ FUND EXPENSES	6
LONG SHORT EQUITY FUND	9
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND	20
EMERGING MARKETS 2x STRATEGY FUND	28
INVERSE EMERGING MARKETS 2x STRATEGY FUND	35
EMERGING MARKETS BOND STRATEGY FUND	41
NOTES TO FINANCIAL STATEMENTS	47
OTHER INFORMATION	62
INFORMATION ON BOARD OF TRUSTEES AND OFFICERS	65
GUGGENHEIM INVESTMENTS PRIVACY POLICIES	68

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  1 

September 30, 2014

Dear Shareholder:

Security Investors, LLC (the “Investment Adviser”) is pleased to present the semi-annual shareholder report for one or more of our Funds (the “Funds”) for the six-month period ended September 30, 2014.

The Investment Adviser is part of Guggenheim Investments, which represents the investment management businesses of Guggenheim Partners, LLC, a global, diversified financial services firm.

Guggenheim Funds Distributors, LLC is the distributor of the Funds. Guggenheim Funds Distributors, LLC is affiliated with Guggenheim Partners, LLC and Security Investors, LLC.

We encourage you to read the Economic and Market Overview section of the report, which follows this letter, and then the Fund Profile for each Fund.

We are committed to providing innovative investment solutions and appreciate the trust you place in us.

Sincerely,

Donald C. CacciapagliaPresidentOctober 31, 2014

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

There can be no assurance that any investment product will achieve its investment objective(s). There are risks associated with investing, including the entire loss of principal invested. Investing involves market risks. The investment return and principal value of any investment product will fluctuate with changes in market conditions.

2  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ECONOMIC AND MARKET OVERVIEW (Unaudited) September 30, 2014

Despite market volatility rising in October, for the period ended September 30, data on everything from hiring to housing conveys that the U.S. economy is firing on all cylinders. Overcoming a first-quarter weather-related soft patch, second-quarter GDP was revised upward to 4.6%, led by business investment. Durable goods orders surged over the summer and consumer confidence was at multi-year highs, despite a lower reading for the last part of the period. With tailwinds for economic growth gathering, we could see a strong third quarter GDP reading.

September’s addition of 248,000 non-farm payroll jobs was, on the surface, at least a strong figure and certainly not something to be discounted. However, investor optimism about the report, which also showed the unemployment rate falling to 5.9%—its lowest level since 2008—masked the fact that average hourly earnings were unchanged. Economic data late in the period included disappointing factory orders, poor construction spending, and weaker-than-expected ISM manufacturing data. The most recent decline in the U.S. Conference Board Consumer Confidence Index was worrisome.

The U.S. economy is certainly doing well enough to suggest higher interest rates ahead. With quantitative easing ending in the U.S. in October 2014 and the Fed preparing investors for a higher federal funds rate, the stage is set for U.S. interest rates to move higher. However, our view is that, despite a strengthening U.S. economy, the greater risk is that interest rates head lower in the near term.

Following the "taper tantrum" last year, before rates were able to reach historical norms, the average rate on a 30-year mortgage spiked almost a full percentage point in two months—the sharpest rise since the late 1990s—resulting in an abrupt housing slowdown, which slowed the U.S. economy materially.

In addition, U.S. Treasury yields are still materially higher than those in any other developed market. The spread between 10-year U.S. Treasuries and comparable German bunds reached 157 basis points in September, its widest level since 1999, and the spread between 10-year Treasuries and 10-year Japanese government bonds was recently 189 basis points. With developments in the Middle East increasingly troubling and turbulence continuing elsewhere from Ukraine to Hong Kong, the relative price value of U.S. government bonds versus other safe haven investments should continue to be a factor keeping U.S. interest rates low.

International economic data remain weak. Euro zone economic confidence is falling as the entire region continues to battle below-target inflation. At the start of September, the European Central Bank cut interest rates and signaled their intent to launch a program to purchase asset-backed securities and covered bonds to stimulate the dismal economy. In Japan, retail sales fell month-over-month in August, while industrial production falters.

Economic data around the world confirms our view that central banks are likely to renew efforts to force liquidity into the global financial system, which in turn further supports our positive outlook for risk assets. However, positive returns are unlikely without volatility. While markets continue to rally, gains are becoming more grudging. The upward momentum in U.S. stocks has deteriorated meaningfully while credit spreads, specifically high-yield spreads, have widened significantly over the past number of weeks. While the bull market trend remains intact, as the appreciation in risk assets continues it becomes more likely that this ageing advance will, at some point, experience a correction.

For the six-month period ended September 30, 2014, the return of the Standard & Poor’s 500^® Index* (“S&P 500”) was 6.42%. The Barclays U.S. Aggregate Bond Index* returned 2.21% for the period, while the Barclays U.S. Corporate High Yield Index* returned 0.49%. The BofA Merrill Lynch 3-Month U.S. Treasury Bill Index* returned 0.02%. The MSCI World Index* returned 2.59%, while the MSCI Emerging Markets Index* returned 2.87%.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  3 

ECONOMIC AND MARKET OVERVIEW (Unaudited)(concluded) September 30, 2014

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

*Index Definitions:

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

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

Barclays U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

Barclays U.S. Corporate High Yield Index covers the universe of dollar denominated, fixed rate, non-investment grade debt, taxable corporate debt.

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

MSCI World Index (Net) is calculated with net dividends reinvested. It is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

S&P 500^® Index is a market-weighted stock market index comprised of the stocks of 500 U.S. corporations; the index is owned and maintained by Standard & Poor’s.

4  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

A BRIEF NOTE ON THE COMPOUNDING OF RETURNS (Unaudited)

Rydex Emerging Markets 2x Strategy Fund and Rydex Inverse Emerging Markets 2x Strategy Fund described in this report are benchmarked daily to leveraged and/or inverse leveraged versions of published indices. To properly evaluate the performance of these funds, it is essential to understand the effect of mathematical compounding on their respective returns.

Because of the nonlinear effects of leverage applied over time, it is possible for a fund to perform in line with its benchmark for several individual periods in a row, yet seem to trail the benchmark over the entire period. It is also possible that a fund that performs in-line with its benchmark on a daily basis may seem to outperform its benchmark over longer periods.

An Example of Compounding

For example, consider a hypothetical fund that is designed to produce returns that correspond to 150% of an index. On the first day of a period, the index rises from a level of 100 to a level of 106, producing a 6.0% gain and an expectation that the fund will rise by 9.0%. On the same day, the fund’s net asset value per share (“NAV”) increases from $10.00 to $10.90 for a gain of 9.0% — in line with its benchmark.

On day two, assume the index falls from 106 to 99 for a loss of about 6.6%. The fund, as expected, falls 9.9% to a price of $9.82. On each day, the fund performed exactly in line with its benchmark, but for the two-day period, the fund was down 1.8%, while the index was down only 1.0%. Without taking into account the daily compounding of returns, one would expect the fund to lose 1.5% and would see the fund as trailing by 0.3% when in fact it had performed perfectly. This example is summarized in the table below.

	Index Level	Index Performance	Fund Expectation	Fund NAV	Fund Performance	Assessment
Start	100			$10.00
Day 1	106	6.0%	9.0%	$10.90	9.0%	In line
Day 2	99	-6.6%	-9.9%	$9.82	-9.9%	In line
Cumulative		-1.0%	-1.5%		-1.8%	-0.3%

As illustrated by this simple example, the effect of leverage can make it difficult to form expectations or judgments about fund performance given only the returns of the unleveraged index.

Because certain funds seek to track the performance of their benchmark on a daily basis, mathematical compounding, especially with respect to those funds that use leverage as part of their investment strategy, may prevent a fund from correlating with the monthly, quarterly, annual or other period performance of its benchmark. Due to the compounding of daily returns, leveraged and inverse funds’ returns over periods other than one day will likely differ in amount and possibly direction from the benchmark return for the same period. Investors should monitor their leveraged and inverse funds’ holdings consistent with their strategies, as frequently as daily. For those funds that consistently apply leverage, the value of the fund’s shares will tend to increase or decrease more than the value of any increase or decrease in its benchmark index. For more on correlation, leverage and other risks, please read the prospectus.

In general, any change in direction in an index will produce compounding that seems to work against an investor. Were the index to move in the same direction (either up or down) for two or more periods in a row, the compounding of those returns would work in an investor’s favor, causing the fund to seemingly beat its benchmark.

As a general rule of thumb, more leverage in a fund will magnify the compounding effect, while less leverage will generally produce results that are more in line with expectations. In addition, periods of high volatility in an underlying index will also cause the effects of compounding to be more pronounced, while lower volatility will produce a more muted effect.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  5 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)

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

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

The examples are based on an investment of $1,000 made at the beginning of the period and held for the entire six-month period beginning March 31, 2014 and ending September 30, 2014.

The following tables illustrate a Fund’s costs in two ways:

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

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

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

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

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

6  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(continued)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 1. Based on actual Fund return3
Long Short Equity Fund
A-Class	2.15%	(2.85%)	$1,000.00	$971.50	$10.63
C-Class	2.90%	(3.27%)	1,000.00	967.30	14.30
H-Class	2.14%	(2.91%)	1,000.00	970.90	10.57
Institutional Class	1.97%	(2.76%)	1,000.00	972.40	9.74
Event Driven and Distressed Strategies Fund
A-Class	1.90%	(2.74%)	1,000.00	972.60	9.40
C-Class	2.65%	(3.09%)	1,000.00	969.10	13.08
H-Class	1.90%	(2.71%)	1,000.00	972.90	9.40
Institutional Class	1.65%	(2.61%)	1,000.00	973.90	8.16
Emerging Markets 2x Strategy Fund
A-Class	1.76%	15.10%	1,000.00	1,151.00	9.49
C-Class	2.50%	14.73%	1,000.00	1,147.30	13.46
H-Class	1.76%	15.16%	1,000.00	1,151.60	9.49
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.75%	(19.03%)	1,000.00	809.70	7.94
C-Class	2.51%	(19.29%)	1,000.00	807.10	11.37
H-Class	1.76%	(18.99%)	1,000.00	810.10	7.99
Emerging Markets Bond Strategy Fund
A-Class	1.57%	(1.79%)	1,000.00	982.10	7.80
C-Class	2.36%	(2.35%)	1,000.00	976.50	11.69
H-Class	1.61%	(2.18%)	1,000.00	978.20	7.98

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  7 

ABOUT SHAREHOLDERS’ FUND EXPENSES (Unaudited)(concluded)

	Expense Ratio1	Fund Return	Beginning Account Value March 31, 2014	Ending Account Value September 30, 2014	Expenses Paid During Period2
Table 2. Based on hypothetical 5% return (before expenses)
Long Short Equity Fund
A-Class	2.15%	5.00%	$1,000.00	$1,014.29	$10.86
C-Class	2.90%	5.00%	1,000.00	1,010.53	14.62
H-Class	2.14%	5.00%	1,000.00	1,014.34	10.81
Institutional Class	1.97%	5.00%	1,000.00	1,015.19	9.95
Event Driven and Distressed Strategies Fund
A-Class	1.90%	5.00%	1,000.00	1,015.54	9.60
C-Class	2.65%	5.00%	1,000.00	1,011.78	13.36
H-Class	1.90%	5.00%	1,000.00	1,015.54	9.60
Institutional Class	1.65%	5.00%	1,000.00	1,016.80	8.34
Emerging Markets 2x Strategy Fund
A-Class	1.76%	5.00%	1,000.00	1,016.24	8.90
C-Class	2.50%	5.00%	1,000.00	1,012.53	12.61
H-Class	1.76%	5.00%	1,000.00	1,016.24	8.90
Inverse Emerging Markets 2x Strategy Fund
A-Class	1.75%	5.00%	1,000.00	1,016.29	8.85
C-Class	2.51%	5.00%	1,000.00	1,012.48	12.66
H-Class	1.76%	5.00%	1,000.00	1,016.24	8.90
Emerging Markets Bond Strategy Fund
A-Class	1.57%	5.00%	1,000.00	1,017.20	7.94
C-Class	2.36%	5.00%	1,000.00	1,013.24	11.91
H-Class	1.61%	5.00%	1,000.00	1,017.00	8.14

¹ Annualized and excludes expenses of the underlying funds in which the Funds invest. This ratio represents net expenses, which includes interest and dividend expense. Excluding these expenses the operating expense ratios would be:

	Long Short Equity Fund
A-Class	1.67%
C-Class	2.42%
H-Class	1.67%
Institutional Class	1.43%

2	Expenses are equal to the Fund's annualized expense ratio, net of any applicable fee waivers, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
3	Actual cumulative return at net asset value for the period March 31, 2014 to September 30, 2014.

8  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

FUND PROFILE (Unaudited) September 30, 2014

LONG SHORT EQUITY FUND

OBJECTIVE: Seeks long-term capital appreciation.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	March 31, 2004
C-Class	March 22, 2002
H-Class	March 22, 2002
Institutional Class	November 30, 2011

Ten Largest Long Holdings (% of Total Net Assets)
Guggenheim Strategy Fund II	4.5%
Perrigo Company plc	0.6%
zulily, Inc. — Class A	0.6%
Graham Holdings Co. — Class B	0.6%
Darden Restaurants, Inc.	0.6%
Myriad Genetics, Inc.	0.6%
AOL, Inc.	0.6%
Johnson & Johnson	0.5%
Centene Corp.	0.5%
Hawaiian Electric Industries Inc.	0.5%
Top Ten Total	9.6%
“Ten Largest Long Holdings” exclude any temporary cash or derivative investments.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  9 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
LONG SHORT EQUITY FUND

	Shares		Value
COMMON STOCKS† - 85.2%
CONSUMER, NON-CYCLICAL - 26.5%
Perrigo Company plc1		1,699	$	255,170
Myriad Genetics, Inc.*,2		6,421		247,658
Johnson & Johnson1		2,300		245,156
Centene Corp.*,1		2,959		244,739
Endo International plc*,1		3,563		243,494
United Therapeutics Corp.*,1		1,882		242,119
PepsiCo, Inc.1		2,600		242,034
AmerisourceBergen Corp. — Class A1		3,100		239,630
Salix Pharmaceuticals Ltd.*,1		1,532		239,360
Premier, Inc. — Class A*,1		7,260		238,564
Dr Pepper Snapple Group, Inc.1		3,706		238,333
Molson Coors Brewing Co. — Class B1		3,200		238,208
Zoetis, Inc.1		6,423		237,330
Tyson Foods, Inc. — Class A1		5,997		236,102
Patterson Companies, Inc.1		5,696		235,985
Constellation Brands, Inc. — Class A*,1		2,700		235,332
Pinnacle Foods, Inc.1		7,194		234,884
Coca-Cola Co.1		5,500		234,630
Monster Beverage Corp.*,1		2,558		234,492
Humana, Inc.1		1,798		234,261
Pfizer, Inc.1		7,900		233,603
Archer-Daniels-Midland Co.1		4,570		233,527
Eli Lilly & Co.1		3,600		233,460
Cardinal Health, Inc.1		3,100		232,252
McCormick & Company, Inc.1		3,471		232,210
Mallinckrodt plc*,1		2,566		231,325
Merck & Company, Inc.1		3,900		231,192
Pilgrim’s Pride Corp.*,1		7,549		230,697
Hospira, Inc.*,1		4,386		228,203
Health Net, Inc.*,1		4,937		227,645
WellPoint, Inc.1		1,900		227,278
Flowers Foods, Inc.1		12,316		226,122
Scotts Miracle-Gro Co. — Class A1		4,104		225,720
Kraft Foods Group, Inc.1		4,000		225,600
Mylan, Inc.*,1		4,957		225,494
Aetna, Inc.1		2,781		225,261
Coca-Cola Enterprises, Inc.1		5,067		224,772
DeVry Education Group, Inc.1		5,241		224,367
Quest Diagnostics, Inc.1		3,691		223,970
JM Smucker Co.1		2,254		223,123
Ingredion, Inc.1		2,934		222,368
H&R Block, Inc.1		7,170		222,342
Hill-Rom Holdings, Inc.1		5,362		222,148
RR Donnelley & Sons Co.1		13,390		220,399
Jazz Pharmaceuticals plc*,1		1,321		212,100
Avis Budget Group, Inc.*,1		3,677		201,831
Seattle Genetics, Inc.*,1		5,427		201,776
Apollo Education Group, Inc. — Class A*,1		7,938		199,641
Clorox Co.1		1,539		147,806
Bristol-Myers Squibb Co.1		2,859		146,324
Gilead Sciences, Inc.*,1		1,000		106,450
Cubist Pharmaceuticals, Inc.*,1		1,356		89,957
McKesson Corp.1		400		77,868
Catamaran Corp.*,1		1,811		76,334
Henry Schein, Inc.*,1		461		53,693
Alnylam Pharmaceuticals, Inc.*,1		456		35,614
ConAgra Foods, Inc.1		860		28,414
Campbell Soup Co.1		657		28,074
Vectrus, Inc.*		712		13,909
Total Consumer, Non-cyclical				11,870,350
INDUSTRIAL - 11.9%
Kansas City Southern1		2,012		243,855
TransDigm Group, Inc.1		1,312		241,841
Union Pacific Corp.1		2,200		238,524
CSX Corp.1		7,400		237,244
Landstar System, Inc.1		3,260		235,340
Norfolk Southern Corp.1		2,100		234,360
J.B. Hunt Transport Services, Inc.1		3,162		234,146
Old Dominion Freight Line, Inc.*,1		3,289		232,335
Martin Marietta Materials, Inc.1		1,800		232,092
Covanta Holding Corp.1		10,913		231,574
Ryder System, Inc.1		2,557		230,054
Genesee & Wyoming, Inc. — Class A*,1		2,396		228,363
AMERCO1		854		223,654
AVX Corp.1		16,837		223,595
Kirby Corp.*,1		1,890		222,736
Clean Harbors, Inc.*,1		4,019		216,704
Exelis, Inc.1		12,819		212,026
Gentex Corp.1		7,898		211,429
SunPower Corp. — Class A*		6,125		207,515
Vishay Intertechnology, Inc.1		14,406		205,862
Con-way, Inc.1		4,329		205,628
Knowles Corp.*,1		7,533		199,625
Tech Data Corp.*,1		3,371		198,417
National Instruments Corp.1		5,139		158,949
Hexcel Corp.*,1		1,186		47,084
Total Industrial				5,352,952
TECHNOLOGY - 10.8%
Apple, Inc.1		2,300		231,725
NCR Corp.*,1		6,926		231,397
Maxim Integrated Products, Inc.1		7,627		230,641
IPG Photonics Corp.*		3,353		230,619
Microchip Technology, Inc.1		4,861		229,585
Western Digital Corp.1		2,326		226,367
Marvell Technology Group Ltd.1		16,789		226,316
Linear Technology Corp.1		5,098		226,300
Avago Technologies Ltd.1		2,600		226,200
Stratasys Ltd.*,1		1,852		223,685
Hewlett-Packard Co.1		6,300		223,461
Teradyne, Inc.1		11,273		218,583
Atmel Corp.*,1		26,589		214,839
ON Semiconductor Corp.*,1		23,981		214,390
Diebold, Inc.1		6,052		213,757

10  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
LONG SHORT EQUITY FUND

	Shares		Value
Freescale Semiconductor Ltd.*,1		10,934	$	213,541
Pitney Bowes, Inc.1		8,521		212,940
First Solar, Inc.*,1		3,200		210,592
Cree, Inc.*,1		4,985		204,136
Lexmark International, Inc. — Class A1		4,747		201,748
Advanced Micro Devices, Inc.*,2		56,476		192,583
Altera Corp.1		5,177		185,233
EMC Corp.1		1,520		44,475
Total Technology				4,833,113
CONSUMER, CYCLICAL - 10.4%
Darden Restaurants, Inc.1		4,820		248,036
Wendy’s Co.1		29,333		242,291
Southwest Airlines Co.1		6,930		234,025
Wynn Resorts Ltd.1		1,250		233,850
Brinker International, Inc.1		4,559		231,552
Spirit Airlines, Inc.*,1		3,349		231,550
TRW Automotive Holdings Corp.*,1		2,246		227,408
Gaming and Leisure Properties, Inc.1		7,183		221,955
Regal Entertainment Group — Class A1		11,004		218,760
Dolby Laboratories, Inc. — Class A*,1		5,226		218,395
American Airlines Group, Inc.1		6,110		216,783
Ingram Micro, Inc. — Class A*,1		8,393		216,623
Delta Air Lines, Inc.1		5,944		214,876
United Continental Holdings, Inc.*,1		4,590		214,766
Alaska Air Group, Inc.1		4,909		213,738
Goodyear Tire & Rubber Co.1		9,404		212,389
Visteon Corp.*,1		2,120		206,170
BorgWarner, Inc.1		3,780		198,866
Copa Holdings S.A. — Class A1		1,826		195,912
Lear Corp.1		2,230		192,694
McDonald’s Corp.1		1,400		132,734
Taylor Morrison Home Corp. — Class A*,1		7,732		125,413
Coach, Inc.1		426		15,170
SeaWorld Entertainment, Inc.1		337		6,481
Total Consumer, Cyclical				4,670,437
FINANCIAL - 8.6%
American National Insurance Co.1		2,103		236,377
Interactive Brokers Group, Inc. — Class A1		9,458		235,977
NorthStar Realty Finance Corp.1		13,100		231,477
Bank of New York Mellon Corp.1		5,900		228,507
Eaton Vance Corp.1		5,978		225,550
Artisan Partners Asset Management, Inc. — Class A1		4,290		223,295
Federated Investors, Inc. — Class B1		7,576		222,431
Waddell & Reed Financial, Inc. — Class A1		4,299		222,215
SLM Corp.1		25,879		221,524
Starwood Property Trust, Inc.1		9,900		217,404
MFA Financial, Inc.1		27,875		216,868
American Realty Capital Properties, Inc.		17,900		215,874
Chimera Investment Corp.1		70,743		215,059
Rayonier, Inc.1		6,863		213,714
Two Harbors Investment Corp.1		21,981		212,556
Annaly Capital Management, Inc.1		19,900		212,532
American Capital Agency Corp.1		10,000		212,500
Realogy Holdings Corp.*,1		1,600		59,520
HCP, Inc.1		500		19,855
Total Financial				3,843,235
COMMUNICATIONS - 7.2%
zulily, Inc. — Class A*,2		6,689		253,446
Graham Holdings Co. — Class B1		357		249,754
AOL, Inc.*,1		5,504		247,404
CenturyLink, Inc.1		5,804		237,325
Facebook, Inc. — Class A*,1		3,000		237,120
Verizon Communications, Inc.1		4,700		234,953
Frontier Communications Corp.2		35,940		233,969
Yahoo!, Inc.*,1		5,600		228,200
Clear Channel Outdoor Holdings, Inc. — Class A1		33,090		223,027
Windstream Holdings, Inc.2		20,611		222,187
Liberty Ventures*,1		5,835		221,497
Pandora Media, Inc.*,1		8,606		207,921
Yelp, Inc. — Class A*,1		2,799		191,032
F5 Networks, Inc.*,1		1,271		150,919
Motorola Solutions, Inc.1		921		58,281
Rackspace Hosting, Inc.*,1		1,131		36,814
Total Communications				3,233,849
BASIC MATERIALS - 5.0%
Ashland, Inc.1		2,253		234,537
Reliance Steel & Aluminum Co.1		3,286		224,762
Alcoa, Inc.1		13,800		222,042
Compass Minerals International, Inc.1		2,627		221,404
Cabot Corp.1		4,306		218,616
Southern Copper Corp.1		7,300		216,445
Royal Gold, Inc.1		3,178		206,380
Tahoe Resources, Inc.*,1		9,917		201,315
Carpenter Technology Corp.1		4,400		198,660
Cliffs Natural Resources, Inc.2		16,696		173,304
United States Steel Corp.1		1,200		47,004
LyondellBasell Industries N.V. — Class A1		400		43,464
Newmont Mining Corp.1		1,087		25,055
Total Basic Materials				2,232,988
UTILITIES - 2.5%
Hawaiian Electric Industries, Inc.2		9,199		244,233
TECO Energy, Inc.1		12,995		225,853
Questar Corp.1		10,012		223,167
Pinnacle West Capital Corp.1		4,068		222,276
Public Service Enterprise Group, Inc.1		2,800		104,272
Consolidated Edison, Inc.1		1,492		84,537
Great Plains Energy, Inc.1		1,306		31,566
Total Utilities				1,135,904

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  11 

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
LONG SHORT EQUITY FUND

	Shares		Value
ENERGY - 1.8%
CVR Energy, Inc.2		4,816	$	215,420
PBF Energy, Inc. — Class A1		8,535		204,840
Valero Energy Corp.1		4,400		203,588
Seadrill Ltd.		6,370		170,461
Total Energy				794,309
DIVERSIFIED - 0.5%
Liberty TripAdvisor Holdings, Inc. — Class A*,1		6,600		223,740
Total Common Stocks
(Cost $38,084,714)				38,190,877
MUTUAL FUNDS†,3 - 11.2%
Guggenheim Strategy Fund I		120,890		3,010,161
Guggenheim Strategy Fund II		80,854		2,013,266
Total Mutual Funds
(Cost $5,038,288)				5,023,427
	Face Amount
REPURCHASE AGREEMENTS††,4 - 3.0%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	602,608		602,608
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		352,352		352,352
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		249,166		249,166
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		155,478		155,478
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		927		927
Total Repurchase Agreements
(Cost $1,360,531)				1,360,531
SECURITIES LENDING COLLATERAL††,5 - 3.0%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		1,179,403		1,179,403
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		193,345		193,345
Total Securities Lending Collateral
(Cost $1,372,748)				1,372,748
Total Investments - 102.4%
(Cost $45,856,281)			$	45,947,583

	Shares
COMMON STOCKS SOLD SHORT† - (31.8)%
BASIC MATERIALS - (0.3)%
Domtar Corp.		190	(6,675	)
Freeport-McMoRan, Inc.		4,211	(137,489	)
Total Basic Materials			(144,164	)
UTILITIES - (0.5)%
Calpine Corp.*		4,940	(107,198	)
AES Corp.		7,980	(113,156	)
Total Utilities			(220,354	)
TECHNOLOGY - (1.2)%
Rovi Corp.*		380	(7,503	)
Solera Holdings, Inc.		1,830	(103,139	)
salesforce.com, Inc.*		1,889	(108,674	)
Oracle Corp.		2,853	(109,213	)
Nuance Communications, Inc.*		7,090	(109,292	)
Microsoft Corp.		2,462	(114,139	)
Total Technology			(551,960	)
COMMUNICATIONS - (1.8)%
Liberty Global plc — Class A*		1,325	(56,366	)
Liberty Global plc*		1,379	(56,559	)
Google, Inc. — Class C*		102	(58,891	)
Liberty Media Corp. — Class C*		1,870	(87,871	)
United States Cellular Corp.*		3,010	(106,795	)
T-Mobile US, Inc.*		3,810	(109,995	)
Sprint Corp.*		17,640	(111,837	)
SBA Communications Corp. — Class A*		1,020	(113,118	)
Walt Disney Co.		1,286	(114,493	)
Total Communications			(815,925	)
ENERGY - (2.7)%
Oasis Petroleum, Inc.*		870	(36,375	)
Peabody Energy Corp.		6,140	(76,013	)
Williams Companies, Inc.		1,821	(100,792	)
Continental Resources, Inc.*		1,528	(101,581	)
National Oilwell Varco, Inc.		1,402	(106,692	)
Dril-Quip, Inc.*		1,200	(107,280	)
Unit Corp.*		1,830	(107,330	)
FMC Technologies, Inc.*		2,013	(109,326	)
Concho Resources, Inc.*		872	(109,340	)
QEP Resources, Inc.		3,600	(110,808	)
Cheniere Energy, Inc.*		1,391	(111,322	)
Antero Resources Corp.*		2,047	(112,360	)
Total Energy			(1,189,219	)
CONSUMER, NON-CYCLICAL - (3.0)%
Avery Dennison Corp.		2,380	(106,267	)
Avon Products, Inc.		8,470	(106,722	)
Coty, Inc. — Class A		6,600	(109,230	)
Sprouts Farmers Market, Inc.*		3,780	(109,885	)
United Rentals, Inc.*		998	(110,878	)
Abbott Laboratories		2,721	(113,166	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(continued)	September 30, 2014
LONG SHORT EQUITY FUND

	Shares		Value
Moody’s Corp.		1,207	$	(114,062	)
Estee Lauder Companies, Inc. — Class A		1,549		(115,741	)
Procter & Gamble Co.		1,390		(116,399	)
Kimberly-Clark Corp.		1,086		(116,821	)
Colgate-Palmolive Co.		1,797		(117,200	)
Altria Group, Inc.		2,684		(123,303	)
Total Consumer, Non-cyclical				(1,359,674	)
CONSUMER, CYCLICAL - (4.8)%
Ross Stores, Inc.		310		(23,430	)
Rite Aid Corp.*		17,700		(85,668	)
Ascena Retail Group, Inc.*		6,758		(89,881	)
Kate Spade & Co.*		3,620		(94,953	)
CarMax, Inc.*		2,204		(102,376	)
The Gap, Inc.		2,617		(109,103	)
LKQ Corp.*		4,107		(109,205	)
Allison Transmission Holdings, Inc.		3,875		(110,399	)
Tiffany & Co.		1,148		(110,564	)
O’Reilly Automotive, Inc.*		744		(111,868	)
Advance Auto Parts, Inc.		859		(111,928	)
AutoZone, Inc.*		223		(113,654	)
TJX Companies, Inc.		1,923		(113,784	)
Lowe’s Companies, Inc.		2,185		(115,630	)
Genuine Parts Co.		1,330		(116,654	)
Bed Bath & Beyond, Inc.*		1,775		(116,848	)
Home Depot, Inc.		1,294		(118,712	)
Nu Skin Enterprises, Inc. — Class A		2,806		(126,354	)
DreamWorks Animation SKG, Inc. — Class A*		5,100		(139,077	)
Ulta Salon Cosmetics & Fragrance, Inc.*		1,192		(140,859	)
Total Consumer, Cyclical				(2,160,947	)
FINANCIAL - (8.2)%
Crown Castle International Corp.		260		(20,938	)
SunTrust Banks, Inc.		700		(26,621	)
BankUnited, Inc.		1,120		(34,149	)
General Growth Properties, Inc.		1,801		(42,414	)
Markel Corp.*		126		(80,155	)
People’s United Financial, Inc.		7,240		(104,763	)
Prologis, Inc.		2,864		(107,973	)
Ocwen Financial Corp.*		4,132		(108,176	)
AvalonBay Communities, Inc.		774		(109,111	)
PacWest Bancorp		2,650		(109,260	)
Popular, Inc.*		3,730		(109,793	)
CIT Group, Inc.		2,390		(109,844	)
Synovus Financial Corp.		4,660		(110,162	)
Genworth Financial, Inc. — Class A*		8,410		(110,171	)
Equity Residential		1,790		(110,228	)
Signature Bank*		990		(110,940	)
American Tower Corp. — Class A		1,188		(111,232	)
Public Storage		677		(112,274	)
Simon Property Group, Inc.		684		(112,463	)
Boston Properties, Inc.		973		(112,634	)
American International Group, Inc.		2,089		(112,848	)
SVB Financial Group*		1,010		(113,210	)
Loews Corp.		2,720		(113,315	)
MetLife, Inc.		2,116		(113,672	)
New York Community Bancorp, Inc.		7,164		(113,692	)
Visa, Inc. — Class A		535		(114,153	)
First Horizon National Corp.		9,300		(114,204	)
TFS Financial Corp.		8,000		(114,560	)
American Express Co.		1,310		(114,677	)
Zions Bancorporation		3,960		(115,078	)
Citigroup, Inc.		2,222		(115,144	)
ACE Ltd.		1,101		(115,461	)
Wells Fargo & Co.		2,242		(116,293	)
JPMorgan Chase & Co.		1,934		(116,504	)
Travelers Companies, Inc.		1,250		(117,425	)
Bank of America Corp.		6,991		(119,197	)
Total Financial				(3,692,734	)
INDUSTRIAL - (9.3)%
Thermo Fisher Scientific, Inc.		349		(42,473	)
Caterpillar, Inc.		831		(82,294	)
Xylem, Inc.		2,513		(89,186	)
Owens-Illinois, Inc.*		3,650		(95,083	)
Manitowoc Company, Inc.		4,110		(96,380	)
Trinity Industries, Inc.		2,180		(101,850	)
Colfax Corp.*		1,819		(103,628	)
Crown Holdings, Inc.*		2,330		(103,732	)
Greif, Inc. — Class A		2,380		(104,268	)
Jacobs Engineering Group, Inc.*		2,160		(105,451	)
USG Corp.*		3,860		(106,111	)
Packaging Corporation of America		1,670		(106,579	)
Rock-Tenn Co. — Class A		2,250		(107,055	)
Silgan Holdings, Inc.		2,290		(107,629	)
Fluor Corp.		1,617		(108,000	)
Lennox International, Inc.		1,410		(108,387	)
Flowserve Corp.		1,539		(108,531	)
Sealed Air Corp.		3,150		(109,872	)
Zebra Technologies Corp. — Class A*		1,550		(110,004	)
Sonoco Products Co.		2,800		(110,012	)
Bemis Company, Inc.		2,900		(110,258	)
AMETEK, Inc.		2,199		(110,412	)
AptarGroup, Inc.		1,820		(110,474	)
Ball Corp.		1,750		(110,722	)
Acuity Brands, Inc.		942		(110,883	)
Carlisle Companies, Inc.		1,380		(110,924	)
Snap-on, Inc.		926		(112,120	)
Wabtec Corp.		1,386		(112,321	)
Armstrong World Industries, Inc.*		2,007		(112,392	)
3M Co.		800		(113,344	)
Danaher Corp.		1,496		(113,666	)
General Electric Co.		4,448		(113,958	)
Agilent Technologies, Inc.		2,010		(114,530	)
Roper Industries, Inc.		785		(114,838	)
Masco Corp.		4,831		(115,558	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
LONG SHORT EQUITY FUND

	Shares		Value
United Parcel Service, Inc. — Class B		1,186	$	(116,572	)
Middleby Corp.*		1,332		(117,389	)
FedEx Corp.		757		(122,218	)
Teekay Corp.		1,926		(127,806	)
Total Industrial				(4,176,910	)
Total Common Stock Sold Short
(Proceeds $14,476,013)				(14,311,887	)
Total Securities Sold Short - (31.8)%
(Proceeds $14,476,013)			$	(14,311,887	)
Other Assets & Liabilities, net - 29.4%				13,234,611
Total Net Assets - 100.0%			$	44,870,307

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or a portion of this security is pledged as short security collateral at September 30, 2014.
2	All or portion of this security is on loan at September 30, 2014 — See Note 12.
3	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 11.
4	Repurchase Agreements — See Note 5.
5	Securities lending collateral — See Note 12.
	plc — Public Limited Company

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

LONG SHORT EQUITY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $1,533,820 of securities loaned (cost $43,123,002)	$	43,214,304
Repurchase agreements, at value (cost $2,733,279)		2,733,279
Total investments (cost $45,856,281)		45,947,583
Segregated cash with broker		14,993,884
Cash		1,387
Receivables:
Dividends		59,622
Fund shares sold		5,726
Securities lending income		4,124
Total assets		61,012,326
Liabilities:
Securities sold short, at value (proceeds $14,476,010)		14,311,887
Payable for:
Upon return of securities loaned		1,597,700
Fund shares redeemed		114,100
Management fees		33,023
Distribution and service fees		21,142
Transfer agent and administrative fees		9,173
Portfolio accounting fees		3,669
Miscellaneous		51,325
Total liabilities		16,142,019
Net assets	$	44,870,307
Net assets consist of:
Paid in capital	$	113,461,341
Accumulated net investment loss		(396,291	)
Accumulated net realized loss on investments		(68,450,168	)
Net unrealized appreciation on investments		255,425
Net assets	$	44,870,307
A-Class:
Net assets	$	5,361,106
Capital shares outstanding		366,313
Net asset value per share	$	14.64
Maximum offering price per share (Net asset value divided by 95.25%)	$	15.37
C-Class:
Net assets	$	19,604,394
Capital shares outstanding		1,472,908
Net asset value per share	$	13.31
H-Class:
Net assets	$	19,632,257
Capital shares outstanding		1,336,986
Net asset value per share	$	14.68
Institutional Class:
Net assets	$	272,550
Capital shares outstanding		18,391
Net asset value per share	$	14.82

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $367)	$	443,593
Income from securities lending, net		23,147
Interest		564
Total investment income		467,304
Expenses:
Management fees		229,280
Transfer agent and administrative fees		63,689
Distribution and service fees:
A-Class		7,845
C-Class		104,992
H-Class		29,461
Portfolio accounting fees		25,475
Short sales dividend expense		82,387
Prime broker interest expense		38,859
Custodian fees		3,373
Trustees’ fees*		2,315
Miscellaneous		37,817
Total expenses		625,493
Net investment loss		(158,189	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		2,183,545
Futures contracts		(64,507	)
Securities sold short		(745,390	)
Net realized gain		1,373,648
Net change in unrealized appreciation (depreciation) on:
Investments		(3,147,187	)
Securities sold short		418,548
Net change in unrealized appreciation (depreciation)		(2,728,639	)
Net realized and unrealized loss		(1,354,991	)
Net decrease in net assets resulting from operations	$	(1,513,180	)

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

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

LONG SHORT EQUITY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(158,189	)	$	(773,445	)
Net realized gain on investments		1,373,648			7,362,587
Net change in unrealized appreciation (depreciation) on investments		(2,728,639	)		(488,800	)
Net increase (decrease) in net assets resulting from operations		(1,513,180	)		6,100,342
Capital share transactions:
Proceeds from sale of shares
A-Class		919,853			4,913,621
C-Class		364,288			1,459,676
H-Class		1,685,847			16,322,796
Institutional Class		268,538			1,001
Cost of shares redeemed
A-Class		(2,947,763	)		(11,324,362	)
C-Class		(2,430,623	)		(5,045,687	)
H-Class		(10,679,265	)		(16,148,434	)
Institutional Class		(2,655	)		(1,055	)
Net decrease from capital share transactions		(12,821,780	)		(9,822,444	)
Net decrease in net assets		(14,334,960	)		(3,722,102	)
Net assets:
Beginning of period		59,205,267			62,927,369
End of period	$	44,870,307		$	59,205,267
Accumulated net investment loss at end of period	$	(396,291	)	$	(238,102	)
Capital share activity:
Shares sold
A-Class		61,795			345,762
C-Class		26,855			110,051
H-Class		112,719			1,125,572
Institutional Class		17,759			69
Shares redeemed
A-Class		(196,646	)		(816,705	)
C-Class		(179,055	)		(384,136	)
H-Class		(712,868	)		(1,129,156	)
Institutional Class		(176	)		(69	)
Net decrease in shares		(869,617	)		(748,612	)

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of    period	$	15.07		$	13.48		$	13.28		$	14.28		$	12.59		$	8.62
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.13	)		(.05	)		.03			(.04	)		(.07	)
Net gain (loss) on investments    (realized and unrealized)		(.41	)		1.72			.30			(1.03	)		1.73			4.04
Total from investment    operations		(.43	)		1.59			.25			(1.00	)		1.69			3.97
Less distributions from:
Net investment income		—			—			(.05	)		—			—			—
Total distributions		—			—			(.05	)		—			—			—
Redemption fees collected		—			—			—			—			—	c		—	c
Net asset value, end of period	$	14.64		$	15.07		$	13.48		$	13.28		$	14.28		$	12.59
Total Returnd		(2.85	%)		11.80	%		1.89	%		(7.00	%)		13.42	%		46.06	%
Ratios/Supplemental Data
Net assets, end of period (in    thousands)	$	5,361		$	7,552		$	13,106		$	16,510		$	25,447		$	36,231
Ratios to average net assets:
Net investment income (loss)		(0.33	%)		(0.91	%)		(0.35	%)		0.21	%		(0.33	%)		(0.62	%)
Total expensesf		2.15	%		2.34	%		1.92	%		1.66	%		1.71	%		1.68	%
Portfolio turnover rate		188	%		256	%		183	%		190	%		231	%		375	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of    period	$	13.76		$	12.40		$	12.31		$	13.33		$	11.85		$	8.17
Income (loss) from investment operations:
Net investment income (loss)b		(.07	)		(.24	)		(.14	)		(.07	)		(.13	)		(.14	)
Net gain (loss) on investments (realized and unrealized)		(.38	)		1.60			.28			(.95	)		1.61			3.82
Total from investment    operations		(.45	)		1.36			.14			(1.02	)		1.48			3.68
Less distributions from:
Net investment income		—			—			(.05	)		—			—			—
Total distributions		—			—			(.05	)		—			—			—
Redemption fees collected		—			—			—			—			—	c		—	c
Net asset value, end of period	$	13.31		$	13.76		$	12.40		$	12.31		$	13.33		$	11.85
Total Returnd		(3.27	%)		10.97	%		1.14	%		(7.65	%)		12.49	%		45.04	%
Ratios/Supplemental Data
Net assets, end of period (in    thousands)	$	19,604		$	22,354		$	23,554		$	32,503		$	50,381		$	64,918
Ratios to average net assets:
Net investment income (loss)		(1.05	%)		(1.79	%)		(1.12	%)		(0.54	%)		(1.08	%)		(1.37	%)
Total expensesf		2.90	%		3.11	%		2.69	%		2.41	%		2.46	%		2.43	%
Portfolio turnover rate		188	%		256	%		183	%		190	%		231	%		375	%

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

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (continued)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Year EndedMarch 31,2011			Year EndedMarch 31,2010
Per Share Data
Net asset value, beginning of    period	$	15.12		$	13.53		$	13.33		$	14.32		$	12.63		$	8.65
Income (loss) from investment operations:
Net investment income (loss)b		(.02	)		(.16	)		(.04	)		.03			(.04	)		(.07	)
Net gain (loss) on investments    (realized and unrealized)		(.42	)		1.75			.29			(1.02	)		1.73			4.05
Total from investment    operations		(.44	)		1.59			.25			(.99	)		1.69			3.98
Less distributions from:
Net investment income		—			—			(.05	)		—			—			—
Total distributions		—			—			(.05	)		—			—			—
Redemption fees collected		—			—			—			—			—	c		—	c
Net asset value, end of period	$	14.68		$	15.12		$	13.53		$	13.33		$	14.32		$	12.63
Total Returnd		(2.91	%)		11.75	%		1.88	%		(6.91	%)		13.38	%		46.01	%
Ratios/Supplemental Data
Net assets, end of period (in    thousands)	$	19,632		$	29,287		$	26,257		$	54,589		$	87,212		$	99,418
Ratios to average net assets:
Net investment income (loss)		(0.33	%)		(1.07	%)		(0.29	%)		0.20	%		(0.31	%)		(0.63	%)
Total expensesf		2.14	%		2.36	%		1.88	%		1.66	%		1.70	%		1.68	%
Portfolio turnover rate		188	%		256	%		183	%		190	%		231	%		375	%

18  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

LONG SHORT EQUITY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

Institutional Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Period EndedMarch 31,2012e
Per Share Data
Net asset value, beginning of period	$	15.24		$	13.60		$	13.33		$	12.39
Income (loss) from investment operations:
Net investment income (loss)b		.02			(.12	)		(.02	)		.06
Net gain (loss) on investments (realized and unrealized)		(.44	)		1.76			.31			.88
Total from investment operations		(.42	)		1.64			.29			.94
Less distributions from:
Net investment income		—			—			(.02	)		—
Total distributions		—			—			(.02	)		—
Net asset value, end of period	$	14.82		$	15.24		$	13.60		$	13.33
Total Returnd		(2.76	%)		12.06	%		2.15	%		7.59	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	273		$	12		$	11		$	11
Ratios to average net assets:
Net investment income (loss)		0.31	%		(0.82	%)		(0.17	%)		1.29	%
Total expensesf		1.97	%		2.11	%		1.72	%		1.36	%
Portfolio turnover rate		188	%		256	%		183	%		190	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
c	Redemption fees collected are less than $0.01 per share.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Since commencement of operations: November 30, 2011. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
f	Excluding interest and dividend expense related to short sales, the operating ratios for the years or periods presented would be:

	9/30/14	3/31/14	3/28/13	3/31/12	3/31/11	3/31/10
A-Class	1.67%	1.68%	1.65%	1.66%	1.69%	1.68%
C-Class	2.42%	2.42%	2.40%	2.41%	2.44%	2.43%
H-Class	1.67%	1.67%	1.65%	1.66%	1.69%	1.68%
Institutional Class	1.43%	1.42%	1.41%	N/A	N/A	N/A

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  19 

FUND PROFILE (Unaudited) September 30, 2014

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

OBJECTIVE: Seeks to achieve capital growth.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	June 30, 2010
C-Class	June 30, 2010
H-Class	June 30, 2010
Institutional Class	June 30, 2010

The fund invests principally in derivative investments such as swap agreements and futures contracts.

20  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

	Shares		Value
EXCHANGE-TRADED FUNDS - 1.3%
iShares iBoxx $ High Yield Corporate Bond ETF1		1,700	$	156,315
Total Exchange-Traded Funds
(Cost $160,123)				156,315
MUTUAL FUNDS†,2 - 49.4%
Guggenheim Strategy Fund II		120,967		3,012,073
Guggenheim Strategy Fund I		120,722		3,007,197
Total Mutual Funds
(Cost $6,034,745)				6,019,270
	Face Amount
REPURCHASE AGREEMENTS††,3 - 33.6%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	1,636,048		1,636,048
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		956,615		956,615
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		676,473		676,473
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		422,114		422,114
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/144		402,517		402,517
Total Repurchase Agreements
(Cost $4,093,767)				4,093,767

SECURITIES LENDING COLLATERAL††,5 - 1.1%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14		111,023		111,023
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		18,201		18,201
Total Securities Lending Collateral
(Cost $129,224)				129,224
Total Investments - 85.4%
(Cost $10,417,859)			$	10,398,576
Other Assets & Liabilities, net - 14.6%				1,781,706
Total Net Assets - 100.0%			$	12,180,282
	Contracts		Unrealized Loss
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2014 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $4,731,250)		40	$	(11,405	)
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 Russell 2000 Index Mini Futures Contracts (Aggregate Value of Contracts $1,096,000)		10	$	(63,191	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Credit Suisse International, LLC December 2014 Credit Suisse Illiquidity    Premium Liquid Index Swap, Terminating 12/19/147 (Notional Value $7,905,470)		6,522	$	(3,317	)
Credit Suisse International, LLC December 2014 Credit Suisse Merger    Arbitrage Liquid Index Swap, Terminating 12/19/148 (Notional Value $5,749,427)		5,199		(79,732	)
(Total Notional Value $13,654,897)			$	(83,049	)

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENTS PROTECTION SOLD††,6
Index	Counterparty	Protection Premium Rate		Maturity Date	Notional Principal		Notional Value			Upfront Premiums Paid		Unrealized Depreciation
CDX.HY-22 Index	Goldman Sachs International		5.00%	06/20/19		$891,000		$(938,920	)		$57,499		$(3,357	)
CDX HY-22 Index	Barclays Bank plc		5.00%	06/20/19		5,049,000		(5,320,545	)		323,474		(16,668	)

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 12.
2	Investment in a product that is managed by and/or pays a management fee to a party related to the Adviser — See Note 11.
3	Repurchase Agreements — See Note 5.
4	All or a portion of this security is pledged as short security collateral at September 30, 2014.
5	Securities lending collateral — See Note 12.
6	Credit Default Swaps — See Note 6.
7	Total Return based on Credit Suisse Illiquidity Premium Liquid Index +/- financing at a variable rate.
8	Total Return based on Credit Suisse Merger Arbitrage Liquid Index +/- financing at a variable rate.
	plc — Public Limited Company

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $147,120 of securities loaned (cost $6,194,868)	$	6,175,585
Repurchase agreements, at value (cost $4,222,991)		4,222,991
Total investments (cost $10,417,859)		10,398,576
Segregated cash with broker		1,725,392
Unamortized upfront premiums paid on credit default swaps		380,973
Receivables:
Interest		7,423
Dividends		6,211
Investment adviser		1,203
Securities lending income		180
Fund shares sold		149
Total assets		12,520,107
Liabilities:
Unrealized depreciation on swap agreements		103,074
Payable for:
Due to broker		23,719
Upon return of securities loaned		150,400
Variation margin		17,138
Management fees		8,877
Distribution and service fees		2,600
Transfer agent and administrative fees		2,466
Portfolio accounting fees		986
Miscellaneous		30,565
Total liabilities		339,825
Net assets	$	12,180,282
Net assets consist of:
Paid in capital	$	12,130,035
Accumulated net investment loss		(62,975	)
Accumulated net realized gain on investments		310,175
Net unrealized depreciation on investments		(196,953	)
Net assets	$	12,180,282
A-Class:
Net assets	$	2,312,307
Capital shares outstanding		83,647
Net asset value per share	$	27.64
Maximum offering price per share (Net asset value divided by 95.25%)	$	29.02
C-Class:
Net assets	$	1,355,913
Capital shares outstanding		50,827
Net asset value per share	$	26.68
H-Class:
Net assets	$	5,176,713
Capital shares outstanding		187,256
Net asset value per share	$	27.65
Institutional Class:
Net assets	$	3,335,349
Capital shares outstanding		119,296
Net asset value per share	$	27.96

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	47,527
Income from securities lending, net		901
Interest		410
Total investment income		48,838
Expenses:
Management fees		62,132
Transfer agent and administrative fees		17,259
Distribution and service fees:
A-Class		5,219
C-Class		6,700
H-Class		7,945
Portfolio accounting fees		6,903
Licensing fees		24,162
Custodian fees		806
Trustees’ fees*		533
Miscellaneous		9,993
Total expenses		141,652
Less:
Expenses waived by Adviser		(7,904	)
Net expenses		133,748
Net investment loss		(84,910	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(2,853	)
Swap agreements		(149,528	)
Futures contracts		(26,696	)
Net realized loss		(179,077	)
Net change in unrealized appreciation (depreciation) on:
Investments		(19,283	)
Swap agreements		(77,966	)
Futures contracts		(3,801	)
Net change in unrealized appreciation (depreciation)		(101,050	)
Net realized and unrealized loss		(280,127	)
Net decrease in net assets resulting from operations	$	(365,037	)

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

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(84,910	)	$	(198,852	)
Net realized gain (loss) on investments		(179,077	)		1,377,099
Net change in unrealized appreciation (depreciation) on investments		(101,050	)		(170,825	)
Net increase (decrease) in net assets resulting from operations		(365,037	)		1,007,422
Distributions to shareholders from:
Net realized gains
A-Class		—			(170,099	)
C-Class		—			(44,651	)
H-Class		—			(394,614	)
Institutional Class		—			(60,484	)
Total distributions to shareholders		—			(669,848	)
Capital share transactions:
Proceeds from sale of shares
A-Class		1,923,349			3,375,449
C-Class		477,858			843,617
H-Class		1,773,889			2,523,264
Institutional Class		2,561,454			256,708
Distributions reinvested
A-Class		—			163,722
C-Class		—			44,596
H-Class		—			389,688
Institutional Class		—			59,898
Cost of shares redeemed
A-Class		(3,819,901	)		(1,418,770	)
C-Class		(332,856	)		(690,580	)
H-Class		(3,247,296	)		(2,423,769	)
Institutional Class		(132,173	)		(263,890	)
Net increase (decrease) from capital share transactions		(795,676	)		2,859,933
Net increase (decrease) in net assets		(1,160,713	)		3,197,507
Net assets:
Beginning of period		13,340,995			10,143,488
End of period	$	12,180,282		$	13,340,995
Accumulated net investment loss/Undistributed net investment income at end of period	$	(62,975	)	$	21,935
Capital share activity:
Shares sold
A-Class		67,883			119,577
C-Class		17,534			30,556
H-Class		62,907			89,167
Institutional Class		89,956			8,974
Shares issued from reinvestment of distributions
A-Class		—			5,879
C-Class		—			1,649
H-Class		—			13,992
Institutional Class		—			2,130
Shares redeemed
A-Class		(135,639	)		(49,520	)
C-Class		(12,221	)		(25,215	)
H-Class		(115,216	)		(86,131	)
Institutional Class		(4,633	)		(9,210	)
Net increase (decrease) in shares		(29,429	)		101,848

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Period EndedMarch 31,2011b
Per Share Data
Net asset value, beginning of period	$	28.42		$	27.56		$	25.37		$	26.86		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.17	)		(.49	)		(.21	)		(.37	)		(.33	)
Net gain (loss) on investments (realized and    unrealized)		(.61	)		3.09			2.40			(.36	)		4.27
Total from investment operations		(.78	)		2.60			2.19			(.73	)		3.94
Less distributions from:
Net realized gains		—			(1.74	)		—			(.76	)		(2.08	)
Total distributions		—			(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	27.64		$	28.42		$	27.56		$	25.37		$	26.86
Total Returnd		(2.74	%)		9.58	%		8.63	%		(2.60	%)		16.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	2,312		$	4,303		$	2,080		$	2,595		$	11,591
Ratios to average net assets:
Net investment income (loss)		(1.20	%)		(1.73	%)		(0.80	%)		(1.43	%)		(1.65	%)
Total expensese		2.01	%		2.02	%		2.03	%		1.93	%		2.03	%
Net expensesf		1.90	%		1.90	%		1.91	%		1.85	%		1.89	%
Portfolio turnover rate		20	%		161	%		228	%		513	%		—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Period EndedMarch 31,2011b
Per Share Data
Net asset value, beginning of period	$	27.53		$	26.95		$	24.99		$	26.67		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.27	)		(.67	)		(.43	)		(.52	)		(.48	)
Net gain (loss) on investments (realized and    unrealized)		(.58	)		2.99			2.39			(.40	)		4.23
Total from investment operations		(.85	)		2.32			1.96			(.92	)		3.75
Less distributions from:
Net realized gains		—			(1.74	)		—			(.76	)		(2.08	)
Total distributions		—			(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	26.68		$	27.53		$	26.95		$	24.99		$	26.67
Total Returnd		(3.09	%)		8.74	%		7.89	%		(3.38	%)		15.46	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,356		$	1,253		$	1,038		$	1,022		$	1,363
Ratios to average net assets:
Net investment income (loss)		(1.94	%)		(2.45	%)		(1.67	%)		(2.04	%)		(2.42	%)
Total expensese		2.76	%		2.77	%		2.79	%		2.66	%		2.79	%
Net expensesf		2.65	%		2.65	%		2.66	%		2.60	%		2.65	%
Portfolio turnover rate		20	%		161	%		228	%		513	%		—

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

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS (continued)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Period EndedMarch 31,2011b
Per Share Data
Net asset value, beginning of period	$	28.42		$	27.57		$	25.37		$	26.86		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.17	)		(.49	)		(.23	)		(.34	)		(.33	)
Net gain (loss) on investments (realized and    unrealized)		(.60	)		3.08			2.43			(.39	)		4.27
Total from investment operations		(.77	)		2.59			2.20			(.73	)		3.94
Less distributions from:
Net realized gains		—			(1.74	)		—			(.76	)		(2.08	)
Total distributions		—			(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	27.65		$	28.42		$	27.57		$	25.37		$	26.86
Total Returnd		(2.71	%)		9.54	%		8.67	%		(2.60	%)		16.24	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	5,177		$	6,809		$	6,134		$	6,183		$	8,886
Ratios to average net assets:
Net investment income (loss)		(1.19	%)		(1.72	%)		(0.88	%)		(1.33	%)		(1.67	%)
Total expensese		2.01	%		2.02	%		2.03	%		1.91	%		2.04	%
Net expensesf		1.90	%		1.90	%		1.91	%		1.85	%		1.90	%
Portfolio turnover rate		20	%		161	%		228	%		513	%		—

26  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EVENT DRIVEN AND DISTRESSED STRATEGIES FUND

FINANCIAL HIGHLIGHTS (concluded)

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

Institutional Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Period EndedMarch 31,2011b
Per Share Data
Net asset value, beginning of period	$	28.71		$	27.76		$	25.49		$	26.91		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.13	)		(.42	)		(.19	)		(.23	)		(.27	)
Net gain (loss) on investments (realized and    unrealized)		(.62	)		3.11			2.46			(.43	)		4.26
Total from investment operations		(.75	)		2.69			2.27			(.66	)		3.99
Less distributions from:
Net realized gains		—			(1.74	)		—			(.76	)		(2.08	)
Total distributions		—			(1.74	)		—			(.76	)		(2.08	)
Net asset value, end of period	$	27.96		$	28.71		$	27.76		$	25.49		$	26.91
Total Returnd		(2.61	%)		9.84	%		8.91	%		(2.34	%)		16.45	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	3,335		$	975		$	891		$	329		$	59
Ratios to average net assets:
Net investment income (loss)		(0.91	%)		(1.46	%)		(0.70	%)		(0.90	%)		(1.42	%)
Total expensese		1.77	%		1.77	%		1.80	%		1.61	%		1.79	%
Net expensesf		1.65	%		1.65	%		1.67	%		1.58	%		1.65	%
Portfolio turnover rate		20	%		161	%		228	%		513	%		—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: June 30, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Does not include expenses of the underlying funds in which the Fund invests.
f	Net expense information reflects the expense ratios after expense waivers.

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  27 

FUND PROFILE (Unaudited) September 30, 2014

EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

Ten Largest Holdings (% of Total Net Assets)
Taiwan Semiconductor Manufacturing Co., Ltd. ADR	6.6%
China Mobile Ltd. ADR	5.6%
Baidu, Inc. ADR	5.3%
America Movil SAB de CV ADR	4.1%
Itau Unibanco Holding S.A. ADR	3.4%
Petroleo Brasileiro S.A. ADR	2.7%
Banco Bradesco S.A. ADR	2.6%
AMBEV S.A. ADR	2.6%
Infosys Ltd. ADR	2.6%
CNOOC Ltd. ADR	2.4%
Top Ten Total	37.9%
“Ten Largest Holdings” exclude any temporary cash or derivative investments.

COUNTRY DIVERSIFICATION

At September 30, 2014, the investment diversification of the Fund by country was as follows:

Country	% of Common Stocks	Value
Brazil	25%	$10,281,794
Hong Kong	11%	4,406,085
Taiwan, Province of China	10%	4,218,792
Mexico	10%	4,007,790
Republic of Korea	10%	4,001,622
Cayman Islands	9%	3,528,699
China	9%	3,525,915
Other	16%	7,190,821
Total Common Stocks	100%	$41,161,518

28  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
EMERGING MARKETS 2x STRATEGY FUND

	Shares		Value
COMMON STOCKS† - 81.0%
COMMUNICATIONS - 23.9%
China Mobile Ltd. ADR		48,683	$	2,860,126
Baidu, Inc. ADR*		12,253		2,673,972
America Movil SAB de CV ADR		83,190		2,096,388
Grupo Televisa SAB ADR		19,394		657,069
Telekomunikasi Indonesia Persero Tbk PT ADR		11,077		532,804
Chunghwa Telecom Company Ltd. ADR		17,050		510,989
SK Telecom Company Ltd. ADR		15,971		484,560
China Telecom Corp., Ltd. ADR		6,224		382,340
Mobile Telesystems OJSC ADR		22,707		339,243
Ctrip.com International Ltd. ADR*		5,805		329,492
China Unicom Hong Kong Ltd. ADR		20,101		302,118
NetEase, Inc. ADR		3,289		281,736
Qihoo 360 Technology Company Ltd. ADR*		3,609		243,499
Telefonica Brasil S.A. ADR		11,680		229,862
Philippine Long Distance Telephone Co. ADR		3,270		225,565
Total Communications				12,149,763
FINANCIAL - 14.4%
Itau Unibanco Holding S.A. ADR		123,826		1,718,705
Banco Bradesco S.A. ADR		94,351		1,344,502
Shinhan Financial Group Company Ltd. ADR		21,270		966,934
China Life Insurance Company Ltd. ADR		22,250		927,825
HDFC Bank Ltd. ADR		17,472		813,846
KB Financial Group, Inc. ADR		17,328		627,620
ICICI Bank Ltd. ADR		12,619		619,593
Bancolombia S.A. ADR		5,070		287,570
Total Financial				7,306,595
ENERGY - 12.7%
Petroleo Brasileiro S.A. ADR		91,710		1,365,562
CNOOC Ltd. ADR		7,209		1,243,841
PetroChina Company Ltd. ADR1		9,463		1,216,090
China Petroleum & Chemical Corp. ADR		11,443		999,660
Petroleo Brasileiro S.A. ADR		66,761		947,338
Ecopetrol S.A. ADR1		11,065		346,003
YPF S.A. ADR		8,644		319,742
Total Energy				6,438,236
TECHNOLOGY - 10.5%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR		167,436		3,378,858
Infosys Ltd. ADR		21,619		1,307,733
Advanced Semiconductor Engineering, Inc. ADR		55,659		328,945
Wipro Ltd. ADR		26,336		320,246
Total Technology				5,335,782
BASIC MATERIALS - 9.0%
Sasol Ltd. ADR		22,435		1,222,483
POSCO ADR		14,390		1,092,201
Vale S.A. ADR		90,920		882,833
Vale S.A. ADR1		66,376		730,800
Ultrapar Participacoes S.A. ADR		19,465		411,101
AngloGold Ashanti Ltd. ADR		18,034		216,408
Total Basic Materials				4,555,826
CONSUMER, NON-CYCLICAL - 5.7%
AMBEV S.A. ADR		204,137		1,337,096
BRF S.A. ADR		29,740		707,515
Fomento Economico Mexicano SAB de CV ADR		5,913		544,292
Cia Brasileira de Distribuicao ADR		7,411		323,194
Total Consumer, Non-cyclical				2,912,097
INDUSTRIAL - 2.6%
Cemex SAB de CV ADR*		54,451		710,041
LG Display Company Ltd. ADR		19,900		313,425
Embraer S.A. ADR		7,223		283,286
Total Industrial				1,306,752
UTILITIES - 1.5%
Korea Electric Power Corp. ADR		23,034		516,882
Enersis S.A. ADR		17,175		271,022
Total Utilities				787,904
CONSUMER, CYCLICAL - 0.7%
Tata Motors Ltd. ADR		8,432		368,563
Total Common Stocks
(Cost $41,322,250)				41,161,518
	Face Amount
REPURCHASE AGREEMENTS††,2 - 5.1%
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/143	$	1,001,090		1,001,090
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/143		708,451		708,451
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		414,239		414,239
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		292,931		292,931
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		182,787		182,787
Total Repurchase Agreements
(Cost $2,599,498)				2,599,498

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

SCHEDULE OF INVESTMENTS (Unaudited)(concluded)	September 30, 2014
EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
SECURITIES LENDING COLLATERAL††,4 - 2.3%
Repurchase Agreements
HSBC Securities, Inc. issued 09/30/14 at 0.00% due 10/01/14	$	1,017,316	$	1,017,316
BNP Paribas Securities Corp. issued 09/30/14 at 0.00% due 10/01/14		166,773		166,773
Total Securities Lending Collateral
(Cost $1,184,089)				1,184,089
Total Investments - 88.4%
(Cost $45,105,837)			$	44,945,105
Other Assets & Liabilities, net - 11.6%				5,901,805
Total Net Assets - 100.0%			$	50,846,910

	Contracts		Unrealized Loss
EQUITY FUTURES CONTRACTS PURCHASED†
December 2014 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Value of Contracts $11,726,910)		234	$	(454,917	)
	Units
OTC EQUITY INDEX SWAP AGREEMENTS††
Goldman Sachs International October 2014 Bank of New York Mellon    Emerging Markets 50 ADR Index Swap,    Terminating 10/28/145 (Notional Value $48,963,663)		19,855	$	(1,009,024	)

*	Non-income producing security.
†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	All or portion of this security is on loan at September 30, 2014 — See Note 12.
2	Repurchase Agreements — See Note 5.
3	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
4	Securities lending collateral — See Note 12.
5	Total Return based on Bank of New York Mellon Emerging Markets 50 ADR Index +/- financing at a variable rate.
	ADR — American Depositary Receipt

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value - including $1,343,154 of securities loaned (cost $41,322,250)	$	41,161,518
Repurchase agreements, at value (cost $3,783,587)		3,783,587
Total investments (cost $45,105,837)		44,945,105
Segregated cash with broker		7,552,058
Cash		38,028
Receivables:
Fund shares sold		728,121
Dividends		152,631
Swap settlement		112,504
Variation margin		9,278
Securities lending income		1,157
Foreign taxes reclaim		338
Total assets		53,539,220
Liabilities:
Unrealized depreciation on swap agreements		1,009,024
Payable for:
Upon return of securities loaned		1,378,125
Fund shares redeemed		150,166
Management fees		65,640
Distribution and service fees		18,829
Transfer agent and administrative fees		18,234
Portfolio accounting fees		10,940
Miscellaneous		41,352
Total liabilities		2,692,310
Net assets	$	50,846,910
Net assets consist of:
Paid in capital	$	54,343,996
Undistributed net investment income		126,130
Accumulated net realized loss on investments		(1,998,543	)
Net unrealized depreciation on investments		(1,624,673	)
Net assets	$	50,846,910
A-Class:
Net assets	$	718,865
Capital shares outstanding		9,424
Net asset value per share	$	76.28
Maximum offering price per share (Net asset value divided by 95.25%)	$	80.08
C-Class:
Net assets	$	825,486
Capital shares outstanding		10,992
Net asset value per share	$	75.10
H-Class:
Net assets	$	49,302,559
Capital shares outstanding		645,049
Net asset value per share	$	76.43

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends (net of foreign withholding tax of $14,486)	$	694,371
Income from securities lending, net		2,776
Interest		772
Total investment income		697,919
Expenses:
Management fees		278,920
Transfer agent and administrative fees		77,478
Distribution and service fees:
A-Class		901
C-Class		5,049
H-Class		75,316
Portfolio accounting fees		46,488
Custodian fees		3,626
Trustees’ fees*		1,021
Line of credit interest expense		521
Miscellaneous		59,173
Total expenses		548,493
Net investment income		149,426
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(910,802	)
Swap agreements		2,775,643
Futures contracts		(443,157	)
Net realized gain		1,421,684
Net change in unrealized appreciation (depreciation) on:
Investments		(423,144	)
Swap agreements		(1,226,699	)
Futures contracts		(454,917	)
Net change in unrealized appreciation (depreciation)		(2,104,760	)
Net realized and unrealized loss		(683,076	)
Net decrease in net assets resulting from operations	$	(533,650	)

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

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

EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment income (loss)	$	149,426		$	(34,514	)
Net realized gain (loss) on investments		1,421,684			(1,947,172	)
Net change in unrealized appreciation (depreciation) on investments		(2,104,760	)		348,749
Net decrease in net assets resulting from operations		(533,650	)		(1,632,937	)
Capital share transactions:
Proceeds from sale of shares
A-Class		11,033,665			8,531,963
C-Class		26,772,019			34,714,451
H-Class		290,735,287			183,477,671
Cost of shares redeemed
A-Class		(11,193,599	)		(7,561,718	)
C-Class		(26,417,340	)		(34,363,190	)
H-Class		(245,420,766	)		(179,596,460	)
Net increase from capital share transactions		45,509,266			5,202,717
Net increase in net assets		44,975,616			3,569,780
Net assets:
Beginning of period		5,871,294			2,301,514
End of period	$	50,846,910		$	5,871,294
Undistributed net investment income/Accumulated net investment loss at end of period	$	126,130		$	(23,296	)
Capital share activity:
Shares sold
A-Class		141,644			126,244
C-Class		349,749			529,047
H-Class		3,723,420			2,825,051
Shares redeemed
A-Class		(143,446	)		(116,456	)
C-Class		(345,000	)		(524,287	)
H-Class		(3,149,471	)		(2,782,209	)
Net increase in shares		576,896			57,390

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014g			Year EndedMarch 28,2013g			Year EndedMarch 31,2012g			Period EndedMarch 31,2011b,g
Per Share Data
Net asset value, beginning of period	$	66.27		$	73.59		$	87.40		$	134.76		$	125.00
Income (loss) from investment operations:
Net investment income (loss)c		.15			(.54	)		(.35	)		(—	)f		(.65	)
Net gain (loss) on investments (realized and    unrealized)		9.86			(6.78	)		(13.46	)		(41.76	)		10.41
Total from investment operations		10.01			(7.32	)		(13.81	)		(41.76	)		9.76
Less distributions from:
Net realized gains		—			—			—			(5.60	)		—
Total distributions		—			—			—			(5.60	)		—
Net asset value, end of period	$	76.28		$	66.27		$	73.59		$	87.40		$	134.76
Total Returne		15.10	%		(9.96	%)		(15.79	%)		(30.00	%)		7.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	719		$	744		$	106		$	363		$	992
Ratios to average net assets:
Net investment income (loss)		0.38	%		(0.82	%)		(0.51	%)		(0.01	%)		(1.42	%)
Total expenses		1.76	%		1.81	%		1.88	%		1.77	%		1.85	%
Net expensese		1.76	%		1.76	%		1.75	%		1.69	%		1.73	%
Portfolio turnover rate		342	%		1,412	%		730	%		883	%		58	%

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014g			Year EndedMarch 28,2013g			Year EndedMarch 31,2012g			Period EndedMarch 31,2011b,g
Per Share Data
Net asset value, beginning of period	$	65.46		$	72.92		$	87.31		$	134.13		$	125.00
Income (loss) from investment operations:
Net investment income (loss)c		(.15	)		(1.04	)		(1.25	)		(.90	)		(1.55	)
Net gain (loss) on investments (realized and    unrealized)		9.79			(6.42	)		(13.14	)		(40.32	)		10.68
Total from investment operations		9.64			(7.46	)		(14.39	)		(41.22	)		9.13
Less distributions from:
Net realized gains		—			—			—			(5.60	)		—
Total distributions		—			—			—			(5.60	)		—
Net asset value, end of period	$	75.10		$	65.46		$	72.92		$	87.31		$	134.13
Total Returnd		14.73	%		(10.21	%)		(16.49	%)		(29.75	%)		7.32	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	825		$	409		$	108		$	62		$	726
Ratios to average net assets:
Net investment income (loss)		(0.38	%)		(1.73	%)		(1.61	%)		(0.87	%)		(1.98	%)
Total expenses		2.50	%		2.66	%		2.59	%		2.54	%		2.60	%
Net expensese		2.50	%		2.61	%		2.46	%		2.46	%		2.49	%
Portfolio turnover rate		342	%		1,412	%		730	%		883	%		58	%

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

EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014g			Year EndedMarch 28,2013g			Year EndedMarch 31,2012g			Period EndedMarch 31,2011b,g
Per Share Data
Net asset value, beginning of period	$	66.37		$	73.87		$	87.74		$	134.69		$	125.00
Income (loss) from investment operations:
Net investment income (loss)c		.20			(.34	)		(.35	)		(.35	)		(.55	)
Net gain (loss) on investments (realized and    unrealized)		9.86			(7.16	)		(13.52	)		(41.00	)		10.24
Total from investment operations		10.06			(7.50	)		(13.87	)		(41.35	)		9.69
Less distributions from:
Net realized gains		—			—			—			(5.60	)		—
Total distributions		—			—			—			(5.60	)		—
Net asset value, end of period	$	76.43		$	66.37		$	73.87		$	87.74		$	134.69
Total Returnd		15.16	%		(10.19	%)		(15.78	%)		(29.70	%)		7.76	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	49,303		$	4,719		$	2,087		$	4,713		$	3,705
Ratios to average net assets:
Net investment income (loss)		0.50	%		(0.51	%)		(0.49	%)		(0.37	%)		(1.05	%)
Total expenses		1.76	%		1.80	%		1.83	%		1.77	%		1.85	%
Net expensese		1.76	%		1.74	%		1.69	%		1.69	%		1.74	%
Portfolio turnover rate		342	%		1,412	%		730	%		883	%		58	%

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: October 29, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after expense waivers.
f	Net investment income is less than $0.01 per share.
g	Reverse share split — Per share amounts for the periods presented through February 21, 2014 have been restated to reflect a 1:5 reverse share split effective February 21, 2014.

34  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

FUND PROFILE (Unaudited) September 30, 2014

INVERSE EMERGING MARKETS 2x STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of a specific benchmark on a daily basis. The Fund’s current benchmark is 200% of the inverse (opposite) of the performance of the BNY Mellon Emerging Markets 50 ADR Index (the “underlying index”). The Fund does not seek to achieve its investment objective over a period of time greater than one day.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 29, 2010
C-Class	October 29, 2010
H-Class	October 29, 2010

The Fund invests principally in derivative investments such as swap agreements and futures contracts.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  35 

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
INVERSE EMERGING MARKETS 2x STRATEGY FUND

	Face Amount		Value
REPURCHASE AGREEMENTS††,1 - 66.2%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	701,860	$	701,860
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		410,384		410,384
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		290,205		290,205
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		181,086		181,086
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/142		151,080		151,080
Total Repurchase Agreements
(Cost $1,734,615)				1,734,615
Total Investments - 66.2%
(Cost $1,734,615)			$	1,734,615
Other Assets & Liabilities, net - 33.8%				887,097
Total Net Assets - 100.0%			$	2,621,712

	Contracts		Unrealized Gain
EQUITY FUTURES CONTRACTS SOLD SHORT†
December 2014 MSCI Emerging Markets Index Mini Futures Contracts (Aggregate Value of Contracts $150,345)		3	$	1,862
	Units
OTC EQUITY INDEX SWAP AGREEMENTS SOLD SHORT††
Goldman Sachs International October 2014 Bank of New York Mellon Emerging Markets 50 ADR Index Swap, Terminating 10/28/14 3 (Notional Value $5,029,572)		2,040	$	80,097

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
2	All or a portion of this security is pledged as equity index swap collateral at September 30, 2014.
3	Total Return based on Bank of New York Mellon Emerging Markets 50 ADR Index +/- financing at a variable rate.
	ADR — American Depositary Receipt.

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Repurchase agreements, at value (cost $1,734,615)	$	1,734,615
Segregated cash with broker		507,617
Unrealized appreciation on swap agreements		80,097
Receivables:
Fund shares sold		842,498
Swap settlement		4,918
Total assets		3,169,745
Liabilities:
Payable for:
Fund shares redeemed		539,193
Management fees		2,860
Distribution and service fees		1,255
Transfer agent and administrative fees		795
Portfolio accounting fees		477
Variation margin		129
Miscellaneous		3,324
Total liabilities		548,033
Net assets	$	2,621,712
Net assets consist of:
Paid in capital	$	11,302,301
Accumulated net investment loss		(159,598	)
Accumulated net realized loss on investments		(8,602,950	)
Net unrealized appreciation on investments		81,959
Net assets	$	2,621,712
A-Class:
Net assets	$	188,869
Capital shares outstanding		12,720
Net asset value per share	$	14.85
Maximum offering price per share (Net asset value divided by 95.25%)	$	15.59
C-Class:
Net assets	$	1,103,429
Capital shares outstanding		71,840
Net asset value per share	$	15.36
H-Class:
Net assets	$	1,329,414
Capital shares outstanding		89,502
Net asset value per share	$	14.85

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Interest	$	378
Total investment income		378
Expenses:
Management fees		25,567
Transfer agent and administrative fees		7,103
Distribution and service fees:
A-Class		1,789
C-Class		2,466
H-Class		4,698
Portfolio accounting fees		4,262
Registration fees		5,078
Trustees’ fees*		490
Custodian fees		331
Miscellaneous		(115	)
Total expenses		51,669
Net investment loss		(51,291	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Swap agreements		(2,992,706	)
Futures contracts		(36,016	)
Net realized loss		(3,028,722	)
Net change in unrealized appreciation (depreciation) on:
Swap agreements		738,070
Futures contracts		948
Net change in unrealized appreciation (depreciation)		739,018
Net realized and unrealized loss		(2,289,704	)
Net decrease in net assets resulting from operations	$	(2,340,995	)

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

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Year EndedMarch 31, 2014
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(51,291	)	$	(151,694	)
Net realized loss on investments		(3,028,722	)		(4,448,146	)
Net change in unrealized appreciation (depreciation) on investments		739,018			(632,299	)
Net decrease in net assets resulting from operations		(2,340,995	)		(5,232,139	)
Capital share transactions:
Proceeds from sale of shares
A-Class		2,023,207			8,057,592
C-Class		18,606,760			43,930,520
H-Class		61,017,521			163,931,981
Cost of shares redeemed
A-Class		(6,094,267	)		(2,627,231	)
C-Class		(17,666,278	)		(43,874,699	)
H-Class		(63,859,501	)		(155,566,471	)
Net increase (decrease) from capital share transactions		(5,972,558	)		13,851,692
Net increase (decrease) in net assets		(8,313,553	)		8,619,553
Net assets:
Beginning of period		10,935,265			2,315,712
End of period	$	2,621,712		$	10,935,265
Accumulated net investment loss at end of period	$	(159,598	)	$	(108,307	)
Capital share activity:
Shares sold
A-Class		128,867			380,799
C-Class		1,165,267			2,127,776
H-Class		4,081,388			8,074,671
Shares redeemed
A-Class		(381,117	)		(129,267	)
C-Class		(1,107,172	)		(2,119,778	)
H-Class		(4,309,133	)		(7,858,474	)
Net increase (decrease) in shares		(421,900	)		475,727

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Period EndedMarch 31,2011b
Per Share Data
Net asset value, beginning of period	$	18.34		$	19.23		$	19.29		$	21.15		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.15	)		(.35	)		(.33	)		(.39	)		(.16	)
Net gain (loss) on investments (realized and    unrealized)		(3.34	)		(.54	)		.27			(1.47	)		(3.69	)
Total from investment operations		(3.49	)		(.89	)		(.06	)		(1.86	)		(3.85	)
Net asset value, end of period	$	14.85		$	18.34		$	19.23		$	19.29		$	21.15
Total Returnd		(19.03	%)		(4.63	%)		(0.26	%)		(8.84	%)		(15.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	189		$	4,859		$	258		$	8		$	34
Ratios to average net assets:
Net investment income (loss)		(1.74	%)		(1.74	%)		(1.60	%)		(1.66	%)		(1.61	%)
Total expenses		1.75	%		1.78	%		1.85	%		1.78	%		1.85	%
Net expenses e		1.75	%		1.75	%		1.71	%		1.69	%		1.73	%
Portfolio turnover rate		—			—			—			—			—

C-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Period EndedMarch 31,2011b
Per Share Data
Net asset value, beginning of period	$	19.03		$	20.07		$	20.25		$	21.33		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.19	)		(.52	)		(.49	)		(.55	)		(.25	)
Net gain (loss) on investments (realized and    unrealized)		(3.48	)		(.52	)		.31			(.53	)		(3.42	)
Total from investment operations		(3.67	)		(1.04	)		(.18	)		(1.08	)		(3.67	)
Net asset value, end of period	$	15.36		$	19.03		$	20.07		$	20.25		$	21.33
Total Returnd		(19.29	%)		(5.23	%)		(0.84	%)		(5.06	%)f		(14.68	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,103		$	262		$	115		$	1,261		$	15
Ratios to average net assets:
Net investment income (loss)		(2.49	%)		(2.44	%)		(2.41	%)		(2.41	%)		(2.37	%)
Total expenses		2.51	%		2.48	%		2.65	%		2.53	%		2.57	%
Net expenses e		2.51	%		2.46	%		2.51	%		2.44	%		2.46	%
Portfolio turnover rate		—			—			—			—			—

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

INVERSE EMERGING MARKETS 2x STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Year EndedMarch 31,2014			Year EndedMarch 28,2013			Year EndedMarch 31,2012			Period EndedMarch 31,2011b
Per Share Data
Net asset value, beginning of period	$	18.33		$	19.22		$	19.29		$	21.15		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.13	)		(.35	)		(.33	)		(.38	)		(.16	)
Net gain (loss) on investments (realized and    unrealized)		(3.35	)		(.54	)		.26			(1.48	)		(3.69	)
Total from investment operations		(3.48	)		(.89	)		(.07	)		(1.86	)		(3.85	)
Net asset value, end of period	$	14.85		$	18.33		$	19.22		$	19.29		$	21.15
Total Returnd		(18.99	%)		(4.63	%)		(0.36	%)		(8.79	%)		(15.40	%)
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	1,329		$	5,815		$	1,942		$	2,215		$	2,892
Ratios to average net assets:
Net investment income (loss)		(1.74	%)		(1.74	%)		(1.56	%)		(1.67	%)		(1.63	%)
Total expenses		1.76	%		1.78	%		1.82	%		1.79	%		1.85	%
Net expenses e		1.76	%		1.76	%		1.68	%		1.70	%		1.74	%
Portfolio turnover rate		—			—			—			—			—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: October 29, 2010. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charges and has not been annualized.
e	Net expense information reflects the expense ratios after expense waivers.
f	Generally, the performance of the Fund’s C-Class shares will underperform the Fund’s H-Class shares and A-Class shares due to the C-Class shares’ higher expense ratio. However, the performance of the Fund’s C-Class shares is greater than that of the H-Class shares and A-Class shares due to the impact large redemptions of C-Class shares had on the expense accruals for C-Class shares. The effect of the expense accruals on the performance of the C-Class shares of the Fund was magnified by the small asset base of the C-Class shares.

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

FUND PROFILE (Unaudited) September 30, 2014

EMERGING MARKETS BOND STRATEGY FUND

OBJECTIVE: Seeks to provide investment results that correlate, before fees and expenses, to the performance of the emerging markets bond market as defined by the Advisor.

Holdings Diversification (Market Exposure as % of Net Assets)

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

Inception Dates:
A-Class	October 8, 2013
C-Class	October 8, 2013
H-Class	October 8, 2013

The fund invests principally in derivative investments such as swap agreements and futures contracts.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  41 

 

SCHEDULE OF INVESTMENTS (Unaudited)	September 30, 2014
EMERGING MARKETS BOND STRATEGY FUND

	Shares		Value
EXCHANGE-TRADED FUNDS† - 8.9%
iShares JP Morgan USD Emerging Markets Bond ETF		160	$	18,056
PowerShares Emerging Markets Sovereign Debt Portfolio		620		17,645
Total Exchange-Traded Funds
(Cost $35,933)				35,701
	Face Amount
REPURCHASE AGREEMENTS††,1 - 68.4%
RBC Capital Markets issued 09/30/14 at (0.05)% due 10/01/14	$	120,699		120,699
Mizuho Financial Group, Inc. issued 09/30/14 at 0.01% due 10/01/14		70,573		70,573
UMB Financial Corp. issued 09/30/14 at 0.00% due 10/01/14		49,906		49,906
HSBC Group issued 09/30/14 at 0.00% due 10/01/14		31,141		31,141
Credit Suisse Group issued 09/30/14 at (0.05)% due 10/01/14		186		186
Total Repurchase Agreements
(Cost $272,505)				272,505
Total Investments - 77.3%
(Cost $308,438)			$	308,206
Other Assets & Liabilities, net - 22.7%				90,411
Total Net Assets - 100.0%			$	398,617

	Contracts		Unrealized Loss
INTEREST RATE FUTURES CONTRACTS PURCHASED†
December 2014 U.S. Treasury 10 Year Note Futures Contracts (Aggregate Value of Contracts $124,688)		1	$	(298	)
December 2014 U.S. Treasury 5 Year Note Futures Contracts (Aggregate Value of Contracts $354,843)		3		(849	)
(Total Aggregate Value of Contracts $479,531)			$	(1,147	)

CENTRALLY CLEARED CREDIT DEFAULT SWAP AGREEMENT PROTECTION SOLD††,2

Index

Counterparty

Protection Premium Rate

Maturity Date

Notional Principal

Notional Value

Upfront Premiums Paid

Unrealized Appreciation

CDX.EM-21 Index

Barclays Bank plc

5.00%

06/20/19

$528,000

$(577,500

)

$39,885

$9,326

†	Value determined based on Level 1 inputs — See Note 4.
††	Value determined based on Level 2 inputs — See Note 4.
1	Repurchase Agreements — See Note 5.
2	Credit Default Swaps — See Note 6.
	plc — Public Limited Company

42  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT SEE NOTES TO FINANCIAL STATEMENTS.

EMERGING MARKETS BOND STRATEGY FUND

STATEMENT OF ASSETS AND LIABILITIES (Unaudited)
September 30, 2014
Assets:
Investments, at value (cost $35,933)	$	35,701
Repurchase agreements, at value (cost $272,505)		272,505
Total investments (cost $308,438)		308,206
Segregated cash with broker		58,478
Unamortized upfront premiums paid on credit default swaps		39,885
Unrealized appreciation on swap agreements		9,326
Receivables:
Interest		660
Total assets		416,555
Liabilities:
Payable for:
Fund shares redeemed		9,912
Management fees		1,815
Distribution and service fees		616
Transfer agent and administrative fees		605
Portfolio accounting fees		363
Variation margin		148
Miscellaneous		4479
Total liabilities		17,938
Net assets	$	398,617
Net assets consist of:
Paid in capital	$	667,415
Accumulated net investment loss		(2,821	)
Accumulated net realized loss on investments		(273,924	)
Net unrealized appreciation on investments		7,947
Net assets	$	398,617
A-Class:
Net assets	$	70,501
Capital shares outstanding		2,852
Net asset value per share	$	24.72
Maximum offering price per share (Net asset value divided by 95.25%)	$	25.95
C-Class:
Net assets	$	17,064
Capital shares outstanding		697
Net asset value per share	$	24.50
H-Class:
Net assets	$	311,052
Capital shares outstanding		12,629
Net asset value per share	$	24.63

STATEMENT OF OPERATIONS (Unaudited)
Period Ended September 30, 2014
Investment Income:
Dividends	$	6,335
Interest		750
Total investment income		7,085
Expenses:
Management fees		39,216
Transfer agent and administrative fees		13,073
Distribution and service fees:
A-Class		6,711
C-Class		118
H-Class		6,333
Portfolio accounting fees		7,844
Tax expense		1,431
Custodian fees		651
Trustees’ fees*		371
Miscellaneous		7,656
Total expenses		83,404
Net investment loss		(76,319	)
Net Realized and Unrealized Gain (Loss):
Net realized gain (loss) on:
Investments		(13,299	)
Swap agreements		(241,617	)
Futures contracts		58,381
Net realized loss		(196,535	)
Net change in unrealized appreciation(depreciation) on:
Investments		(232	)
Swap agreements		(71,670	)
Futures contracts		40,086
Net change in unrealized appreciation (depreciation)		(31,816	)
Net realized and unrealized loss		(228,351	)
Net decrease in net assets resulting from operations	$	(304,670	)

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

SEE NOTES TO FINANCIAL STATEMENTS. THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  43 

EMERGING MARKETS BOND STRATEGY FUND

STATEMENTS OF CHANGES IN NET ASSETS
	Period EndedSeptember 30, 2014(Unaudited)			Period Ended March 31, 2014a
Increase (Decrease) in Net Assets from Operations:
Net investment loss	$	(76,319	)	$	(42,569	)
Net realized gain (loss) on investments		(196,535	)		34,169
Net change in unrealized appreciation (depreciation) on investments		(31,816	)		39,763
Net increase (decrease) in net assets resulting from operations		(304,670	)		31,363
Capital share transactions:
Proceeds from sale of shares
A-Class		18,246,217			650,358
C-Class		1,126,978			10,789
H-Class		1,721,420			12,337,077
Cost of shares redeemed
A-Class		(18,379,117	)		(147,681	)
C-Class		(1,123,287	)		(759	)
H-Class		(6,977,793	)		(6,792,278	)
Net increase (decrease) from capital share transactions		(5,385,582	)		6,057,506
Net increase (decrease) in net assets		(5,690,252	)		6,088,869
Net assets:
Beginning of year		6,088,869			—
End of year	$	398,617		$	6,088,869
Accumulated net investment loss/Undistributed net investment income at end of year	$	(2,821	)	$	73,498
Capital share activity:
Shares sold
A-Class		689,509			25,874
C-Class		43,446			431
H-Class		66,318			490,331
Shares redeemed
A-Class		(706,493	)		(6,038	)
C-Class		(43,149	)		(31	)
H-Class		(275,259	)		(268,761	)
Net increase (decrease) in shares		(225,628	)		241,806

^a Since commencement of operations: October 8, 2013.

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS

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

A-Class	Period EndedSeptember 30,2014a			Period EndedMarch 31,2014b
Per Share Data
Net asset value, beginning of period	$	25.17		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.18	)		(.21	)
Net gain (loss) on investments (realized and unrealized)		(.27	)		.38
Total from investment operations		(.45	)		.17
Net asset value, end of period	$	24.72		$	25.17
Total Returnd		(1.79	%)		0.72	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	71		$	499
Ratios to average net assets:
Net investment income (loss)		(1.38	%)		(1.78	%)
Total expensese		1.57	%		1.83	%
Portfolio turnover rate		377	%		—

C-Class	Period EndedSeptember 30,2014a			Period EndedMarch 31,2014b
Per Share Data
Net asset value, beginning of period	$	25.09		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.29	)		(.28	)
Net gain (loss) on investments (realized and unrealized)		(.30	)		.37
Total from investment operations		(.59	)		.09
Net asset value, end of period	$	24.50		$	25.09
Total Returnd		(2.35	%)		0.40	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	17		$	10
Ratios to average net assets:
Net investment income (loss)		(2.10	%)		(2.34	%)
Total expensese		2.36	%		2.39	%
Portfolio turnover rate		377	%		—

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

EMERGING MARKETS BOND STRATEGY FUND

FINANCIAL HIGHLIGHTS (concluded)

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

H-Class	Period EndedSeptember 30,2014a			Period EndedMarch 31,2014b
Per Share Data
Net asset value, beginning of period	$	25.18		$	25.00
Income (loss) from investment operations:
Net investment income (loss)c		(.20	)		(.19	)
Net gain (loss) on investments (realized and unrealized)		(.35	)		.37
Total from investment operations		(.55	)		.18
Net asset value, end of period	$	24.63		$	25.18
Total Returnd		(2.18	%)		0.80	%
Ratios/Supplemental Data
Net assets, end of period (in thousands)	$	311		$	5,580
Ratios to average net assets:
Net investment income (loss)		(1.54	%)		(1.62	%)
Total expensese		1.61	%		1.64	%
Portfolio turnover rate		377	%		—

a	Unaudited figures for the period ended September 30, 2014. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
b	Since commencement of operations: October 8, 2013. Percentage amounts for the period, except total return and portfolio turnover rate, have been annualized.
c	Net investment income (loss) per share was computed using average shares outstanding throughout the period.
d	Total return does not reflect the impact of any applicable sales charge and has not been annualized.
e	Total expenses may include interest expense. Excluding interest expense, the operating expense ratios for the period presented would be:

	9/30/14	3/31/14
A-Class	1.57%	1.58%
C-Class	2.36%	2.32%
H-Class	1.61%	1.57%

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

NOTES TO FINANCIAL STATEMENTS (Unaudited)

1. Organization and Significant Accounting Policies

Organization

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

The Trust offers a combination of eight separate classes of shares: Investor Class shares, Advisor Class shares, A-Class shares, C-Class shares, H-Class shares, Y-Class shares, Institutional Class shares and Money Market Class shares. Sales of shares of each Class are made without a front-end sales charge at the net asset value per share (“NAV”), with the exception of A-Class shares. A-Class shares are sold at the NAV, plus the applicable front-end sales charge. The sales charge varies depending on the amount purchased, but will not exceed 4.75%. A-Class share purchases of $1 million or more are exempt from the front-end sales charge but have a 1% contingent deferred sales charge (“CDSC”) if shares are redeemed within 12 months of purchase. C-Class shares have a 1% CDSC if shares are redeemed within 12 months of purchase. 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 CDSC. At September 30, 2014, the Trust consisted of fifty-one Funds.

This report covers the Long Short Equity Fund, Event Driven and Distressed Strategies Fund, Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund (the “Funds”). Only A-Class, C-Class, H-Class and Institutional Class shares had been issued by the Funds.

The Emerging Markets 2x Strategy Fund, Inverse Emerging Markets 2x Strategy Fund and Emerging Markets Bond Strategy Fund are designed and operated to accommodate frequent trading by shareholders and, unlike most mutual funds, offer unlimited exchange privileges with no minimum holding periods or transactions fees, which may cause the Funds to experience high portfolio turnover.

Guggenheim Investments (“GI”) provides advisory services and Rydex Fund Services, LLC (“RFS”) provides transfer agent, administrative and accounting services to the Trust. Guggenheim Funds Distributors, LLC (“GFD”) acts as principal underwriter for the Trust. GI, RFS and GFD are affiliated entities.

Significant Accounting Policies

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

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

The Trust calculates a NAV twice each business day; at 10:45 a.m. and at the close of the New York Stock Exchange (“NYSE”), usually 4:00 p.m. for the Emerging Markets 2x Strategy Fund, Emerging Markets Bond Strategy Fund, and Inverse Emerging Markets 2x Strategy Fund. All other Funds in this report will price at the afternoon NAV. The NAV is calculated using the current market value of each Fund’s total assets as of the respective time of calculation. These financial statements are based on the September 30, 2014, afternoon NAV.

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

Valuations of the Funds’ securities are supplied primarily by pricing services appointed pursuant to the processes set forth in the Valuation procedures. The Valuation Committee convenes monthly, or more frequently

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  47 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

as needed and will review the valuation of all assets which have been fair valued for reasonableness. The Funds’ officers, through the Valuation Committee and consistent with the monitoring and review responsibilities set forth in the Valuation Procedures, regularly review procedures used by, and valuations provided by, the pricing services.

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

Equity securities listed on an exchange (NYSE or American Stock Exchange) are valued at the last quoted sales price as of the close of business on the NYSE, usually 4:00 p.m. on the valuation date. Equity securities listed on the NASDAQ market system are valued at the NASDAQ Official Closing Price on the valuation date, which may not necessarily represent the last sale price. If there has been no sale on such exchange or NASDAQ on a given day, the security is valued at the closing bid price on that day.

Open-end investment companies ("Mutual Funds") are valued at their NAV as of the close of business, on the valuation date. Exchange-traded funds ("ETFs") and closed-end investment companies ("CEFs") are valued at the last quoted sales price.

Repurchase agreements are valued at amortized cost, which approximates market value.

The value of futures contracts is accounted for using the unrealized gain or loss on the contracts that is determined by marking the contracts to their current realized settlement prices. Financial futures contracts are valued at the 4:00 p.m. price on the valuation date for the afternoon pricing cycle. In the event that the exchange for a specific futures contract closes earlier than 4:00 p.m., the futures contract is valued at the Official Settlement Price of the exchange. However, the underlying securities from which the futures contract value is derived are monitored until 4:00 p.m. to determine if fair valuation would provide a more accurate valuation.

The value of OTC swap agreements and credit default swap agreements entered into by a Fund is accounted for using the unrealized gain or loss on the agreements. For the afternoon pricing cycle, the agreements are marked at the close of the NYSE to the relevant index or, if there is an afternoon trade, to the “fill”. The swap's value is then adjusted to include dividends accrued, and financing charges and/or interest associated with the swap agreements.

Investments for which market quotations are not readily available are fair valued as determined in good faith by GI under the direction of the Board of Trustees using methods established or ratified by the Board of Trustees. These methods include, but are not limited to: (i) obtaining general information as to how these securities and assets trade; and (ii) obtaining other information and considerations, including current values in related markets.

In connection with futures contracts and other derivative investments, obtaining information as to how (a) these contracts and other derivative investments trade in the futures or other derivative markets, respectively, and (b) the securities underlying these contracts and other derivative investments trade in the cash market.

B. When a Fund engages in a short sale of a security, an amount equal to the proceeds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Fund maintains a segregated account of cash and/or securities as collateral for short sales.

Fees, if any, paid to brokers to borrow securities in connection with short sales are recorded as interest expense. In addition, the Fund must pay out the dividend rate of the equity or coupon rate of the obligation to the lender and record this as an expense. Short dividend or interest expense is a cost associated with the investment objective of short sales transactions, rather than an operational cost associated with the day-to-day management of any mutual fund. The Funds may also receive rebate income from the broker resulting from the investment of the proceeds from securities sold short.

C. Upon entering into a futures contract, a Fund deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is affected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.

48  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

D. Swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Payments received or made as a result of an agreement or termination of the agreement are recognized as realized gains or losses.

Credit default swap agreements are marked-to-market daily and the change, if any, is recorded as unrealized gain or loss. Upfront payments received or made by a Fund on credit default swap agreements are amortized over the expected life of the agreement. Periodic payments received or paid by a Fund are recorded as realized gains or losses. Payments received or made as aresult of a credit event or termination of the contract are recognized, net of a proportional amount of the upfront payment, as realized gains or losses.

E. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain and loss from investments.

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

F. Security transactions are recorded on the trade date for financial reporting purposes. Realized gains and losses from securities transactions are recorded using the identified cost basis. Proceeds from lawsuits related to investment holdings are recorded as realized gains in the respective Fund. Dividend income is recorded on the ex-dividend date, net of applicable taxes withheld by foreign countries. Taxable non-cash dividends are recorded as dividend income. Interest income, including amortization of premiums and accretion of discounts, is accrued on a daily basis. Distributions received from investments in REITs are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer.

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

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

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

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

2. Financial Instruments

As part of their investment strategy, the Funds utilize short sales and a variety of derivative instruments. These investments involve, to varying degrees, elements of market risk and risks in excess of the amounts recognized in the Statements of Assets and Liabilities.

A short sale is a transaction in which a Fund sells a security it does not own. If the security sold short decreases in price between the time the Fund sells the security and closes its short position, that Fund will realize a gain on the transaction. Conversely, if the security increases in price during the period, that Fund

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  49 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.

A futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities or other instruments at a set price for delivery at a future date. There are significant risks associated with a Fund’s use of futures contracts, including (i) there may be an imperfect or no correlation between the changes in market value of the underlying asset and the prices of futures contracts; (ii) there may not be a liquid secondary market for a futures contract; (iii) trading restrictions or limitations may be imposed by an exchange; and (iv) government regulations may restrict trading in futures contracts. When investing in futures, there is minimal counterparty credit risk to the Fund because futures are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees against default. Cash deposits are shown as restricted cash on the Statement of Assets and Liabilities; securities held as collateral are noted on the Schedule of Investments.

A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. A Fund utilizing OTC swaps bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. Additionally, there is no guarantee that a Fund or an underlying fund could eliminate its exposure under an outstanding swap agreement by entering into an offsetting swap agreement with the same or another party.

A credit default swap enables a Fund to buy or sell protection against a defined credit event of an issuer or a basket of securities. Generally, the seller of credit protection against an issuer or basket of securities receives a periodic payment from the buyer to compensate against potential default events. If a default event occurs, the seller must pay the buyer the full notional value of the reference obligation in exchange for the reference obligation. If no default occurs, the counterparty will pay the stream of payments and have no further obligations to the Fund selling the credit protection. A Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty, or in the case of a credit default swap in which the Fund is selling credit protection, the default of a third party issuer.

The Emerging Markets 2x Strategy Fund and Inverse Emerging Markets 2x Strategy Fund use derivative instruments to achieve leveraged exposure to their respective underlying indices. Since these Funds’ investment strategy involves consistently applied leverage, the value of the Fund’s shares will tend to increase or decrease more than the value of any increase or decrease in the underlying index. In addition, as investment in derivative instruments generally requires a small investment relative to the amount of investment exposure assumed, this creates an opportunity for increased net income but, at the same time, additional leverage risk. The Funds’ use of leverage, through borrowings or instruments such as derivatives, may cause the Funds to be more volatile and riskier than if they had not been leveraged.

In conjunction with the use of short sales and derivative instruments, the Funds are required to maintain collateral in various forms. The Funds use, where appropriate, depending on the financial instrument utilized and the broker involved, margin deposits at the broker, cash and/or securities segregated at the custodian bank, discount notes or the repurchase agreements allocated to each Fund.

There are several risks associated with exposure to foreign currencies, foreign issuers and emerging markets. A Fund’s indirect and direct exposure to foreign currencies subjects the Fund to the risk that those currencies will decline in value relative to the U.S. dollar, or, in the case of short positions, that the U.S. dollar will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad. In addition, the Fund may incur transaction costs in connection with conversions between various currencies. The Fund may, but is not obligated to, engage in currency hedging transactions, which generally involve buying currency forward, options or futures contracts. However, not all currency risk may be effectively hedged, and in some cases the costs of hedging techniques may outweigh expected benefits. In such instances, the value of securities denominated in foreign currencies can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar.

50  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Certain Funds may invest in securities of foreign companies directly, or in financial instruments, such as ADRs and exchange-traded funds, which are indirectly linked to the performance of foreign issuers. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Investing in securities of foreign companies directly, or in financial instruments that are indirectly linked to the performance of foreign issuers, may involve risks not typically associated with investing in U.S. issuers. The value of securities denominated in foreign currencies, and of dividends from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices in some foreign markets may fluctuate more than those of securities traded on U.S. markets. Many foreign countries lack accounting and disclosure standards comparable to those that apply to U.S. companies, and it may be more difficult to obtain reliable information regarding a foreign issuer’s financial condition and operations. Transaction costs and costs associated with custody services are generally higher for foreign securities than they are for U.S. securities. Some foreign governments levy withholding taxes against dividend and interest income. Although in some countries portions of these taxes are recoverable, the non-recovered portion will reduce the income received by the Fund.

Emerging markets, which consist of countries that have an emerging stock market as defined by Standard & Poor’s^®, countries or markets with low-to middle-income economies as classified by the World Bank, and other countries or markets with similar characteristics as determined by GI, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. As a result, the securities of emerging market issuers may present market, credit, currency, liquidity, legal, political and other risks different from, or greater than, the risks of investing in securities of developed foreign countries. In addition, the risks associated with investing in a narrowly defined geographic area are generally more pronounced with respect to investments in emerging market countries. The Fund may also be subject to this risk with respect to its investments in derivatives or other securities or financial instruments whose returns are related to the returns of emerging market securities.

The Trust has established counterparty credit guidelines and enters into transactions only with financial institutions of investment grade or better. The Trust monitors the counterparty credit risk.

3. Fees and Other Transactions with Affiliates

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

Fund	Management Fees (as a % of Net Assets)
Long Short Equity Fund	0.90%
Event Driven and Distressed Strategies Fund	0.90%
Emerging Markets 2x Strategy Fund	0.90%
Inverse Emerging Markets 2x Strategy Fund	0.90%
Emerging Markets Bond Strategy Fund	0.75%

GI has contractually agreed to reduce fees and/or reimburse expenses reimburse expenses for the Event Driven and Distressed Strategies Fund to the extent necessary to keep net operating expenses relative to the average daily net assets of A-Class, C-Class, H-Class, and Institutional Class Shares (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, dividends on securities sold short, and extraordinary expenses) ("Excluded Expenses") from exceeding 1.90%, 2.65%, 1.90%,and 1.65%, respectively. Total Expenses include Excluded Expenses (as defined by U.S. GAAP) and, thus, from time to time may be higher than 1.90%, 2.65%, 1.90% and 1.65%, respectively. This Agreement may be terminated only with the approval of the Fund’s Board of Trustees.

RFS provides transfer agent and administrative services to the Funds for fees calculated at the annualized rate of 0.25% based on the average daily net assets of each Fund.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  51 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

RFS also provides accounting services to the Funds for fees calculated at annualized rates below, based on the average daily net assets of each Fund. Effective August 1, 2013, Emerging Markets 2x Strategy Fund and Inverse Emerging Markets 2x Strategy Fund increased their fund accounting fees to 0.15% of fund net assets.

Fund Accounting Fees	(as a % of Net Assets)
Emerging Markets 2x Strategy Fund	0.15%
Inverse Emerging Markets 2x Strategy Fund	0.15%
Emerging Markets Bond Strategy Fund	0.15%
Remaining Funds
On the first $250 million	0.10%
On the next $250 million	0.075%
On the next $250 million	0.05%
Over $750 million	0.03%

RFS engages external service providers to perform other necessary services for the Trust, such as audit and accounting related services, legal services, custody, printing and mailing, etc., on a pass-through basis. Such expenses are allocated to various Funds within the complex based on relative net assets.

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

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

For the period ended September 30, 2014, GFD retained sales charges of $161,615 relating to sales of A-Class shares of the Trust.

Certain trustees and officers of the Trust are also officers of GI, RFS and GFD.

4. Fair Value Measurement

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

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

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

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

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

52  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The following table summarizes the inputs used to value the Funds’ net assets at September 30, 2014:

	Level 1 Investments In Securities		Level 1 Other Financial Instruments*		Level 2 Investments In Securities		Level 2 Other Financial Instruments*		Level 3 Investments In Securities		Total
Assets
Long Short Equity Fund	$	43,214,304	$	—	$	2,733,279	$	—	$	—	$	45,947,583
Event Driven and Distressed    Strategies Fund		6,175,585		—		4,222,991		—		—		10,398,576
Emerging Markets 2x Strategy    Fund		41,161,518		—		3,783,587		—		—		44,945,105
Inverse Emerging Markets 2x    Strategy Fund		—		1,862		1,734,615		80,097		—		1,816,574
Emerging Markets Bond    Strategy Fund		35,701		—		272,505		9,326		—		317,532
Liabilities
Long Short Equity Fund	$	14,311,887	$	—	$	—	$	—	$	—	$	14,311,887
Event Driven and Distressed    Strategies Fund		—		74,596		—		103,074		—		177,670
Emerging Markets 2x Strategy    Fund		—		454,917		—		1,009,024		—		1,463,941
Emerging Markets Bond    Strategy Fund		—		1,147		—		—		—		1,147

* Other financial instruments may include futures contracts and/or swaps, which are reported as unrealized gain/loss at period end.

For the period ended September 30, 2014, there were no transfers between levels.

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

5. Repurchase Agreements

The Funds transfer uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by obligations of the U.S. Treasury and U.S. Government Agencies. The collateral is in the possession of the Funds’ custodian and is evaluated to ensure that its market value exceeds, at a minimum, 102% of the original face amount of the repurchase agreements. Each Fund holds a pro rata share of the collateral based on the dollar amount of the repurchase agreement entered into by each Fund.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  53 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

At September 30, 2014, the repurchase agreements in the joint account were as follows:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
RBC Capital Markets			U.S. TIP Notes
(0.05)%			0.13% - 2.50%
Due 10/01/14	$339,522,378	$339,521,906	01/15/16 - 01/15/23	$285,293,500	$346,312,829
UMB Financial Corp.			U.S. Treasury Notes
0.00%			1.00% - 3.25%
Due 10/01/14	140,385,761	140,385,761	09/30/16 - 12/31/16	137,466,300	143,193,502
Mizuho Financial Group, Inc.			U.S. Treasury Note
0.01%			2.13%
Due 10/01/14	198,522,378	198,522,406	09/30/21	136,520,000	135,760,728
			U.S. TIP Notes
			0.13% - 1.63%
			01/15/15 - 04/15/16	57,126,400	66,732,140
HSBC Group			U.S. Treasury Strips
0.00%			0.00%
Due 10/01/14	87,599,687	87,599,687	08/15/18	94,804,900	89,351,722
Credit Suisse Group			U.S. Treasury Note
(0.05)%			0.25%
Due 10/01/14	7,283,778	7,283,768	05/15/16	7,435,100	7,429,556

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

6. Disclosures about Credit Derivatives

In accordance with their principal investment strategies, the Event Driven and Distressed Strategies Fund and the Emerging Markets Bond Strategy Fund enter into credit default swaps as a seller of protection primarily to gain exposure similar to the high yield bond market. Credit default swaps are instruments which allow for the full or partial transfer of third party credit risk, with respect to a particular entity or entities, from one counterparty to the other. A seller of credit default swaps is selling credit protection or assuming credit risk with respect to the underlying entity or entities. If a credit event occurs, as defined under the terms of the swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. The Notional Principal reflects the maximum potential amount the Fund could be required to make as a seller of credit protection if a credit event occurs. As the seller of protection, the Fund receives periodic premium payments from the counterparty and may also receive or pay an upfront premium adjustment to the stated periodic premium. In the event a credit event occurs, an adjustment will be made to any upfront premiums that were received by a reduction of 1.00% per credit event.

The quoted market prices and resulting market values for credit default swap agreements on securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period end. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.

54  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

The tables on pages 22 and 42 included in the Schedules of Investments summarize the information with regard to sold protection on credit default swap contracts as of September 30, 2014.

7. Derivative Investment Holdings Categorized by Risk Exposure

U.S. GAAP requires 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.

The following Funds utilized derivatives for the following purposes:

Fund	Index Exposure	Liquidity	Leverage
Long Short Equity Fund	—	x	—
Event Driven and Distressed Strategies Fund	x	x	—
Emerging Markets 2x Strategy Fund	x	x	x
Inverse Emerging Markets 2x Strategy Fund	x	x	x
Emerging Markets Bond Strategy Fund	x	x	—

The following table represents the notional amount of derivative instruments outstanding as an approximate percentage of the Funds’ net assets on a daily basis.

	Approximate percentage of Fund's net assets on a daily basis
Fund	Long	Short
Long Short Equity Fund	—	—
Event Driven and Distressed Strategies Fund*	160%	—
Emerging Markets 2x Strategy Fund	120%	—
Inverse Emerging Markets 2x Strategy Fund	—	200%
Emerging Markets Bond Strategy Fund*	120%	—

* These Funds utilize a combination of interest rate and/or financial-linked derivatives to obtain exposure to their benchmarks. The gross derivative instrument exposure is 210% and 265% for the Event Driven and Distressed Strategies Fund and the Emerging Markets Bond Strategy Fund, respectively.

The following is a summary of the location of derivative investments on the Funds’ Statements of Assets and Liabilities as of September 30, 2014:

Derivative Investment Type	Asset Derivatives	Liability Derivatives
Equity/Interest Rate contracts	Variation margin	Variation margin
Equity/Credit contracts	Unrealized appreciation on swap agreements	Unrealized depreciation on swap agreements

The following table sets forth the fair value of the Funds’ derivative investments categorized by primary risk exposure at September 30, 2014:

Asset Derivative Investments Value
Fund	Futures Equity Contracts*			Swaps Equity Contracts			Futures Interest Rate Contracts*			Swaps Credit Default Contracts			Total Value at September 30, 2014
Inverse Emerging Markets 2x Strategy Fund		$	1,862		$	80,097		$	—		$	—		$	81,959
Emerging Markets Bond Strategy Fund			—			—	��		—			9,326			9,326

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  55 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

Liability Derivative Investments Value
Fund	Futures Equity Contracts*			Swaps Equity Contracts			Futures Interest Rate Contracts*			Swaps Credit Default Contracts			Total Value at September 30, 2014
Event Driven and Distressed Strategies Fund		$	63,191		$	83,049		$	11,405		$	20,025		$	177,670
Emerging Markets 2x Strategy Fund			454,917			1,009,024			—			—			1,463,941
Emerging Markets Bond Strategy Fund			—			—			1,147			—			1,147

* Includes cumulative appreciation (depreciation) of futures contracts as reported on the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The following is a summary of the location of derivative investments on the Funds' Statements of Operations for the period ended September 30, 2014:

Derivative Investment Type	Location of Gain (Loss) on Derivatives
Equity/Interest Rate contracts	Net realized gain (loss) on futures contracts
	Net change in unrealized appreciation (depreciation) on futures contracts
Equity/Credit contracts	Net realized gain (loss) on swap agreements
	Net change in unrealized appreciation (depreciation) on swap agreements

The following is a summary of the Funds’ realized gain (loss) and change in unrealized appreciation (depreciation) on derivative investments recognized on the Statements of Operations categorized by primary risk exposure for the period ended September 30, 2014:

Realized Gain (Loss) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts			Futures Interest Rate Contracts		Swaps Credit Default Contracts			Total
Long Short Equity Fund	$	(64,507	)	$	—		$	—	$	—		$	(64,507	)
Event Driven and Distressed Strategies Fund		(56,663	)		(247,022	)		29,967		97,494			(176,224	)
Emerging Markets 2x Strategy Fund		(443,157	)		2,775,643			—		—			2,332,486
Inverse Emerging Markets 2x Strategy Fund		(36,016	)		(2,992,706	)		—		—			(3,028,722	)
Emerging Markets Bond Strategy Fund		—			—			58,381		(241,617	)		(183,236	)

Change in Unrealized Appreciation (Depreciation) on Derivative Investments Recognized on the Statements of Operations
Fund	Futures Equity Contracts			Swaps Equity Contracts			Futures Interest Rate Contracts		Swaps Credit Default Contracts			Total
Event Driven and Distressed Strategies Fund	$	(34,786	)	$	(34,031	)	$	30,985	$	(43,935	)	$	(81,767	)
Emerging Markets 2x Strategy Fund		(454,917	)		(1,226,699	)		—		—			(1,681,616	)
Inverse Emerging Markets 2x Strategy Fund		948			738,070			—		—			739,018
Emerging Markets Bond Strategy Fund		—			—			40,086		(71,670	)		(31,584	)

8. Offsetting

In the normal course of business, the Funds enter into transactions subject to enforceable master netting arrangements or other similar arrangements. Generally, the right to offset in those agreements allows the Funds to counteract the exposure to a specific counterparty with collateral received or delivered to that counterparty based on the terms of the arrangements. These arrangements provide for the right to liquidate upon the occurrence of an event of default, credit event upon merger or additional termination event.

56  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

In order to better define their contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs OTC derivatives, including foreign exchange contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark to market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty. For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately on the Statement of Assets and Liabilities as segregated cash with broker/receivable for variation margin, or payable for swap settlement/variation margin. Generally, the amount of collateral due from or to a counterparty must exceed a minimum transfer amount threshold (e.g., $300,000) before a transfer is required to be made. To the extent amounts due to the Funds from their counterparties are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty nonperformance. The Funds attempt to mitigate counterparty risk by only entering into agreements with counterparties that they believe to be of good standing and by monitoring the financial stability of those counterparties.

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statements of Assets and Liabilities.

The following tables present derivative financial instruments and secured financing transactions that are subject to enforceable netting arrangements and offset in the Statements of Assets and Liabilities in conformity with U.S. GAAP.

											Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Assets1			Gross Amounts Offset in the Statements of Assets and Liabilities			Net Amount of Assets Presented on the Statements of Assets and Liabilities			Financial Instruments			Cash Collateral Received2			Net Amount
Inverse   Emerging   Markets 2x   Strategy   Fund	Swap equity contracts		$	80,097		$	—		$	80,097		$	—		$	—		$	80,097

											Gross Amounts Not Offset in the Statements of Assets and Liabilities
Fund	Instrument	Gross Amounts of Recognized Liabilities1			Gross Amounts Offset in the Statements of Assets and Liabilities			Net Amount of Liabilities Presented on the Statements of Assets and Liabilities			Financial Instruments			Cash Collateral Pledged2			Net Amount
Event   Driven and   Distressed   Strategies   Fund	Swap equity contracts		$	83,049		$	—		$	83,049		$	—		$	—		$	83,049
Emerging   Markets 2x   Strategy   Fund	Swap equity contracts			1,009,024			—			1,009,024			—			—			1,009,024

1	Exchange traded futures and centrally cleared swaps are excluded from these reported amounts.
2	Excludes maintenance margin deposits held at the broker related to derivatives. These amounts are reflected as Segregated cash with broker on the Statements of Assets and Liabilities.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  57 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

9. Federal Income Tax Information

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

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

The RIC Modernization Act of 2010 was signed into law on December 22, 2010, and simplified some of the tax provisions applicable to regulated investment companies, the tax reporting to their shareholders and improved the tax efficiency of certain fund structures. The greatest impact to the disclosure in the financial reports for the Funds was on the treatment of net capital losses, effective for tax years beginning after December 22, 2010.

One of the more prominent changes addresses capital loss carryforwards. The Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010, for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. Under pre-enactment law, capital losses could be carried forward for eight years, and carried forward as short-term capital, irrespective of the character of the original loss. As a result of this ordering rule, pre-enactment capital carryforwards may potentially expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.

At September 30, 2014, the cost of securities for Federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value, were as follows:

Fund	Tax Cost		Tax Unrealized Gain		Tax Unrealized Loss			Net Unrealized Gain (Loss)
Long Short Equity Fund	$	45,868,433	$	1,793,010	$	(1,713,860	)	$	79,150
Event Driven and Distressed Strategies Fund		10,417,957		—		(19,381	)		(19,381	)
Emerging Markets 2x Strategy Fund		47,604,227		337,142		(2,996,264	)		(2,659,122	)
Inverse Emerging Markets 2x Strategy Fund		1,734,615		—		—			—
Emerging Markets Bond Strategy Fund		308,438		—		(232	)		(232	)

10. Securities Transactions

For the period ended September 30, 2014, the cost of purchases and proceeds from sales of investment securities, excluding government securities, short-term investments and derivatives, were as follows:

Fund	Purchases		Sales
Long Short Equity Fund	$	53,963,384	$	53,248,200
Event Driven and Distressed Strategies Fund		3,782,215		600,000
Emerging Markets 2x Strategy Fund		184,916,048		146,199,803
Inverse Emerging Markets 2x Strategy Fund		—		—
Emering Markets Bond Stratregy Fund		1,313,630		1,264,398

58  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

11. Related Transactions

The Funds may invest in the Guggenheim Strategy Funds Trust consisting of Guggenheim Strategy Fund I, Guggenheim Strategy Fund II, and Guggenheim Strategy Fund III (collectively, the “Cash Management Funds”), open-end management investment companies managed by GI. The Cash Management Funds, which launched on March 11, 2014, are offered as cash management options only to mutual funds, trusts, and other accounts managed by GI and/or its affiliates, and are not available to the public. The Cash Management Funds pay no investment management fees. The Cash Management Funds’ annual report on Form N-CSR dated September 30, 2014 will be available publicly or upon request.

12. Portfolio Securities Loaned

The Funds may lend their securities to approved brokers to earn additional income. Security lending income shown on the Statements of Operations is shown net of rebates paid to the borrowers and earnings on cash collateral investments shared with the lending agent. Within this arrangement, the Funds act as the lender, Credit Suisse acts as the lending agent, and other approved registered broker dealers act as the borrowers. The Funds receive cash collateral, valued at 102% of the value of the securities on loan. Under the terms of the Funds’ securities lending agreement with Credit Suisse,cash collateral is invested in one or more joint repurchase agreements collateralized by obligations of the U.S. Treasury or Government Agencies and cash. The Funds bear the risk of loss on cash collateral investments. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the Funds the next business day. Although the collateral mitigates the risk, the Funds could experience a delay in recovering their securities and a possible loss of income or value if the borrower fails to return the securities. The Funds have the right under the securities lending agreement to recover the securities from the borrower on demand.

At September 30, 2014, the Funds participated in securities lending as follows:

Fund	Value of Securities Loaned		Cash Collateral Received
Long Short Equity Fund	$	1,533,820	$	1,597,700
Event Driven and Distressed Strategies Fund		147,120		150,400
Emerging Markets 2x Strategy Fund		1,343,154		1,378,125

Cash collateral received was invested in the following repurchase agreements at September 30, 2014:

Counterparty and Terms of Agreement	Face Value	Repurchase Price	Collateral	Par Value	Fair Value
HSBC Securities, Inc.			Fannie Mae Strips
0.00%			0.00%
Due 10/01/14	$2,307,742	$2,307,742	11/15/19 - 11/15/30	$2,799,894	$1,929,577
			U.S. Treasury Note
			1.38%
			11/30/18	426,012	424,505
BNP Paribas Securities Corp.			U.S. TIP Bond
0.00%			2.13%
Due 10/01/14	378,318	378,318	02/15/41	283,056	385,908

There is also $440,164 in segregated cash held as collateral.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  59 

NOTES TO FINANCIAL STATEMENTS (Unaudited)(continued)

13. Line of Credit

The Trust, along with other affiliated trusts, secured an uncommitted, $75,000,000 line of credit from U.S. Bank, N.A., which expires June 13, 2015. This line of credit is reserved for emergency or temporary purposes. Borrowings, if any, under this arrangement bear interest equal to the Prime Rate, minus 2%, which shall be paid monthly, averaging 1.25% for the period ended September 30, 2014. The Funds did not have any borrowings under this agreement at September 30, 2014.

The average daily balances borrowed for the period ended September 30, 2014, were as follows:

Fund	Average Daily Balance
Emerging Markets 2x Strategy Fund	$	54,939
Inverse Emerging Markets 2x Strategy Fund		15,797

14. Legal Proceedings

Tribune Company

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

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

The FitzSimons action and the SLCFC actions have been consolidated with the majority of the other Tribune LBO-related lawsuits in a multidistrict litigation proceeding captioned In re Tribune Company Fraudulent Conveyance Litig., No. 11-md-2696 (S.D.N.Y.) (the “MDL Proceeding”).

On September 23, 2013, the District Court granted the defendants’ omnibus motion to dismiss the SLCFC actions, on the basis that the creditors lacked standing. On September 30, 2013, the creditors filed a notice of appeal of the September 23 order. On October 28, 2013, the defendants filed a joint notice of cross-appeal of that same order. The appeals have been fully briefed, and oral argument in front of the U.S. Court of Appeals for the Second Circuit occurred on November 5, 2014.

On May 23, 2014, the Shareholder Liaison Counsel filed a “global” motion to dismiss Count I of the FitzSimons action on behalf of all Shareholder Defendants. Count I is the claim for intentional fraudulent conveyance brought under federal law, and the global motion, if granted, would result in the dismissal of all Shareholder Defendants from the lawsuit. The District Court has not yet issued a decision on the motion.

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

60  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS (Unaudited)(concluded)

Lyondell Chemical Company

In December 2011, Rydex Series Funds was named as a defendant in Weisfelner, as Trustee of the LB Creditor Trust, v. Fund 1 (In re Lyondell Chemical Co.), Adv. Pro. No. 10-4609 (Bankr. S.D.N.Y.) (the “Creditor Trust action”).

Similar to the claims made in the Tribune matter, the Weisfelner complaint seeks to have set aside and recovered as fraudulent transfers from former Lyondell Chemical Company (“Lyondell”) shareholders the consideration paid to them pursuant to the cash out merger of Lyondell shareholders in connection with the combination of Lyondell and Basell AF in 2007. Lyondell filed for bankruptcy in 2008.

On April 7, 2014, the plaintiff filed a Third Amended Complaint. In the related action entitled Weisfelner, as Trustee of the LB Litigation Trust v. A. Holmes & H. Holmes TTEE (In re Lyondell Co.), Adversary Proceeding No. 10-5525 (Bankr. S.D.N.Y.) (the “Litigation Trust action”), the plaintiff also filed a Second Amended Complaint that alleges a claim against the former Lyondell shareholders under federal law for intentional fraudulent transfer.

On May 8, 2014, the plaintiff in the Litigation Trust action filed a motion to certify a defendant class generally comprised of all former Lyondell shareholders that received proceeds in exchange for their shares in the 2007 merger transaction. If the Court agrees to certify a defendant class, a judgment could bind all members of the group (whether or not individually named in the litigation). The defendants plan to oppose the motion.

On July 30, 2014, the defendants filed a motion to dismiss all three lawsuits. The Court will hold an oral argument on the motions to dismiss and on the motion for class certification on January 14, and, if necessary, January 15, 2015. The Court further ordered that, with certain exceptions, all discovery in the actions shall be stayed until the briefing of the class certification motion has concluded. Discovery shall begin promptly after the completion of all briefing on the class certification motion in late December 2014.

These lawsuits do not allege any wrongdoing on the part of Rydex Series Funds. The following series of Rydex Series Funds received cash proceeds from the cash out merger in the following amounts: Basic Materials Fund - $1,725,168; Long Short Equity Fund f/k/a U.S. Long Short Momentum Fund - $2,193,600; Global 130/30 Strategy Fund - $37,920; Hedged Equity Fund - $1,440; and Multi-Hedge Strategies Fund - $1,116,480. At this stage of the proceedings, Rydex Series Funds is not able to make a reliable predication as to the outcome of these lawsuits or the effect, if any, on a Fund’s net asset value.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  61 

OTHER INFORMATION (Unaudited)

Proxy Voting Information

A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to securities held in the Funds’ portfolios is available, without charge and upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 800.820.0888. This information is also available from the EDGAR database on the SEC’s website at http://www.sec.gov.

Quarterly Portfolio Schedules Information

The Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q; which are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330. Copies of the portfolio holdings are also available to shareholders, without charge and upon request, by calling 800.820.0888.

Office Locations

The offices of Guggenheim Investments can be found in the following locations:

330 Madison Avenue10th FloorNew York, NY 10017(Headquarters)

Four Irvington Centre805 King Farm BoulevardSuite 600Rockville, MD 20850

9401 Indian Creek Parkway40 Corporate WoodsSuite 850Overland Park, KS 66210

Distributor Change

Effective March 3, 2014, Guggenheim Distributors, LLC (“GD”), the distributor for shares of the Funds was consolidated into and with Guggenheim Funds Distributors, LLC (“GFD”). Following the consolidation, GFD serves as the Funds’ distributor.

GD and GFD are both indirect, wholly-owned subsidiaries of Guggenheim Capital, LLC and, therefore, the consolidation will not result in a change of actual control of the Funds’ distributor. The primary goal of the consolidation is to achieve greater operational efficiencies and allow all of the Guggenheim funds, including funds that are not series of the Trusts, to be distributed by a single distributor.

The consolidation is not expected to affect the day-to-day management of the Funds or result in any material changes to the distribution of the Funds, including any changes to the distribution fees paid by the Funds.

62  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

OTHER INFORMATION (Unaudited)(continued)

Board Considerations in Approving the Investment Advisory Agreement

At in-person meetings of the Board of Trustees (the “Board”) of Rydex Series Funds (the “Trust”) held on May 15 and June 4, 2014 (each, a “Meeting” and, together, the “Meetings”), called for the purpose of, among other things, consideration of, and voting on, the approval and continuation of the investment advisory agreement applicable to each series of the Trust (each, a “Fund” and, collectively, the “Funds”), the Board, including the Trustees who are not “interested persons,” as defined by the Investment Company Act of 1940, of the Trust (the “Independent Trustees”), unanimously approved the continuation of the investment advisory agreement (the “Investment Advisory Agreement”) between the Trust and Security Investors, LLC (the “Advisor”) with respect to each of the Funds for an additional one-year period, based on the Board’s review of qualitative and quantitative information provided by the Advisor.

In reaching the conclusion to approve the continuation of the Investment Advisory Agreement, the Independent Trustees requested and obtained from the Advisor such information as the Independent Trustees deemed reasonably necessary to evaluate the Investment Advisory Agreement. The Advisor provided the Board with a wide variety of information, including comparisons of Fund performance and fees relative to comparable peer funds in advance of the May 15, 2014 Meeting. The Independent Trustees carefully evaluated the information provided as well as information they received throughout the year as part of their regular oversight of the Funds. At the Meetings, independent legal counsel advised the Independent Trustees with respect to their deliberations and their fiduciary responsibilities associated with the Board’s consideration of the continuation of the Investment Advisory Agreement. The Board also received a memorandum from Fund counsel regarding the Board’s responsibilities when considering the approval of an investment advisory agreement.

During the Meetings, the Board, including the Independent Trustees, evaluated a number of considerations, including among others: (a) the nature, extent and quality of the Advisor’s investment advisory and other services; (b) the Advisor’s investment management personnel; (c) the Advisor’s operations and financial condition; (d) the Advisor’s brokerage practices (including any soft dollar arrangements) and investment strategies; (e) a comparison of the Funds’ advisory fees to the fees charged to comparable funds or accounts, paying special attention to the absence of breakpoints in these fees and the Advisor’s rationale for not including breakpoints; (f) each Fund’s overall fees and operating expenses compared with those of peer funds; (g) the Advisor’s profitability with respect to its Fund-related operations; (h) the Advisor’s compliance systems; (i) the Advisor’s policies and compliance procedures applicable to personal securities transactions; (j) the Advisor’s reputation, expertise and resources in the financial markets; and (k) Fund performance compared with that of peer funds and/or appropriate benchmarks. In its deliberations, the Board did not identify any particular factor as controlling, noting that each Trustee could attribute different weights to the various factors considered.

Based on the Board’s deliberations at the Meetings, the Board, including all of the Independent Trustees, unanimously: (a) concluded that the terms of the Investment Advisory Agreement are fair and reasonable; (b) concluded that the Advisor’s fees were reasonable in light of the services that it provides to the Funds; and (c) agreed to approve and continue the Investment Advisory Agreement based upon the following considerations, among others:

• Nature, Extent and Quality of Services Provided by the Advisor. At the Meetings, the Board reviewed the scope of services to be provided by the Advisor under the Investment Advisory Agreement and noted that there would be no significant differences between the scope of services required to be provided by the Advisor for the past year and the scope of services required to be provided during the upcoming year. The Board also considered the Advisor’s representations to the Board that the Advisor would continue to provide investment and related services that were of materially 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 Funds’ operations, the competitive landscape of the investment company business and investor needs.

• Fund Expenses and Performance of the Funds and the Advisor. At the Meetings, the Board reviewed statistical information provided by the Advisor regarding the expense ratio components and performance of each Fund. The Advisor engaged FUSE Research Network LLC (“FUSE”), an independent, third party research provider, to prepare advisory contract renewal reports to help the Board fulfill its advisory contract renewal responsibilities. The reports compared the Funds’ fees, expenses and total return performance to those of comparable funds in the Funds’ peer group and the broader peer universe, as determined by FUSE. Statistical information in the FUSE reports related to the expense ratio components was based on a comparison of the Funds’ and peer funds’ actual advisory fees, waivers/reimbursements, and gross and net total expenses. The Board also considered the Advisor’s representation

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  63 

OTHER INFORMATION (Unaudited)(concluded)

that it found the peer groups compiled by FUSE to be appropriate. The statistical information related to the performance of each Fund included three month and one, three, and five year performance for the Fund compared to its peers and its appropriate benchmark.

• Costs of Services Provided to the Funds and Profits Realized by the Advisor and its Affiliates. At the Meetings, the Board reviewed information about the profitability of the Funds to the Advisor based on the advisory fees payable under the current Investment Advisory Agreement for the last calendar year. At the Meetings, the Board also analyzed the Funds’ expenses, including the investment advisory fees paid to the Advisor, and reviewed reports comparing the expense ratios of the Funds to those of other comparable funds. The Board also reviewed information regarding the direct revenue received by the Advisor and ancillary revenue received by the Advisor and/or its affiliates in connection with the services provided to the Funds by the Advisor and/or its affiliates. The Board also discussed the Advisor’s profit margin as reflected in the Advisor’s profitability analysis.

• Economies of Scale. In connection with its review of the Funds’ profitability analysis at the Meetings, the Board considered the absence of breakpoints in the Advisor’s fee schedule and reviewed information regarding the extent to which economies of scale or other efficiencies may result from increases in the Funds’ asset levels. In light of the relatively small size of many of the Funds and the fact that the size of individual Funds in the complex increases and decreases significantly from time to time due to unlimited trading that is permitted among most of the Funds in the complex, the Board concluded that economies of scale were not likely to be directly realized as a result of increases in the asset levels of the individual Funds, and accordingly, fee breakpoints were not currently appropriate for the Funds.

• Other Benefits to the Advisor and/or its Affiliates. In addition to evaluating the services provided by the Advisor, the Board considered the nature and amount of other benefits received by the Advisor and its affiliates as a result of their relationship with the Funds. In particular, the Board considered the nature, extent and quality of the administrative, distribution, and shareholder services performed by the Advisor’s affiliates and the fees paid to the Advisor’s affiliates for those services under separate agreements. In light of the costs of providing services pursuant to the separate agreements as well as the Advisor’s and its affiliates’ commitment to the Funds, the ancillary benefits the Advisor and its affiliates received were considered reasonable. The Board also noted that the Advisor reports portfolio transactions on behalf of the Funds, including the cost of such transactions, placed through an affiliate of the Funds or the Advisor at each quarterly Board meeting.

On the basis of the information provided to it and its evaluation of that information, the Board, including the Independent Trustees, concluded that the approval of the Investment Advisory Agreement would enable Fund shareholders to continue receiving high quality services at a cost that was appropriate, reasonable, and in the best interests of the Funds and their shareholders. The Board, including the Independent Trustees, unanimously approved the continuation of the existing Investment Advisory Agreement.

64  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)

A Board of Trustees oversees the Trust, as well as other trusts of GI, in which its members have no stated term of service, and continue to serve after election until resignation. The Statement of Additional Information includes further information about Fund Trustees and Officers, and can be obtained without charge by calling 800.820.0888.

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INTERESTED TRUSTEE
Donald C. Cacciapaglia** (1951)	Trustee from 2012 to present.	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group, Inc. (2002-2010).	220	Delaware Life (2013-present); Guggenheim Life and Annuity Company (2011-present); Paragon Life Insurance Company of Indiana (2011-present).
INDEPENDENT TRUSTEES
Corey A. Colehour (1945)	Trustee and Member of the Audit, Governance, Nominating, and Investment and Performance Committees from 1998 to present.	Retired.	131	None.
J. Kenneth Dalton (1941)	Trustee, Member and Chairman of the Audit Committee, and Member of the Governance and Nominating Committees from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	Trustee of Epiphany Funds (4) (2009-present).
John O. Demaret (1940)	Vice Chairman of the Board of Trustees from 2014 to present; Trustee from 1998 to present and Chairman of the Board from 2006 to 2014; Member and Chairman of the Audit Committee from 1998 to present; and Member of the Risk Oversight Committee from 2010 to present.	Retired.	131	None.
Werner E. Keller (1940)	Chairman of the Board from 2014 to present; Vice Chairman of the Board of Trustees from 2010 to 2014; Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present; and Chairman and Member of the Risk Oversight Committee from 2010 to present.	Current: Founder and President, Keller Partners, LLC (investment research firm) (2005-present).	131	None.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  65 

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(continued)

Name, Address* and Year of Birth of Trustee	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee***	Other Directorships Held by Trustee
INDEPENDENT TRUSTEES - concluded
Thomas F. Lydon, Jr. (1960)	Trustee and Member of the Audit, Governance, and Nominating Committees from 2005 to present.	Current: President, Global Trends Investments (registered investment adviser) (1996-present).	131	US Global Investors (GROW) (1995-present).
Patrick T. McCarville (1942)	Trustee, Member of the Audit Committee, and Chairman and Member of the Governance and Nominating Committees from 1998 to present.	Retired. Former: Chief Executive Officer, Par Industries, Inc., d/b/a Par Leasing (1977-2010).	131	None.

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS
Donald C. Cacciapaglia (1951)	President (2012-present).	Current: President and CEO, certain other funds in the Fund Complex (2012-present); Vice Chairman, Guggenheim Investments (2010-present). Former: Chairman and CEO, Channel Capital Group Inc. (2002-2010).
Michael P. Byrum (1970)	Vice President (1999-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); President and Chief Investment Officer, Rydex Holdings, LLC (2008-present); Director and Chairman, Advisory Research Center, Inc. (2006-present); Manager, Guggenheim Specialized Products, LLC (2005-present). Former: Vice President, Guggenheim Distributors, LLC (2009); Director (2009-2010) and Secretary (2002-2010), Rydex Fund Services, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors, LLC; Director (2008-2010), Chief Investment Officer (2006-2010), President (2004-2010) and Secretary (2002-2010), Rydex Advisors II, LLC.
Nikolaos Bonos (1963)	Vice President and Treasurer (2003-present).	Current: Senior Vice President, Security Investors, LLC (2010-present); Chief Executive Officer, Guggenheim Specialized Products, LLC (2009-present); Chief Executive Officer & President, Rydex Fund Services, LLC (2009-present); Vice President, Rydex Holdings, LLC (2008-present). Former: Senior Vice President, Security Global Investors, LLC (2010-2011); and Senior Vice President, Rydex Advisors, LLC and Rydex Advisors II, LLC (2006-2011).

66  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

INFORMATION ON BOARD OF TRUSTEES AND OFFICERS (Unaudited)(concluded)

Name, Address* and Year of Birth	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years
OFFICERS - concluded
Elisabeth Miller (1968)	Chief Compliance Officer (2012-present).	Current: CCO, certain other funds in the Fund Complex (2012-present); CCO, Security Investors, LLC (2012-present); CCO, Guggenheim Funds Investment Advisors, LLC (2012-present); Vice President, Guggenheim Funds Distributors, LLC (March 2014-present). Former: CCO, Guggenheim Distributors, LLC (2009-March 2014); Senior Manager, Security Investors, LLC (2004-2009); Senior Manager, Guggenheim Distributors, LLC (2004-2009).
Joseph M. Arruda (1966)	Assistant Treasurer (2006-present).	Current: Assistant Treasurer, certain other funds in the Fund Complex (2006-present); Vice President, Security Investors, LLC (2010-present); CFO and Manager, Guggenheim Specialized Products, LLC (2009-present). Former: Vice President, Security Global Investors, LLC (2010-2011); Vice President, Rydex Advisors, LLC (2010); Vice President, Rydex Advisors II, LLC (2010).
Amy J. Lee (1961)	Vice President (2009-present) and Secretary (2012-present).	Current: Chief Legal Officer, certain other funds in the Fund Complex (2012-present); Senior Managing Director, Guggenheim Investments (2012-present). Former: Vice President, Associate General Counsel and Assistant Secretary, Security Benefit Life Insurance Company and Security Benefit Corporation (2004-2012).

*	All Trustees and Officers may be reached c/o Guggenheim Investments, 805 King Farm Boulevard, Suite 600, Rockville, MD 20850.
**	Mr. Cacciapaglia is an “interested” person of the Trust, as that term is defined in the 1940 Act by virtue of his affiliation with the Adviser’s parent company.
***	The “Fund Complex” includes all closed-end and open-end funds (including all of their portfolios) advised by the Adviser and any funds that have an investment adviser or servicing agent that is an affiliated person of the Adviser. Information provided is as of the date of this report.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  67 

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)

Rydex Funds, Guggenheim Funds, Rydex Investments, Guggenheim Funds Distributors, LLC, Security Investors, LLC, Security Distributors, Inc., Guggenheim Partners Investment Managers, LLC, and Rydex Advisory Services (Collectively “Guggenheim Investments”).

Our Commitment to You

When you become a Guggenheim Investments 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 Guggenheim Investments 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 Guggenheim Investments account application or when you request a transaction that involves Rydex and Guggenheim Investments funds or one of the Guggenheim Investments 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 Guggenheim Investments. For example, if you ask to transfer assets from another financial institution to Guggenheim Investments, we will need to provide certain information about you to that company to complete the transaction. To alert you to other Guggenheim Investments investment products and services, we may share your information within the Guggenheim Investments family of affiliated companies. This would include, for example, sharing your information within Guggenheim Investments so we can make you aware of new Rydex and Guggenheim Investments funds or the services offered through another Guggenheim Investments 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.

68  |  THE RYDEX FUNDS SEMI-ANNUAL REPORT

GUGGENHEIM INVESTMENTS PRIVACY POLICIES (Unaudited)(concluded)

How We Protect Privacy Online

Our concern for the privacy of our shareholders also extends to those who use our web site, guggenheiminvestments.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 Guggenheim Investments 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 Guggenheim Investments 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.

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 guggenheiminvestments.com. Should you have any questions regarding our privacy policy, contact us at 800.820.0888 or 301.296.5100.

THE RYDEX FUNDS SEMI-ANNUAL REPORT  |  69

Item 2. Code of Ethics.

Not applicable at this time.

Item 3. Audit Committee Financial Expert.

Not applicable at this time.

Item 4. Principal Accountant Fees and Services.

Not applicable at this time.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this form.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s President (principal executive officer) and Treasurer (principal financial officer) have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective as of that date in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. 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)	Rydex Series Funds
By (Signature and Title)*	/s/ Donald C. Cacciapaglia
	Donald C. Cacciapaglia, President
Date	December 9, 2014

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/ Donald C. Cacciapaglia
	Donald C. Cacciapaglia, President
Date	December 9, 2014
By (Signature and Title)*	/s/ Nikolaos Bonos
	Nikolaos Bonos, Vice President and Treasurer
Date	December 9, 2014

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